The Dominion. WEDNESDAY, OCTOBEE 18, 1911. AN ERROR EXPOSED.

Dominion, Volume 5, Issue 1262, 18 October 1911, Page 6

T he Dominion. WEDNESDAY, OCTOBEE 18, 1911. AN ERROR EXPOSED.

A stranger present during a portion of the proceedings in tho Houso of Representatives yesterday afternoon would havo had any illusions he may have possessed respecting the dignity of Parliament rudely shattered. The Prime Minister, smarting under tho exposure of a Bcrious error in his Financial Statement, was giving rein to his feelings in one of those wild outbursts which are becoming so distressingly frequent with him: shouting at the top of his voice, using unpleasant and foolish epithets towards his opponents; hurling unworthy accusations broadcast, and by his violent and undignified behaviour lowering the dignity of his high office, and dragging down the tone of Parliamentary debate. The members of the Opposition could well afford to smile at the ebullition of temper on the part of the Leader of tha House, but it must be growing increasingly painful for tho Ministerial following to witness theso frequent Lapses of their party head, and especially is this so when, a-s was tho case yesterday, it was so plain to all that ho was entirely in tho wrong and waa only making bad worse by his noisy irrclevancies. The question which gave rise to Sir Joseph Ward's ill-temper arose out of what was plainly an oversight on his part in preparing his Budget. It will bo recalled that in tho Budget he laid himself out, quite properly from his point of view, to give a very exhaustivo analysis of the Public Debt, and in tho course of which ho summarised the position as follows:— Sir Joseph Ward's Statement of tee Position. Total gross Public Debt 81,078,122 Less accumulated Sinking Funds 1,240,734 Net debt 79,837,388 This table will be found on page 6 of tho Budget, exactly as it is reproduced above. During the Financial debate Mr. James Allen pointed out that amongst n, number of errors which ho had discovered in tho Bud-

got was tho over-statement of the net debt of tho Dominion by something like two million pounds, and twitted the PitniE Minister with injuring the credit of the country by his gross carelessness in this respect. He proved his charge by tho following table, which he had prepared from tho official records, and which will be found on page Gl9 of Hansard, No. 15, of the present session: Me. James Allen's Statement. Total gross Public Debt 81,073,122 Leas accumulated Sinking Funds 1,240,734 Not debt 79,837,383 Deduct also Kinking Funds of Stato Guaranteed loans 473,300 79,364,023 Deduct also Advances to Settlors KcEorve Fund, £50,CC0, and Ee?orvo Fluid Securities, Bank of N.Z. shares, etc. (seo pago 35, Budget), £1,635,240 1,685,240 Net debt - 77,678,788 When the Peijie Minister disputed the figures of Mr. Allen, the member for Bruce moved for a return showing tho gross public debt at March 31, 1911, in detail; also the total accumulated sinking funds and the total net debt. This return was laid before Parliament yesterday, and bears the signatures of the Secretary and the Accountant of tho Treasury. And what does it prove: that Mr. Allen was right and that the Prime Minister was wrong. So that there can be no room for doubt on the subject, we reproduce the figures of the Treasury officials: The Official Statement. Amount out- Sinking Net standing. Funds. debt. £ £ £ Ordinary debt... 65,673,884 1,048,043 64,625,841 Add Sinking ?nnds in respect of War and Defence loans — 192,691 - Invostnjcnts in securities included above K.Z. "consols Investment Account - 535,240 - Investments in Eccui'itics held undor Public EsaervGs Act, lKi — eco.coo Bank of N.Z. preference shares hold by Goverfimint - SCO.CCO — Totals 65,673,884 2,875,974 62,797.910 Under- N.Z. Stato Guaranteed AdTttucce Acts 15,-404,236 513,752 14,890,486

Totals 81.078,122 3,389,725 77.633.355 x lfc would Ik thought that in face of the return provided by tho Treasury officials, which boars out Mr. Allen's estimates to within a few thousand pounds, and which shows tl;o l'nns;: A-iiNiSTsn to be over two millions in error, that Sir Joseph Waed would end tho matter bv frankly admitting his oversight. iMothing of the kind. Instead he shouted and abused his critics, and strove to obscure the itsuc in all sorts of ways. Hie principal point was that because the State Guaranteed Advances Dcjiaitj meat borrowings wore included 111 a I separate account under a special Act f.he sinking funds attached to thoiu could not be set off araimt, the trross debt ■of the Dominion. How ho could make such an absurd assertion in face of the fact that h<> had himself—quite propcrlv—included the State Guaranteed Advance borrowings in his gross total of the I public debt, is beyond our comprni bciision. His argument was simply I this: tha-t he must include these loam I in the pross debt, but ho could not ■ credit them with the sinking funcl'j ; attached to them when showing the I net debt. Of course this is too I ridiculous for argument, as is clearly ' shown bv the Treasury officials' v re- ; turn. The incident is, however,' not ; without its lesson. It permits the j public to see the lengths to which the Prime Minister of the country will go when he desires to cover up .an error ho has_ oommittcd_ in bis capacity of Minister for Finance. It is easier to forgive him his blunder than to overlook tho means he reKorfccd to in his attempt to conceal it.