The Dominion. FRIDAY, AUGUST 27, 1915. NEW ZEALAND'S WAR BUDGET

Dominion, Volume 8, Issue 2551, 27 August 1915, Page 6

The Dominion. FRIDAY, AUGUST 27, 1915. NEW ZEALAND'S WAR BUDGET

The War Budget which was read in the House of Representatives last night by the Minister of Finance (Sir Joseph Ward), gives a full and clear statement of the financial posir ticra of the Dominion. ' It is a severely business-like document, and contains little or nothing in the shape of rhetorical embellishment. The appearance^of the Budget of 1015 has'been anxiously awaited by all seotions of the community! • The falling-off in our imports and the general unscttlement and . feeling of uncertainty caused by the war has naturally resulted in.a very considerable drop in certain forms of revenue. Tnere has, however, been an inorcasc from otter sources, and the total receipts for the financial year represents an excess of £219,186 oyer the previous year's figures, while the expenditure was loss than the cstiiTiato by £184,748. The results of the year's Operations is summarised as following Balance brought forward, April 1, 1914' 426,005 Receipts (luring year... .-612,451,915 Expenditure: 12,379,803 Excess of receipts over expenditure ; '72,142 490,047 Transfer to Public Works FuniL,. 350,000 Balance, Marcli 3?. '191? i149,(!47 Taking all things into consideration tho position thus disclosed _ must be regarded as decidedly satisfactory. Since tho close of the financial year, however, the strain of the war has been making itself moro severely felt and there has b-wm a falling-off in revenue as wel) tis increased expenditure.' The cost of the war lias placed a heavy strain on the country's finances, and a considerable increase in taxation lias becpnie absolutely necessary. The actual war expenditure up to June DO, 1915, inclusive of liabilities, is estimated at about £u,500,000, and we must expect the call from this quarter io go on increasing as wc put larger forces in the field, The taxation proposals of the- Government which nr« dwigiv [cd to secure the additional revenue .

required arc discussed ill another article, and need not be referred to here further than to state that they involve extra taxes and charges totalling £2,000,000.. At a-time like the present the need - for strict economy as regards the cost of government' and in connection with the working of the State .Departments is .imperative. Some references to the duty of prudence on the part of the Government and the pcoplo are made in the Budget. The appeal to the country to avoid anything in the 'Shape of waste and extravagance is worthy of attention; but it would be more impressive if it had been accompanied by a definite indication' of the nature and extent of the economies which' the Government itsfelf intends to put into operation. The proposal to raiso a two million loan locally may be necessary, .but we should have preferred to have seen a loan for a lesser amount made-to suffice. _ Fortunately no part of the Empire is in a better position to face the financial burden of the war /than New Zealand. We are a producing country, and,, thanks to_ the power and efficiency of the British Navy, our tirado has gone on almost as uninterruptedly 'as in - times of peace. In 1913-14 our exports amounted to £23,471,131, ana-in 1914-15 the total increased to £2/,476,823, the highest point ever icached. The increase is duo both to higher prices and to larger quantities ,of goods sent away. When the war commenced many . pcoplo. predicted that _ there wouid 1)3 a.good deal of distress owing to unemployment, but the Budget tells us that "after the lapse of two months what promised to be a period of depression developed into one of increased activity, and there has been little difficulty in providing employment for applicants." No British has felt the strain of war less severely than wo have. We know that we can do much- more for the Empire than we have hitherto done, and Sir J6seph Ward rightly gauges the temper of tho community when he says that "the people can bo trusted to bear with equanimity whatever is necessary as. New Zealand's share in maintaining the high traditions and priceless freedom of the British Empire." We are fully prepared to'pay our share of the cost of victory whatever the cost may be: : The National Government has a ; resolute and united country behind it.' Party controversies have been hushed, and the Budget proposals,, framed • in a national spirit, will be received aud considered in a spirit of concession and conciliation by the nation. Sir Joseph Ward is 'to be'congratulated, on ,the clearness and comprehensiveness of his statement. A high tone is maintained throughout, and one feels that the Minister has a due sense tof -flie great responsibility cast upon the Government at this most momentous time.