RECKLESS PUBLIC SPENDING

Dominion, Volume 10, Issue 3079, 9 May 1917, Page 6

RECKLESS PUBLIC SPENDING

WARNING BY AUSTRALIAN .... ' . BACKER, ..'.-..:. - A further 'contribution to the warnings which have been uttered m Australia of late by leaders of S , " l institutions was' made at .the nairycarly meeting of .the National Bank if. Australasia,"" Limited.-'Sir John Grice, chairman of directors of the bank, said he would be a venturesome man who would attempt to forecast the. general financial and other conditions after the war, and he dul not propose to do that. We had a "rich country and enregetio population,, and given fair seasons and good prices for our products- we could carry reasonable taxation, but we must have moderate and stable government, with an administration determined to .spread equitably over all classes/of the people the burdens it had to impose otherwise it would be difficult for the community to maintain its prosperity, and impossible for it to progress. He need not reiterate, though he. cordially agreed with the exhortations to frugalitv in public and private matters put forward at bank meetings within the last few days. .Ho would, however, like to go further, and say that wo were living in a . "fool's paradise" if we thought that our prosperity, caused by abnormal conditions, giving us exceptionally >>igh prices for our productions, and our apparent. and fictitious prosperity caused by the circulation of huge sums of borrowed nioney, could be permanent. Sooner or later we must return to normal receipts, but to our ordinary expenditure would then bo added the interest on our.tremendous debts, which must be" paid. Allowing for the possibility of the war lasting for another year, the ■ interest bill would be greater than,, anyone could conceive who had not very carefully considered the - finances of Australia, Wo would not reproach our rulers with these heavy liabilities in so far as they had been incurred for the purpose of winning the war, but w?,erc in such times as we,arc now living in they had been- greatly increased by unnecessary expenditure deliberately incurred, those who nad laid, and who were.continuing to lay, that crushing load on the people need not hope to be treated with the slightest consideration at the hands of the. community. (Applause.)