Facing the Music

Dominion, Volume 25, Issue 91, 12 January 1932, Page 9

Facing the Music

Sir, —It will be with great feelings of relief that all citizens who understand the serious financial conditions of this country have read the statement of the Prime Minister in your issue of January 6, viz: That such items of public expenditure as the building of the Dunedin Post Office, at a cost of £200,000, are to be held over indefinitely. It appears that the majority of our population, including members of Parliament, have not the faintest idea of the seriousness of the crisis which this country is now facing. The facts should be placed plainly and bluntly before the public, and appear to be as follows:— (1) That this country has indulged in an orgie. of extravagance, in which Parliament, local bodies and private people have all taken part, and now we must pay the piper. (2) That the load of public and local body debt is crushing the country, and that it will be impossible to find revenue wherewith to meet the present rate of expenditure, and pay interest. (3) That primary production provides practically the whole base ef our financial structure, which is, owing to the present state of the world’s markets, in a parlous state. (4) Returns received by graziers (the so-called “Wool Kings”) for the year have been sufficient to meet working expenses only. They have received nothing in the way of interest on their capital in land and stock. Any expenditure, such ns clearing scrub or erecting fences, has had to be paid out of capital. Breeders of fat lambs and dairy farmers have received some interest on capital, but with the present prices of fat lamb and dairy produce, they, too, will not earn any interest on capital this season. (5) This means that there will be no taxable income received from farming this year. (6) Traders are only at the best just holding their own, and will have little or no taxable income this year. (7) The pooling of London exchange for governmental requirements will curtail imports and reduce Customs revenue. (8) Owners of town properties have had to reduce rents, and many buildings are vacant. Mortgagees have had to reduce interest, and in many cases are receiving no interest. The above remarks apply, also, to local body finance throughout the country, and thev. especially cities and boroughs, will find great difficulty in collecting rates. The levying of taxes and rates is one thing, but the collecting of them when people have not the wherewithal to pay is a very different matter; yet by some means the money has to be found. The Government and local bodies must have funds for carrying on. and interest must bo met. The position is desperate, and the facts must be faced. There is only one way of getting rid of liabilities, and that is to repay them. It is useless to try and make ourselves believe we have turned the corner. We have not reached it. and will only get round it by the same methods as employed by the old pioneers, hard work and thrift, and the elimination of all extravagance, public and private. It is foolish and unfair to throw the whole burden upon the shoulders of the Prime Minister and his colleagues. The collective thought and proposals of the best brains are required to help ns win through. It is not n “one mnn job." but the responsibility of ihc whnin onm...„niii- -I nm. etc. SPERO MELIORA. Wanganui, January V.