NOTES OF THE DAY

Dominion, Volume 25, Issue 153, 24 March 1932, Page 8

NOTES OF THE DAY

In all the circumstances, the deficit in the national accounts fo the current financial year of £2,500,000 forecast by the N 0 Finance was not unexpected and is not as bad as might 1 ave been anticipated. The striking fact is the lack-. Q f resiliency by revenue. Apparently the taxable capacity of the country has been reached and passed. In more prosperous times increased imposts gave higher yields but the same treatment is no. ' Ol1 K el e^e^ tlv ’ Revenues continue to languish; the old elast.city is gone The lesson is that, since receipts cannot be increased, spending must bc .educed. Unfortunately almost half the revenue is required for non-adjustab e. expenditure and the cut must be all the deeper mto adjusUb c expenditure. The Government cannot continue to pile up deficits and it should be remembered that a legitimate surplus has not been shown since the financial year 1927-28. That condition cannot continue indefinitely and, since the revenue side is unresponsive, more economy must be shown in expendituie. *

It almost seems unnecessary reiteration to emphasise the importance of maintaining the resources and efficiency of our s.c'entiric research institutions. A remark by Dr, E. S. Horning, of the biologica staff of the Medical School at. Sydney University, deserves attention as additir opportune and authoritative emphasis to the point. H. an interview in Auckland, Dr. Horning observed that it was rathei wonderful how Germany in a time of acute financial stringency managed to maintain an extraordinary degree of efficiency in hei scientific institutions. It is evident that the Germans, recognise tha. to stint expenditure in this particular field,, even in times of stress, would be false economy. Therein is a hint to this much younger country, where the scientific research worker has had a long tight to obtain recognition of bis place and value in the national economy. That his position has yet to be firmly established is a fact occasionally manifested even to-day in ill-informed criticism of his work, and depreciatory statements as to the value of it to the community. It is important that this country should have at hand for counsel and guidance in the development of its resources and the conduct of its affairs men who know, and it would be short-sighted policy to curtail expenditure in this connection. * * '

It has now become certain that Mr. de Valera is going to exploit his recent. victory at the polls by. making trouble with Britain over the Free State’s" Treaty obligations. His communication to the British Government in regard to the Oath of Allegiance and the payment of the annuities has been regarded at Westminster as a most serious document. He states that he has been advised that tte Oath is not mandatory in the Treaty. On the contrary, it is pari of the Treaty. He argues in defence of his attitude that the paramount consideration making the l<rec States decision final and irrevocable was that the people had declared their will without ambiguity,” Here again the facts are against him. His is a minority Government, kept in power at the pleasure of the Labour Party The state of parties is of the very essence of ambiguity. As for the Oath itself it is in the text nothing more nor less than a formal acknowledgment of the sovereignty of King George V and his x successors over Great Britain and the Dominions, of which the State is one. Mr. de Valera seems to have all the fanaticism o! Mr. Gandhi in his attitude toward the British connection, It has been found impossible to reason with the latter, and according to present indications Mr. de Valera is likely to be as hopeless a nrnnositioil