TOPICS OF THE DAY

Evening Post, Volume CXI, Issue 129, 1 June 1926, Page 8

TOPICS OF THE DAY

There would appear to be some doubt concerning the course of action resolved upon by the City Council following the Northland Tunnel investigation. In commenting upon the subject, after the Council had discussed the report, wo stated: — This slackness lies almost wholly at the doors of the old Council, but the new Council, -which includes many members of tho old, could not with justice, mete out punishment to. officers who wore in a measure the victims of the system which the elected body permitted to continue. We adhere to that opinion. When the elected representatives (or some of them, for the blame does not rest wholly upon the present Council) have, themselves been so lax, it would be hypocritical for them to hunt out a scapegoat in order that it might be driven into the wilderness with the burden of their own sins. But punishment is one thing, and the reorganisation demanded by the Tunnel disclosures is another. It is urgently essential that the Council should now shake off its laxity and institute'thorough reforms—beginning with itself and its own methods of conducting publio business. There were rumours of something wrong at Northland long before the first public discussion.- There will continue to bo rumours concerning public works of every description unless there is such publicity that confidence is restored. Committee methods are essential sometimes, and often they are convenient; but a public body responsible to a wide electorate should bo chary of using this, convenience; There is public uneasiness now concerning the Council's action. Its resolution to take no action "for tho present" probably means that tho status of all officers involved in • the inquiry-will be considered when a now City Engineer has been appointed. But there is, in the ■ Council's resolution, no definite /assurance upon this point, and the public have a right to the-, assurarice that there will. be thorough investigation and reorganisation to prevent such a chapter of blunders as that of which the Northland Tunnel is the unsightly monument. . This reorganisation, in our opinion, should be made before the Council decides what strengthening measures should be put in hand at the Tunnel.

The depressing record of Australian and New Zealand loans left more than half with the underwriters has been shattered by our latest 5 per cent, issue of six millions, over-subscribed, in1 London. To be so heartily taken up by the investors is to achieve at once a moral victory. Moreover, it is also a comparative success,'for the return to the lender, in the case. of.tho New-Zealand loan, is not threepence higher than it was iv the cases of the Australian loans that the underwriters could not unload. At tho same time, the , return1 to the lender—as Nvill be seen by reference to our news columns—is substantially above what it was in the case qf New Zealand's 4J per cent. £7,000,000 loan last year, 85 per cent, of which did not immediately go off. The • return which tho London investor has accepted in full this May exceeds the return offered last Slay by a figure which will. add over £11,000 a year to the cost of the new six millions loan. And that fact is ono more reminder that money costing over 5 per cent, in London must not bo invested in New Zealand in any but tho soundest undertakings.

"Exports arc forecasted and imports are rationed accordingly." The evidence of the British Conservative delegation is that the Russian dictatorship, with .its iron discipline, finds out what Russia can sell (export) and limits accordingly that which Russia buys (imports). For good or ill, there: is no such' dictatorship in New ■ Zealand; and tho last financial year ended with •an excess of imports of over four millions. No doubt there rests in the Banks a financial dictatorship whereby, through* restrictions of credit, private imports could be reduced;^ but Banks canuot so easily prevent Governments from borrowing abroad, and borrowing

obviously connotes corresponding importation. And in this respect the Soviet wizards afford no light, because it is quite evident that, however Spartan their finance may be in the matter of imports, they are out hot-foot after external loans. Everyone agrees that excess-importing is reprehensible, but the borrowing that inflates imports and Customs revenue is the last thing that any Government is prepared to relinquish.

Though he is a coal-owner in Somerset, it is obvious that the Prince of Wales cannot take sides in the mining or any other dispute. Yet His Boyal Highness has managed to intervene in a way that cannot but help in inducing that reasonable spirit which is essential for a settlement. His gift of ten guineas to 'the district miners' wives and children's fund will be appreciated, but not more so than tho kindly and chivalrous message accompanying it. "Wo all owe a debt to tho miners in the past,'' stated the message. "Everyone sympathises' with their wives and children in their hour of distress. Further, it would be an undesirable end to any dispute, that one side should have to give in on account of the sufferings of their dependants. '' It is, indeed,. undesirable that there should be a war of attrition, with its legacy of bitterness. A reasonable settlement, accepted because both sides acknowledge the reason, is eminently, desirable. The goodwill on either side which the Prince bespeaks will be promoted by his own sympathetic action—an action which is, however, merely in accord with the .understanding . feeling which has established the British Throne, broad-based upon the affection of all tne people.'