TOPICS OF THE DAY

Evening Post, Volume CXI, Issue 136, 9 June 1926, Page 8

TOPICS OF THE DAY

Whether loans authorised (£8,330,----474) or actual advances (£0,269,403) are considered, it is plain that the lending operations of tho Government during the1 past year have been exceptionally heavy. In part, however, this is attributable to the accumulation of applications at a time when the Advances Department's funds were low. The loans approved should break the back of long-standing applications and leavo the Department reasonably clear to deal with current business. One lesson to be learnt from the figures is that the lending is upon. such a scale that the country cannot afford to make advances at a loss. There has been an outcry by some Labour politicians against tho increased rates of interest, but can any of these objectors claim that this Government or.any other has the right, much less the duty, to lend £8,000,000 in a year at a loss of half or 1 per cent. —thereby placing upon the Consolidated Fund an annual charge of any sum between £40,000 and £80,000? It is unquestionably right for the State to use its resourscs and its borrowing powers in order to borrow in the best market for the benefit of settlers and workers. But the Government, without the consent of the people, has no right to subsidise one section at the expense of the whole.

Already the Minister of Education has had Brought under his notice some pressing claims for additional accommodation for primary schools. Though his predecessor undoubtedly attacked this problem of overcrowding with a will, there is yet much to be done before conditions can be deemed satisfactory. We do not expect that Mr. Wright will be able to institute sweeping reforms. His energy, however great, will not enable him to build new classrooms unless he can obtain the money. But he can perform useful service by bringing into operation the far-sighted policy which he advocates. Our present difficulties aro greater than they should have been if reasonable foresight had been shown. All ovor New Zealand wooden buildings are in need of renewal; yet there aro no definite renewal funds available. We have urged many times that this policy ■of hand-to-mouth provision should not be continued. The Government should take stock of its educational building programme,, and make definite provision each year for renewals and extensions. It should not be difficult to estimate the amount required. Then when it became necessary to rebuild a school or enlarge it the money would be available. The present process of agitation and deputation is bad for all interests. It puts a premium upon political favour (which should not enter into education policy), and it tends to divert attention from those whose need is greatest to those whose demands are most persistent.

A new downward phase in the movoinent of the French franc has, it is reported, forced on the French Government the serious step of restricting imports. While France appears to be anxioua to balance her imports and oxports, certain British manufacturers complain that their goods are being undersold in the Now Zealand market by French manufacturers helped by their own depreciated currency. This matter is discussed equivocally in an interview in another column, in which are quoted figures of imports and exports (Customs values) for the year 1925, taken from a recent useful publication of the New Zealand Government, "Trade and Shipping" for 1925. But, valuable as its figures are, they do not

enable the reader to determine questions of under-selling based on a currency that moves as rapidly as the franc. Any case for levying a depreciated currency duty against a French or Belgian article would need to be based on a complete statement of all values and prices up to date in the particular line complained about. In 1925 the balance of trade with New Zealand was in France's favour. We sent her £000,814 worth of goods, and we received goods of French origin valued at £918,572.