PUBLIC FINANCES

Evening Post, Volume CXIII, Issue 114, 17 May 1927, Page 15

PUBLIC FINANCES

IN HEALTHY CONDITION

MR. COATE3 OPTIMISTIC

MORE PRODUCTION URGED

In the course of his speech at Dargaville last night the Prime Minister dealt with the finances of the Dominion and said that they were in a; healthy condition. He also expressed satisfaction at the success of the flotation of the recent £6,000,000 loan in London, saying that the result compared very favourably with that achieved by New South Wales. '

Mr. Coates stressed the point that British investors were more eager .to lend money for developmental works rather than to subscribe "towards advances to settlers and others to enable them to carry on their avocations. THE PUBLIC DEBT. Tho Public Debt (after deducting war debt and charges thereon) stood at approximately £163,500,000', the annual charge on which amounted to £7,193,000. Of the latter sum . the taxpayer was called on to find only £1,656,000, proving conclusively that, excluding the war debt, the Public Debt was financially productive to the extent of 77 per cent. Of the £163,----500,000, £122,720,000 was expended on productive purposes, which showed that the debt was in an entirely different category from that of most European countries, whose debts were almost entirely incurred for war purposes. After saying that Britain's restricted purchasing ppwer as the result of the industrial, upheaval had seriously affected her ability to absorb New Zealand's primary products and thus reduced our prosperity, but adding that there were signs of an improvement, Mr. Coates said that the solution of New Zealand's troubles lay in a determined effort on the part of" all our citizens. Brave hearts and a fixed determination were needed, and the, main slogan should be increased production. Prices of our marketable products were' lower, bu.t the costs of production remained the Bame. It was through greater effort and increased output on the part of those who were engaged in our industries, both primary and secondary, that we could expect to compete and at the same time maintain a satisfactory standard of living. If good results were not attained by that method, then the only course open was to face the' costs in another way. It wag essential if wo were to compete in the world's markets to see that enterprise could do so on a basis which would give incentive and encouragement to out citizens. PRUDENT FINANCIAL FABRIC. "In conclusion," said Mr. Coates, "I want to say that the Government went to the country in 1925 on a dofinite policy. The great majority of the electors approved that policy, and we are steadily translating that policy into practical application. ; , I made no attempt then to put forward a spectacular programme involving vast expenditure, nor containing financial promises. <The whole fabric of our community must rest on prudent finnnce. It must bo conceded by overy fair-mindod per; son that the financial condition of tho country is sound, and that our national credit abroad stands at high-water mark. For this satisfactory position tho Government is surely entitled to somo credit-Ar careful administratioa of public affairs. The Dominion, has faced periods of depression in the past, and the energy and industry of her people have always onabled her to win through. Tho present difficult times will prove no exception to tho rule. .■••■■♦

"Already the silver lining to the cloud is making itself, slowly but surely visible. -' At such times, when people aro feeling the pinch, thoro is, I know, a tendency to blame tho Government which happened to bo in office, I would, however, ask them to have patience'and employ their industry nnd effort, as I have already pointed out, to the really useful purpose of greater production. A little qiiiot stocktaking on tho part of all our people will do no harm. Indeed, it will bo all to the. good, for by tho oxorciso of greater thrift and economy wo shnll reach the goal of prosperity the sooner."