Greymouth Evening Star. AND BRUNNERTON ADVOCATE. MONDAY, MAY 20th., 1912. THE FINANCES.

Greymouth Evening Star, 20 May 1912, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. MONDAY, MAY 20th., 1912. THE FINANCES.

The statement of the position of the Dominion’s finances, which our Wellington correspondent supplied on Friday last, contains some interesting information respecting last year’s revenue and expenditure. The most notable features are the existence of another enormous credit balance, amounting to £807,275, and an unprecedented increase in the expenditure. We have repeatedly contended that the existence of a large credit balance at the end of the financial year should not be made the cause for rejoicing which has marked its announcement during recent years. As a matter of fact, a credit balance, especially when it approximates three-quarters of a million sterling, unerringly shows that the Minister of Finances has absolutely failed to accurately gauge the requirements of the country' and has over-taxed the people to the extent of the surplus. That is the position the people of New Zealand find themselves in this.year. They have actually paid into" the Colonial Treasury, the very substantial sum of £807,275 more than the ordinary governmental purposes necessitated. Under the circumstances, it is the obvious duty of the Government to grant the people

relief to the extent of at least Jialf a million sterling. That end eon Id best be accomplished by a judicious revision of the tariff in which the abolition of the duties : on ; The: necessaries of life could be made, a salient feature. The second point to which we have directed attention relates to the continual and steady growth of the departmental expenditure. Last year, the “out-goings” increased by no less than £997,263, surely a staggering amount for a dominion which boasts of only a little over one million inhabitants. The official' statement shows j that permanent appropriations expanded by" £243,759, and annual appropriations (departmental expenditure) by £753,494, a total increase of £997,263. In this large advance the bill for interest and sinking funds shows an increase of £197,887, railways £160,901, defence £186,601, internal affairs £123,695. The increase for defence (from £205,269 to £401,870) had to be expected from the operation of the compulsory military training scheme, but 1 the people who pay the taxes are hardly likely to abject to that seeing that it is really the price of national security and of their personal liberties. The increase in the railways is about equal to the gain in the revenue (£181,858) and can be accounted for, in a large measure, by the recent advances in wages to the employees. Even allowing for this, it is still evident that the railway finances require re-organis-ation. Will Mr. Myers prove himself equal to the task? The census and the general elections were responsible for the increase in the Department of Internal Affairs. Wo are loft then with the larger bill for interest. An addition of £197,887 under this head in one year appears too large, though possibly a greater portion of it may be received from remunerative undertakings constructed opt of loan .money. We await the Minister’s explanation on the point. The salient characteristic of the entire statement is that the public services are yielding a moderately increased revenue, while the expenditure has gone up by leaps and bounds. Caution and prudence must be the keynote of the. immediate future.