"PRODIGAL SONS"

Greymouth Evening Star, 27 June 1914, Page 8

"PRODIGAL SONS"

MJMUG T!'£ FATTED CALVES. AUSTRALIAN STATE FINANCE. ''A:iSOLUTELY RIOTOUS.'' "It's a case of the Prodigal Son with very little prospect of there being a fatted calf. ' Such was the declaration of Mr. J. Edmond, editor of the Sydney Buileton, when describing the financial extravagances of 'the State Labour Governments in Australia to a "Post" representative at Wellington the other day. "The Federal Government in Australia," he cxphiik-d, "has done no borrowing as yet. All the borrowing has been done by the State Governments, and in < ontinuing the policy several of have gone utterly mad borrowing at a rate that was never heard of'before. The three States that are burning most violently on loan money are New £outh Wales, Queensland/and West Idstralia. In IGO4 the six States of the Commonwealth added £5,000,000 to their public debt; in 1913 they added £20,000,000. When the Labour Government came into power in New South Wales it was pledged to ■he reduction of borrowing, but its record has been that it has increased the rile of borr-.wins! from £2,000,000 per year to £8,500,000: It also proposed to- establish a sinking fund for the whole of the public debt; instead it has suspended the little sinking fund that used to exist. It promised economy in public finance ; well, the deficit air one year was about £1,600,000, and it has nearly doubled the direct taxation '.o meet it. It promised also that -uch loan funds as it raised would pay I' ill interest and sinking fund. Well, the loan money has be-en applied so badly that the profit we used to get out of the railways and tramways has completely disappeared, and the,fares have been put up to cover the deficit. All these beautiful promises are still on the programme of the New South Wales Labou • Early, and presumably they will still be there at the next General Election : but no one seems to take the least notice ■;.£ them. "West Australia in proportion to its population is borrowing even more heavily than New South Wales. Australia his had a <sood many booms at dil'feient times, but the present is easily the biggest boom that has ever yet been made on foreign loan money. The first day that Britain is in trouble and has not got money to spare for foreign bans, that is to say, the first day when one of our loans does not float, there is a chance of a heroic smash in Australia."

'"Shore is." concluded Mr. Edmond, "■i wonderful differpree between the State and the Fedrral Labour patties. The Federal Labour Party was in power f :.r some years and its finance was strici.lv honest and strictly economic. We have two State Labour Governments, one in New South Wales and the other in West Australia, and all that can be said of their finances is that the" have been absolutely riotous. The rnl'v possible explanation seems to be tint the'man at the head of the Federal Labour Party is very different from those at the head of the two State Labour Parties."