SIR JOSEPH WARD’S FINANCE.

Gisborne Times, Volume XXVI, Issue 2120, 20 February 1908, Page 2

SIR JOSEPH WARD’S FINANCE.

now SURPLUSES Ail Mi MANUFACTURED. While Si.' Joseph Ward (writes a correspondent to the Now XoiLiiiu “Herald”) is sounding the loud tniinjjct as to his surplus and tho buoyant tiuanee, it is wpll to look a ilittlo il,olow tho surface, of things, Busiitsp men who have investigated the pu >- lie linanco from time to itime, are far From satisfied at -ttho ti aimer in which these “surpluses” are arrived .it. Take the railways, lor .nstance whoso .accounts are supposed to he based on sound .principles. The rails as first laid down were charged, to capital account, he., loans. Now heavier rails are being laid, and these also (ire being charged to loan, l lieie is no .depreciation fund or writing oil the cost <il the first lot ol lightei mils, hut both lots are charged to capital account. If an engine wears out the first cost of it is not written olf, hut a new engine account, ai.o both remain Charges to capital, Kune with public buildings, which are all provided .for out of Joan moneys. I a building wears out, or is burnt down, the Government provides notliin<r from revenue lor -reinstatement, hut simnly borrows again for a new building. As is well-known, side Inside with the ordinary revenue ami expenditure accounts there is the Public Works Fund Jinanced with borrowed money. This fund disburses about two and one-quarter millions per annum, and it (lias been estimated I)v manv business .men that lully a million of this should never he charged to this fund at .all, but bo met from the ordinary revenue. ibis would have the effect of absorbing ill the make believe “surplus of Ihrce-quartors of a million, .and leave a deficit of a quarter of a million, which reurosents nearer the true position of the. colony’s finance according to the methods of book-keep-in.r ;l dented by sound-business men generally. All the subsidies for roads, bridges,‘baths, town clocks, etc., cost the Government revenue nothing; eyorv lieniiv of it is from tlie 1-üblic Works Fund. The Government aro maintaining roads throughout tile Dominion on borrowed money, anti are also granting compassionate allowances in connection with public works officials, out of borrowed funds. Some time ago the Government contrilmted hal-f towards improving the footpaths outside their buildings, all of which was charged to loan. By this method of bookkeeping it is quite easy to produce surpluses. Hie lone continued Liberal Government has”developed this method of finance to mi extent tlia-t will give the people of this country a Tiule shock when the day of .awakening arrives. New Zealand demands from her Government sound finance,, not surpluses built upon manipulation of figures, such as I have only touched the fringe of, in the examples above quoted. _