OUR FINANCIAL CREDIT.

Hawera Star, Volume XLVIII, 5 November 1924, Page 7

OUR FINANCIAL CREDIT.

PRAISE FROM ENGLISH CRITICS. STRONG POSITION APPARENT. English files to hand by the present mail contain comprehensive, references of a most flattering nature in two of the . world’s leading financial jolirnals to ■ ■ the financial : stability of New Zealand. Below are some extracts from a lengthy article in the Economist on September 20: “Dwellers in Albion will learn with surprise—and not a little envy—that in certain happy Isles on the other side of the world successive Finance Ministers have not merely been able substantially. ...to*' ease the taxpayers’ burden without any upset of budgetary equilibrunf, but have in five years devoted to desirable social developments and amount almost equal to the whole of the Government’s current annual income without any appreciable increase in, the national debt. If to this be added that the debt is itself largely represented by revenue-earning assets, the full j strength of New Zealand’s financial position will be apparent. The story of these achievements is narrated in the financial accounts for 1923-24 presented the Dominion Parliament by Mr. Massey on July 23 last. “The delivery of the Budget has given fairly .general satisfaction. The very strong financial condition of the Dominion is apparent throughout the statement of the finances,''and though it closes on a note of warning against extravagence, the tone of the Minister’s speech is one of quiet and justifiable optimism. In the course of economic: recovery from the difficulties that followed the sharp fall of prices in 1920, the’Dominion revenue is still buoyant, and shows a further increase in 1923-4 of £380,927, despite a remission of 20 per cent, in the income-tax and the removal of the super-tax upon the unimproved value of land. “The reductions in expenditure carried out in previous years have been more than maintained, and the year’s accounts show a futher net decrease of expenditure which is gratifyingUpon the strength of these sustained decreases and the buoyancy of the revenue, the Minister is able to promise further reductions in taxation, but has not indicated what form they will take. It is generally understood, however, that the land and incometax will be chosen for reduction, even though the Government is unable to carry out in full the recommendations of the Royal (Commission whose report was commented upon recently in the colums of The Economist. “The financial operation of a New Zealand Government axe intricate and hard to follow, since there are so many lending departments, and the cross-operations by means of which the advances to settlers and workers department uses accumulated surpluses or balances of oth. departments are apt to be confusing. But the net result has been that the public debt is almost stationary) while at the same time considerable outlay upon development work has been possible. “For the last financial year alone, 9.648 new borrowers received loans amounting to over eight millions. The machinery of State advances has, in fact, done a great deal to solve the housing problem of the Dominion, and to solve it in the right way, by making it possible for workers to own .their own homes and pay for them in the course of a period varying from 20 to 36 years. During the last five years the number of houses erected with State assistance of this type become the property of the borrowers was 30.459, and the amount insolved was almost 19 millions. In addition, sums, amounting to 13 millions were lent on mortgage by various departments, all of which is in addition to the amount spent upon soldier settlement. That. this expenditure could have been made without adding to the net debt is proof of the great recources and buoyant prosperity of the Dominion. “On the whole, the proud review of developement with which Mr. Massey closes his Budget is the best reason for future confidence. To take only the main export items in the last ten years, during which population has increased by 18 per cent., the following impressive figures may be quoted: DECADE INCREASE, 1915-1924. Volume Value percent, percent. Wool 37 35 Frozen Meat ... 18 103 Butter 236 418 Cheese 136 288 “These figures explain why a population of 1.300,000 has over 700,000 depositors in the Post Office Savings Bank with deposits amounting to over 44 millions.”