A GOOD EXAMPLE.

Hawera & Normanby Star, Volume XLIV, Issue XLIV, 27 February 1924, Page 8

A GOOD EXAMPLE.

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AUSTRALIA COMMENDS NEW ZEALAND.

Perhaps tho most flattering Iributo ever offered to New Zealand is that contained i» the- Sydney Sun, which likens tho Dominion to a modest little villa, paying its monthly bills, whilo Australia, a magnificent mansion, is threatened with tho bailiff.

"From tho spacious grounds occupied by tho mansion of Australia, we, who live in it, look across tho roadway with envy at the inudost villa on its small allotment with tho name 'New Zealand' on its cheap front gate," writes tho Sydney Si;n.

"Itiches do not depend on size. Com. pared with the compact little Dominion in tho Pacific Australia finds it harder to live within her incomo than New Zealand. Relatively we .ire harder up than our neighbour, though wo possess infinitely greater resources. "Tho Now Zealand I'rimo Minister (Mr. Massey) announces that tho pubHodebt hns been reduced by £1,3(X),000, and promises remission of taxation next session, and the abolition of the amusement tax

"While Australia is talking resignedly of borrowing money at G per cent., and over, New Zealand is cannily holding ofF. Mr. Massey knows that the price of money just now is too costly. Tho dearness of money, he admits, will interfere with development; but he wisely refuses to ask for any loan at the present prico. He means to mark timo for a few months, waiting to see if there is any change in the British market.

"The Dominion definitely announces that it will not pay G per cent. Instead of further loan commitments, Mr Masaey intends ti> reduce taxation, thereby setting a valuable example to the slack-spirited politicians of the Commonwealth. While the New South Wales Treasurer is wringing his hands over tho loan position brought about admittedly more by his predecessors than himself, tho New Zealand Treasurer takes the loftier stand, and says: 'Yoti can keep your dear money. We won't touch it.'

"If all tho Dominions adopted that attitude, and refused to plead for more loans, money would probably come down.

"The plain fuct is that Australia has over-borrowed : The time has come, as l)r Page- says, to curtail our borrowiltf?.

"In tho long run thero must be, for our own protection, only one borrowimr power in tho Commonwealth. Jt doos not materially matter whether thsit borrowing authority is composed of a council of tho treasurers, a-eting in concert, or by tho surrender of State borrowing powers to tho Commonwealth Ircnsurer. Every loan in the future must be made in tho name of Australia.

"W ith seven extravagant Governments fighting against themselves to get tho first cut in tho loan market tho position is hopoless. Our foolish competitive policies in tho past have hefpod to got us into our present position. It is only by cutting out our extravagances and uniting for joint action that the position will improve. "Tho good oxample of Mr Maasoy in remitting taxation leads 'us once again to publish this paper's definition of good government: Good government is cheap government. •

"Tho government that takes large amounts in taxes or loans from the demiMiity is obviously a bad government. It may bo satisfactory to the Commonwealth Treasurer to borrow at the high rate of 6 per cent., or probably over; but every penny thus expended is money withdrawn from our industries. There can be only one end to that policy—ultimately thero will be no industries to tax.

"The harassed taxpayers of Australia therefore look longingly towards tho sunrise to tho compact little Dominion which has only ono Government — not seven—and a Government that looks to be a pretty good Government, tho only Government in Australasia that is able to reduce its taxation

"With such on excellent example 30 near Australians must regret that they aro not New Zealanders. There is more happiness in a modest villa which pays its monthly bills, than in the magnificent mansion with the bailiff in.".