The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 10, 1928. A MODEST STATEMENT.

Hokitika Guardian, 10 August 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 10, 1928. A MODEST STATEMENT.

Modrst and moderate might best describe the Financial Statement presented to the House of Representatives this week !>y the Hon Downie Stewart. Considering this is “election year,” this is not a mean achievement, and credit must be given the Minister of Finance lor his honesty of purpose irrespective of party advantages. Air Stewart’s task to set the financial house in order has lieen a very difficult one. The aftermath of the war gave plenty of financial problems. Inflation, high spending, and general outlay in departments, with frequent visits to the money lenders, supplied a situation hard to handle. Then with tho slump and the restrictions in hanking there were more difficulties which added to the complexity of tlie task. Mr Stewart presents the results of a very favourable year on the whole. He does not take kudos for a large surplus, but he does take credit to himself for so successfully balancing bis budget that his surplus is a very modest one, and in view of the complexities, that result is giving the Minister of Finance a good deal of personal gratification. The result arrived at is a tribute to bis personal endeavour in his responsible place to right the finances of the country, a task he has been engaged on for some time. On his own showing, by a consistent and definite line of action lie has achieved a good deal. Last year Mr Stewart by the revision of Customs duties attempted to adjust an important phase in the incidence of the taxation, and he is not unsatisfied with tho result. This year it was | hoped, if not expected, that there would he some reduction in income tax, but despite the influential pressure brought Air Stewart prefers to maintain tho existing scale to ensure strong finance. Probably similar comment can be made with every justice to Air Stewart, in regard to the racing taxation. Here, again, strong influence was brought to bear, and though the Prime Minister was supposed to have been favourably inclined, the fact that the Minister of Finance has stood out successfully, shows that the Budget has been planned entirely to his own desires with the object of realising bis financial ambitions in relation to a sound and strong finance for the country as a whole. Air Stewart, or some one, has been responsible also in curtailing borrowing. In 1925-26 the national debt of the Dominion was increased by nearly £11,000,000, almost a million a month. Last year that total was cut in half and for that relief much thanks. The former rate was inordinately high, and there is not much virtue in comparing the two sets of figures. Alost people will think that to increase the public debt by half a million a month is far too high, also, and Mr Stewart should set about seeking further laurels by reducing that excessive total also. The Government policy with regard to limiting the interest on Post Office Savings Bank funds, it appears was responsible for the loss of ready, cheap money which could lie replaced only by borrowing, and that stroke does not appear to have been helpful to the public finance. The change brought about was supposed to be helpful to the banks in that money which was not earning interest in the Post Office Savings Bank, was transferred to the public banks proyidjng additional funds to

help' generally in business and trade. Probably this latter process was more useful to the community on the whole, and by limiting the funds available to tho Government for ready use it may have helped to check expenditure in that direction. On tho whole, perhaps, though the Minister seems to regret the change of policy, the community service by tho change might have been the greater. The Minister refers specially to administrative expenditure., which it appears lias been closely investigated. It is bard to believe that the expenditure is down to bed-rock, but that appears to be the impression Mr Stewart wishes to convey. To satisfy himself completely on this point, it is to be hoped lie will re-open the matter again, and by a thorough check be enabled to revise the figures very considerably. The Financial Statement regards the future with some satisfaction, though there are not any special hints of Government policy to aid general advancement. It is left to trade and general prosperity to help the Dominion automatically, and we hope that that solid and satisfactory kiiul of aid will come to pass.