THE PEOPLE'S MONEY.

Marlborough Express, Volume XLII, Issue 102, 1 May 1908, Page 4

THE PEOPLE'S MONEY.

In the course of Sir Joseph Ward's financial speech on Tuesday he gaj-e an explanation of a matter that has frequently exercised the public mind. This was the utilisation of the people's savings in the Post Office Bank, and the departmental investments. .Many people object to these moneys being expended upon public works, but not one of the investors has any reluctance in accepting the interest which is added to his savings. It should therefore be obvious that if ,the depositors are to have this interest, it must first be earned. Successive Governments for 35 or 40 years past had- been in the habit .of making use of it, and the Prime Minister expressed the conviction that the practice would go on for the next century or two, and perhaps longer. The" more people the value of the system, he" said, as a means of saving their earnings, by entrusting them to the care of the Government, the more would they make use of it, and the Government must in their turn put it to profitable account 'for -the benefit of the depositors. There can be no disputing the soundness of this principle. But will Sir Joseph follow his reasoning out to its logical conclusion ? If it be beneficial for people to deposit money with the Government so that it may be profitably utilised on publio works, why not encourage people by the issue of State notes to entrust the Government with still more money for the same purposes ? Money properly expended creates more wealth, and if remunerative public works all over New Zealand could be constructed with the money belonging to the people of the Dominion, it would be indefinitely better than doing it with capital borrowed from residents in England, or even in Australia, to whom large remittances in the shape of interest have periodically to be sent out of the country. It would surely be preferable.to keep this interest within our borders, circulating amongst those who advance the funds for the development of the Doirijnion. Sir-Joseph should have the courage of. his opinions. He has stumbled upon, a great economic truth, the advantages "of which h^ has already realised, and frankly acknowledges. But he ; should not hesitate to develop the,idea to its fullest and most profitable extent.