WHY RETRENCHMENT WAS NECESSARY.

Marlborough Express, Volume XLIII, Issue 97, 22 April 1909, Page 7

WHY RETRENCHMENT WAS NECESSARY.

A NEWSPAPER'S THEORY

[FROM OUR, CORRESPONDENT.}

CHRISTCHURCH, April 21. Referring editorially to the retrenchment policy of the Government, The Press says: "The country is rich in resources and. still prosperous, and there is not the least necessity to- feel anxious regarding its future. It speaks volumes for its stability and national wealth that the commercial depression which has made itself felt in every part of the civilised world should have left nothing worse in its track across New Zealand than a passing spasm of financial stringency and some slight reduction in the spending-power of the people, owing to reduction in the value of our exports. This in turn will lead to a reduction in our imports unless we can bring in fresh capital from outside, and reduced imports, it need hardly be pointed out, involves a reduction in the most important branch of our revenue, namely the Customs duties. We quite admit that in itself this would be sufficient to impress on a prudent Administration the wisdom of reducing its expenditure, but this is not our chief trouble at present. We do not believe that the reduction in revenue will last very long, or be anything like so serious as some people seem to imagine. The real reason why retrenchment has become necessary is that during the last few years the administration of the country has been allowed to get out of hand."