OUR CONTEMPORARIES.

Manawatu Times, Volume XLII, Issue 1764, 16 March 1921, Page 4

OUR CONTEMPORARIES.

For ten months, revenue shows an increase of £0,G00,000 above th corresponding period of last year, while expenditure is £3,G00,000 more. There were, in addition, Treasury bills for £750,000 outstanding on December 31, so that tho temporary deficit at January 31 was £1,000,000. The account is therefore stronger to the extent of £1,200,000 than it was in January, 1920. Last, year’s Budget showed a surplus of £2,300,000, and it is reasonable to expect that income tax and customs duties will yield more for this February and March than they did in tho closing months of the last, financial year. A surplus of between £3,000,000 and £4,000,000 may therefore be anticipated.—Auckland ‘‘ Herald. ’’

One can imagine what the shareholders of a commercial concern would say of the directors if the balance-sheet showed a largo expansion of business, an increase in gross revenue of over a million sterling and a decrease of ove? £200,000 in the balance of receipts over expenditure. As a matter of fact, tho position is really worse than this, because the amount of capital cost upon which interest has to bo paid is a steadily growing quantity. AVe calculate that*the net earnings of the railways during the 44 weeks ended February 5 fell short by some £300,000 of the sum required to pay interest, aim sinking fund charges on tho cost of construction. The railway service is a losing concern —there is mJ getting away from that. It is a drain upon the taxpayers, and the painful part of it is that the more the traffic expands tho worse are the net financial results. — must continue to refuse to allow such