Nelson Evening Mail TUESDAY, JUNE 1, 1920. THE PUBLIC ACCOUNTS

Nelson Evening Mail, Volume LIV, Issue LIV, 1 June 1920, Page 4

Nelson Evening Mail TUESDAY, JUNE 1, 1920. THE PUBLIC ACCOUNTS

— .. THE public account:-; for th'i year ended 31 at March lust, make satisfactory reading. The surplus shown is £2,299,-115, which in view of the heavy liabilities is just as it should be. For the Government to have reduced war taxation as soon as most of the heavy war expenditure ended would have been an open invitation to trouble. Further, the policy of accumulating surpluses daring prosperous years is sound, for prosperity is not permanent arid a slump means dcci'cased revenue from income tax and the Customs duties. This principle has been followed in New Zealand since 3915 -with the result that the following surpluses have fcocn accumulated.

Hove ime Expcn.. Excess ‘ I! °J5-! 6 14 507.530-12,493,107 2,014,423 1916-17 13,’355,194 1.4,058,7/0 4.295,424 1017-18 20 206,222 15,120,288 5,085,934 .1918-19 ■22A52A72 18,673,599 3.678,773 1919-20 26,081,540 23,781,925 2,299,415 In this period the Dominion has thus saved over £17,000,000 out of revenue and soldiers scHlsmem has been financed with the 10ctyursc to the money market. In regard to revenue in the principal branches, the _ following figures give a good indication’ ot the growth made.

1918-19 1919-20 Increase. £■ £ & Customs 3,830,681 4,330,324 999,643 Stamp and*

duties 2,124,775 3,344,933 1..220,160 P & T. 1,964,811 2.096,756 131, Land Tux '1,512,695 1,£57, 903 45,210 Inc. Tax 6,219,536 6,569,/6 a 150 429 T3,w Dutv 273-334 355,403 82.009 Hallway* 4,975:445 Registration and other _ _, O lees 111,995 170,755 63,/62

Jn common with all other enterprise the expenditure side mso shows very large _ increases. 1 errpanent appropriations show an increase of £2,170.611, due principally to interest and sinking tuna growing by over a ndlb""-—and in the annual appropriations oi 937,713, the two accounting together ’for an increase in the total expenditure o( £3,108,326 A comparison ot the leading items ox expenditure for the last tiro _ financial years shows the following. 1913-19 1919-20 Increase L 31 •£ 10 A mini' 1 9 218,860 11,359,461 2,170,611 Fin;nu-,- ' 139,051 21,824 P & T "1,699,701 1,941,4-93 241,792 Railways 3.415,595 4,305,965 890,370 Justice 549.794 58/,989 j8,19-j H & P llcaltli 318,808* 556,899 238,031 Defence 416,427 502, 100 • .Ao'. & Coin. 240,4-65 818,c66 573,101 Education • 1.602,995 2,031,324 428,92u Int. A If aii's 271,218 306,30f> 6d.108 Customs . 186.561 c.ii/,4/4 4J,9.0 • L^urvoy (l 209,403 238,354 28,951 It is considered that the Depart-!-ient of Agriculture- has had to. bear the co t s.t of the flour sub: ■idv (£163,000) and the butter sidl'd c (£340,000) payments made by i he taxpayers generally, lot tjj,t

purpose of keeping bread and butter prices down. These payments arc justified in certain circumstances but as a general rule they have drawbacks that outweigh the immediate advantages. The old hand- to mouth national finance policy has gone, we hope never to return. It is infinitely better that the Government maintain war taxation, despite its disadvantages, than thalv the finances of the country should get into an impoverished condition. Groat .sums of money are needed to place education on a, thoroughly sound basis and this must include huge expenditure to (unsure full physical development of the rising generation. Then why not Isririg in a scheme of universal pensions to ensure decent living condilions for families overtaken by misfortune and to provide adequately for old ago. Thus will moan money, but with individual contributions within the reach of all giving cap:esc; ,n to the principle of tli- slroj.g directly help>ng the weak- ii w ill be one of the finest and ’soundest investments lire country could make, Expenditure mi roads and railways m directly revenue producing and given a comprehensive scheme including aSlorestathu), any fall in price should be made good by increased production.