NOTES AND COMMENTS.

New Zealand Herald, Volume LXVIII, Issue 20981, 18 September 1931, Page 8

NOTES AND COMMENTS.

BUDGET AND CURRENCY. Equilibrium of the Budget and stability of currency are essential to financial reconstruction, according to the report furnished to the Government of Brazil by Sir Otto Nieineyer. "It cannot be stated too emphatically," he wrote, "that financial reconstruction in Brazil, a* in other countries, insistently demands two fundamental bases—(l) the maintenance of Budget equilibrium by all public authorities—that is to say, the meeting of annual expenditure out of annual revenue (to the exclusion of loans) —and (2) the stabilisation of the currency. So long as public expenditure is met by the artificial increase, directly or indirectly, of the means of payment, whether through the issue of notes or of paper securities not taken by an investing public, it will be impossible to prevent those economic disturbances which result from variations in nominal values, including variations in tho rate of foreign exchange. So long as Budgets are not balanced public authorities will be forced into inflationary measures which can never be the true or permanent solution of financial difficulties. So long as inflation is practised a stable national currency is impossible. On the other hand, if the currency is not stabilised, Budget equilibrium will be constantly upset by changes in the level of public expenditure, and in particular in that part of public expenditure which dopends on external prices. The two factors, Budget equilibrium and stable money, must march together; and neither one can be maintained without'the other. Unless public authorities are willing and able to take the necessary measures to stop inflation, it is useless for them to complain of the uncomfortable results of their actions."

THE PUBLIC HEALTH. That there is still room for improvement in the public health was the theme of the presidential address to the British Medical Association by Mr. W. G. Willoughby, medical officer of health for Eastbourne. Ho said there are far too many deaths at early ages in Britain. The expectation of life is still only 55 years for males and 59 years for females, and though the vitality of (he nation has been steadily improving generally, the life-tables show almost no change at the ages of adolescence; from 30 years onwards there is but a slight increase in vitality, while at 50 the increase in expectation of life is only about two years. At advanced ages the progress is even less. In fact, the greatest part of the increase is due to the reduction of infantile mortality after the first week of life. We are still on an averago -far short of the 70 years of the Psalmist. During the war only 36 per cent, of would-be recruits between the ages of 18 and 42 qualified for active service. This unsatisfactory position still obtains. In any year about half the insured population comes under treatment by insurance medical practitioners. The claims for sickness and disablement benefit have increased continuously and have practically doubled in recent years. Theso are only examples of the state of the public health. Other examples include the multiplicity of hospitals and the enormous sale of patent medicines.

EMPIRE TRADE ROUTES. The inadequacy of the presont naval forces for the defence of the Empire's trade routes was emphasised by Admiral Sir Herbert Richmond in an address recently. He said that in April, 1929, when a record was taken, there were on the ocean routes in vessels of 3000 tons and over British ships totalling 7,800,000 tons, as against 6,700,000 tons in shipping of all other nations. Because practically the whole of the Empire's Irado was sea borne over vast distances, the Empire needed more sea-power than any other nation. As to tlio number of vessels required for the protection of trade from interference in time of war, hp mentioned that when the last war started they had 124 cruisers available. Now that number was reduced to 50. If there were any future trouble he could not seo how that number could afford protection. The last volume of the Naval History of the War stated: "Ono of the difficulties the Admiralty had to contend with was the fact that the resources of the Navy were strained almost to breaking point, particu larly in regard to destroyers, of which there had never been a sufficient number." During the war we had 279 destroyers in home waters and about 400 elsewhere, apart from the forces of our Allies. The tonnage allocated to do stroyers under the Naval agreements would give us about 120. How could that number do what was necessary if the number we had during the war could be described in the official history as "never sufficient?" He was an economist, where economy was necessary, but there were two kinds of economy. True economy was wise expenditure and it was surely wise expenditure to maintain forces ado quate for the purposes for which they existed. If we accepted the fact that it was necessary to have a Navy, surely it was only prudent to have one that was adequate.