The New Zealand Times. SATURDAY, JULY 25, 1925. ENCOURAGEMENT FOR ALL CLASSES

New Zealand Times, Volume LII, Issue 12199, 25 July 1925, Page 4

The New Zealand Times. SATURDAY, JULY 25, 1925. ENCOURAGEMENT FOR ALL CLASSES

Whoever has been responsible for it, the Budget brought down last evening by the present Minister for Finance (Hon. W. Nosworthy) is eminently business-like in all'essentials. Unlike its predecessors, this year’s Statement is not encumbered with details already furnished in departmental reports: a 'welcome innovation. Another virtue is its straightforward and lucid exposition of the Dominion’s finances. Still another is the frankness with which the Minister has elaborated the State’s findhqial situation and the Government’s financial proposals. The regular figures, such as the surplus (which was known months ago), revenue and expenditure, exports and imports, do not call for extended comment at this stage. They are set but in full measure in our news columns. Attention may be drawn, however, to the Minister’s warning against indulgence in over-comfort-ing on the strength of the national prosperity. We have been burned once in that flame, and have need to be careful not to be caught again. It is natural, in the mass, as in the individual, to spend freely when money is plentiful, but the wise Government will ever keep in mind the possibility of a check to revenue. , It is a matter for satisfaction that the surplus is relatively so substantial, especially in view of the fact that concessions granted during 1924 cost the Treasury the best part of a million. Even so, the Minister’s note of caution should none the less be memorised. Despite a series Of extreme circumstances, the Railways show a useful improvement in revenue; the net receipts represent a return of over 3$ per cent, on the capital cost. As the Prime Minister stated not long since, that figure is not sufficient; hence the revision of freights and fares. Two extremely important features of the Budget—probably the two most important—have reference to (1) the work of the Domiiiion Revaluation Board (under the Soldiers’ Settlement Act), and (2) taxation reduction. So far as the;'soldier-farmers are concerned, their accounts are to be reviewed and placed in a solvent position. “When this work is finalised,” says the Statement, “the soldier-settlers throughout the Dominion should be in a position to occupy successfully their farms and meet the engagements'with, the Crown.” Everybody will hope'so, at any rate. In several respects, the scheme was muddled from the commencement, chiefly, owing to extravagant prices paid for much of the land. The consequences pf that panicky policy hit hundreds of deserving men hard; ruined a proportion, in point of "fact, But no unprejudiced person will deny that the Government is making an honest effort to repair those hurts. It As necessary for the country as for tHe soldierfarmer himself that the scheme should be stabilised. A new income-tax schedulers under consideration—and not before it was needed. It has taken the Government a long time to realise that High taxation drives, capital out of the country, strangles the logical development of industry and adds to the cost of living. Companies have been heavily handicapped by the levies exacted of them by the Government. There was little encouragement for them to produce to the maximum of their capacity when the State insisted on a 20' per cent, share of their profits. One result was a paucity of capital for industrial investments, the money being diverted to gilt-edged securities. Hierh. taxation stifles enterprise and simultaneously loads prices'for the consumer. The late Prime Minister’s part in the 1925 . Budget must not be overlooked. Mr Massey’s courage in pressing economy in the face of determined and persistent opposition (and opportunism) has done much to make, the present position possible. He shares in the commendation to which, the Statement is fairly entitled.