COUNTING-HOUSE CONJURING

NZ Truth, Issue 877, 16 September 1922, Page 4

COUNTING-HOUSE CONJURING

SHILLINGS "SAVED," MILLIONS MISSING. When a diffioult case has to be made out the Massey Government puts up Mr Downie Stewart. Since Sir Francis Bell went abroad, analytical brain m the Cabinet is scarce. It seems to centre chiefly m Stewart. It was Downie Stewart's job the other day to show that, for the purposes of safe finance, the Treasury has to keep m hand several millions of "accumulated surpluses," instead of spending all this money at once on relief works, etc. Stewait showed that the first portion of the financial year is a time of little incoming . and much outgoing, and that the second half (when taxes come* in) restores the balance. He stated that a cash bal-' ance of £4,800.000 on March 31 had been reduced, three months later, to £1,700,000. He predicted that by March 31 next there would again be about four millions m hand, to be utilised m cai'rying over the lean months of next winter, just as the accumulated surpluses were carrying us over this winter. From the Labor side Mr McCombs interjected that Sir Joseph Ward used to be able to finance himself over the losing part of the year with "a few hundred thousands" instead of four millions. Stewart replied to the effect that, since Ward's time, the temporary deficiency has been "trebled" and quadrupled by changed conditions." Now, although Stewart spoke of "a bash balance" on March 31 last of £4,800,000, the fact is that the "balance forward" on March 31 last (look at page 19 of the Financial Statement) was £7,531,367, and that this balance is all that remains of the "accumulated surpluses" (as shown on page 4 of the bulky document.) According to the estimates m the Financial Statement, this balance will be drawn on to the extent of £1,688,215 (estimated excess of expenditure over revenue), £1,250,000 (transfer to Public Works Fund), and £250,000 (for Supplementary Estimates) ; and next March 31 will be reduced to £4,343,152. So, m order to preserve four millions for the Treasury to come and go on this year, the remnant of the "accumulated surpluses" will be reduced next March by over three millions, or about two-fifths. If this goes on, how is the Treasury to retain four millions to come and go on when the next financial year begins? The most serious element m the situation is, of course, the fact that thirteen and a half millions of the "accumulated, surpluses" have been invested m a depreciating asset, the loss on which will admittedly run into millions. How many millions, no one will say. Tin Lizzie Ford alleges that his brother capitalists, m the United States, thevrailroad owners, are trying to unload the railroads, at inflated prices, on to the Government; and that the strike is a conspiracy to forward this piece of fraudulent nationalising. The railroad owners will receive United States Government debentures, or other paper money, of a face value far m excess of the value of the railroads, and will be m clover — unless the striking "proletariat" (who are also nationalisers for another purpose) doublecross on the owners later on by collaring the Government and repudiating the debentures. In these doublecrossing days there is a catch m everything. "Truth" does not know the strength of Ford or of the "conspiracy," but if you want a case of unloading on to the Government an inflated asset, need anyone go further than the purchase of land that is going to involve the Government m a huge collective loss, plus the individual losses of the soldiers themselves? is :j :i ! On top of that, Stewart spins a story about temporary finance, no doubt correct enough, but not relevant to the main issue — the millions that have gone down the sink. And Massey has the nerve to ask the people to applaud him for a- "saving" of £4800 a 3'ear, being the interest- value' of £ 100,000 diverted from the . "accumulated surpluses" (instead of being borrowed m London) to the depreciation of soldier settlers' land! The only parallel to this would be the case of a trustee who spent £ 100,?---000 of his client's real savJngs m an investment that depreciated 30 per cent., and who then took another £.100

out of his client's savings, and. putting the £100 into a depreciation fund, turned round and said: "Look, I have saved you £5 on that £100 because you had it and did not have to borrow it" The client who could delude himself into believing that he was £ 5 better off and not £30,000 worse off would be an incurable optimist. Yet such is the sort of proposition put up to New Zealand m the Financial Statement. Who says that the days of financial wizardry are dead?