The Oamaru Mail. FRIDAY, MAY 12, 1911.

Oamaru Mail, Volume XXXIX, Issue 10764, 12 May 1911, Page 3

The Oamaru Mail. FRIDAY, MAY 12, 1911.

When Sir Joseph Ward ventured into the columns of the Stable Finance. Financial News to defend the credit of his Dominion we all wondered for a moment. But reflection soon convinced us that as the stability of the finances of the Dominion is the basis of the offers of constitutional change now being discussed in London, and as that stability has been attacked it was incumbent on the Prime Minister to take the very first opportunity for removing any erroneous impressions resulting. Rushing to the defence he proved (1) that the good results of the last two years arc by no means abnormal, as they have been represented by enemies of our household, but that they are the usual thing, surpluses having characterised our Budgets with almost unvarying success for twenty odd years of the Liberal regime; and (2) that the scheme for the repayment of the National Debt established last year will, if left alone, repay the whole National Debt in seventy-five years by the simple addition of an annual payment of £II.OOO to our present scale of payments on account of our indebtedness, is a really most cogent proof of the stability of the public finances. The explanation prepared the ground for the discussions which will make the Conference a tradition of the first importance. While this move was making at the hands of.the Prime Minister, the acting-Minister of Finance, Mr Millar, was preparing his Budget embodying the results of the last financial year, and he was able to announce them a few days after the Prime Minister's statement, making corroboration of the most startling character. Mr Millar lias shown that the Dominion has received revenue to, the extent of £954,000 more than the expenditure, that the surplus for the year is, by the addition of the £432,316 brought forward from last year, increased to £1,386,485—the greatest- surplus in our annals: and that after paying the substantial sum of £BOO,OOO to the Public Works Fund we still have a surplus unattached of £586,483 —nearly £OOO,OOO. Moreover, he intimates that no loans will be required this year, the excess of revenue over expenditure—a thing forcing itself on us without possibility of prevention—having furnished the funds required for the annual instalment of public works. The interim Budget, then, of the acting-Finance Minister has proved not only the buoyancy of the finance, but also the possible method of tapering off, namely, refraining for a whole year from borrowing. Incidentally, it has also proved that the deficit on the railways —caused bv the shortage in' the payment of interest—is over. For the first time in our history the railways have' paid all their incidental charges, and after finding provision for maintenance and depreciation on a scale which to many appears extravagant, to say nothing of a liberal transfer- of charges from capital to revenue account, have presented us with a profit of £103,000. The Budget, then, is a supreme justification of the borrowing policy. It proves that the Dominion is, after the years of initial hardship, coming into its own, with the grand development predicted by those who persuaded the public to accept the public works policy. Nothing 'conld ip more opportune, for the success of the efforts of.the Dominion's Prime Minister at the centre of Empire to find what he described at the members' banquet at St. Stephen's as "a system for the assistance and preservation of the Empire." It is evident from day to day that Nature deals splendid cards to our hand, and that the Government knows liow to play them. Incidentally we may add that the justification of the Liberal policy of "experimental legislation" is unique. The prophets w;ho predicted disaster are answered' with the biggest surplus on record and the beginning of a boom in the railway system of which no one yet can foresee tho limit-.

It is' a grave admission when the proposer of the alterLord Larisdowne's native scheme for "Betrayal." reform of the Lords' Hcuse finds it necessary to apologise for his line, on the ground that though the Bin may appear a "gross betrayal," it is urgently necessary to make' some change. Compare this with Mr Asquith's statement of the bigoted predominance of one side in the Lords for many years past,, and you Ijave all the strings together by which this problem can be drawn to correct conclusion. Lord Lansdowne, on behalf of the Lords; whoso cause lie is championing, admits at the outset that their , case is-past praying for: makes *a plea ill fact that admits the whole. case agaiiist his clients. The fact tliat so bold and straightforward a champion ■ should have ventured to nevertheless demand the retention in any shape of the hereditary principle is notliing short of marvellous. If there is no use for the Lords as they are what justification can there be possibly for their hereditary right to choose a moiety of the new House? Lord Morley treated the other side with conspicuous courtesy, we notice, and we have no doubt the new addition to the Lords' House — Viscount Haldane —will make some commendable contribution to the debate. By the way the course of post has explained quite satisfactorily the translation of this Minister to the other place. It is that some more talent was badly required there to keep up the Ministerial end of the stick in the crisis in which the Constitution is plunged. Of course, Lord Morley protested against the retention of the hereditary principle in any shape or at any degree. Nor could he accept the responsibility of agreement to refer a thing so complicated as the Bill drawn up by the noble Lord opposite., which, moreover, bristles with matter for endless, confusion and chaotic debate. This together with the tremendous admission of the mover of the Bill exhausts the , w*hole question of the alternative scheme. Lord Lansdowne is making history by showing how magnificent Is the work being done by the Govern-

ment party, and bow very necessary is the very drastic treatment accorded to an historic institution which has forgotten tlie spirit in which its existence ou&ht to be led. In this light the speech of Lord Lansdowne is Tike the cry of a lost soul begging for another chance to be added to the list of the many chances neglected with fatal e^ect.