DOMINION FINANCE.

Oamaru Mail, Volume XLV, Issue 13437, 30 April 1918, Page 6

DOMINION FINANCE.

Peb Peess Association. Wellington, April 29.' The Rt. Hon; SiiJosepH Ward) Minister of Finance, stated to-night that he had now tlie final figures showing the financial results for the year ended 31st March. The figures he had given out when the House was -sitting represented approximately the result of the year's working. Since, then a considerable amount of revenue' had been received a;nd paid into the Consolidated Fund. Ho was very glad to say that .the actual surplus for the year amounted to £5,085,936. The total expenditure for the year showed a net increase of £1,061,516. In regard to the surplus, which was fortunately a large one,-Sir Joseph iWard said there appeared to be ail impression in the mind's of some people that lie could tako, tliis sum or larger portions of it available for expenditure locally: This was an erroneous impression, and lie would like to explain, for .the benefit of those who turned tlnjir eyes towards this large surplus, what the position was in 'connection with it. ■Owing to war causes very large payments had to be made in England <by way of expenditure, and there were two ways only in which this could be done. He had either to provide the money there, or to borrow upon the English market. The latter course, in view of the heavy discount we would have to' give and the high rate of interest we would have to pay, would be a ruinous one to New Zealand, from a financial standpoint, and tb avoid that course, and also to prevent any interference with the British money market, which should be left as clear as possible for the use of the Imperial Government, who require to obtain enormous sums for their own war purposes, ho had all along followed the course of investing the surplus in Imperial Government stocks, so as to enable the British Government to have as much of our money as possible to go towards their paying, which they were doing, "of the disbursement on behalf of New Zealand for war expenditure. Oil tlie 31st March, the Dominion had investments in Imperial War Stock of £8,770,380, and further investments were being made from time to time. The amount we were providing there was nothing like equal to the total amount that tlie British Government was paying out for us. and! tlio&e people in the country who were critical in declaring tirat portions of the surplus should be used for the payment of various tilings in New Zealand would, he hoped, realise that the same a mourn of the. surplus could not be used for tile payment of our requirements in England andl also for th'e financial requirements here. It was easy for thos.* who did not bear the responsibility to declare that the Minister of Finance could dlevote large sums of out of the surplus for various lociil purposes. But he could assure them that this was not possible. One had to_ deal with tlie whole financial requirements of tlie country both at this end and at the other eiidi of the world, where heavy war expenditure was going on, and surely it was a wise course to make investments to the fullest extent we could out of our surpluses in Imperial Stock and thereby reimburse, to some* extent the Imperial Exchequer, which was providing for the daily demands on our account.

The Minister stated that at the present moment New Zealand required to make provision for a further £4,000.000 for \\;ar expenditure in England, and by the course he was following tlie finance of this Dominion at the other end of the world was being greatly assisted and the country itself was being kept financially strong. We were getting Imperial stock for our investment, which was available for lodging as firstclass security if our necessities should at any time require it. At the end. of the war, when the readjustments' of finance took place, the whole cf the investments we were making would be a great asset for the Dominion, and th:> interest upon them, if paid into ;i sinking fund for the redemption of war loans, which lie hoped it would be. would give a great relief from a taxation point of view". 11l tho-meantime the country undoubtedly had the advantage of great financial strength. Sir Joseph remarked, an conclusion, that in peace times no one would dream of having such large surpluses, but the whole policy in dealing with them now was with the object of carrying on the war needs, and of beinir ■strong and sound at tlie end of thewar, and he felt satisfied that time would prove that this was a. wise coursi' to follow.