THE PUBLIC FINANCES.

Otago Daily Times, Issue 16327, 9 March 1915, Page 4

THE PUBLIC FINANCES.

The statement which, by the courtesy of the Minister of Finance, we published yesterday showing the comparative revenue returns for eleven months of the current financial year, together with those for the corresponding period of last year, indicates that the influence of the "war is being felt with cumulative efiecfc in the finance of the dominion. This will tie seen by reference to the comparative figures at earlier periods in the year. The returns up to the close of the September quarter were not affected by the war. At thatperiod the revenue of the dominion for the current year exceeded that for the corresponding term of the preceding year by £230,049. In the December quarter, as was to be expected, the effect of the war bscame markedly apparent. The revenue returns for the quarter came back practically to the level of the December quarter of 1913, which, in consequence of the industrial disturbance in the dominion, was a somewhat unfavourable one for the Treasury, There was, as a matter of fact, a balance in that period of only about two thousand pounds in favour of the current year, with the result that at the 31st December last the excess of revenue for the present' financial year over that for nine months of the preceding year was £232,219. The .past two months have, however, shown such a shrinkage in the revenue that this balance had practically disappeared by the 28th February, the excess of revenue for this year over that for last year having been reduced to £37,329 for the comparative period of eleven months. , Actually, the i evenue for the past two complete months of the current year was £2,172,765 as against £2,367,655 for January and February of last year—a shrinkage of £194,890. The circumstance is one of which the explanation will be obvious to the public. The effect of the war has been to curtail importation to a verymaterial degree. A considerable number of lines of merchandise have not been obtainable since the war broke out. Among them are several lines of which the exportation from Great Britain has been prohibited. Even, however, if they were obtainable there are, as,a consequence of the heavy requisitioning of shipping by the Admiralty, not the means available for the transportation of these goods across the seas,'. One small illustration of the extent to" which merchant shipping has been diverted from its original uses is afforded in the fact that sailing vessels have been chartered, for the trade between New York and Australasia which had in recent years been entirely carried on by steamers. The check upon importation, , not in itself by any .means an unmitigated evil, accounts for a drop, in the Customs revenue of the dominion of .over £200,000 in the eleven months of the financial year, and it has necessarily affected the railway receipts, also, to a very considerable extent. . Nor does the Minister ot Finance look for any improvement in the current month. H e would be hardly justified in looking for a recovery. It would seem, therefore, that a deficit upon the year's operations may be anticipated. Such a result was, in fact, inevitable m the absence of any .special provision to fill the hole in the revenues which the war has caused. And in experiencing it New Zealand will simply be suffering the same fate as is being suffered, by all the belligerent countries. There will be nothing in the circumstance to excite apprehension. It will be the necessary outcome of the unprecedented conditions under which we are living. It may, however,. be suggested that, in order to admit of the adjustment of the finances of the dominions being effected with as little delay as possible, it will be desirable that Parliament should meet this year at an earlier late than that which has become conventional.