MONEY—WHENCE?

Otago Daily Times, Issue 22955, 10 August 1936, Page 8

MONEY—WHENCE?

At one stage of his Budget speech the Minister of Finance said that “ the fact ” that the money required for this financial year for an expanded programme of public works was available “without any loqn issue to the public" was itself evidence that the financial resources of the Dominion had not been used in the past to the best advantage. At another stage Mr Nash said that the Government’s works and development programme of £10,450,000 would be financed to the extent of £5,690,000 out of “borrowed moneys,” the balance being obtained from various revenue sources. At still another stage he said that there was a continuous demand for new post office buildings and works, and “ the new loan-money provisions ” for those purposes for the year would be £300,000. In brief, the country is assured again that there is to be no borrowing, and in the same breath there is reference to the use of borrowed moneys and to the application of new loan-money provisions. The Government is surely not to be misunderstood when it declares that the public is not to be invited to subscribe to any new loans. That being so, none has a better right than the taxpayer to know where the “ borrowed moneys ” mentioned by the Minister of Finance are to be obtained, Mr Coates sought to secure information on this important point in the speech with which he opened the Budget debate. The Prime Minister, who replied to him, was, however, not disposed to be any more communicative than he had been when previously faced with direct questions regarding the financial policy of the Government. The Government, said Mr Savage, was going to use the public credit all right, but it was not proposed either to “run a jirinting press ” or to “ smash the financial system." That was the substance of a distinctly evasive reply. Is it to be assumed that the Government has no wish to disclose the source, or sources, from which it expects to obtain necessary financial accommodation? Ministerial reticence almost compels that conclusion. The Government is not going on the open market for money Nevertheless, it is going to borrow. It may borrow from such important State departments as the Public Trust Office, the Post Office and the Government Life Insurance Department—possibly on its own terms. Those departmental funds represent taxpayers’ money, in one form or another, and they are entitled to take more than a passing interest in the uses to which their money is put. Failing recourse to the departmental balances the Government can borrow from the Reserve Bank, to the extent—according to authority already provided—of a year’s estimated revenue; and it may conceivably make the credit thus obtained “ costless ” by declining to pay interest to itself, as the owner of the bank. Whatever course it is proposed to adopt, surely it is not too much to ask that the Prime Minister, or the Minister of Finance, should be ex plicit. The Government, in the furtherance of its public works pro gramme, is faced with the need for “ using the public credit ” to the tune of nearly £6,000,000. Is sound practice to determine the method of using it? To that question an answer is legitimately sought.

Overseas Mails ** The Kairanga left Melbourne for New Plymouth on Tuesday with 15 bags of Australian mail for Dunedm. The mail should reach the local Post Office on Thursday afternoon. The air mails despatched from Auckland on July 14 and 17 arrived in London on August 5 and 6. City Police Court At a brief sitting of the City Police Court on Saturday morning, before Mr J. R. Bartholomew, S.M., Elizabeth Gowie was fined 20s, in default seven days’ imprisonment, for a breach of her prohibition order, and on a charge of drunkenness was fined 12s fid, in default 25 hours' imprisonment. Ski Club Championships The Otago Ski Club has arranged to hold its annual championship meeting at the Rock and Pillar Range next Sunday. The events to be decided are men's downhill, slalom, and langlaus, and women’s downhill and slalom.

Occupied Dwellings Based on the results of the recent census, the Abstract of Statistics states that the numbers of occupied dwellings in the four chief centres of the Dominion are as follows:—Auckland 23,772, Wellington 26,922, Christchurch 22,947, Dunedin 15,369

Damaged by Fire A four-roomed wooden house, with attached kitchenette, owned and occupied by Mr I. T. East, at Fulton road, Leith Valley, was damaged by fire last night. The City Brigade was called out at 9.15, and before the blaze was extinguished, two rooms and the roof had been badly damaged by fire and the rest of the house had been affected by smoke. The fire was caused by some hot ashes.

Otago-Southland Match An effort is to be made to organise a visit of Otago supporters to Invercargill for the match between Otago and Southland on August 22. As the match is to form part of the jubilee celebrations of the Southland Rugby Union, it is felt that Otago should make an endeavour to assist in the success of the occasion, and it is also considered that in view of the interest which was created by the recent Southland “invasion” of Dunedin, Otago should organise a similar visit to Invercargill. The secretary of the Dunedin Jockey Club (Mr L. G. Hill) has taken the first steps towards putting the proposal into effect, and a meeting of those interested is to be held in his office tonight.

Visitor from Space An excellent view of the new comet, whi.h arrived recently in the skies of the Southern Hemisphere, was obtainable at a late hour last night, when the sky was perfectly clear. The visitor from space was observed almost directly “ overhead, its astronomical position being given as R.A. 21hr OOmin, declination —41deg. Surrounding the nucleus is a hazy envelope extending for a considerable distance and then comes what in popular estimation is the chief feature of a comet —the tail. This comet has a very distinct tail, approximately four degrees in length and pointing in a northerly direction. The comet was readily distinguishable last night with the naked eye, but the best view of it is to be obtained with binoculars, these being even better than a telescope. This stranger of the skies is stated to be moving rapidly, but the guess is hazarded in astronomical circles that it may be visible for about a week. Fruit Marketing

Mr Alfred Coleman (chairman), Mr J. A. Campbell (director of the horticulture division of the Department of Agriculture), and Mr J, E. Thomas (of the Department of Industries and Commerce) , who are the members of the re-cently-appointed Fruit Marketing Committee, which was set up to investigate the methods of handling and marketing locally-grown and imported fruit and vegetables throughout New Zealand, left yesterday to hear evidence at Roxburgh to-day and at Alexandra to-morrow. The committee will return to Dunedin on Thursday to hear further evidence.

The Speaking of English “ The English language is really beautiful when it is spoken correctly, said Mr J. F. Montague at Te Awamutu. He said that the New Zealand speech was as beautiful as any, and we should not ape the English accents. Especially was it desirable to cultivate the vowel sounds, and give them their proper value. He cited many instances of correct and incorrect pronunciation, and added that he would like to see specially-selected teachers appointed to go from school to school to teach scholars simple, unaffected English, and pure vowel sounds. Parents owed a duty to their children in this matter, and every effort should be made to set a good example to the younger generation, instead of leaving the responsibility to the school teachers. Electric Tramway Service*

In publishing the statistics of electric tramways for the year 1935-36, the Census and Statistics Office states that the passengers carried on trams during 1935-36, totalled 131,651,395, or approximately 6,000,000 more than in the previous year, representing an increase of 5 per cent. The number carried is, however, much below the peak figure of 167,677,057 recorded in 192526. Wellington contributed the greatest absolute increase in passenger traffic (2,614,074), followed closely by Auckland (2,429,423). Christchurch and Dunedin increases were 511,076 and 428,667 respectively. Decreases were recorded in two centres--Wanga-nui (29,036) and Invercargill (24,061). Persons engaged during the year 193536 numbered 2621, or 38 more than in 1934-35, while salaries and wages paid advanced from £625,818 in 1934-35 to £672,161 in 1935-36. The financial statistics show that expenditure exceeded revenue by £48,751, the Wellington tramway undertaking being the only one to record a surplus. The sum of £19.272 was expended in capital outlay during 1935-36, bringing the total amount of capital expenditure to date to £5,528,022. Accrued funds at March 31. 1936. amounted to £2.362,968. , The Anti-Profiteering Legislation An assurance that the Government had no desire to harass or unduly interfere with business men by the Prevention of Profiteering legislation, and an explanation of the methods which would be taken in the investigation of the various reported cases, is explained in a letter from the Minister of Industries and Commerce (Mr D. G. Sullivan) in answer to a protest, from the Canterbury Chamber of Commerce. “ I wish to assure your chamber that it is not the desire or the intion of the Government,” Mr Sullivan writes, “ to harass or unduly interfere with business men, but we are determined to ensure that the public is not exploited by unreasonable increases in prices. The honest and fair business man has nothing to fear from this legislation. The method in which it will be operated is that complaints of unreasonably high prices will be investigated by the Departmenl of Industries and Commerce, which will report to me. If lam satisfied that tha circumstances warrant it, I shall refer the matter to the special tribunal. I anticipate that the majority of complaints will be settled by negotiation; but the Government considers it vitally necessary to haye this special legislation on the Statute Book in order to deal with any serious casef which may arise-"