‘TAPERING OFF’ BORROWING

Patea Mail, Volume LII, 2 March 1931, Page 2

‘TAPERING OFF’ BORROWING

A SOI AM) POLICE'. The Reform policy of ‘ ‘ tapering off'’’ public borrowing was unpopular in U*2S ; ami was one of tin.' causes of the defeat of the Reform Government at the !1»1’8 general election. .Nevertheless, .subsequent events have proved this policy sound. The Hon. Dowuie Stewart put the position with regard to borrowing very clearly in the House when he said; — ‘The policy which the Coates Government set itself was steadily to reduce borrowing. Towards that, goal innrked progress has been made, notwithstanding the public works commitments half completed. I had formed a strong opinion of the danger of drift in Australian finance; and 1 frequently said that Australia should be a waruing.' ’ That Air. Downie Stewart was correct in his warning is shown by subsequent events, particularly the period of depression through which the country is at present passing.