Poverty Bay Herald PUBLISHED EVERY EVENING. GISBORNE, MONDAY, MAY 3, 1909 "ALL'S WEELL."

Poverty Bay Herald, Volume XXXVI, Issue 11841, 3 May 1909, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING. GISBORNE, MONDAY, MAY 3, 1909 "ALL'S WEELL."

Anyone who* is .inclined ,to be at all pessimistic regarding vthe; future of New Zealand is recommended to read "the plain, straight-forward summary, of the national balance sheet , that was presented to the people of \iho dominion by tho Premier and/ Minister for Finance m his speech at InvercargiH on Saturday night. Thiso! country's "accounts have come out qyite as well as the most sanguine person could have anticipated, and New Zealand has weather-; ed the storm and 1 stress* of financial stringency with remarkable success. Sii- Joseph Ward' m his last Budget anticipated a falling off m revenue as a Natural consequence of 'the workr-wid^ financial depression and the exceedingly low price to which the products of the Dominion had fallen. He) niade provision for this, and placed the amount of his estimated surplus at the end' of the year's operations as £74,503. That his estimate was oii' the cbiis'ewatiy.e 'side is. shown by the fact that the actual surplus sit March 31st proVed to £|84,321.. As against theo suggestion that surpluses are easily manufactured, we have the solid fact that the actual reVenue exceeded the aeMial expenditure by no less a sum than £215y67_, and-the, figures given of the growth of revenue frbm year to year are convincing proof of the soundness of NeW,; Zealand's prosperity. Last year's revenue exceeded nine million pounds, 7 but fell off from that of the previous year by £34,761, the only important department showing diminution being Customs, where there was a decrease of £148,000. t This decrease is accounted for by the Premier asj being synchronous ' with a similar movement m other countries t,o a much greater extent *proportionately than m Now Zealand, and as also due to excessive importations m 1908 by merchants stocking heavily to get ahead of preferential duties. So far- from Tb^ing a Subject of regret, a fall m Customs duty at the present time is really matter for congratulation, for it proves that 6ur merchants audi the public generally havo taken heed 1 of the warnings against overtrading and over-speculation, and \ have been shortening sail so as to bring the imports of the country within measure of the exports. Tliat there has been no real depression m the.coiintry is abundantly proved by the raihvay and postal receipts which 'have increased enormously. Last' year . there wds ah 'increase Of oyer 700,000 m the number 76f railway tickets sold, and an increase r of revenue of £167,000, whilst the poster revenue, despite penny -post and other' redhctiohs, mounted up to no less than ) £915,000. Rest indication of air of the solidarity of the country, however,, is giyett m the Savings Bank retfurns, which 1 show that despite so-called "hard' times"' £636,663 was added to the sayings of the people. Cprisldering the high Yrate of. ■• interest which money , commanded, during the yetwf, artd the fact that the Government wisely did not . incl-eijse the interest payable by tl\e Savings* Bank, it Is remarkable that the withdrawals - were- not greater. Sir 'Joseph Waid anfyly refutes the statement that the Government have been mopping up all the ■ money m the country by showing that whilst £2,250,---000 loan money was raised' in ' T.ondon, less than £100;0Q6 was subscribed .m Now Zealand, artd that without solicitation. 0^ the Other hand 1 , the Government*, has, through itsi Advances Departments, distributed £1,792,019— this at' a time whenmost private financial institutions .had absolutely shut down oh advances on landed 1 property. The explanation given of the causes of the stringency m the money market will ' commend itself to those who have studied the question, as also the remedy proposed, which is bn'osane and 'Safe' lines. The Premier, will be no party to an attempt to build up prosperity With State bank notes, and fully recognises the need for retaining the" confidence of' the financial world. He gives good reasons why it is undesirable to repeal, the mortgage tax, and shows that its existence m a modified! form to what it was previously, when money commanded smaller rates of • interest, cannot N be so very prejudicial after, all. In regard tp the Government policy, a number .of important proposals, were foreshadowed, sufficient to show. that the coming sos : sion will be one of exceptioml interest. Sir- Joseph Ward reserved! for the proper itime and place the disclosure of full de-

tails of his retrenchment proposals, which are to effect a saving of £250,000 per annum m the national expenditure, and doubtless soon after Parliament meets the whole scheme of readjustment will be presented. The defence of the Dreadnought offer is given m a manner that must appeal to the patriotic spirit of every inhabitant of these island's, and tho constitutional aspect of the Government's position m shouldering the vast responsibility is made quite clear, but the actual proposal for meeting the financial obligation involved is not disclosed, this being a matter for inclusion m the Budget proposals of the Government. Altogether the speech was one of tho most masterly that Sir Joseph Ward has yet delivered, and it *will go a long way to establish confidence both m the ■state of the country's finances and the Government policy andi. administration.