Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE. TUESDAY, SEPT. 24, 1935. BUDGET REACTIONS

Poverty Bay Herald, Volume LXII, Issue 18819, 24 September 1935, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE. TUESDAY, SEPT. 24, 1935. BUDGET REACTIONS

I-i view of the many things which various sections of the community had hoped for, and even been led to ex|iccl, il is surprising to find that the Budget presented to the House lust week has evoked so tittle unfavorable criticism. Nearly a week has elapsed since the Government ’.4 financial proposals were disclosed, and il would seem that neither in Ihe House nor in the country has ail analysis of ihe provisions levenled any ground for general discontent. Even the Leader of the Opposition, has been constrained to admit I hat “things might have been worse,’ ’ and bis followers in the House, deprived of scope, for seriously attacking the Budget, itself, have been compelled to regard the tinam.-ial debate n s another opportunity for a general discussion of politics. The explanation of this position is that the Budget, even li it

did not make all the concessions which circumstances seemed to warrant, was essentially fair in those which if did announce, while the statement of the Dominion’s position demonstrated the remarkable progress that had been made towards financial stability. This is a .point which people are inclined to overlook, and the comment of a Sydney bu.-i----uo.ss man that New Zealand’s Budget would make the months of Australian Stale Treasurers water is a timely reminder of the fact that the affairs of the Dominion have been soundly administered in the past fe,w years. Politically, economically, and financially, Australia presents the nearest parallel to conditions in New Zealand, and when it is realised that the various States are still budgeting for deficits and raising loans to assist in the relief of unemployment —and relief in Australia is on. a much less generous scale than here—while the Dominion has already balanced its Bud-, get and actually reduced its public debt instead of continuing to borrow, tho comparative soundness of our position can be better understood. Against this, it is true that taxation in tho Dominion is still excessively high, and that in the current year tho yield from it is estimated to show a further increase. In this connection, however, it must be remembered that an increase of £1,500,000 is being spent out, of revenue on public, works, when a. large proportion of the amount could quite .justifiably have been obtained by way of loan. The wisdom of carrying out capital works out of income may be open to question, but these is much to be said, nevertheless, in favor of reducing borrowing by the State to an absolute minimum. This year, relief from taxation could have, been granted at the expense of raising a loan, but if the reduction were to be maintained next year, either a further loan would be necessary or else business would require to recover to such an extent that the yield from taxation on a lower basis would, need to be a great deal higher than at present. In other words, there would be, a danger of a resort to borrowing, instead of being merely a temporary expedient, becoming once more a permanent feature of our national finance. The country has managed to survive the most difficult years of its history without increasing its debt, and this would seem to suggest that with the readjustment that is steadily being effected it should be possible to continue to live within our income. The adoption of this policy, however, means that expenditure will require to be carefully watched. The Budget demonstrated that the present commitments absorb all the available revenue—and, this at a time when taxation, is at itspeak and admittedly excessive. This is another point that should be constantly borne in mind when representations are being made for an extension of State activities. It is taking the country all its time now to maintain the vast governmental structure that has been erected, and every addition that is made to it inevitably menus either that the national debt will have to be increased, or else that further additions must be made to the taxation bill. The most pressing need is for a reduction of taxation, because already it bears so heavily upon industry that it is curbing that expansion and development which are so vital to economic recovery. It is recognition of this fact, perhaps, that is curbing speakers in tho financial debate. They know, on the one hand, that advocacy of so-called reforms will entail extra taxation, while, on the other, to urge relief to the taxpayers would mean the curtailment of some of the existing State services. Therefore, they are inclined to talk all round the real subject. In the discussion, guaranteed prices has taken a prominent place, but supporters of this policy seem to overlook the fact that it has an important hearing on the Budget, since the general impression is that the scheme can only be carried out by levying heavy additional taxation which, if it is to have the desired effect of helping tho farmers, must fall on tlu shoulders of the non-farming community. Is it for this reason that details of the plan have not boon made known —because it is realised that, tho support of tho producers can only be bought at the expense of the votes of the workers who would have to pay for whatever benefits were conferred? For political reasons, also, the question of loans is generally avoided, except for some criticism oi the rates of interest paid by the Government, but here again the comment is effectively answered by experience. The terms of the recent New Zealand loan in London were the most favorable ever given to an overseas country; Australia’s last internal loan was under subscribed; and the United ,'stales, to take another example, last mouth was unable to obtain subscriptions to a Treasury issue. In the House, Labor members attacked the Mortgage Corporation for paying per cent, but in Auckland, the Labor City Council is proposing to offer .11 par cent on almost, identical security. The truth of the position, perhaps, is that the Budget, even though it. may bo lacking in popularity, is too sound to make widespread criticism possible. For this reason those who believe that financial stability is the primary consideration have accepted it uncomplainingly, while those .who would use it as a. means for attacking the Government feel that it is safer to avoid the subject. The general reaction, therefore, seems to confirm the general view that tho Budget, unspectacular and prosaic, though it may be, is exactly what is should be in the circumstances.

Final arrangement?, for the celebration of the fiftieth anniversary of the arrival of the Marist Brothers in Auckland were made at. a meeting held on Sunday.

A resident, of Tokaanu, Mi. Joint A. Asher, who is vi.'itTng Tauranga. stated that ho will contest the Western Maori sent at the general tdeerion as the Democrat- oandidnle.

One of the. Wellington hockey representatives, T. Maeartiiur, suffered head injuries as a result of being struck by a stick in the course of the match against Auckland ai the Remucra grounds on Saturday.

Ail unfortunate mishap oceumd when Miss Violet Runridge. was being driven to her wedding at Opotiki on .Saturday afternoon. A wheel came ulf the motor ear and the bride, her mother and other members of the party were thrown out. Luckily, however, no one was seriously hurt' and the party inter proceeded to the church, where the bridegroom awaited their arrival.

An accident which caused temporary blindness occurred to Mr. .Stanley Lee, Norman road, on .Saturday morning, lie was working with a bag of lime, when some been me lodged in his eves, which were so acutely affected that medical attention was required. Mr. Lee will not be aide to resume work for about a, fortnight.

A collision occurred on Waiueka bridge. Opotiki, on Saturday night between two sedan cars, driven by Mr. E. Sergeant, of Woodlands, and Mrs. 1!. Invin. of Waiotahi. The only injuries were to a passenger in Mrs. Irwin s car, Mrs. Curtis, 87. of Waiotahi, who was removed lo the Opotiki Hospital. Her injuries were a broken rib and severe bruises. Mrs. Irwin's car was fairly extensively damaged and had to lie removed by n breakdown van.

“He always played tho game,” is the fitting inscription on the memorial unveiled on Sunday at the Otahuhu cemetery to the memory of the. former Auckland and New Zealand .Rugby representative footballer, the late Bert Palmer, who died on September 4, 1952, as tlie result, of injuries received mi the placing field. There was a gathering of several hundreds at the ceremony, which was arranged by the Olaliuhu Rugby Chib in conjunction with the Auckland Rugby Union.

Tiie registrar of the Melbourne University received file following letter: "Dear sir.—l am an American college student. 1 wish to correspond with Australian college students who understand English—girls or boys. Could you give my address (o some students or send me the addresses of some who would be interested in corresponding with an Ameijiean student?’ Ihe writer of the letter is a. girl, living in Los Angeles, California, and attending one of the .great universities on the west coast.

Tho managing secretary of the Waihi Hospital, Mr \\. C. Collier, lias received a letter from Miss May Currie, of Auckland, whose appointment as matron at Waihi has 'been confirmed by the Department of Health, to tin eifect that she lias decided not to take up the duties. The Health Department Hus now been requested to agree to tin appointment, as matron of Miss 1. J. H. Roves, matron of the Tetnuka Cottage Hospital, Canterbury. Iler name was placed second on (he list hv the Hospital Board in submitting the applications to the department.

Disused railway carriages are popular as residences in parts of the Wailemnta County, Auckland. On a tour ,of tiie country, a resident saw seven of them from the road, and they appeared quite attractive residences. With minor alterations, the addition of curtains and surrounding g; rdens, several of t Horn had quite a (picturesque appearance. Ingenuity has given to three of thornutilised bv a resident near Albany—a substantial cottage air. One. ottering a broad face to the road, has. porches at either end, replacing the old platform. and nui-on to these porches (he two other carriages form roomy wings-

At a meeting of the Dental Chine Committee last night the headmasters of the various schools were invited to attend and express their opinions aim suggest ways of raising the necessary money lo carry uu with this work. They were .sympathetic, hut it was decided that, on account of the schools being in their final term of the school year, it would be unwise to distract the children’s minds from their work with carnivals mid other entertainments. .Several plans were formulated, among which was the suggestion of circularising the. local bodies and sports bodies /or assistance, and these will be put into operation within the next lew days.

The natives at Tomman, a remote New Hebrides island at which tho sloop Wellington called on her recent island-, cruise, had seen white men only two or three times in their lives. After being enticed on board the sloop, they played like children with the electric fans and lights, and one screamed when a piece of ice was placed in his hand. A young chief came out to the ship attired only in a singlet and a bowler hat. which was found to hoar the label of a well-known Bond .street firm. Before the sloop left, the officers filled him out with a set of discarded “tails,” vest, collar and bow tie. Delighted with his new outfit, he did not. notice that he had not. been given any trousers, and paddled ashore in his evening dress, bowler hat and loin cloth.

A feature of the High School's annual eross-couiitrv race yesterday was the

■ act that two brothers, 1. and K. Bell, headed the field together at the finishing line. However, the trophy is awarded to the competitor securing the fastest lime, and this was made by A. Wiling, who from the scratch mark came in tilth place. Voung covered the course in ;6iiiin. 4250 c., only lsoc. behind the record previously established by liimidf. thus annexing! the cup for tiie third time. The race, over a distance of 4.3 miles, was run as a handicap event according to age. The preparatory school boys were given a 15rnin. start, and the others left the school according to age. one minute being allowed for year. The runners, of whom there were 243. proceeded down Stanley road to the beach, along past tho abattoirs, across country close to the aerodrome, and returned to the school via Childers road.

I-larboi’ officials ami others whose business litis kept them in close touch with the developments on the foreshore and waterfront are not seriously concerned over the apparent erosion of a portion of Waikanae Beach, to whicu attention was drawn by a Victoria Township resident, in a letter to the Cook County Council last week. The fact that some erosion has taken place, or rather that a scouring current lias moved a considerable amount of sand from one location to another, is accepted as being (lue to seasonal development only. Similar effects have been noted from time to time in the past, erosion occurring on some occasions to an extent which seemed to threaten the safety of property in Victoria Township,' but a ihange of weather has invariably seen a change ot foreshore alignment, and a similar adjustment is expected to follow the present encroachment ot the .sea on Waikanae Bench. It, is the conviction of harbor officials generally Hint, the shore-line is gradually creeping se.awaid. rather than that erosion of a serious nature is to be expected in the future, *