The Southland Times. PUBLISHED EVERY MOUSING. Luceo Non Uro. TUESDAY, JANUARY 29, 1924. CAUTION STILL VALUABLE.

Southland Times, Issue 19157, 29 January 1924, Page 6

The Southland Times. PUBLISHED EVERY MOUSING. Luceo Non Uro. TUESDAY, JANUARY 29, 1924. CAUTION STILL VALUABLE.

Signalising his return to the Dominion, Mr Massey has forecasted a further reduction in taxation in New Zealand, a prospect which wiU give pleasure to the financial and commercial world and to taxpayers in general; but it is tn be hoped that the Prime Minister is not relying too much on the mild boom in importing which the Customs revenue figures disclose. When importations advance it is the surest possible sign of confidence, but it will be unfortunate if our purchasing from overseas expands too rapidly, because there will always be a risk of a fall in the prices of our exports bringing back, in a lesser degree certainly, the conditions of 1920-21. The wool sales have been of immense benefit to the country, the high prices generally giving the growers returns in excess of expectations, and we may look forward to a more vigorous tone in business, which will tend to check for the moment at any rate any downward movement in land values, in spite of the theories advanced in some places that the Government by a stroke of the pen or a simple Bill can set the values of at res tumbling. ’Hie position to-day is one to inspire confidence, but it will be foolish, in the face of the experience of 1920-21 for this country to forget the grave dangers attendant on. a fall in prices where the money brought in by the profitable disposal of our products is lavishly expended in importations. Reductions in taxation are desirable, and every politician is eager to win popularity by this means if possible, but we must not forget that the burden of the war debt, is still on the country and must be sustained, quite apart from the cost of the general administration. Debt reduction offers the soundest line of action while we are enjoying the prosperity occasioned by good selling, but unfortunately the public taste does not run in this direction when there is money aplenty. Mr Massey, like his political predecessors, will claim that the return, to confidence is due to beneficent administration, but though he may exaggerate the Government’s share in the events which have brought about the recovery, there is no doubt but that Mr Massey’s firmmess and foresight during the dark days have been influential factors in bringing the, country

through the period of stress. He may be saddled with all the sins that party bias can imagine, he may be called a humbug and a rogue by his political foes who support their cases with recollections of the long dead past and dubious claims to party influence. His political enemies may claim the Labour Government of Britain as a replica of the Liberals of this country, but those who recall the stubborn fact that Mr Massey led us safely through the greatest depression this country hap known, will be inclined to smile at the perennial complaints as broadly as they do about this effort to secure for the Liberals in the Dominion some reflected glory from Mr Ramsay MacDonald’s rise to power. To-day there is an even greater need than before for cautious progress in connection with our finances, and Mr Massey’s principal task will be to resist the clamant demands for reductions in taxation beyond the safety point.