NOT SO BAD.

Southland Times, Issue 21577, 15 December 1931, Page 6

NOT SO BAD.

Mr Downie Stewart’s statement concerning the public accounts for the eight months of the current year do not make cheerful reading, but while he is bound to show the worst side of the picture to the public, and to be cautious in dealing with the future, his figures are not without redeeming qualities. The revenue compared with the eight months of the previous year is down by £2,830,000, and this amount shows a greater proportionate falling off than the supplementary budget did; but while a shortage in the Customs revenue is certain, the estimate may be fairly closely justified in the returns under other headings. Undoubtedly payments of income tax and land tax are being delayed as much as possible and it is possible that some taxpayers will be unable to make their payments in one sum on the due date, but the revenue will be secured ultimately, and if the London market lifts the situation will be correspondingly easier. Expenditure is actually down by £264,000 —the other reductions are explained by accountancy fluctuations —and that sum represents an actual saving on the estimated outlay of the supplementary budget. Mr Downie Stewart emphasises the paramount importance of trade revival, and it is necessary to remember that the term trade has a double significance: the overseas trade and domestic business. As London prices rise the national income increases; but within New Zealand free spending serves to keep business moving and people in employment. This is not a time for hoarding. Those who are in a position to spend should not regard the call for economy in public expenditure as advice to them, to curtail their spending. Within the limits of our national income the steady circulation of money is the best way of helping the Government. Mr Downie Stewart’s statement need not have a dampening effect. The position is no worse than was suspected, and the fact that the expenditure in the eight months has been kept £260,000 below the amended estimates is one of the most hopeful signs, because it shows that economy is being made effective in the place where it can do most good.