The Sun FRIDAY, AUGUST 25, 1916. SELF-RELIANT FINANCE.

Sun (Christchurch), Volume III, Issue 793, 25 August 1916, Page 6

The Sun FRIDAY, AUGUST 25, 1916. SELF-RELIANT FINANCE.

The success of the war loan is naturally provoking some little discussion regarding self-reliant finance, and a Wellington newspaper has been "sounding" some banking authorities regarding the prospects of a public works loan. The Government announced during the session that it did not contemplate bor- | rowing anything this year for public works, but before Parliament meets again it will have to consider what it is going to do. It is impossible to I say at this stage to what extent the war will drain our resources. The jend is by no means in sight; ahd 1 every month that passes will make the position more difficult in Great Britain, where the national capital is being eaten into at an alarming rate. It appears to us that from henceforth, whether we like it or not, we shall have to find ourselves the bulk of the money required for war and general purposes. Up to the present New Zealand has undoubtedly made money out of the war. That is to say, the increased returns obtained for its exports, as compared to prewar prices, amount to more than has been spent on the Expeditionary Force. There is every indication that this position will be maintained for the present year, although after that the ever-increasing cost of our army, and the withdrawal of so much labour that would otherwise be engaged in productive operations, may bring about a reverse state of affairs. Hitherto the Mother Country has been very accommodating. She has shown no disposition to ask Dominion statesmen whether they were justified in coming to her for so much money, but the circumstance j thai we are able to find nine millions [for ourselves in a fortnight is not likely to be overlooked if any further applications are made to the Imperial authorities for loans. We see little reason to doubt that if the Dominion is put to the test of absolute dependence on herself she will prove equal to it. The lest will, however, be a stiff one. Much of our prosperity during recent years has resulted from the continuous development of our agricultural resources. Settlement has been extending farther and farther back into the rich bush districts of (lie North Island. Settlers have pushed (heir way in ahead of | roads and transport facilities, clearling the bush, sowing down their holdings, and slocking them with the aid of the numerous firms who make it their business to finance these men in return for handling their output. The Public Works Department tardily follows up with I roads and railways, and the disbursej ments for wages and material ! provide a good deal of welcome ! ready money in these new districts. The point that does not always get the consideration it deserves in an old settled province like Canterbury is that the stoppage of development 'works will be disastrous to certain 'portions of the Dominion, and that 'it is almost as important to continue (the most urgent of these undertakI ings as it is to find the money for 'the Expeditionary Force. So far the | Dominion has felt no pinch to speak lof on account of the war. Even if : the demands of the Government in the shape of war taxation and additional war loans cause money to get scarcer and dearer, the importance of maintaining a development policy should be kept in mind, and nothing but sheer necessity should cause it to be temporarily abandoned.