The Daily News. MONDAY, OCTOBER 27, 1919. EXTRAVAGANT NATIONAL EXPENDITURE.

Taranaki Daily News, 27 October 1919, Page 4

The Daily News. MONDAY, OCTOBER 27, 1919. EXTRAVAGANT NATIONAL EXPENDITURE.

During the war period, the nations, and especially Britain, learned to talk glibly about millions, hundreds of millions, and thousands of millions. Money was a means to an end—victory and little, if any, heed was given to warnings as to economy or the elimination of waste.. The war must be won no matter at what cost; it was won, and now the revelations of waste and extravagance are almost staggering in their volume. It was inevitable there should be considerable waste, and it is.no use worrying over the financial losses that have been made. The main duty is to turn over a new leaf and institute a thoroughly rigid system of economy. The moral effect of Government waste, whether in Britain, New Zealand, or elsewhere, is enormous. Every msm or woman unnecessarily kept in uniform is an example of Government prodigality. ' Every improvised office, with its swarms of elerks, every ship that is sent away with men and munitions for expeditions which ought to have been stopped long ago had the proper steps been taken, are unconscious incitements to private thriftlessness, for while the Government does not economise the people will not do so. Besides this, high taxation is killing thrift. Coal is scarce in Britain as well as in the Dominion, yet, while fuel for the Navy cost less than four millions before the war, it is saict that four or five times that sum is being spent on naval fuel this year. Although the war has been over for nearly twelve months there are thousands drawing service pay—in the British Royal Air Force there are still over 14,000 officers. Speaking recently, Sir Douglas Ma-clean said Britain had "at last awakened tc its financial peril; it must either economise or go bankrupt." There is no melodrama about thi statement, for it coincides with an utterance by the Chancellor of the Exchequer, who said: "If we continue spending at the same rate as we are doing, it would lead us straight to national bankruptcy." It is admitted that the situation is one of gravity, j and that it is imperative to reduce expenditure and increase production if the corner is to be turned. That national expenditure must be considerably higher after the war than before is obvious, and it is also clear that until the Peace Treaty is fully ratified there must necessarily be a large force kept in readiness for emergencies, but reckless waste must be stopped and the brake applied to prodigal and unjustified expenditure. Lord Rothermere is so alarmed at the outlook for Britain that lie has made a suggestion to liquidate, wholly or partially, Britain's enormous debt to the United States by endeavoring to dispose of the Bermudas, the Bahamas, and some of the West Indian Islands, but not Jamaica, Barbados, or Trinidad, to the United States. He admits it would be a blow to the country's pride, but contends that when a man is near bSA&Upfcpt M Ifill! ftf

assets, and that a nation is no j exception. It must cut its coat according to its cloth. New Zealand is in no peril of bankruptcy, but there are evidences of extravagance in several of the State Departments which are making an alarmingly increasing drain on the public purse. No member of the Government appears to be an adept at the use of the pruning knife, and it is a misfortune that Sir James Allen's management of the financial affairs of the country lias never been brilliant, his only startling achievement being at the end of 1914-15, when his accounts showed a deficit, which, as the Lyttelion Times points out, "he attempted to cover up by the clumsy and easily detected expedient of holding back the railwaymen's pay for a fortnight, involving 'about £75,000, and flourished a 'surplus' of £72,142." There is no disguising the fact that the unrestricted expenditure in war time has had a demoralising effect, and that is a cogent reason why the new Parliament should contain a strong element of reliable business men to bring right principles to bear on national expenditure. Parliament has ; decided to perpetuate for another year the bread and butter subsidies, the % former involving £213,000 for the millers, and the latter £170,000 for dairymen. This step is one that takes part of the price out of the pockets of taxpayers and pays it over to the vendors. At best, it is only a partial expedient, for it leaves stock-raisers, butchers, milkmen, and others untouched, while the present restrictions on the sale of hides are leading to something akin to a scandal. The united wisdom of • the new Parliament may be able to solve this difficult problem, but the most urgent action is dealing with profiteers. In Britain a thorough profiteer hunt has been instituted under drastic conditions, and there is need for similar work in New Zealand. In view of the large sums that will have to be provided by the Dominion for absolutely essential purposes, a vigorous policy of retrenchment is needed. Though the country is in a sound financial position and can meet all its obligations, not a penny should be wasted, and it would be only prudent for the next few years to eut. down to zero the unprofitable and unnecessary hangers-on to the Defence Department. The work is now mainly routine and can be efficiently carried out by civilians far more economically than by highly paid officers. It is the incubus of this Department that is pressing on the taxpayers.