A WISE DECISION.

Taranaki Daily News, 23 December 1930, Page 8

A WISE DECISION.

The statements made by the Acting Prime Minister, the Hon. E. A. Ransom, in regard to the country’s financial position will meet with general approval. The recital of circumstances as they exist, of falling revenue and increasing costs, is not a cheerful message for any Government to lay before the country. The hopeful side of Mr. Ransom’s statement lies in the fact that ,the Ministry has definitely declined to create a moratorium and has averred its intention of reducing administration costs by hook or by crook. Had a moratorium been declared it would have been almost akin to assigning the national estate and admitting the country’s inability to meet its immediate commitments. However serious the position, may be it Is some comfort to know that the financial advisers of the State do not consider a moratorium either wise or necessary. But the demand for such an action shows the. extremity in which the industries, and particularly the primary industries of the country, are finding ’ themselves. Had the Government confined itself- to the refusal of a moratorium its reputation for statesmanship would not rank high. The one ray of hope, in Mr. Ransom’s statement is that a real and serious attempt is to be made to reduce the costa of governing'the. Dominion and to ascertain whether State aid can be afforded to industries in a manner that will help them -to recover virility and bring back more prosperous days. By inference, if not by direct, statement, the Acting-Prime Minister may be said to - have recognised that. ■ the limit of taxation has been reached. The hope of balancing the Budget for the current year by means of increased taxes is rapidly fading, and the heavier the taxation burden is made the less is recovery likely, and with it the increased revenue the Government requires. There is no immediate prospect of an improvement in prices obtainable for our exports, and for certain expenditure such' as interest upon loans there is no reduction possible. There remains the sphere of sdc’ial services aiid general administration, and it is there tliat ample room can be found for drastic economy if the Ministry is strong enough to undertake the work in earnest. It will not make for popularity, it may even cost the United Party the support of official Labour, but it represents the only sane method by which the national 'balance-sheet can be made to balance and the way opened to brighter days.