FOOTING THE BILL.

Taranaki Daily News, 24 June 1931, Page 4

FOOTING THE BILL.

In the relief afforded by the announcement of Australia’s determination to ■set her finances in order the cost to the residents of the Commonwealth has been overshadowed by the more spectacular loan conversion proposals. Examination of the details of the arrangement agreed" to by the Premiers’ Conference shows, however, that immediate and drastic sacrifices are being demanded of the public. A reduction of 20 per cent, is to be made in all adjustable Government expenditure, including all emoluments, wages, salaries and pensions paid 'by the Governments, and additional revenue is to be secured by taxation, both Commonwealth and State. To this must be added a reduction of interest on deposits in savings and trading banks, though this is set off to some extent by a reduction in interest charges for advances and by relief promised in respect of private mortgages. Even these actions will not square the national accounts. They represent the greatest effort the Commonwealth is able to make without the risk of collapse, but there is still a gap of over £13,600,000, that must be filled in the meantime by borrowing. All the Governments concerned have promised to push through the legislation necessary to bring these suggestions into force, and there is little doubt but that they will come into operation. Indeed, it was made quite apparent that without the economies proposed Australia would have little chance of obtaining the loans necessary to fill the gap between revenue and commitments. Though the cost of past extravagance will prove a heavy burden, acceptance of t'he load has already improved the standing of the Commonwealth in British financial circles, but it is certain that rigid economy, public and private, must be the policy of the country for some years, and that a good deal of hardship will have to be accepted as part of the pains of recovery.