The Timaru Herald THURSDAY, JULY 10, 1930. LESSONS FROM THE PAST.

Timaru Herald, Volume CXXV, Issue 18615, 10 July 1930, Page 8

The Timaru Herald THURSDAY, JULY 10, 1930. LESSONS FROM THE PAST.

“ Let us drown all the croakers and tackle the job in front of us with cheerful resolution,” counselled a prominent city businessman in an address to his fellowcitizens the other day. . lmitting there was hardship and distress in this country, he declared that after what he had seen in the United States and England, conditions in New Zealand are not so black as the "croakers” would have the people believe. It is interesting to recall, however, that the records of New Zealand disclose the fact that this country has always displayed courage and determination in days of difficulty, and if history is to repeat itself, the wonderful recuperative capacity of this country offers a firm foundation upon which to rebuild a more enduring prosperity. Fifty years ago—to be precise, on July 1. 1880 —the Hon. John Hall, who was then Premier of New Zealand, faced a deputation of unemployed who waited on the Government to ask that work might be given them. The Premier in the course of his reply, said:

He hoped the unemployed would disabuse their mind 6 of the idea that the Government co.uld find work for them in or near Wellington or any other town. The only place they could find work for them was in the country, on the railways, and other public works. The Government could only provide the unemployed with means of subsistence—not the ordinary rate of wages, which they did not want to interfere with, and which must settle itself. Then when trade revived, the men would be able to get w or k from private sources.

Not only was the Government of that day considerably exercised in mind in face of increasing unemployment, but the financial position of the country was such as to force the Government to think in terms of more economical administration a»d rigid .economy. The Government in the difficult days of fifty years ago did not attempt to convert a deficit into a surplus by increasing the cost of administration by presenting themselves with a little gift of another £IOO per annum by way of salary. On the contrary, tjie Government of that day showed that economy, like charity, ought to begin at home. Hence in the House of Representatives on June 30, 1880, the Colonial Treasurer (Major Atkinson) announced that “Ministers would cease to draw their full salaries from that month.” Doubtless, the present Party in office has not yet realised, in view of its periodical attempt to hold the - Reform Party altogether responsible for the small deficit, that not only had the Government of half a century ago to face a financial situation much the same as to-day, but it had to shoulder a legacy bequeathed to it by the Grey Administration in the form of liabilities to the extent of £3,500,000, “ although,” the Colonial Treasurer pointed out, “£11,234,000 passed through the hands of that Administration. “ The future historians,” said Major Atkinson, “would place the blame of the present difficulties upon the shoulders of those gentlemen.” Those gentlemen, by the way, were the Liberals! In these days of finance expressed in millions, the Government of the hour is not the least appalled if confronted with liabilities amounting to some millions, but in the pioneering days of 1880, any Ministry that had to face liabilities totalling between three and four millions had to steady itself under the burden, and embark upon heroic remedies. In the financial year 1881, the national purse received, in all, it is interesting to note, the sum of £3,285,000, which to-day we would not regard as very large, in view of the fact that last year the State collected through customs revenue alone nearly nine million pounds. Fifty years ago, however, the Government was faced with expenditure totalling £4,019,851, which produced the bugbear of all party politics—a heavy deficit. The Government proposed to deal with the difficulties by retrenchment, by the property tax, a tax on beer, and by increased customs duty. Outlining the Government’s proposals to balance the budget, the Colonial Treasurer in 1880, made this interesting pronouncement:

It was the duty of the House to insist upon retrenchment as far as it was possible to do so. There were three ways—dismissing unnecessary hands, curtailing the public conveniences at present enjoyed, and by reducing salaries. The former course would not meet present difficulties, and so they would be driven to one or both the latter alternatives.

It seemed to him, continued the Treasurer, that the House should address itself in the first instance to fearlessly dealing with the estimates, and that they should be got through as quickly as possible; and having done this, they should then consider how much taxation was necessary to balance accounts, and put it on. They should in-ist that the Public Works expenditure should be limited to such works as are necessary, in order to make them—already begun—payable at the present date. He could not agree to stopping public works, but the House must insist upon votes only for useful works. The Treasurer concluded by saying

there was no occasion for panic. This country was able to meet the whole of its liabilities, but economy, thrift, and care were needed in its administration.

The public must be prepared for much less expenditure, local bodies must be prepared to assist the Government, and the people throughout the colony must be prepared to practise the virtue of self-denial.

Obviously the people of to-day may take courage from the lessons of the past. It will thus he seen that, fifty years ago the Government, with a mere fraction of the resources now at the disposal of the country, unflinchingly faced a difficult situation, and by resolute measures restored the country’s financial stability and laid the foundation of the wonderful era of progress and prosperity that came to New Zealand in succeeding years.