DOMINION'S FINANCE

Timaru Herald, Volume CXLIII, Issue 20929, 7 January 1938, Page 14

DOMINION'S FINANCE

“LIVING UP TO INCOME’’ LONDON. December 18. "The conclusion drawn from the Rational accounts for the year ended 1936-37 is that New Zealand in a period of great and rather sudden prosperity has been living up to her income,” states the report on economic and commercial conditions in New Zealand by Mr R. Boulter and Mr T. G. A. Muntz, British. Trade Commissioner and Assistant Commissioner in New Zealand respectively. The report, which has just been issued by the Department of Overseas Trade, is dated July. 1937. “The desire of the Government to laise the minimum standard of living, as exemplified in such forms as salaries, wages, pensions and allowances, shorter working hours, improved educational facilities and the provision of better housing accommodation, meets with little criticism,” the report states. "More criticism is directed against a large expenditure on public works and the completion of railway lines of doubtful earning power, at a time when it is contended that the industries of the country should be able to relieve the problem of unemployment.

“Certain taxes imposed to meet the exigencies of a period of acute depression remain operative, and further taxation has been imposed. The rate of taxation —exclusive of rates levied by local authorities—has increased each year since 1932. and for the financial year 1936-37 was £l9 14s lOd per head of population.

“Evidence of the effects whiefi these taxes, in combination with higher wages and shorter hours, have upon the results of banks and merchants is not hard to find. Dairy farmers have complained that they go far toward nullifying the advantages of the guaranteed prices for butter and cheese. “In many circles the view is held that a slower rate of progress would have been more in accordance with sound finance, and that after the period of severe trial faced during the years of depression a process of lightening rather than increasing the burden of taxation would iave lustered recuperation and assisted to build up reserves with which io face whatever trials the future may have in store. ’ ENGLISH MARKETS

United Press Association-By Electrir Telegraph -Copyright LONDON. January 5. A generally confident tone is becoming noticeable in the markets, especially in gold shares, which ts regarded as likely to have a most interesting year. The commodity markets are also firmer. MOTOR PRODUCTION RECORD Production of motor-cars and taxicabs in Britain in September. 1937, totalled 25.846. compared with 27.499 in September. 1936. For the industry’s year to September 30 T -eduction was at the record level of 389.633 vehicles—an increase of 35,795 on the previous year.