Thames Star. MONDAY, JUNE 5, 1922. PUBLIC FINANCE.

Thames Star, Volume LVII, Issue 15308, 5 June 1922, Page 4

Thames Star. MONDAY, JUNE 5, 1922. PUBLIC FINANCE.

According to one of the greatest writers on political economy there can be no sound government without sound finance, and, it follows, there can be no sound finance without good government. In Mr Massey the country possesses a Minister of ! Finance with an abundance of optimism, a very necessary thing in these somewhat trying days, and both political friend and political foe will unite in hoping that his cheerful prophecies will come true.. After a year in which we expended £340,000 more than we received, despite taxation which is acknowledged to be very heavy, the problem of lightening the load while maintaining financial stability is no easy one. Even such a staunch party supporter ais the Otago Daily Times has to qualify its praises. “Mr Massey speaks somewhat vaguely, but on the whole rather hopefully, about the possibilities of a reduction of taxation,” is a recent guarded expression by the southern journal. Taxation cannot be redu'-ed until the public expenditure is lowered and the figures for the last financial year do not point to anything very drastic in that direction. The figures are: — . ■ £ 1920- .. .. .. .. 15,834,005 1921- 15,592,677 Net decrease £241,328 In view of the fact that the income tax revenue is expected to drop by £2,000,000 this year, it will be seen that much more drastic reductions will be necessary before any taxation can be foregone. With much jovhowever, the party papers are pointing to the fact that the figures for last quarter show a considerable saving when compared with the figures for the corresponding quarter of the previous year. They show a reduction of something over £1,000,000. but an analysis of the figures will show that £650,000 of that saving was effected in the railway service, and that it would be interesting to know how much of it is represented by the use of coal in stock limiting the purchases under that heading. The actual saving may be more apparent than real. At the present time a committee is sitting in Wellington studying the, incidence of taxation. According to men usually well informed Mr Massey has told the members of the committee that there can be no reduction in the volume of taxation, but he would consider their re•nresbntations regarding proposed adjustments. The big companies, and the farmers and the law are all represented on the committee, but not the consumer, and who is to protect his interests? He pays mosth 7 through Customs duties. They hit the married working man hardest, and yet we find a responsible Reform journal saying “if the whole of the amount represented in the drop in the proceeds of the income tax is made up to the Treasury in the form of increased collections through the Customs,” so that the possibility of the financial load being placed upon the' consumer is very real. It would mean a very big increase in the cost of living. Finance promises to be the big consideration during the coming session, and it may well be the issue on which the coming election will be fought.