The Star. WEDNESDAY, AUGUST 24, 1910. SINKING FUNDS AND LOANS.

Star (Christchurch), Issue 9934, 24 August 1910, Page 2

The Star. WEDNESDAY, AUGUST 24, 1910. SINKING FUNDS AND LOANS.

Although tjhe Opposition lias been making frantic efforts to provo that Sir .Joseph Ward's proposal to establish sinking funds for all the dominion's loans is a delusion and a snare, Mr Masspy and his party did not oven protend to oppose the measure on its second reading. We dare say the scheme laid down in the Bill has its defects, but, after all, there can be no hope of attaining perfection in the matter of getting out of. debt so long as the dominion goes on borrowing. What the Prime Minister is aiming at is to facilitate the repayment of loans when the period of primary development in the dominion has been passed. He appears to anticipate that- in the course of fifteen or twenty years the electorates will cease clamouring for roads and bridges and tho politicians will cease voting a million or so a year to keep tho people satisfied. We cannot share this splendid optimism. So long as there are Governments anxious to remain in office, candidates who want , loaves and fishes and constituencies eager for new railway stations and post offices and such like-luxuries, so long will the temptation to borrow continueto operate. Still, the absence of a belief in the perfectibility of mankind, and more particularly of politicians, is not an argument against making propel' provision for the repayment of our debts. There is a growing feeling in tho community that there should bo a rely quick tapering off in the matter of borrowing, and that the dominion should take time to look about it with a view to ascertaining in what directions development- would proceed most profitably. During tlio past ten or fifteen years borrowed money has been spent freely and not always with due regard for the requirements of the country. A list of tho public works on which loan money has been, spent or is likely to be spent in the near future might very well be prepared for the information of Parliament and the community generally. That would be by way of preliminary to the introduction of a comprehensive scheme of reform in the method of expenditure of public money. Wo should like to see Parliament relieved of the irksome duty of apportioning the votes for all the big and little works that are financed or subsidised by tho State. The creation of provincial boards- of works would be a step in the right direction, and the application of the betterment system would put tho whole business on a better footing. In the meantime it is proper that the State should bo making provision for the discharge of its liabilities, and tho fact that the second reading of the Debt Extinction Bill was carried on the voices suggests that Parliament is unanimous at least on that point.