THE PUBLIC ACCOUNTS.

Star (Christchurch), Issue 11000, 12 February 1914, Page 2

THE PUBLIC ACCOUNTS.

FINANCIAL STRINGENCY. REFORM INDICTED. SN LEAGUE WITH LENDERS. A representative of the- "Star" who sought out Mr G. \VRussell yesterday found the member for Avon turning over si pile of weighly looking documents which at first sight did not appear to promise any very attractive copy. But the documents turned out 1.0 he- the pub< lie accounts for tho December quarter, and it required only one or two leading questions to titart Mr Russeil talking of the figures in a very interesting «'ay. "Owing to my absence from Christchurch, I have only to-day had the opportunity of examining the public accounts for the Decornher quarter, which nppearod in tho ' Gazette-' of January 29," ho said. "They throw a vast amount of light upon the finance of the apprentice statesmen now in office, and well repay perusal.

" The ordinary revenue shows an increase of (in round figures) £3OOO over that' of tho corresponding quarter of tho previous year. Customs and railways show substantial reductions of £102,000 and £105,000 respectively, but those aro more than compensated for by increases in tho land tax and postal and stamp revenues. The postal revenue shows an' increase of £73,000, but at least. £50,000 of this sum was secured by the unfair and improper action of the Government in collecting six months' telephone subscriptions instead of three. However, as they cannot have their cake arid eat it, the revenue'during the March quarter will be proportionately reduced. Still* the fact that this had to bo done evidences the sore straits in which they were placed at tho time. So much for the revenue. "Now for tho expenditure. The following increases for the quarter just expired over that for the corresponding quarter of 1912 are shown: — Increase. £ Permanent Appropriations . 107,771 Annual Appropriations . . 137,60'! Total increase of expenditure £215,375 "Deducting the £3OOO increase, of revenue we nave a net loss on the quarter of £242,375, and adding the £50,000 of telephone subscriptions collected in advance the amount becomes £'21)2,375 that New Zealand went .to the bad during the December quarter, as compared with the previous year. This is bad enough, but it is not. all. "When the Massey Government took office there were no Treasury billsi.e., promissory ziotes floated in anticipation of revenue—in existence. After they had been in office six moritb.6, namely, at December'3l, 1912, there were bills amounting to £300,000. They began the last December quarter with £375,000 of these paper kites floating about. Thev ended up with £so3,ooo—an increase of £128,000. If I add this 'loanin anticipation of revenue ' to the deficit of £292,375- already stated, the dead loss on the quarter assumes the appalling proportion of £420,375. There are the facts.

'"'To what do the figures quoted point? The indications are so plain that lie who runs may read them. 11l tho Budget of 1913 the Government pledged themselves to transfer £675,000 "from the Consolidated to the Public Works fund. During the December quarter they transferred £50,000. This is; the first transfer they have made during this financial year, consequently. the whole £625.000 has to be transferred during the current quarter. After deducting the Treasury Bills outstanding (as required by law) there was only £572,650 in the public account, and this included not only the cash in the account but also all the imprests in the hands of public officers in the dominion and in London! During the December quarter of "last year £225,000 was paid over to the Public Works fund, and* after deducting the Treasury Bills there still remained £943,384■■ in the account. The difference in the position this year as compared with last is phenomenal, and calculated to give every well-wisher of New Zealand the gravest anxiety. , I am not going to use Mr Rolleston's celebrated phrase and say the country is ' galloping to a deficit,' but a huge shrinkage of the chronic surpluses under the Liberal administrations is certain, for the strike expenditure—which does not. appear in these accounts —will during the I\larch quarter of necessity come to book. There may, of course, | be a big recovery in the Customs and I railway revenues —I hope there will—but the necessity of providing for tho ! strike expenditure and transferring the balance of the mouey due to the Public Works fund will make serious inroads on the quarter's income, however satisfactory it may be. "Are there any other items of special interest? One or two, and they all point to financial stringency of the most serious nature. During the December quarter of 1912 the sum of £222,000 was paid under the Naval

Defence Act for the Dreadnought. During the quarter just expired the expenditure was £34 14s 6d. This year only £IO,OOO has hee.n paid over to the" Consolidated Fund in respect of debentures issued under the Land for Settlements Account, and no new estate was paid for. during the quarter. Last year, in the same quarter of the year, the sum of £111.583 was paid in respect of debentures. Another matter of deep interest to the settlers of the country who are seeking for cheap money, is the amount paid over by the treasurer to the State Guaranteed Advances Office for loans to settlers. The amounts are as follows: . . £ June quarter .. . .'. . 100,000 September, quarter ~ . . Nil. December quarter . . . 150,000 Total for three quarters £250,000 "It is evident from these figures that under Messrs Massey and Allen the process of starving the eheap-money-for-settlers scheme is in full operation, for what is £250,000 compared with the requirements of the settlers throughout New Zealand for cheap money ? Could anything more fully demonstrate the truth of my remark in the Nelson interview that the Massey -Government is in league with the moneylenders to maintain interest in New Zealand at V: high rate?"