THE Wairarapa Age MORNING DAILY. THURSDAY, AUGUST 8, 1929. THE FINANCIAL DEBATE.

Wairarapa Age, 8 August 1929, Page 4

THE Wairarapa Age MORNING DAILY. THURSDAY, AUGUST 8, 1929. THE FINANCIAL DEBATE.

Some of thq critiSiam levelled at the Budget by the Hon. W. Downie Stew--art when he opened the FinaJicial Debate iu the House of Representatives on Tuesday. night may heed time to sink in. Where the management. of the national finances is concerned, there is a strain of careless optimism ifi New Zealanders which makes it difficult at times to bring them down to earth. Although disillusionment is growing, the glamour of Sir Joseph Ward’s iflorid financial policy has not, yet been completely dissipated. Many people are very reluctant to abandon the hopGs that were raised during the election campaign of easy prosperity and loans at 4} per cent. An awakening to hard realities is already in progress, however, and before long it will be realised that Mr.. Downie Stewart has never shown a sounder grasp of the financial needs and problems of this country than in his lucidly elaborate denunciation of the United Government’s policy of big borrowing and high taxation* - Incidentally, Mr. Stewart disposed, it may be hoped finally, Of the Prime Minister’s allegation that on taking office he found himself bound by an undertaking on the part of the preceding Finance Minister not to borrow in London for a period which he now states to have been eighteen months. It now seems clear, that there is po foundation whatever for this remarkable charge. Against the general but sensational allegations of his political opponents, Mr. Stewart has placed a statement of specific facts sufficiently detailed To clear up the whole position. He has shown that on leaving office he left it open to Sir Joseph Ward to accept or reject a tentative arrangement under which New Zealand had the opportunity of doing its 1929-30 borrow.ing in advance. Being free to turn down this arrangement, Sir Joseph Ward accepted it. That certainly does not entitle him to say that he was or is bound by any act of his predecessor. The evidence is that there has been no interference wtih the normal course of New Zealand borrowing other than that the Government’s advisers in London urged it to do its 1929-30 borrowing in advance* If Sir Joseph Ward finds himself in any difficulty, he must blame the London money 'market, or conclude that he was' himself unduly optimistic in shaping his financial plans.