The Wanganui Chronicle MONDAY, JULY 27, 1925. THE COUNTRY’S BALANCE SHEET.

Wanganui Chronicle, Volume LXXXII, Issue 19368, 27 July 1925, Page 4

The Wanganui Chronicle MONDAY, JULY 27, 1925. THE COUNTRY’S BALANCE SHEET.

Tlie Budget brought down by the lion. 5Vm. Nosworthy, Minister of Finance, on Friday evening, is remarkable for its crispness, and matter-of’fact nature. In this respect it is very different from past Budgets, especially those of a couple of deeades ago. when the I'inaneial Statement was made a peg on which to hang not only the whole wardrobe of the country, but patterns of boasted garments to be handed to the, dressmakers of the immediate future. That is not. the way, however, with the present. Government. They go straight to the point, and, tell the people in plain language what they have done. "Whether that is g»tod policy is open to question. The general public notoriously take people at their own estimation of themselves. The plain man is never ranked with the advertised except when a time of crisis comes: that was proved, for instance, in the Great 'War. A Government which does not beat the big drum on every possible occasion is, therefore, taking a risk which, in view of the gullibility of the public, is quite unnecessary. Mr. Coates and his Minister, however, are plain men who believe in deeds, not words, and scorn the use of theatrical methods. The Financial Statement is another exemplification of this. The Budget is a plain exposition of the state of the country’s finances, which, it. is very cheering to learn, are satisfactory. For this the Minister gives credit to his predecessor. Mr. Massey; and this, also, by the way, is something opposed to the usual custom of politicians, who ascribe to themselves the full credit for anything which has proved satisfactory. Mr. Mas-

sey’s insistence on economy in various departments was responsible to a large extent for the happy position in which the Dominion finds itself to-day. Mr. Massey had a very difficult task when he employed the pruning hook, the difficulty being accentuated by the attitude of d*.honest politicians, who, with the hope of standing well in the eyes of certain classes of the community, protested against economies which they knew were not only justifiable, but imperative. It is good to read Mr. Nosworthy’s testimony to Mr. Massey’s share in the 1925 Budget. The surplus disclosed by the Budget is substantial—almost one and a-quarter millions—and this in. spite of the fact, that, concessions made during the year deprived the Treasury of nearly a million sterling. Tn spite of this satisfactory result of the year’s working, the Minister utters a word of caution, which takes the form of a warning against undue optimism and extravagance. This note is not unneeded. Temporary success has proved the undoing of many a man who would have won th rough had accession to wealth not led him into extravagance. The same thing applies with added force to companies, public bodies, or governments, by whom money is frequently thrown away, simply because some members are carried away by temporary success. New Zealand is fortunate in possessing a Government which combines caution with progressiveness. A portion of the Budget which stands out prominently is that dealing with reduction of taxation. The Minister’s declaration in this regard will cause much rejoicing to those, especially companies. who have been struggling under a burden of taxation. The Government, the Minister stated, has under consideration the adoption of a new income tax schedule following the lines discussed by the Taxation Commission. The proposed new schedule would reduce the maximum, rate to 4s (id from the present rate of 4s 10 2-3 d in the £, and the minimum rate from Sd to id in the £, while between those rates all incomes would receive concessions. The present schedule, which still stands in the Act at rates up to the maximum of 7s 4d in the £, and has been subject to percentage reductions from time to time, would be done away with by the adoption of straight-out rates. Continuing, the Minister said: "I have referred to the desirability of encouraging loans on mortgages, particularly to aid farmers,” added the Minister. “Investment on mortgage in recent years has suffered in comparison with investments in stocks, debentures, etc., but the indications are that the mortgage is again becoming more sought after, and, moreover, a trend in that direction is noted in Australia within the last few months. The income tax reductions which the Government is now considering should facilitate investment on mortgage by reducing the rate of income tax to a parity with debenture tax. and, as indicated, it is proposed to repeal the mortgage duty of 5s per cent. ’ Plain as is the Government’s recital of its achievements, its promises for the future are equally plainly stated. There is nothing of the showman about the Government, but it has the goods, and, given the opportunity, will deliver them.