IMPROVING CONDITIONS.

Waimate Daily Advertiser, Volume XXIII, 19 May 1922, Page 2

IMPROVING CONDITIONS.

THE NATIONAL BALANCE-SHEET. (From our own Correspondent). Wellington, May 16 The •Na tional balatnce-s'heet the Prime ■Minister submitted to his audience at Feil'dling on Wednesday evening, and through his audience to the Dominion at large, while emphasising the need for the strictest economy in even- department of public expenditure, was not without some l indications of improving conditions. The figures revealed that the expenditure for the financial year closed on 3l last (£28,466,838) had exceeded the revenue (£28,127,007) by £339,831. Mr Massey’s political opponents are quite justified in describing this bafeuce on the. wrong side of the ledger as a, deficit, the first the Dominion has experienced l for many a long year; but his political friends prefer the moire, euphonious term an excess of expenditure. The Minister himself adjusts the matter by drawling upon his accumulated balances from previous years and so reaches the equilibrium dear to the heart of every Treasurer. The process, of course, is a perfectly legitimate one and, to do Mr Massey and the Treasury officers justice, they have presented the facts quite clearly and with commendable candour. The striking figures on the revenue side of the account are the enormous decline in the’ sums obtained from Customs, duties ay.d income tax. The former, ai reaction from the; extravagant importations of previous years, was inevitable, and is not unsatisfactory so far as it indicates the practice of reasonabfe economy on the part of the public. The income tax revenue was affected to Some extent by the concession made for prompt payment and' to a much larger extent by the decreased income of numbers of*people. But the results of investigations that are being made suggest that, an increasing number of people who should be contributing towards the public revenue through' this channel are escaping the attention of the taxing officers. Mr Massey, though frankly admitting that excessive taxation is hampering trade and enterprise, holds out little hope of early relief. Any movement in this direction, he let it be understood, must be preceded by a substantial reduction in expenditure and' the economies so effected are not yet very impressive. It is evident, however, .even after every bright feature of the figures has been picked out and magnified that the difficulties before Mr Massey are colossal. The Dominion, the Government’s most kindly critic, does not attempt to disguise this fact. need for stringent national ecenomy,” is says, “is very plainly emphasised l in the details of revenue and expenditure for 1921-22. Althought the position in regard to Customs revenue is quite exceptional, it. remains a fact of serious significance that last year’s expenditure exceeded revenue. Taking account also of the fact that the country is loaded with a burden of taxation which of necessity hampers the recovery, not to speak of the expansion of trade and industry, it is self-evident that nothing but drastic economies will clear the financial outlook. The only sound course for the Government to pursue is to continue the policy laid down last year of caution and economy.” The quality of the caution and economy of the Government will be revealed during the approaching session of Parliament.

The Evening Post which aims, quite earnestly on many occasions, to hold the balance fairly between the contending parties, does net go very deeply into Mr Massey’s figures, but evidently is not altogether satisfied with their significance'. “The moral'seems to be,” it says, “that the Government’s administrative expenditure is still too high, having regard to (1) the revenue, (2) the non-reducible permanent charges, (3) the interest charges on new borrowing, and (*t) the cry for reduction of taxation. Contemplation of accumulated surpluses should dot blunt zeal for economy. We cannot live on our past. We must take every precaution to live upon our present and future and within our income.” “Business men here are no taltogether satisfied by Mr Massey’s allusions to taxation. They maintain that industry and commerce eannot continue to bear their present grievous burdens while the country struggles through a long period of recovery and tha tin the absence of speedy relief very serious troubles must arise Extreme Labour, on the other hand, insists that the Government has plenty of money and ought to be spending it.