The Wanganui Herald. (Published Daily.) FRIDAY, NOVEMBER 14, 1919. REFORM’S FINANCE.

Wanganui Herald, Volume LIII, Issue 15972, 14 November 1919, Page 4

The Wanganui Herald. (Published Daily.) FRIDAY, NOVEMBER 14, 1919. REFORM’S FINANCE.

A gbeat song was sung by Eeformers when in opposition about what they called the extravagant borrowing of the Liberals. It was ,of course, no new song; in fact, it had been repeated so often that it had become stale and threadbare. Prom one end of the 'Dominion Conservatives, camouflaged as "Eeformers," cried with " loud blatant voices for Eeform. Ultimately they got on to the Government benches and commenced their "reforms." In his 1911 election manifesto, Mr Massey, in dealing with borrowing, declared: — , "The increase of the public debt should be kept down in proportion with the increase of population, and if that were done it would not be necessary to increase taxation." What has been -the result of Eeform administration? Here are some figures taken from last year's issue of the Year Book, which shed illuminating rays on how the Eeformers reform. In 1911, the last complete year of the Liberals' term of office, the net indebtedness was ,£79,323,(536, or £7B 13s 2d per head of European population. Next year it rose to ,£82,193,310, or .£79 13s 9d. By the end of the financial year of 1913, the Eeformers' first complete year of office, .the debt had been increased by over five millions to £87,457,121, or £B2 7e sd; while for the 1913-14 financial year, before any war loans or expenses were added to the debt, there was another increase of nearly four millions, the debt by this time being'' £91,689,835, or £B4 2s 8d per head. It may be added that during this period the population did not increase by the same ratio; in 1911 it was 1,008,468, and in 1914 1,089,827, Europeans only. Compared with the public debt of Australasian States New Zealand does not occupy a very favourable position. At the end of the financial year 1914, this Dominion fead a greater net.liability per head of population than of the Australian States, with, the exception of Western Australia. That State was burdened with a liability of £94 17s 2d per head, New Zealand £B4 2s 7d, Queensland £BO 3s 4d, South Australia £IZ 18s

2d, New South "Wales -£(52 13s 9d, Tasmania £59 10s sd, and Victoria £45 9s lOd. Now tafto taxation. In 1911, excluding Maoris, the tax per head of population was .£4 16s lid; in 1912 it had risen to £5 3s lOd; by 1913 it was .£5 7s 2d; and by the end of 1913-54 it had reached £5 10s. The point should be borne in mind that the above taxation does not contain any war expenditure, for no war taxation was levied until the session of 1915. The figures we have quoted showed taxation for purely domestic purposes only. How does this fit in with Reform's repeated pledges and promises to ease the burden of taxation? Of course the country's debt and taxation is now very much heavier, due to the war. Money was poured out by the Government with a lavish hand. At the end of 1918 the net public dobt was £145,868,460, or £132 0s 8d per head. This in addition to increased postal, telegraphic, and railway charges. Here is the latest example of Reform finance. When he was Finance Minister in the National Cabinet, Sir Joseph Ward, with an eye to the future needs of New Zealand, had lodged in London a nice little nest egg of some fifteen millions. This money consisted of accumulated surpluses derived in the country. As aoon as Sir James Allen, the Reform financier, obtained control of the Treasury, he took six millions of this accumulated surplus for paying gratuities to returned soldiers, and no doubt the balance has been allocated. Sir "Joseph Ward proposed to use the surpluses as the neucleus of a fund which would ultimately pay off the war d«bt within a certain number of years. One cannot help thinking that the Reform Treasurer has, to say the least, not acted in a prudent, far-seeing manner in dealing with that surplus, for even in the best conducted State there comes a time when a little ready cash is required, and there is wealth of prudence in the saying that "a bird in the hand is worth two in the bush." The Reform Government ' has lost the bird in hand and has left the Government of the future the task of finding the two in the bush. It is a habit these so-called Reformers have.