FINANCE AND BUDGETS.

Waikato Times, Volume 119, Issue 19816, 21 February 1936, Page 9

FINANCE AND BUD GETS.

(To the Editor.) Sir, —Mr Russbridge’s reference to the history of the French assignats is timely and too much attention cannot be drawn to it. He can rest assured that the danger of unlimited money issue is fully recognised, and it is for this very reason that we stress the need for a periodic economic survey to determine the amount of new money necessary. The National Credit Authority, whose duty it will be to carry out the surveys, will have the same independent status as our Judges and magistrates—freedom from interference, political or otherwise. Thus are both possible dangers eliminated. Mr Povall asks liow the Dominion’s budget will be balanced under Social Credit. In my opinion it will no longer be found -so necessary to have a balanced budget, always provided that any deficit does not exceed the amount set aside by the National Credit Authority for that period. Under the present system, where re- : venue is only from taxation, direct and Indirect, the budget can only be balanced, during a depression, at the expense of every individual budget. Thus it can perhaps be argued fairly that the welfare of a people is of more importance than a balanced budget. Under “sound finance” hopes for the recovery of a country can never l>e realised so long as politicians are obsessed with the fetish of balancing the budget. When a country is producing to its lull capacity, then to balance the budget is statesmanship; but when It Is under-producing, and its crying need is for new money, then clearly it is of no importance at all to balance the budget, and it may even be criminal folly to do so. This may possibly explain the bitter opposition which the French Government lias met will) in its frantic efforts to reduce its enormous deficits. —I am, etc., G. HUNTER. Horsham Downs, February lU.