The Waikato Times SATURDAY, APRIL 2, 1938 THE FINANCIAL YEAR

Waikato Times, Volume 122, Issue 20464, 2 April 1938, Page 6

The Waikato Times SATURDAY, APRIL 2, 1938 THE FINANCIAL YEAR

The elo se of the financial year is not an event marked by any celebrations. For many individuals and firms it means a very strenuous period in balancing books, preparing balance sheets and reports and putting in hand plans for the coming period. No accounts are of such general interest as those which will disclose the position of the national finance. Yesterday marked the conclusion of the second complete year of Labour control of the Treasury, and the results should be made available at an early date. During 1037-38 the monthly and quarterly returns showed that the official estimates had not been over-optimis-tic. The confidence created by the higher prices ruling overseas in the preceding period was reflected in heavily increased imports and more activity in local markets. There were* of course, other factors that played a part. During the past few years imports were restricted because of local conditions and some uncertainty regarding a revision of exchange rates. Businessmen preferred to work on reduced stocks, but that process could not continue indefinitely and during the last year or two the renewal of stocks- has materially increased the volume of imports. The financial results, as far as the Treasury is concerned, have been most pleasing. Customs duties have continued to mount rapidly and the Minister of Finance was able to anticipate a revenue from this source in the year just closed exceeding £10,000,000. It is not at all unlikely that this estimate will be well below the actual receipts. At one time Mr Nash used to contend that what he called the boosting of imports would reduce the London funds. However, better prices, assisted by increased production in many important items, have carried exports to a high level, so that overseas balances have been well maintained. With revenue probably creating a t new record—due in part to restored prosperity and in part to the fact that the imports had been made more exacting—the production of a favourable balance will depend upon the control of expenditure. It has been reported that this had proved efficient and that the results would not be far from the estimates. The announcement of a surplus would be cheering, although those who have had to meet increased taxation would probably have preferred to see the Budget balanced on a much lower level. Had the session continued then the Treasury and departmental officials would have been handicapped in the work of closing the accounts. It would not have been reasonable, in those circumstances, to have asked for an early announcement of the national figures; but, as things are, an official statement should be possible in the course of the next few weeks. A surplus would lead taxpayers to hope for some relief being given them during the final session. It has often been alleged that Ministers of Finance are more considerate of the feelings of taxpayers prior to an election, but the taxpayers themselves place more importance on the production of a surplus in the accounts, for they realise that it provides a margin on which the • Minister can work in making adjustments. The past year was an important one in many respects; if it, has been satisfactory financially, then that should enable adjustments to be made.