FINANCIAL POLICY

Waikato Times, Volume 124, Issue 20784, 19 April 1939, Page 6

FINANCIAL POLICY

Mr Adam Hamilton’s attempts to draw from Mr Savage a statement of the Government’s immediate financial policy are not without their humorous side. The Prime Minister has so far replied with complete silence, though on other subjects he has been quick to give an answer to the Leader of the Opposition. Politics aside, there is need for early clarification of the financial policy because, whether it is justified or not, there is an undesirable degree of uncertainty and nervousness that is not good for the conduct of the country’s business.

The Government is at the critical its career and there .is need for it to step cautiously. Still it seems Mr Savage has now had time to formulate his plans and take the public into his confidence. The public is fully aware that a considerable amount of money is needed for the purposes of the State, but what it does not know is how it is proposed to raise that money—whether by loan, taxation or the use of “public credit.” At least as far as this year’s Budget is concerned, the other alternative of economy is apparently out of the question. Delay in the announcement of the policy can be taken only as an indication that the Government has not yet decided definitely, for nothing could be gained by withholding a settled policy from the people. Mr Hamilton has tried guessing as a means of drawing information from Mr Savage. He has thrown out the suggestion that the Government might, after all, resort to an overseas loan, but it is probable that the Leader of the Opposition has no more idea of Avhat is in the Government’s mind than has the general public. In view of the Government’s commitments and the fact that the Budget is not far away an announcement may be expected from the Government in the not distant future. Mr Savage contends there is no need for nervousness, but public opinion is a fickle thing and until it is fully aware of what course is to be pursued, there is bound to be a lack of confidence in some quarters.