The Gisborne Times PUBLISHED EVERY MORNING. WEDNESDAY, JUNE 16, 1909. DOMINION FINANCE.

Gisborne Times, Volume XXVII, Issue 2529, 16 June 1909, Page 4

The Gisborne Times PUBLISHED EVERY MORNING. WEDNESDAY, JUNE 16, 1909. DOMINION FINANCE.

Sir Joseph Ward did'the right tiling in laying before Parliament a statc- * ment of the country’s financial position prior to his departure for England. The facts outlined by him in the irifory nial document submitted to members on Monday night provide indubitable evidence jof the soundness of the Domina ion, which has passed thorugh an ex- . coptionally trying period without any s grave setback being given to national ‘ progress. The general revenue has not j gone back, but indeed, shows a slight increase even upon the abnormal reir cord of 1908, -when it first passed tho - nine milliion mark. In bringing about | this result the Railway Department . bad a, good deal to say, for, despite rc- . dnotions in fares and freights, which v tho Premier estimates at £160,500, tho s returns show an advance of £150,000 s upon those of the previous year. The total receipts under this head are close upon £3,000,000 from which it is evident that a large section of the community is still able to spend a large amount in travelling, whilst the.traffic . of good§ over tho lines shows no diminution. The Customs division, according to, the Premier, caused the Govorn- ■ ment some anxiety during the year that has just clsoscd, and it can readily be understood that the decreased spending power of the. people was promptly ■reflected'in diminishing imports and lessened duties. Everyone knows that the s depression, which Sir Joseph Ward for a long time strenuously, declared did riot exist, has been a very real fact for the past eighteen months, and under Y the circumstances it is not surprising a that the Customs returns have diminishf ed by £200,000 in tho twelve months. The amount spout by Now Zealanders i in 1908 upon imported goods was £lB,s 193,808 and in tho year closing March ‘ 31st., 1909, it had fallen to £10,750,- ’ 065. In this connection it should ho borne in mind that. the. very large ' , , , - .......

quantity of imports credited to 1908 included heavy stocks brought in by merchants to escape tho extended preferential duties that becamo operative last year. Although the reduction in customs duties has had a hampering effect upon tho public revenue, it by no means follows that it is a bad sign. Tf tho people of. tho Dominion have learned to abstain from expenditure upon many articles which are in the nature of luxuries tho experience may prove of permanent benefit. Coming to the expenditure side of tlie Informal balance sheet it is noticeable that there have been heavy increases in the cost of most of the public services, showing that the Premier’s retrenchment policy has not come a moment too soon. This is an aspect of tho country’s finance which the Opposition has for years been severely criticising, and it is gratifying to note that at last a Premier has been found with sufficient backbone to utilise- tho pruning knife and put a stop to the ever increasing cost of the public services. It .is noticeable that comparatively little money has been spent upon the purchase of land for settlement, and this is to bo wondered at considering that it should be less difficult to buy at a reasonable figure just now than it lias been for many years. The demand for land on the part of would-be settlers has been as keen as ever, but the Government has evidently been giving scant attention to it. The amount actually spent under this head was £372,245, and £416,650 more could have been spent had the Government so desired. This amount, together with an additional £500,000 authorised for this year, gives tho Government power to spend nearly a million pounds in the purchase of land for settlement. This is by no means an ideal method of settling tho people on the land, but ft is one of the best that is available under existing methods, and it is to be hoped the Government will utilise, it to the full. As is well known, the general scarcity of money caused^abnormal demands to be made upon the Advances to Settlers Department, and no less than £1,792,019 was loaned out during the year. This extremely useful branch of the public service has up to date lent over £5,000,000 to various settlers. As £1,500,000, at present out on mortgage, will become available during the ensuing year, and another £500,000 loan is to be authorised, the Department will have available for fresh advances about £2,000,000, a 6um substantial enough to have a distinct effect upon' the elasticity of the local money market. The Premier maintains so far as possible, his optimistic mood by declaring that business is already showing signs of revival, and for promise in the future he points to the marked increase in our exports that has taken place during the past few months as the result of the exceptionally favorable season. For the - five months ending May 31, 190 S, the value of exports totalled £8,713,591, and for tho same period in the current year £10,530,163. This, of course, spells increased spending power and we can, therefore, reasonably anticipate a betterment of trade conditions. The chief feature, of the financial proposals which make provision for the period whilst Sir Joseph is absent on his English trip is a proposed loan of £1,250,000, which is to be used for “reproductive works.” These, it is anticipated, will provide work for the unemployed during the winter months. The principle here suggested is a sound one, though in detail it may not work out to the advantage of tho country. Provided tho money is spent on works that are absolutely necessary and the State gets full value for every -pound spent all may be well, but any other method of assisting the unemployed is vicious and unsatisfactory, for it siprply intensifies the struggle of those who pay the taxes and interest bills. However, it would be idle to criticise the loan proposals until more details are. available, concerning the disposition of the money.