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VIGILLNS ET AUDAZ.
PERTH, WEDNESDAY, DEC. 4, 1918.
THE STATE'S FINANCES.
No set of figures is so bad but that a
willing Treasurer can give a cheerful
cast to them. In comparing the revenue
and expenditure of the five months of
the current financial year with the cor
responding period of last year Mr. Gar
diner with much satisfaction informs us
that the result shows that we are
£68.561 better off this year. He does
so by the simple method of confining
liia comparison to the revenue deficits,
without taking into, account any differ
ence in the receipts of the two periods.
The deficit on the first five months of
1917-18 was £494,234; on the like period
of 1918-19 it was £425,673. These are
the figures. They are above suspicion.
And the Treasurer triumphantly adduces
them to convince the sceptical that we
are £68,561 to the good on the opera
tions of the year so far as it has gone.
His optimism does not go so far as to say
that it is money in pocket; and for this
much we may be thankful, forbidding,
as it does, any inclination to launch out
recklessly on the strength of the novel
"savings." But Mr. Gardiner goes as
far as he thinks is justly permissible
farther, as will be shown, than many
acquainted with the position are likely
tc follow him-to prove that, and lihe
would, he could put an even better face
upon it than £68,561, for he says that
"we have had to pay roughly £35.000
more for interest and sinking fund this
year," and, therefore, if this. fact were ?
taken into account we would find our
selves "some £98,000 better off by com
parison." The case which the Treasurer
has presented with such care would be
perfect were it not that he has forgot
ten to tell us that though the deficit on
the five months is £68,561 less than that
on the first five months of last year
Mr. Gardiner had £138,751 more revenue
to spend. This puts another complexion
on the Treasurer's statement. The com
parative figures are as under:
S 1917-18* 1918-19."
£ £
Revenue . .. 1505,381 1,644,172
Expenditure . .1,999,616 2,069,844
Deficit .. 494,235 425,672
* Five months.
When the revenue shows an improve
meat of £138,751, and the deficit on re
venue account decreases by only £68,561
compared with the operations of the cor
responding period of last year it is hard
to discover an improvement in the posi
tion- Did Mr. Gardiner realise this as
he made no reference to the augmented
receipts? A fact to be borne in mind in
considering our financial situation is
that revenue must increase at the cost
of little addition to expenditure ere it
can be said a reasonable improvement is
being shown. We have an increased
revenue over a period of five months of
£138,751, but it has been achieved at a
cost' of an increased expenditure of
£70,128. Deducting from this expendi
ture the £35,000 for the additional pay
ments on interest and sinking fund
accounts upon which the Treasurer lays
such emphasis there remains an increase
o- more than £35,000 on ordinary re
venue expenditure. In the circumstances
this is excessive. It provides no indica
tion that we have at last discovered the
path leading out of the financial morass.
If maintained at this rate during the
remainder of the financial year the or-'
dinary expenditure for 1918-19 will ex
ceed the ordinary expenditure of 1917-18
by some £85,000. The present Govern
ment, m .circumstances that are well
known, secured office ostensibly on the
grounds that it would be-a "National"
Administration, and, as such, would
guide the State carefully and tenderly
through a very critical time. It made
claims, also, on the score of finance.
Nationalism and finance were the rocks,
sc to speak, non which it built. Na
tionalism, during the last couple of
years, has become a much abused word.
And this is unfortunate, for the word in
its original, apart' from its political,
meaning stands for a good thing. But
if the Government was "National" only
in the Pickwickian sense, what can be
said of its financial ability? Daily, al
most gaily, the deficit increases; and at
its highest ascent to date the Treasurer
finds it possible to say the position has
imprqved compared with last year. It
has done nothing of the sort. We are
still drifting. Drifting? We are rush
ing, and with accelerated pace, to a
smash.
If revenue increases as it has done,
and the deficit, instead of being stayed,
increases though at a slightly lesser
rate, the position cannot be said to have
improved, because the people are finding
more money for Government, thereby
weakening their resources, without bene
fit in a cessation of current deficits, or,
at least, in a considerable diminution of
them. Parliament has been in session
some months. The Revenue Estimates
arc practically thriugh. The Loau Es
timates arc yet to be considered. Dur
ing the weeks of discussion there has
been no sign that the financial position
is taken seriously in the House. That
the Government advanced as one of its
claims to office a readiness and a capa
city to safeguard the finances is for
gotten. Its failure in this respect hardly
crcites remark.even from the Opaosxtion.
The dull atmosphere of futility clings
to Government. If we observe that re
venue from certain undertakings-the
railways are the chief-shows a welcome
increase, and admit that the additional
earnings cannot be achieved without
some increase of expenditure, the fact
does not dispose of the argument. that
the aggregate State expenditure should
not grow, save by the amount of the ad
ditional pa?ilents for interest and sink
ing funds- Is there no possibility of sav
ings in some Departments that, equal
ling increased expenditure to secure in
creased earnings in business departments,
will maintain the aggregate disburse
ments at a level? We have been de
prived of the economic services of many
thousands of the best of our population
during the last four years- YeT Govern
ment departments spend and spend as
though we had the purse of Fortunat?s
in our hands, and the State Treasurer
tells us that "our position has im
proved." The time is at hand when it
will be needful to spend considerably
and wisely from loan moneys in re-estab
lishing our soldiers. Their return to the
State will have the same economic effect
as would a large influx of immigrants.
The G-ernment has promised a policy
for the settlement of them. The least
that can be expected from the Adminis
tration is that the Departments whose
expenditure has not been curtailed dur
ing the war-has been increased, indeed
-will not expand when the soldiers are
teing settled. It is workers that the
State needs, not additions to our spend
ing Departments.
$