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The Pamphlet Collection of Sir Robert Stout: Volume 77

The "Strong, Self-Reliant Policy."

page 5

The "Strong, Self-Reliant Policy."

The present continuous Ministry came into power with much trumpeting as to its "strong, self-reliant" financial policy, and we have heard a good deal of the same sort of thing ever since.

In 1893 the Government declared that it did not believe borrowing was necessary, and that they had decided to conduct the business of the country without it. How have they carried out that resolve? The taxpayer knows. In his Budget speech last year Mr. Seddon urged that we should "practice the strictest economy," and "prove ourselves self-contained." Did he act on his own precepts? Ask any taxpayer; ask yourself.

Our net public indebtedness in 1893 stood at £38.144,070. On March 31st of the present year it amounted to £57.403,632.

Twelve years of Mr. Seddon's "self-reliant "policy and strict economy have added therefore over eighteen millions sterling to the colony's indebtedness. It is a good deal to pay, even for such a financial genius as the Premier. It means that the debt per head of the white population of New Zealand rose from £58 2s. 7d. in 1893 to £66 18s. 9d. in 1904.

The average total loan expenditure per head of the population in Australia and New Zealand up to June 30th last year was as follows:—
Commonwealth £55 19s. 8d.
New Zealand £69 1s. 4d.
The Australian States are endeavouring to carry out a "self-reliant policy "; New Zealand is only talking about it. For the year ending June 30th, 1904, the loan expenditure per head of the population in the various States and New Zealand was:—
£ s. d.
New South Wales 1 12 1
Victoria 0 6 11
South Australia 1 2 7
Queensland 1 3 2
West Australia 3 2 7
Tasmania 0 18 8
New Zealand 3 11 1

We still lead Australasia—in borrowing and extravagance. We are paying more than two and a quarter million in interest annually. We can manage it comfortably enough just now, while seasons are good and prices for our products remunerative. But—and this is a pretty big "but"—the burden that is borne with comparative ease over a good road imposes a terrible strain when the path becomes stony and difficult, and it must not be forgotten that no matter what the circumstances of the colony may be, though seasons may be bad, prices low and unremunerative, and page 6 money scarce, that two and a quarter millions will have to be paid. Who will pay it? You, the reader, for one, and everyone else in the colony, as you and they do now, but it won't be quite so easy in bad times as in good ones.