FINANCIAL NOTES.
The latest figures of Public Income and Expenditure all tend to heighten expectations of the present financial year ending with a surplus in the National Revenue over Expenditure of from £40,000,000 to £50,Q00,000. The latest return certainly shows a rather declining tendency in Revenue and an upward movement in Expenditure, but, even so, the surplus to date is £48,000,000, and it looks as though the return for the final week of the year would scarcely produce any important change in the position. Having regard to the satisfactory manner in which the past year has closed, it is possible that the Treasury officials may show some optimism in the matter of estimates for the new year, in which case Mr. Snowden may be able to produce a Budget with a small surplus, a circumstance which a twelvemonth ago seemed most improbable.
* * * * For an example of hasty, not to say unsound, comment upon an important principle in our fiscal system, commend inc to the remarks in last Saturday's Daily Mail with regard to the realized surplus for the current year. Under our fiscal system, the Government has no alternative in the matter of a realized surplus to devoting the sum to the redemption of debt. In view, however, of the magnitude of the surplus and the fact that there are a number of good things which we should like at the present time, such as the benefits of the penny postal service, the Mail does not hesitate to suggest that this rule should be set aside and that " a short Act of Parliament enabling the Chancellor to give the relief should be passed at once." A good example of hectic journalism, but one which scarcely reflects credit on the judgment of the writer. For, if once the rule I have referred to were to be invaded, especially under a Socialist Government, the risks of abuse would be great. Instead of a Chancellor of the Exchequer, when presenting his Budget, having frankly to set out his details of Expenditure, including the amounts required for social reforms, it would only be necessary for him to under-estimate his Revenue and over-estimate his Expenditure as has been done during the past year to secure all the money required for purposes which might be wholly unsound and entirely objection- able to those who had contributed most of the Revenue.
The earthquake disaster notwithstanding, the Yoko- hama Specie Bank has brought out its report and balance- sheet with wonderfully little delay, and having regard to the conditions in Japan the results disclosed are very satisfactory. The balance-sheet shows a reduction in the note circulation, but there is a small increase in the deposits, and the cash position is a strong and liquid one. The reserve of the bank of 78,000,000 yen is now very nearly equal to the paid up capital which amounts to 100,000,000 yen.
A. W. K.
Previous page
