22 FEBRUARY 1935, Page 45

FACING THE COST. -

After all it must be remembered that when a Stale embarks upon lavish expenditure it is an expenditure -which sooner or later has to be met by the people of the country.- If sound finance it adopted by the Govern:Metre the expenditure will be met by an increase in taxation, thereby quickly bringing home to the community what the expenditure has involved in the way of. cott. If, On the other hand, inflation is adopted then sooner or later the true facts of the situation are brought home to the nation by the rise in prices, or in other words, the diminished purchasing power of their incomes.