FINANCIAL NOTES.
It seems probable that at any moment the simultaneous announcement may be made of Mr. McKenna's inability to accept office as Chancellor and of the appointment of our new Finance Minister. Inasmuch`as I am, of course, completely in the .dark as to the selection to be made by the Premier I feel all the freer to say that one of the chief reasons why I regret that the control of the national finances is not to be placed in Mr. McKenna's hands is .because he wouldundoubtedly from the outset have commanded, in quite an exceptional degree, public confidence, which would have enabled him to take a very strong line with regard to further economies in expenditure. That such strong action will be needed is plain to anyone accustomed to study the weekly financial statements of the Government, for already' there are not wanting indications that the revenue for the current year may fall short of expectations and that expenditure, on the other hand, may be greater than anticipated.
If this should be so the position is, of course, all the more serious in view of the fact that a further decline in ordinary revenue as a result of the continued trade depression is almost a certainty in the following year, when the Exchequer will also feel the loss of the special revenues which have been received during the last few years from the sales of war stores. Therefore, it is clear that if an increase in taxation is to be avoided further reductions in the national outlays are imperative. For if trade activity is already injuriously affected by the present state of taxation, it is not pleasant to contemplate what might be the consequences of further imposts.
A. W.
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