Review of Feviews, l/i/lS. 



TOPICS OF THE MONTH. 



149 



in exports at present. This will, of 

 course, mean a decline in the customs 

 revenue. The pace is certainly too hot 

 to last, and it would not be wise to rely 

 on the customs revenue in 1 91 3- 14 being 

 more than it is now — i^ 15,000,000 — if 

 indeed it reaches that figure. 

 THE POST OFFICE. 

 The Post Ofhce, the next resource in 

 importance, is also earning a record 

 revenue. It was estimated to bring in 

 ;6^4, 200,000, an increase of ;{J"28o,ooo, on 

 1911-12, but already the eight months' 

 total shows an increase of ;^220,ooo, so 

 that with four months still to run, it 

 seems probable that the estimate will be 

 largely exceeded. Whether the Post 

 Ofhce'can be made to earn more money 

 still, apart from natural growth, one 

 cannot say. But one thing seems certain 

 — which IS that if the public were given 

 better telephone and telegraph services, 

 the earnings on those accounts would be 

 materially enhanced. At present the 

 telephone is nothing but a nerve-racker 

 and a time-waster, while it is often more 

 expeditious to send messages by hand 

 than to rely either on the telephone or 

 the telegraph. 



THE LAND TAX. 

 The land tax. which is expected to 

 contribute /; 1,300,000, a trifle less than 

 last year, must be very near to the pre- 

 sent Hmit of its earning power. More- 

 over, unless the Government increases 

 the rate of the tax, a somewhat unlikely 

 contingency, there is little probability of 

 this source producing much more than it 

 does now for some time to come. 

 SPENDING MORE THAN RECEIVED. 

 Now it is very clear from all this 

 that there is little hope of the present 

 sources of revenue as at present consti- 

 tuted, increasing their yields in any 

 marked degree. The customs duties 

 may rise, but only if the imports con- 

 tinue their unprecedented advance, 

 which seems rather improbable. Of 

 course a protection tariff would mean a 

 bigger revenue, but such a tariff is not in 

 prospect. The Post Ofhce revenue can 

 only be expected to grow slowly. The 

 land tax is near its limit. Consequently 

 the Ministry cannot excuse the year's 

 deficit on the ground that the revenue- 

 producing sources are being only mode- 



rately tapped, and can be made to yield 

 much more than they do, should the 

 Treasurer so desire. The Government is 

 taking all those sources can give. 

 Clearly then, as it is spending more than 

 such sources produce it must certainly 

 be deemed to be financing on extrava- 

 gant lines. 



THE INCREASE IN EXPENDITURE. 

 Coming now to the question of neces- 

 sity for so enormous an expenditure as 

 that of the current year, the problem is, 

 if anything, more difficult. It is quite 

 a simple matter to assert that wasteful 

 administration is responsible, but the 

 proof of the assertion is not by any 

 means easy. Compared with the year 

 1909-10 there has been an increase in the 

 expenditure — from almost £8,200,000 to 

 i," 1 6,600,000 — (not including payments 

 to the States). Of this growth of over 

 £"8,400,000 defence is responsible for 

 nearly £3,900,000, the Post Office for 

 £2,000,000, invalid and old age pensions 

 for over £900,000, and other expenditure 

 £750,000 The maternity allowance 

 (£400,000), Northern ' Territory 



(£330,000), and Port Augusta railway 

 (£100,000), also contributed towards it. 

 THE INCREASING COST OF DEFENCE. 

 Now it is absolutely impossible with- 

 out a detailed knowledge of all the facts 

 to say whether these increases are justi- 

 fied or not. The Commonwealth has 

 been committed to universal training 

 and to naval construction, and the 

 nation has to see these schemes through. 

 Both are expensive, but are not by any 

 means as expensive as they must be as 

 time goes on. The second year of the 

 universal training scheme is not yet 

 ended, and alread)' the defence vote, 

 under £1,400,000 m 1910-11, exceeds 

 £2,860,000 for the current year. This 

 does not include the vote of over 

 £1,000,000 for rifie ranges, drill halls, 

 etc., and military stores, which itself is 

 greater by about £600,000 than that of 

 Two years ago. As of course the defence 

 scheme has only begun it is clear that 

 the annual expenditure must increase 

 steadily from year to year. 



NAVAL EXPENDITURE. 

 The construction of the fleet is to cost 

 £4,250,000, of which £3.750,000 has al- 



