THE Otago Daily Times. DUNEDIN, WEDNESDAY, SEPT.7.

Otago Daily Times, Issue 2679, 7 September 1870, Page 2

THE Otago Daily Times. DUNEDIN, WEDNESDAY, SEPT.7.

The good provincialists who regret the failure of Mr Macandrew's motion in favour of an Otago Loan of £650,000, must in some measure be soothed by the absurdity of the thing. It was no dotibt the idea of asserting the dignity of Otago, rather than any belief in his prospects of success, that induced Mr Macandrew to bring this motion forward at all. Immediately after the Colonial Government had ventured to incur an enormous loan

Liability for reproductive works, it was of course1 an appropriate act in the Provincial Government of Otago to propose to incur a proportionate liability on its own account. Such an act would demonstrate the true political position of the province—that of a small colony, little less prosperous and inifluential than the colony of New itself, equally confident in its resources, and' equally ready to rush into debt. It was nothing that the Colonial Government had just undertaken to provide for the construction of the Ciutha railway. The' province, as Mr Macandrew said, is in a position to accomplish that work without the assistance of the colonial Treasury. Proposals have been made to it by the agent of certain English1 capitalists, of such 'a nature as will enable it to construct the railway on its own responsibility. Still less did it matter that the Colonial Government hail made express provision for the supply of water to the goldfields. The FrdvinciarGoverriment of Otago is not satisfied' that its goldfields will be provided for as they require to be, under this provision. In taking up such a position as this, Mr Macandbew was merely playing his accustomed rdle. An examination of his speech favours the presumption wfe have put forward. -The revenue and resources of the province were dwelt upon in terms which must have been listened to with cordial gratification by the representatives of the hungry provinces; the large money votes for police and gaols, for hospitals, industrial schools, acclimatisation, education, and fifty other excellent purposes, were noted with becoming emphasis; but all this had nothing to do with the real question at issue, as raised by the Ceionial Treasurer. The arguments on which Mr Macandrew relied were in fact arguments against him. The greater the resources of Otago, the more necessary that its borrowing power should be promptly abolished. So at least says the Colonial Treasurer, in effect. The colony has determined

to stretch its. own borrowing power to the utmost, and clearly it could not be stretched at all if the provinces are allowed zo borrow at the same tjlne. The security which Otago has to offer for loans of its , ; own' is precisely the security which the Colonial Government will require for future operations in the money market. The two Governments cannot borrow money on distinct securities. The time for such distinctions has gone by.

The debate on Mr Macandrew's motion will serve to enlighten the public in this province as to the financial tendency of the Government scheme. There can no longer be any doubt on the matter. The loan liabilities of the colony will necessarily become so great under that scheme as to render any further provincial loans impossible. And the ultimate result will be that provincial revenue must become colonial revenue; or, in other words, provincialism itself will be extinguished' through the operation of this schemed No political theories will be allowed to stand in the way of the public credit/ Should any difficulty be experiencedeither in the process of borrowing or in! that of paying, the provincial estate of whatever nature will be unhesitatingly seized for the purpose of removing it.' The political influence of the hungryprovinces, of those which have nothing to lose and everything to gain under such a system as that which has just. been established, will be brought to; bear against the provinces which might' desire to retain their own revenues as well as their own institutions. Mr Macandrew took some pains to satisfy the House that the 8,000,000 acres set apart by the Provincial Council as collateral security for the proposed loan would noc be 'tied up as against settlement' by that means. It might have occurred to him that the 3,000,000 acres would be tied up in another way, or rather were already tied up, by the Colonial Government. Those acres, and every other available acre in the province^ must henceforth be regarded as forming part of the security on which the four millions are to be borrowed from English money-lenders. The land fund of the South Island will cease to be provincial revenue the moment that it is required for colonial purposes. If, any argument were wanting to smooth over objections on the part of North Island members to the Government scheme, it would be found in that fact. They do not admit the justice of the arrangement by which Otago and Canterbury derive a large revenue in the shape of rents and sales of land, while their own provinces have no revenue of the kind at all. An attempt was made by some of the Auckland members, in the early part of the session, to obtain the rescission of the resolutions passed fourteen years ago, under which the land fund of the southern provinces has been treated as provincial revenue. The attempt failed, it is true; but not altogether from want of support so^far as very little difference of opinion among 7 ——■* —maeed among miany of the southern, as to the impolicy of restricting land revenue to provincial purposes. Their demand for a return to the old basis' of administration will be met in another way. It will be met indirectly, but none the less certainly, through the operation of a scheme for borrowing millions of money .on.undenaed.seeurity. ~. .:.....