COLONIAL FINANCE.

Auckland Star, Volume XXXI, Issue 213, 7 September 1900, Page 2

COLONIAL FINANCE.

(To the Editor.)

Sir,—As a student of political economy I beg to offer a few comments on our finances. Though Mr Aickin has spent some time, in thinking out his plan it is/ not the best in the circumstances. In-; stead of either borrowing in England or the colony, taxation should be increased to meet all our expenditure on publi<;» works, and to find employment for all able and willing to work at all times, tt ' say, we levy a tax of one per cent, oft thia colony's total capital each year, which 71 estimate at 100 millions, this would yield a million. I believe this would increase the rate of interest one per cent., so thatthe net income of the capitalists of the colony would not be reduced, and though, borrowers paid one per cent, more, a pro-,, portionately less quantity of capitaJ wouldbe sufficient to carry on the same business, so that neither borrower nor lender would be a penny the poorer, but would, be rather gainers. Another half million per annum might be levied on natural. land values with similar results, as land', values would rise with the- tax. If it k was found that one an,d a half million was not sufficient the tax could be -doubW ed with similiar results. To fully explains this would require a page; but If any otk your readers who have already spent turisV. in studying the subject will apply to me X'l will try to explain. A State bank issuing?unconvertible notes would be useless, vMm however many notes were issued, thejff would pay for less than three million. Mr *■ Boyle's idea that there is insufficient goia}s to do the world's business is nonsense. AY large quantity-of gold is an incumbrande,':i and not a convenience. .•; I canj§ assure Mr Aickin we should hajKSsj a greater difficulty in inducing the London?; bondholder to receive our debt on fair's terms in a few years than the colonjri would have in paying it, though WxgL Julius Vogel estimated it in ISB6 at 90 hilßfe lions, including mortgages, corporatipftf bonds, etc. The political as well as thai medical are reckoned by those best able £ to .iudge among the dark sciences," burS there are few others have so -mwiyvj professors. Everyone but the physician i can tell the causes and cures of diseases, * and all can tell the remote effects of laws!but the economist; but once these .lawsf-' are understood it will be forever, asi they*' cannot be revoked or modified.—l am, ete.^l . JOHN JOHNSOKA