The Press. SATURDAY, JUNE 21, 1884.

Press, Volume XL, Issue 5857, 21 June 1884, Page 2

The Press. SATURDAY, JUNE 21, 1884.

The Colonial Treasurer had not by any means a pleasant duty to perform yesterday. He had to tell the House the unwelcome news, for which, however, the country was to a great extent prepared, that there had been a considerable deficiency in the revenue np to the close of last financial period. He had to admit that he had made a very serious miscalculation last sossion in estimating the revenue, and had to give what explanations he could of the reasons which had landed the colony in its present position. He, however, courageously faced the difficulty, and strove to show that the deficiency arose from causes over which it could not fairly be said the Government had any real control. He gave three reasons for the falling off in the revenue and the general depression which now prevails; and undoubtedly, one of the reasons mentioned, namely, the low prices which have been ruling for our great staple proI ducts, wool and grain, have had an im- \ portant influence upon the present state of affairs. The fact nevertheless remains that there was a considerable deficit at the end of March last, arising principally out of the falling off in the Customs revenue, and that the Colonial Treasurer did not a year ago anticipate any such result. There are many who think that even at that time there were indications which should have made Major Atkinson more careful than he was, and that a less eanguine Treasurer would have made some provision for such a contingency. There is nevertheless a good deal in what the Colonial Treasurer said yesterday as to tho difficulty in making an accurate estimato of revenue which depends so largely on the fluctuating nature of our colonial trade. Assuming that Major Atkinson had no reason to anticipate the fall in the value of onr staple products, Lis remarks on (he subjoct are en'irely lo the point. We agree with him in the opinion that it is a dangerous thing for a Colonial Treasurer to construct a budget showing a large surplus. If at any time it ia found that the estimated receipts for any year exceed to any large amount the requirements in the way of expenditure, then it is most certainly the duty of the Treasurer to remit taxation to an equivalent amount, as was very properly done in the budget of 1881. Turning to the statement before us we find Ibat Ibe ordinary revenne for the year 1883-4 has fallen short of tbe estimate by £165,141, the estimate being £3,658,800, while the sum actually received was £3,493,659. The principal falling off was, as we have said, in the Customs, which showed a deficiency of £123,313, and in the railways, which fell short by the sum of £56,881. On the other hand the appropriations for 1883-4 amounted to £3,686,054, while the expenditure was £3,681,320, or £4734 less than was voted. We have seen that the actual receipts for the year amounted to £3,493,659, which, added to tbe balance in hand at the commencement of the financial year, makes £3,529,208. As the expenditure was £3,681,320, the deficit on March 31st last was £152,320. The next part of the Statement which demands attention is the condition cf tbe Public Works Fund. The amount voted last session for expenditure under this head was £2,014,753, exclusive of the vote for land pnrehase. We find from the Statement that tbe actual expenditure was £1,278,710, exclusive of land purchase and the expenditure under the Roads and Bridges Construction Act. But there were outstanding liabilities on March 31et to the amount of £997,443, which, added to the expenditure, gave a total of £2,276,153, as against the amount voted as stated above. These liabilities do not include those for land purchase. These land purchase liabilities amounted, it would appear, to £285,400, bat the Treasurer hoped that by abandoning some the amount could be consideiably reduced. The liabilities outstanding on account of the Roads and Bridges Construction Act were, for main roads £160,453,aud for district roads £43,777. During the year the second million of the three million loan was raised, as our readers may remember at slightly

over par, in January * ( ;last, and within .the .same period,l>it also transpires ihatfc the £250.000 authorised sader the Calonud Inscribed J3iioc_s Act of„'l882v has been taken up, the .Treasurer tells us, at par by the PcstmasjerGeneral as an fcvestmenfc on account of the Post rate of mterest being 5 ..The explana-tio^3i»Bh-®f. Jh»3stransaction is-, thai* when preparations were beiog made for offering the stock to the public it was found that certain amendments wero Beeded in the Act to make it workable. Until these changes could be effected, the whole loan was taken up temporarily by the Postmaster-General in the way we have described. Both these sums raised by loan have, of course, been passed to the credit of the public works fund, and when that was done there was an unexpended balance remaining of £877,912, out of which payments can be made during the current year till additional provision ia made by the Legislature. It will be seen that the expenditure and liabilities on account of public works have exceeded the appropriation by £261,396. Thia arose principally, it ia explained, from the fact that it has been fcuud expedient to order rails and rolling stock to tho value of some £300,000, which is either in the hands of tbe Government, at sea, or is being made to the order of the Agent-General. Special reference is made to the largo annual expenditure out of loan upon constructed lines. For the two years since March 31s\ 1882, this expenditure bas amounted to £830,000, of which £460.000 has been charged against tbe five million loan, and the balance taken out of the existing Public Works fund. But as no direct provision was made on the £3,000,000 loan for tbe expenditure of money on constructed lines, the only way, consequently, of getting over the difficulty is to charge the money upon the lines named in the schedule to the loan, or to make special provision in the shape of further ways and means. This question of tbe expenditure of loan money on constructed lines is one to which we have frequently referred in these columns, and now that it has been thus prominently raised by the Treasurer, we hope it will receive tho careful attention of the pubUo. We have seen that there was a deficiency of £152,112 on ordinary account up to March 31st lasS. This amount the Colonial Treasurer proposes to cover temporarily by the issue of £150,000 of deficiency bills. Yesterday's Statement does not contain any estimate of receipts and expenditure for the current period. The Treasurer asked the House to grant sufficient supplies to carry on the public service till the new Parliament meets; asd he proposed to do this by asking them to amend the PubUo Revenue Act extending tho appropriation of last year to tho end of August. With the proposed £150,00© to cover last year's deficit, and a special authority to increase the amount which the law allows to be issued by means oi deficiency bills by £50,000, the Treasurer sees his way to carry on till Parliament meets. As regards the Pnblic Works fnnd, we have seen that there was £8 j 77,912 in hand on March 31st last. Daring April and May the expenditure has been £278,894, leaving an unexpended balance of the fnnd on the let of June of £678,894. Daring June, July, and August the payments will be somewhat less per month. But, owing, we are told, to the large expenditure upon our lines, and ths action of tbe Government in ordering rails, &c, "it wUI be necessary to obtain some temporary aid for the public works fund tiU Parliament has determined how the expenditure upon open lines is to be charged," and until the raising of the third million of the three million loan, But we must leave to a future issue a detailed examination of the Treasurer's statement.