ADDRESS BY THE PREMIER.

Press, Volume XLVIL, Issue 7719, 26 November 1890, Page 2

ADDRESS BY THE PREMIER.

The Irflowing address from the Premier, £b H. A. to the elecfcoreodE Egoaant, appears ia the issue Of NovemDW 6th of the Hawera iKtar;—- ; Gentlemen,—The writs for the election twins; about T o fcsae, I once B*Ore oflhrmyeeljfes a candidate for Egmonfc. I mach regret that, for reasons which I am about to explain, I am compelled to address you in print, instead of being able, as I had hoped, to visit the district and to speak to you personally in public meeting. Early in Jane last mj health was* ln«>, unsatisfactory a state tnat I was forbidden by my medical advisers to do any ■work which would excite o* iaiißua mc fn body or mind. I was absolutely forbidden to attempt to lead in Parliament,, or to make speeches, and, In regard to the general election, I was also forbidden to take any active or personal part in the contest now pending. In these circumstances, I called a meeting of those members of the Houee of representatives who usually supported the Government, and laid the position of affairs before them. After discussion and due consideration, a, «w>d working majority of the House did the Government the honor of requesting it to remain in office, upon the understanding ' that I was bo do nofehiuK that the doctors thought would be injurious to my health. I then consulted some, of my old friends in Egmont, and told ; them exactly what my condition was, and ; that I thought it better that 1 8hoaI<T not<! again offer myself for that seat; bat I learned from them that my supporters desired that 1 should again stand, and that they wished this, notwithstanding the fact that I should certainly be unable to address you personally, and perhaps not even visit yon at «U daring the eleetiou. Thi3 I felt wu so great a compliment that it was impossible for met» refuse once again to offer my services to my old constituency—a constituency of which any member might be proud, and which has, through good report and evil, stood trae to mc for over eighteen years. . : WHAT HAS THE GOVERNMENT DONE! Being unable to addresa you personally for the reasons I have just given, I take this means of placing before you as shortly as may be, royTiews of the present position of the colony, and what I think ie the course we should pursue in future. But, before doing so, I wish to call your attention, very briefly, tn what I have been doing since you last elected mc, so that , you may judge how far I have been successful in assisting to carry out what you then sent mc to do. What I undertook was, as a first necessity, to do my i&vt towards restoring theequilibrium between revenue and expenditure, in the firat instance, by reducing the expenditure as far as watt compatible- with the public interests and the public requirements; and, secondly, by imposing such additional taxation as might unfortunately prove to be necessary. Upon the meeting of Parliament, immediately after the election, I was called upon by the Governor to form a Ministry, and succeeded in doing so. The Ministry., submitted proposal* to reduce the annual expenditure by jKJOO.OoO; tbe House, however, refnaed some it*mti by which we estimated to save A2»5,U00. but it approved of reductions estimated _to amount to £j>ss 000,- and taxtdon was increased by, an addition of-£70,1)00.-to the property tax. . ■/ ■'■ - ' : - , ■ ■■'."

You will perhaps recollect that on the -Ist March, 1887, the deficit, iociiidlog the Land Fund, ainouuted to £146,556. It had increased considerably by the time that we t>oK office in October, ISB7, and ou , looking into the accounts ii. was estimated ) I that at the" vnd of the year it would i \ amount to i' 400,000 for tbe two-year*. The reductions in expenditure which we had | f undertaken to make vouid not* of course, be made immediately,and tbe estimate, I react to"say, proved tio low.' The actual ! deficit on the-Ist,-larch,. 1888, amounted to j __88,0O5,: iustead .of.. the ; AHiJ&uiiO as estimated. The position w.s a most difficult obe to face,-'especially when, it is re_iembere_ that it was - ueeetaary to" greatly reduce at the sains time the large' amount of loan tnoiiey we were aud had been spending for .years oh public:, works. Notwiihstandin z th* large redactions,, made and still bring effected iv expenditure, and the:iucre_se of the property tax already mentioned, it 'became evident when par__i_<~«&met iv May, ISSo, that additional taxation was necessary; the Governoicut submitted proposals for increases in the tariff, estimated to produce the required amouut. The permathe tariff produced last, year about £155,800, and tbe temporary 'primage duty, which expired on the SOta September last, produced during the period it was in force (two years and four months) nearly £!2b\ooo additional. On the Slat March, 1800, we had sue ceeied in reducing the ordinary expendi ture, exclusive of interest and slaking fund, by £291,410, as against the expenditure oi the year eudiug the 31st March, 1887. Particulars of this reduction will be found in a duly audited table. No. 29," attached to my last Financial statement. We had also succeeded.in reducing the public worlts expenditure out of loan from • £938 159 duiiag the year ended the -Ist March, 1888, to £410,729 during the year ended the 31st March, 1890. _ou will tbue see that we bad very largely concracted our public expenditure of bow-owed money, and we had also, in addition to this, been compelled to remit to London during the two and a halyears we had been in office, in payment of interest, a sum of £3,325,000. And it "must be remembered that the necessity for such reinittaueea to pay interest had never before arisen, as our continued borrowing enabled us to use the cash we had in London to pay interest thereby transferring an eqoal amount of the con. solidated revenue Here to tbe Public Works Fund. - _fet, notwithstanding this' contraction of expenditure, and the re_ mittances to London, the resources of the colony are so elastic that sufficient revenue was raised to meet all our requirement-, to pay off £128,000 of the deficiency outstanding in March, 1888, and to enable us to carryforward a small surplus 1 of. £36,500 to tbe credit of the current year..; It is true that our land revenue fell short; of the expenditure by £45,716 for the two; years ended -Ist March. 1890. This amount, however, will, I believe, be practieaUy liquidated by the end of this year. But, looking at the results of the two yearsjust r__ntloned, and inciudlug the deficit in the, Land Fund, you will see that* we raised sufficient revenue .not only to cover the deficiency in the land revenue bad we chosen so to apply it, instead of s carrying forward the surplus of £Bssoo, but also to pay off £116.000 of the out-; standing deficiency- of March, 1888, and to meet the cost of ail our ordinary services.

The result so far of our financial operations has demonstrated clearly that the colony can dispense with all outside borrowing tor-some time to come, and can,; without undue pressure, provide for all ita legitimate requirements; and if the late Parliament aud the Government have, only succeeded in making this fact clear; to the public, they have performed one of the greatest services tha* could at the present time have been rendered to New Zealand. SETTLEMENT OP THE LAND. The Government has been impressed: during its entire term of office with the" primary importance to the colony of providing facilities for the settlement of the public lands. Speaking for myself, I believetbeperpefcual leaseteuure, without the right of purchase, to be tbe best both for the caixray aud for the --settler.;: Bat I am satisfied .that a lance majority of my fellow-colonists still dine to the idea of tbe old freehold teaui-. TheGoi vernment, beiJeving it right that.it should rest with the people themselves to determine what tenure would best suit their requirements, proposed to Parliament, and carried an amendment of the Land Act, by which au intending settler, instead of bei«_f, compelled to take up his land under the tenure. which the Minister thought best, is enabled.-) take it up at his own option, either as a purchaser for cash, a deferred payment settler, or a perpetual leaseholder. It is to this alteration in. the laud laws that we owe to a large extent the great extension of bona /fefc settlement sicca the S resent Government took office. We aye also beeu at considerable trouble to disseminate a correct knowledge of the nature and capabilities ot our lands j-njoug Che public, both in this and other co__fcries, by means of purvey maps and special guide-, and we are now cousideriug. a plan for making this information still more accessible co the intending settler . . "7; , :

Experience has shown that the most popular tenure is the perpetual lease, which, as you know, confers the right of pnr-base. I am _$ad to say that the experiejM»ofti« last eight yvars has shown «* aa _ar tbat this-beat of Durcbase has

bee&most sparingly exercised, .and then GMT for what tbey be termed strong personal reasons. total area taken up On TCrpetual lease from 1882 to tbe 3_r* Mttreh, 1890, is 5&7,951 acres; oat of this, only 925 acres have been converted into freehold under the purchasing clause.: Thei total acreage of land disposed bt _rom October, 1887, to March, is, daring the first two and a half years that the present Government were in: office—was 1,083,771 j of this, 131,519 acres were sold for cash, 129,254 acres being, rural lands, 1353 acres village settlements, 738 acres suburban land, and 134 acres town land. There were disposed of on settlement conditions, excluding tbe small grazing runs, 651,020 acres, made up as follows -.—Rural lands, 640,716 acres; and village settlements, 10,313 acres. In addition, we.disposed of 300,233 acres for small grazing runs. The average of the holdings of rural lands disposed of on Settlement conditions was 210_ acres, and tbe average of the holdings sold for cash w .»» .123 acres; che village settlement holdings are all under 50 acres each. The average of the small grazing runs was 19ia_eres. There is no doubt that the country in being gradually settled by small holders; and I wish you to ob3erve that this increase of settlement is still going on, not-, withstanding the financial difficulties that have existed in the country for some time past. I do not want to weary you with figures, but I do wish to emphasise tbe encouraging fact that tbe inclination of our people to settle on tbe land is steadily growing. In 1876 the proportion of agricultural .holdings per 100 of the adult male population was 14.88, in 1887 it had increased to 20.88, and in tbe present year to _3.22. SUMMARY. Looking back on the record of the past three years, I think'you will admit that the Government may well claim that it has done the work it was placed iv office to do. We have introduced and carried a Bill reducing the number of the members of the House of Representatives. This, to my mind, is one of the most important reforms that has been made for years. I believe that the work of Parliament will be much better done by the reduced number of members; that the people will be better represented; and that greater econemy in the administration of the public affairs will be insured. We passed an Act permanently classifying tbe Post and Telegraph officers, and we submitted a carefully prepared Bill to classify the whole Civil Service; this Bill, however, 1 regret to say, was not passed, for reasons which I shall mention presently. No doubt next session villi see this measure become law, when I trust our very efficient and most unjustly abused Civil servants will find themselves placed beyond the political vicissitudes to which they have been so long subject, and which are tending in a great measure to seriously unsettle them, and so to impair their usefulness. We found a rapidly increasiug deficit, with a falling revenue — we have again restored the balance between Revenue aud expenditure. We found our credit at the lowest, ebb in London—from the time we took -office our credit has steadily gone up. We have simplified the land laws, extended settlement, and settler to choose his own tenure; we have reduced our ordinary annual expenditure, by the sum of £291,000; we have gradually •and largely reduced the expenditure out of loans, and transterred charges amount ing to £133,000 from loan to revenue ; we have shown the colony that it win pay its Way without foreign borrowing ; we have established a Railway Board free from political control; and, by the passing of the Australasian Naval Defence Act, we have taken the only practical step towards Imperial federation yet possible. These are some of the works we have done, and I would respectfully submit that they. alone are sufficient to entitle us to the continued confidence of the country. OUR FUTURE COURSE. Parliament. I now come to the question of what, in my opinion, should be the course we ought in the future to pursue. Let mc, however, first emphasise what we must above all things avoid, Let us have no political or financial fireworks, no great or heroic policy; no great' schemes to dazzle or to lead us astray. What we want and what we must insist on is a strict but not parsimonious economy, combined with cheerfulness and a firm belief in the unbounded resources of our colony. The first thing that I think the electors should insist .Upon. the new Parliament doing is, to alter Its rules of procedure, so as to assume once more the power to control its own business, which power it has of late practically lost. A small knot of members wi delay business indefinitely, and I regret to say that such a small knot has not scrupled to combine for this purpose in more'" than one session. A large majority of the House has proved to be powerless to give effect to its will against the obstruction of a very small minority, if, as has beeu the case, that small minority is sufficiently determined and unscrupulous enough to misuse the rules, Which were made for a very different purpose. It is clear to mc that, if the work of the country in the way of the proper criticism of finance, the due consideration of the estimates, and the necessary legislation, is to be done, the closure, under proper safeguards, must be enforced, even if we do not determine to have a time-limit for speakers, and a time-limit also for important measures, as I think may be possibly advisable. The abuse of the freedom of speech which the present rules allow to members has become more and more marked during every succeeding session of late years, and may be said to have culminated last session in the stoppage of much useful legislation; and this not because the measures were themselves objected to, but simply with the hope of throwing discredit on the Government, and forcing a second session upon the country during tbe present year. To this system of obstruction, no doubt, may be attributed the strong belief which has been expressed in various quarters as to tbe deterioration of our late Parliaments. Ia this belief I do not share, and I am of opinion that, if our rules of procedure are altered in the direction indicated, our Parliament will again assume the high position of which we have been r _o justly proud inyears gone by. . i FINANCE. , From what I have said above you will see that we have succeeded in getting our finances well under control, but the most rigid economy aud careful administration are still necessary before we can hold our hand, and pronounce our work of establishing a satisfactory finance fully accomplished. But I wish to protest in the most emphatic manner possible against the views of those pessimists who tell you that the colony Is going from bad to worse, or tbat oar financial position is really criticsd or dangerous. Prudsnce, courage, and a firm faith in the resources of the colony are all chat are required to trive us a future of assured prosperity. Let us, in order to see that these words are no mere Idle boast, look at the results of our last year's work as a colony. The result, I think, will surprise many. The figures that I am about to give you are ox course round ones, and approximate only, but they have been compiled with great care, and are, I have no doubt, substantially correct. And first let mc tell you what was the estimated income of tbe people of the colony for last year. I do not require these figures for the purpose of my present argument, but it is as well that I should give them to you because of the silly and misleading statements which are frequently made as to our utter inability to pay our way. It is, of course, es you know, from the incomes of the people tbat taxation is paid; and the total amount of these incomes for last year—that is, the year 1888—may be reasonably estimated at not less than jti31,500,000. But, as I have said, I am not now concareed wish the incomes of the people. What I wish to draw jour attento Is -.the annual produce of tbe colony, its a nnual consumption, and..the actual Amount of interest which we have to pay outside tl*e colony. The difference between its annual produce, and its annual consumption and the interest paid to outside creditors, represents the amount by which the colony is either going to the good or the bad during the c year The estimated value or the produce of tbe colony for the year 1889 was £23,500,000, and this, in my.opuwon. is certainly not an over-estimate. Now, there are only two charges to be made against this amount; first, the total cost of our living—that is, the value of all products we consume or otherwise use; aud, secondly, the -interest whieb we pay to outside creditors. The expenditure upoa our living maybe put down at-nearly £16 000,000. Tbe total amount of interest whicb we have to.pay outside the colony is about £3,114,000, made up as follows :— interest on public debt, £1,015,000; interest o_ll-bteV-tocal b_diesj____,ooo; Interest "on orivate debt, including banks and *nm_anv dividends, £1,219,000; total, 3SKK- Itwfaddlottothe|ia.OM.Wo: cost of living, we obtain £19,114.000, and if we then take this amount from the -value of ore total pr_. duce,--3,500,000. we obtain a remainder of about _U.40u.0u0. which is 1 believe an

I of the amount of wealth { which stood to our credit as a colony as the result of last year's labor. These figures have been tested as fax as possible, and may, I havefnot the least hesitation in saying, be accepted as approximately acc_rate. With such a foundation as this to build upon, it is clear, notwithstanding the temporary difficulties through which we have not yet entirely passed, that we ought to be able to have a sound and satisfactory finance, if we have but courage aud patience to steadily pursue the course which we have entered upon, namely, the stern restriction ot all unnecessary expenditure, and the active settlement of the people upon the land. REDUCTION OF EXPENDITURE. I would now ask your consideration to the expenditure of the colony. I will very briefly analyse it, that you may be able to form au opinion as to the possibility of further large reductions, which some would-be authorities tell you are both possible and reasonable. Our total ordinary expenditure for last financial year amounted to £4,121,840. Of this amount, £1,897,602 want for interest and sinking fund, and £260,472 for charges fixed by Act* These last-named charges might be reduced between £50,000 and £60,000 a year if the country is prepared to abolish the - subsidies to local bodies. I think, however, that, if the subsidies were abolished, at least the same amount of money would have to be applied from the general lundß toward- the formation of roads in new districts, over and above what we now spend upon what is called " opening up lands before sale." Ot coarse tbe Interest and sinking fund must be paid, whatever happens, and 1 am of opinion that for i practical purposes we may consider tbat there is no escaping from the charges flxed by Act. The two together, interest and sinking fund, and permanent charges, amount to over __,150,000. We have therefore left only £1,970,000 available to meet the whole cost; of Government, including those departments whicb earn revenue in return for services rendered, such as railways, which cost £656,000, aud post and telegraph, which costs £-73,000. Deducting the cost of these two earning departments, the outside cost of government proper is only £1,041,000. The principal items of this expenditure are:— Colonial Secretary's Department, £112,000; Justice. £119,000;. Customs, £70,000; Education, including school-buildings, £K91,000; Mines and Stock, £49,000; Police and Defence, £163,000. The other services making up the amount it is unnecessary to mention particularly. After very careful examination into the j whole of these departments, the Government has, with regret, come to the conclusion tliat ie will be impossible to make any further reductions to any large amount, especially when it is remembered that there are a number of necessary charges which are now borne upon loan funds, but which will very shortly have to be met out of ordinary revenue. The truth is that, as a people, we insist upon public conveniences of all sorts all over the country to an extent hardly dreamed of iv older countries, and which necessarily render the cost of government here apparently larger; but I submit that when we take into account the extensive railway system we enjoy, our well-equipped i haroors, easy access to Courts of Justice, our sysiem of free education, our post and telegraph facilities, and our network of excellent roads throughout the two, Islands, and when we consider tbat our total European population is only 610,001); the wonder is that wo obtain so much for the taxation we pay. So far as I am able to judge, although every effort is being made iv that dilection, much further reduction in our public expenditure cannot be made unless we are prepared to sacrifice many of the conveniences and advantages which we now enjoy, and which, as f_i- as I can read the desires of the people, they are determined not to do without. FURTHER BORROWING. And this brings mc to tbe important question of borrowing. Can we do the necessary work of extending colonisation { with tbe aid of ordinary revenue only % I regret to say that, in the opinion of the Government, that is not possible without such a large increase of taxation, as no Governmeut .would propose and no Parliament would sanction—and yet this work must be done. If the settlement of our ' unoccupied lands is to be pushed forward —aud this the Government think of the greatest importance—it cannot be efficiently dove without continuing to expend < an amount at least equal to that which has been for some years past devoted to this purpose. Hitherto the funds neces- j to carry on this work have been provided I from loan; but the amount allocated will be exhausted by the end of the current year. As settlement increases and pro- ' duce is grown in the districts tapped by ' our railways, additions to our opened lines are being continually required to meet the increased traffic. Money for this necessary expenditure must also be provided to the extent estimated by the Railway Commissioners of about £20,000 per annum. This charge, in all countries in the world, as far as I know, always come out of capital account. I have great hope, however, tbat iv tbe course of a year or two, and perhaps sooner, this amount may be squeezed out of our revenue; only I wane you to understand that it is not an expenditure which is ordinarily charged in this way. A large portion of tbe unoccupied land in the North Island fit for settlement in small holdings is still lying waste iv tbe hands of the Natives. If settlement Is to be extended, money must be found for the purchase of this land, and I estimate that for this purpose not less than £50,000 a year will be required to be advanced for so-ie years to come. Funds for this pur- * pose have hitherto been provided from loan, but the amount allocated will also be exhausted at the end of the current year. We thiuk also that there are parts of the colony where, in the interests of the people, land for settlement in small holdiags must be obtained from private owners, as indicated in the Land Act of 1885. This will require to be done tentatively aud with caution, and by special Act, but a sum of, say, from £10,000 to £20,000 can be most profitably spent in making sodesirable an experiment. If we are not prepared to spend these moderate amounts upon the settlement of our people upon the land, and the acquisition of Native lands, stagnation and loss of population will certainly follow. If the colony is to progress, this expenditure, then, must be made; and tbe question is. - How is the money to be obtained 9 Some public men, for whose judgment I have great respect, are of opinion that, if it is shbwn that further funds than can be provided from the revenue are necessary for 1 settlement purposes, weshouldgo upon the Loudon market to get what we require. The Government disagrees entirely with this opinion. We believe that no further loans for public works of any kind should be placed upon tbe London mar&et for some years to come. We think that, if that door is again opened, tbe temptation to over-expenditure may once more seize i upon the colony. The only alternative, then, Is to obtain the amount required in tbe colony as thermoney is wanted, and we are firmly convinced that the small difference, if any, that there may be in the rate of interest we have to pay for local money will be far more than made up by the contingent advantages of raising it locally. Capital Is undoubtedly accumulating here, and we think that by an amendment to . the Government Loans to Local Bodies Act the necessary funds can be obtained in small amounts from time to time from our own people. FUND FOR ROADS. Although it is proposed, as I have just said, to raise the necessary funds on the credit of the colony for tbe purpose of opening land for settlement, and for acquiring laud from the Natives, it is our opinion that the land Itself should be made to bear the cost. With reference to the cost of roadihg, we think this can be done in such a way as to advance settlement. Our scheme was roughly sketched in my last Financial and the following extract from that Statement shows what it is >—■ " A block of land, for instance, say, of 10,000 acres, is to be opened for settlement: the roads would be laid out-and tbe sections surveyed; tbe cost of forming and metalling "the main road through the block would be estimated and added to tbe cost of clearing and forming the district roads. The total amount thus ascertained we will suppose is £5000; a rate under the Rating Act would than be struck over the block to cover the amount, less the present value of the thirds, as though it were a district raising a loan under the Government . Loans to Local Bodies Act. and the County .Council • in which the land was situated would ■ be asked to superintend the execution of the work under regalai turns approved by the House. : We should propose, that in bush districts all roadmaking, excepting the flrat clearing of the main roads, should be offered to the settlers in the first instance, so as to give employment to them for tbe first year or '"two; when work is most required near his home by the small bush settler. If this ;, .system is carried out we think it will give great satisfaction and confidence to intending settlers, by insuring the making qf the necessary roads as they are required --the money being at call and depending' npon no contingency—and enabling the small settler to earn a fair amount ox cash

at a time when he most needs such help. No fresh borrowing powers will be required if this plan meet with the approval of Parliament, as there is ample provision under tbe Government Loans to Local Bodies Act; a alight amendment of that useful Act extending Its provisions to land about to be opened for sale being all that is required, the purpose for which the advances Are proposed to be made being identical with the purpose for which the Act was-passed. . . - Provision will, of coarse, have to be made, as I have just said, to give the put—basers of the land credit for the present value ot the thirds, which would, in fact, instead of being doled out as they came in half-yearly, be available as a whole at once, to the great advantage of all concerned." And in this connection It would be well to inquire whether our subsidies might not to be spent with greater advantage to the country, and also to consider Whether blocks of land, which have prpr Tided their own roads, as proposed, should not be altogether exempted for a certain time from the county and Road Board rates. PURCHASE OF NATIVE LANDS. To provide funds for the purchase of Native land, it is proposed to set apart a block of the more recently acquired land of, say, 250,000 acres In the North Island, and as this is disposed of, whether by cash, deferred payment, or lease, to pay into a separate account a certain ■ percentage or the proceeds, to be available for further purchases; and so on with all lands subsequently acquired. But while this fund is accumulating it will be necessary to provide money for lauds required to be purchased meanwhile, and we propose to do this by an amendment to the Government Loans to Local Bodies Act, which will authorise the issue of debentures secured upon the proceeds of sale. TAXATION. And now I come to the important subectof taxation. There is no doubt tbat the new Parliament will reconsider the property tax, and probably the tariff. With reference to the property tax, I do not propose to go into any lengthy argument upon the present occasion to defend Its principles or incidence. There has been no tax devised that I know of but presses hardly upon some individual cases, but for direct taxation I can conceive of no fairer principle than that on which the property tax is based, viz., that a.man should pay toll upon the whole of such wealth as fie actually possesses, and which he can leave behind him when he dies. The Government has always been desirous to consider any proposals which would remove existing unfairness, or any amendments which would make the tax work more smoothly. But we have steadily resisted the endeavors to substitute for the property tax either a land tax alone, as . is proposed by some, or a land and income tax. We oppose a land tax pure and pimple, because we believe that personal wealth has an equal right with land to contribute to the burdens of the State, although perhaps for different reasons. We can see no special reason why persons who have bought or who are buying land from the Crown at its fair value at the time of purchase should be subject to special taxation in the employment of their capital, while others who employ their capital In different ways, bub who enjoy similar benefits of government, should escape scot-free. With reference to a land and income tax the same objections, of course, do not hold. This mode of taxation is merely a different way of taxing a man's whole property; but I am perfectly convinced, after looking at the subject from all points of view, tbat such a change from the property tax would-be largely in' favor of tne rich man. The burden of the tax, in my opinion, in such a case, would fall upon the man of small means in far greater proportion than It does under the property tax. I have had careful calculations made by the Property Tax department as to the capital value of the unimproved land of the colony, and this shows that, were a valuation taken for tbe purpose of a land tax, it would not amount to more than £42,000,000 on which land tax would be payable. This is without the £500 or any other exemption. It is true that the Unimproved value of tbe land Is set down, in tbe last property tax return*, at £75,000,000, but this Includes all the educational reserves, Crown lands, Native lands, and general reserves, which would undoubtedly have to come off if a land tax were imposed; and a further reduction has to be made for improvements, which it Is clear to the Property Tax department have not been correctly valued, owing to tbe fact that the valuers aud the owners were only interested in the total value of the whole property, and not of the relative ptoportions of land and improvements. Now, It is clear that, if these figures are reliable—and of that I think there is very little doubt—a land tax will not raise anything like the amount realised by the property tax, without serious injustice, if not ruin, to a large number of country settlers, for the burden, as I understand a land tax, would fall entirely noon the nominal owner, the mortgagee being freed frem liability as che owner only of personal property. A land tax on unimproved values, without exemptions, at one penny in the pound, would not produce more than about £177,000, and of this amount about £59,000 would be contributed by the boroughs and £118,000 I by the country ; but if the exemption of £500, given under Sir George Grey's Land Tax Act, were allowed the proceeds Of the tax would not exceed £140,000. With respect to an income tax levied on incomes not derived from laud, it is estimated tbat a tax of sixpence in the pound would produce £74,000. This is on all incomes over £150, with an abatement of £120 between £150 and £400, as in the case of the English income tax. But tbe expense of levying such a tax would be enormously greater than thecost.of the property tax, and its inquisitorial nature j would be far greater and more irritating than the property tax. It is therefore plain that a combined land and income I tax as above indicated, although much more costly to raise, would not give ! within £104,000 to £141,000 of the present property tax, There is one matter, too, in i this connection to which I wish particularly to call your attention. No one yet 1 who has been charged with the responsibility of meeting our public engagements haa seen his way to say it was possible to Obtain as much as it is necessary to get i from the property tax by means of a land and income tax; and a Government of which Sir Robert Stout, Sir Julius Vpgel, and Mr Ballance were members, although strongly pledged against the property tax, and, as 1 believe, heartily desirous to repeal it, found themselves unable to propose any satisfactory substitute to the newly-elected Parliament, and had to fall back upon this much-abused tax as the only practicable form of direct taxation. And Sir R. -tout, in his late speech at Napier, has felt it his duty to caution the electors against hasty changes-In the incidence of taxation, and to declare that it is impossible to raise by means of a land tax anything like a similar amount to that .now raised by the property tax, without freat injustice to the country settlers. here Is no doubt in my mind that at tbe present time tbe agriculturists of ali grades receive less remuneration for their | work-and capital than any other class of the community. But, on the other hand, [ under the property tax they obtain certain exemptions not extended to any other class. Their machinery is entirely exempted from taxation: and the cost of labor and seed for putting In all the crops which are planted before the Ist October, which must amount to a very considerable sum, is not included in the amount on which the tax is payable. But whether it might not be fair and wise, as a matter of public policy, to give farther exemptions to the farmers la, I think, a proper matter for consideration, and one which I have no doubt the new Parliament will consider. THE STRIKE. Before I refer to local matters there is one other point upon which I desire to sa. a few wards. I allude to the strike which has for some months so seriously affected the trade and commerce of the country. There are two lessons which I hope it has clearly taught us. The first warns us of the danger and unwisdom of our local unions being so connected with outside associations as to make it possible far them to he coerced into lines of action which they themselves may strongly deprecate. We have seen our whole trade and commerce seriously embarrassed by a quarrel in another colony upon a questionin which tbe local unions were only remotelyinterested j we have seen our workmen called upon, without __ath_vi_g had any real opportunity of properly considering the matter in dispute, to make, very great personal sacrifices, a call which they responded to witb unquestioning loyalty, although many did so in-obedi-ence to a command which was against their own personal convictions and better judgment. It is now only too apparent how very great the inconvenience and loss this most unfortunate disaster, for such it is, has been, not only to Unionism itself, but to the colony. The second lesson which this strike ha?, I hope, taught us, is that it is tbe duty of every one of us to do his utmost to devise some ready means, which shall be acceptable »]>i"' t_ _—ratal and labor, to settle

disputes which may in, future arise between them, without resort to that most cruel expedient, the boycott and striae. There is no doubt that Unionist, has been of great advantage to the working classes, and consequently to the! community at large, for there can be' Mo country really prosperous where its pros-* perity aces not extend to its workers. It Is impossible* however, that any section should be allowed to dictate to Its parent community; and no community can permit Unions to assume functions which of right belong to the people as a whole, aud which can only be properly exercised by Parlia-1 ment. Individual liberty mu-st be preserved, and at the same time the right of the people to organise in such societies as they think will benefit themselves must be protected; such.societiesuhowever, can i clearly have no right to dicfate to any individual outside their own organisation as to what he shall or shall not do. The difficulty, I think, cannot be properly met. by legislation. The solution must be the outcome of deliberation and mutual agreement between labor and capital, and must be mainly, I think, in the direction of legalising the decisions of such tribunals as may be set Up by the parties themselves for the purpose of determining their disputes. _OCA_. In speaking of local matters I must first express my great regret that, owing to the operation of the Representation Act, so large a number of my old friends are excluded from the present Egmont electoratej and, in parting from them as constituents, I must also express the hops that they will accept my hearty thanks for the past support they have so generously given mc, and my warmest wishes for their future prosperity and success. •While on the one hand 1 have through the alteration of the district to regret the loss of many friends, on the other 1 have to welcome back many of my old friends who were formerly iv che Eginout district, and others from tbe adjoining district, once known as the Grey and Bell, which I had the honor of representing when I first sat in Parliament, now nearly thirty years ago. You will, perhaps, excuse mc if I recall to your attention the state of the district when L first had the honor of being returned. In 18721 was returned, after one of the sharpest contests we have had in the district* by. a total vote of 114, being a majority of twenty-four votes over my only opponent — numbers which, in view of the present electoral roll, make it appear almost ludicrous, so great has been our progress. There was then no road or railway behind the mountain, a very fewmiles of road in the district, and practically no bridges. I have watched the district grow from a very small beginning, to what it is now—one of the finest In the colony. I trust, therefore, that I may be forgiven the special pride I feel in the district and its people, and the desire of once more- re- - presenting you. The serious financial difficulties through which the colony has been passing during tbe. last three years has reudered it impossible for Parliament to devote as r_uch money to roads and bridges as many of us would have liked, although your district has not been overlooked in giving facilities such as our means allowed for the settlement of our Crown lands. As an old bush settler, I well know the difficulties that many of you have to contend with, and how very apt men, under such circumstances, are to consider the Government is neglecting them. The Government, however, have not neglected you; with the means at their disposal tbe settlement in the various districts has been vigorously pro- . nioted. I am pleased to be able to tell you that Parliament has this year provided £10,000 for going on with the road between Stratford and tbe Main Nortte line of railway. This road, yas you know, I have always considered one of primary Importance, since railway connection with Auckland was so mistakenly refused us. 1 have never ceased in my endeavors to promote its construction; and, whether I remain in Parliament or not, my exertions to obtain its completion, believing as Ido in its great importance to both Taranaki and Auckland, shall be continued; nor dol think that this completion will be lang delayed should Parliament approve of the Government's proposal with regard t6 the purchase of Native lands and extension of settlement, as I believe will be the case. You may remember the great efforts I, with others, made in favor of taking the railway along this route, and, although, unsuccessful as regards the railway itself, yet the proposed road may be looked upon as the outcome of these efforts. Tbe construction of this road 1 look upon as a culmination of a series of local works of the greatest importance, works with which I have always identified myself, consisting of the main road by the coast between Hawera and New Plymouth, and Hawera and Wanganui, the road at tbe back of the mountain and the railway to connect New Plymouth and Wanganui. lam glad, also to say that Parliament has granted a sum in aid for the erection of a wharf at Opunake. This work will, undoubtedly, be of considerable local advantage to an important part of your district, which has hitherto not Erospered to the extent many of you had oped some years ago. I trust, however, that this work, when completed—which I hope will be soon vow—will give it material assistance.

Before concluding I must again refer to myself, I am very thankful to say that during the last month my health has decidedly Improved: the comparative rest which I have had lately has bad a favorable effect, and, I think,'indicates that I may hope, if I follow my doctor's directions, to obtain a restoration to moderate health. But lam warned that, now that lam mending, particular caution is necessary, aud that I must not in any way over-exert myselr under the penalty of serious consequence. I have, therefore, with very great reluctance, been'compelled to decide not even to visit you until after the election. I need hardly say how great a disappointment this is to mc, but 1 feel assured that in the circumstances you will approve of my decision. I trust that in tbe course of a few months I may be in a condition to spend some time in the dis trict, aud to thank you personally for the generous consideration you have extended to mc for so many years* CONCLUSION.

And now, in conclusion, I again submit myself for election at : your hands. You know what I have done in the: past, and now I have told you what I propose to do should .you re-elect mc. You have, known mc in public life for over thirty year^; and you are quite able to judge whether I have done my part in the settlement of this great colony. I have no "heroic policy" to offer you ; and, knowing my opinions, you will not expect it of mc. With reliance upon our resources and upon ourselves, prudence, in our finance and faith in our ultimate destiny, I am, convinced that our temporary difficulties will disappear, and tbat this fair land ot ours will become the home of millions of happy, thriving .people, who will'emulate in these southern seas /the successes, but -not tha miseries, of. the great country from which we nave sprung. .>;---; .;:;..• .__.?:_, Atkinson. '" Wellington, Ist November, 1890. ~ . ..