NEW ZEALAND FINANCE.

Dominion, Volume 1, Issue 220, 10 June 1908, Page 7

NEW ZEALAND FINANCE.

A SCOTTISH VIEW, . '"Of, New Zealand's''democratic methods and progressive ways," says' tho "Glasgow Herald" it! 'sin. editorial on April 24 last, " thO casual reader learn;! toorO than of her economic situation. Tho other , day, when commenting Oil' public liliAiico for the eleven months of the iiscal! year, which terminates at March 31, Sir Joseph Ward, tho Premier, declared the results to bo ' simply magnificent.' It niay bo that Sir Joseph' Ward has inherited optimism ,from his extraordinary predecessor, the' latp Mr. Richard Seddon, for ail increa-so in the revenuo of £Sciß,ooo is not exactly sensational, though it may bo Encouraging. Moreover, one-half of the in'crease was .from the railways, tho land-tax, and tho territorial revenue; increased receipts from the national railways imply increased expenditure.' Tho increase m tho colonial expenditure -is 'bound ,to bo great With the several experiments, in Stato Socialism to bo financed. Tho. next Budget will not bo pleasihg in ( this respect, nor°in its evidence of increase 'in tho.National Debt, Which is) enormous for so small a pOmilation. But, apart ffrom public fmaiico, there are other matters of serious concern in the economics of tho Dominion. - It has had a long spell of nearly threo months' drought, which has inflicted sovero losses on tho pastoralists and agriculturists. During ; this drought thero occurred forest and grass fires; which destroyed hundreds of thousands of pounds' worth of property in stock and buildings. Some of these fires may havo had bsnoficial results, inasmuch as t-liey havo oloarcd some areas for sowing, but meantime they include loaa which, now that tho drought '? ? ver » settlers, aro ti'yihg. to assess. And, unfortunately for tho colony, wool, fl'hieh for Bomo time iiast 'has been at a high price, has now conio down, so ,much in fact that tho . loss to New Zealand on the year's crop will bo from two to three millions. 'Nor is that all. New Zealand has a large business ill tho growing and exporting of hemp, and hemp has recently fallen about one-third. Tho interesting : fact is that hitherto America has been tho chief market for New Zealand hemp, but, that now Amorcia is Supplying herself from tlio Philippihes, where the Manila industry is being promoted by American capital. , This is one consequence of tho United. States having/become a World Power. What with tho drought, tho fires, and tho depreciation of two staplo products, Now Zealand must be poorer this year than last. But slio never loses heart; at all events her statesmen do nok They are always willing—and perhaps too readyto discount tho future. The entire Dominion is Imperialist, and Sir Joseph Ward is a pronounced Prefcreiltialist. The population of New Zealand, which is twice as largo as England and Wales, is not <v million. It is essentially a pastoral and agricultural country, mid it has ambitions to bccoino u manufacturing blio also. As a conscquoncs it has yearnings after a high tariff to protect . domestic industries. Tho Proferen'tialists maintain that tliero is' plenty of margin between a sufficiently protective tariff antl t the freo working of the preferential principle. The Labour Unions do not admit this, but whether they aro strong enough to force on Protection has yet to be seen."