THE Evening Star. TUESDAY,AUGUST 24, 1869.

Evening Star, Volume VII, Issue 1966, 24 August 1869, Page 2

THE Evening Star. TUESDAY,AUGUST 24, 1869.

Ix an American magazine, published in January last, there is an article on the railroad - system of the United States, which contains much that is original in matter and thought. Political economists might perhaps quarrel with some of the definitions, for there is a free use of language—an abandonment of those restrictions which are usually considered necessary to clearness of thought. But no confusion is allowed to enter into the treatment of the subject, for the writer lays down his own definitions and abides by them. Thus the word “ tax,” which an able English writer defines as “ a portion of “ the produce of the labor of a country “ placed at the disposal of a Govern- “ ment,” is used to signify “ any bur- “ den, natural or artificial, which, “ without altering the intrinsic value, “ the quality, or the quantity of raw “ material, adds to its cost before “ it reaches the consumer.” In other words, every increase of cost by labor is esteemed a tax. The immediate object of this wide application of the term “ tax ” is to show the special bearing of the cost of carriage upon consumers ; and to simplify the matter still further, th® population of civilised countries is divided, in refereuce to exchangeable goods, into producers, distributors, and consumers. His object is to show the advantages to the community of cheap modes of transit j that “the cost of transportation cannot “ add to wealth ; it is simply a “ distribution of wealth already in “ existence j and the cost of distribut- “ tion constitutes a tax on consumption “ levied indifierently on the producer, “ the manufacturer and the consumer.” , . . “ The consumer has appar- “ ently to pay the entire amount. “ There is no doubt about his bearing “ a portion at least of the burden. But “ it does not rest on him alone, as few “ will deny in America, at least while “ unthreshed wheat is yet burned for “ fuel, and the transportation tax robs “ the producer of the whole fruits of “ his toil. Could that tax be wholly “ abolished, and breadstuffs be trans- “ ported without cost to London, the “ exchangeable value of flour would “ rise in Chicago and fall in Liverpool,” Now, if for the name of the American district is substituted that of Otago, the argument bears immediately upon our own position and it will demonstrate one of the difficulties with which we have to contend in increasing production and extending our trade. It is not many seasons since the quantity of cereals on hand in the Clutha district was great but the cost of carriage prevented the producer bringing them to market. The cost of transport of goods is a material element in price, and goes a long way to determine whether or not a profitable market can be found for produce, Mr Yogel’s proposition to tax agricultural produce if carried, offers every inducement to the agriculturists of Otago to extend their operations. We are not now discussing the policy or impolicy of the imposition of a duty on cereals, we are pointing to what will be the effect, if it is adopted. Assuming that the meaure will pass, for a while the cultivation of breadstuff’s for the supply of the North Island will prove a paying industry, provided the expense be not too great. In order to bring this to a minimum, the cost of carriage between the district in which it is produced and the port of shipment, must be reduced to its utmost. Teams of bullocks on natural roads are the most expensive ; horse teams on macadamised roads are a great improvement upon them, tramways, as on the West Coast, prove a step in advance of them, but the best and cheapest road for transport vet discovered, is the railroad. By means of it every article of consumption can be forwarded to its destination in the least possible time, with the smallest possible loss, in the best possible condition, at the lowest possible cost. We yesterday showed how much merchants were interested in the Port Chalmers Railway. But, immediate as would be the benefits to them, the public would be the greater gainers. Merchants are the distributors. Whether the producer or consumer gains or loses, they are able to make themselves safe. If the importation of an article will not pay, they will not import it. If the cost rises or falls, they advance or reduce the price according to the market. In the main their profits are pretty certain, although from time to time they may vary. But the marketeer produce depends upon price, and everything that enters into it is of the utmost importance to a producer. No matter how abundantly the earth gives forth its fruits, if after they are gathered, it is found cheaper to burn them as fuel, or feed swine with them, than to pay the cost of carriage to a market. Now this ra the position

of Otago. The land yields abundantly, but the cost of taking produce to market is too great to bring any very large area under crop. Great excitement prevails throughout the Province with regard to the new Hundreds Regulations Bill, because it is affirmed it will prevent the settlement of the country. In other words, it will prevent the development of production, if so, its provisions imperatively demand amendment. But the limit to production is the cost of finding a market, and that is a difficulty that remains with the people to remedy. Let us begin with the Port Chalmers Railway as the most essential; others will then follow, gathering produce from different districts, and placing all our settlers in an advantageous position for trade with whatever country needs their produce.