DIRECT TAXATION THE CURE.

Evening Star, Issue 7298, 24 August 1887, Page 4

DIRECT TAXATION THE CURE.

Ul ivw 1 Art.VfiAXWAI 4UU TO TUB KBITOR. Sir,— Believing that your paper favors Prcetrade, I do not see why you cannot adopt Freetrade pure and simple. In the Financial Statement we are informed that the wealth of the Colony (public and private) amounts to L 218,000,000. This being so, IJd in the £ would realise the sum of L 1,302,499, which, with other items in the Estimates and very sweeping reduction in expenditure, would suffice to carry on the Government and to pay interest on loans, leaving out Customs duties altogether. The whole of that costly Department would then be wiped out In so far as England is concerned, it would only he fairthatour mutton, wool, corn, and dairy produce enter that market free of duty. It is good policy to reciprocate with such a good customer, Nayj by the adoption of Freetrade the Colonial Treasurer in forming his Estimates of the yearly income could make sure that hia credit and debit account for the year would square. He cannot depend on the Customs revenue at all. as it does not always come out right. Take the last few years for an example. The Customs revenue has run short, and the hue and cry has gone abroad that New Zealand is in monetary difficulties, which, to say the least, has been very damaging to Its interest. All the protection placed on local industry has not been able to supress this hue and cry; whereas had Freetrade had lull swing taxes would have coma in regularly, and there would not have been a word said about impecuniosity. There are various interests at stake, and equal taxation on all is imperative according to their usefulness an 1 value. That can only bo done by a direct tax. For instance, JV>O worth of prope. ty at 31 d in the £ is 0s 3d (which seems to me a mere trill. ); un LSOO, 3Jd in the £, L 3 Cs; LI,OOO, LG Is ; and so on. 1 am sure a tax on this line should he preferable to uncertain taxes on results through the Customs —I am, etc , A Political Economist in I.'iiiiito. Dunedin, August 23