THE MINISTER OF EDUCATION AT OAMARU.

Evening Star, Issue 8365, 17 November 1890, Page 1

THE MINISTER OF EDUCATION AT OAMARU.

Wo continue our report of the Hon. Mr Hislop's address at Oamaru on Friday night : LOANS FOR LOCAL lofytES. For gome yoara past, under the measure known as the Loan to Local Bodies Act, provision has been made for raising within the colony sums of money to be lent to local bodies for the purpose of carrying on their public works. _ The policy of the Government, as detailed in tho Financial Statement of this year, is to extend the providonß of that Act so as to raise sufficient money in the colony for the purpose of carrying on the roading of our lands and the purchase of Native lands.

LAN» WANTED FOB SETTLEMENT. The difficulties which are always attendant upon the settlement of lands have rather increased of late years on account of those available being more remote from settlement, ana because of the difficulties In providing communication. We therefore determined to ask the House to adopt the system shortly set out in the quotation which I intend to give to you i

A block of land—for instance, say, of 10,000 aorcsia to be opened for settlement; tho roadßlwould be laid out, and the sections surveyed ; the cost of forming and metalling tho main road through the block would bo estimated and added to the cost of clearing and forming the district roads. Tho total amount thus ascertained we will Buppoee is L 6,000; a rate under tho Rating Aot would then bo struck ovor the block to cover that amount, less the present value of, the thirds, as though it were a district raising ft loan under the Government Loans to Local Bodies Act, and the county counoil in whloh the land was situated would be asked to superintend tho execution of thework under regulations approved by the House. _We Bhould propose that in bush districts all roadmaking, except the first clearing of the main roads, should be offered to tho settlers in tho first instanco, so as to give employment to them for tho first year or two, when work is most required near his homo by tho small bush-settler. If this Bystem la carried out, wo think it will give great satisfaction and confidence to intending settlers by insuring the making of the neoosaary roads as they are required—tho money being at call and deponding upon no contingency—and enabling tho small settler to earn a fair amount of canh 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 tho Government Loans to Local Bodies Act, a slight amendment of that useful Act extending its provisions to land about to bo opened for sale boing all that is required, the purpose for which the advances are proposed to be made boing identioal with the purpose for which the Aot was pasaed. . . . Provision will, of courso, have to bo made, as I have just said, to give the purchasers of tho land credit for the present value of tho thirdß, which would, in fact, instead of being doled out as thoy camo in half-yearly, be available as a whole at once, to the great advantage of all cenoerned. One of the measures which we hoped to have been able to bring forward last session, had time not been uselessly consumed, was a measure to give effect to this Bcheme. It has been urged against the scheme that it would be better to go to the London market at once; but I think that experience has shown us that we have been tco hasty to give our beßt Investments to capitalists in London. Many would be glad to have available the investments which are now held by London capitalists, and which will not be available for some thirty or _ forty years. Take, for instance, our own municipal, or even our Harbor Board borrowings, upon which we pay to the London capitalist tho interest which would be largely sought here. It would have paid us better when they were raised to have borrowed for short periods at higher rates. They would now readily be taken up within the colony at tho present time at a much lesa rate of interest. On a £uture occasion I shall have something to say about the conversion of these loans. Let us remember that the tendency of interest is to fall. Another important—probably the most Important—question which we as colonists have to deal with is the question of that of the settlement of the waste lands. I have, on a former occasion dealt very fully with the operations of the Act, which was passed by the Government, with the approval of many of the members of the Opposition most interested In settlement. I will, however, shortly detail tho alterations which have been made in tho land law. Tho first change was that by which instead of leaving the tenure upon which selectors oould take up land to the absolute determination of tho Minister or land boardß, the choice wan left to the individual eettler. I contend that in the state of present public opinion that was a change in the interests of settlement. It has resulted in a greater proportion of land being taken up upon settlement conditions than in any previous time of our history. Instead of the quantity of cash purchases being, as it used to be, much greater—in fact more than double the purchases under settlement clauses —the relations have been altered, and for every acre taken up upon cash about five acres are now taken up on settlement conditions, THE FKOGBESS 01' .SETTLEMENT. As pointed out by the Premier In his manifesto, during the two years and a-half the present Government were in office, up to March last, there were disposed of 1,082,000 acres of land, of which 131,000 only were sold for cash and on settlement conditions, excluding the small grazing runs, 651,000 acres wo disposed of—--300,000 acres in small grazing runs. The average of the holdings of rural lands disposed of on settlement conditions was 210 acres, and the average of the holdings Bold for cash wbb 12S acres. During that time 10,313 acres wero disposed of in village settlements. The second alteration made was one by which deferred-payment selectors and perpetual lease selectors wero i>ut upon the same footing as cash purchasers with regard to the area which they might select. Before we came into office there was no check upon the cash purchaser. He had the right when a block was put up for sale to purchase the whole of it without any let or hindrance. We have altered this by confining him to 040 acres of first-class and 2,000 acres of second-class. I wish you therefore to remember that with regard to all that you have heard as to dummyism on the part of cash purchasers, that it is only by our Act that it was made an offenoeinany person to purchasemore than these limited areas, and considering that it was tho firßt attempt in this direction, and that it has) been in force now for over two yeare, the number of complaints that we have heard of in regard to dummyism is exceedingly small. Some little time ago I quoted to you from a return wbioh I had prepared, which showed that of all the areas purchased since the coming into operation of the Aot of 1887 twenty-five out of every twenty six selections wero still in the hands of the original purchasers. Another change was that a person taking up land on settlement conditions could get his title on completing his improvements. Another alteration we made was to extend the period for payments for deferred payment settlers. Wo reoognise that it was impossible in view of tho price of products, for settlers to pay up their purchase money within six years. We therefore extended the period to fourteen years, giving them, however, the right to pay off larger sums than the annual payment at any time. Another alteration made was that of the ballot system. We recognised that competition in the purchase of land had produced great evils, as it does wherever it is applied without checks. We recognised that settlement was being paralysed in the . country districts owing to the way In which settlers had involved themselves by their having given excessive prices for their land under the hammer. We, therefore, determined that in the future we should only ask for the land its absolute value, and we inaugurated wnsrti is known as tfie ballot eynteni -wlnere more than one applicant applies, -which is simply this: That, when a block is declared open to be disposed of, the whole of the sections are valued and the applicants make their applications on and after a particular day. The Bole applicant for any section is declared the purchaser, but, if there are more applicants on one day than one, it is then balloted for among them. Now, we have heard a good deal as to the ballot, but I wish you to understand that the proportion of sections required to be balloted for is very small. As a general rule the applicants receive the sections for whloh they apply; this being the case in at least nine out of ten applications. Another change was that, in the case of bush and swamp lands, we gave up the necessity for residence. Another change was giving the right to exchange pastoral deferred-payment sections into small grazing runs. These comprehend the changes made in the land laws, and I claim for them that they are a distinct advance upon what obtained in the past. NEEDED IIEFOItMS. I do not hold entirely with the Uwd system as it is at present, as I have been a supporter, and am still, of the perpetual lease system ; but it would be worse than useless for one to say that we must stop settlement until everyone cornea

to an opinion In faVor of suoh a system. Wo must aim to have as many country settlors as possible, and to have the land settled In small areas. ■ I have contended ever almas I nave been in politics that the history of the past has shown that the countries are the best whtah have their holdings in moderately-sizad areas held by persons in comparatively comfortable clroumst&noes. The Government have been blamed because of the defect In the Aot of 1887, by which the declaration required from purchasers for cash is rendered perhaps of less value than it ought to be. Now an attempt was made by the Government to have it altered by a Bill In the session of 1880. When the Selectors' Landß Revaluation Bill was going through the House the question was raised, and the Minister agreed to have a clause inserted which would set at rest any doubts with regard to the validity of the declaration. A elause was prepared by the Minister and inserted) and was sent to the Upper House. Now, kh showing how parties are constituted, I think nothing aan be taken as better Indicating their character than the votes which they give when they are freed from the controlling power of pabiio opinion. You will remember that the late Government appointed to the Legislative Oounoil a large number of nominees, and one would have supposed from tho professions of this party that thoy In the Upper House would have supported a measure which was in the interests of settlement. If you will turn to the last 'Hansard' of ISB9, you will find that the whole of these late Government's nominees who voted on that Bill, voted for the rejection of the clause, and the connequence was that it waa rejected. You will find the same aotion taken by them in respect of the labor and social Bills whioh I introduced. I notice that a speaker the other day asserted that tho Minister acquiesced in the rejection of tho clause, but that ia not correct.

Ho moved for a conference between the two Houses, and it was only when he saw that ho would lose his Bill altogether if he insisted upon this amendment, that he submitted to its rojeotion.

The Government in their policy of Hst session, with a view of further promoting Mettlemont % wished to provide for (first) roads in order to open up Grown lands, and (second) money for the purpose of purchasing Native land l ;, which are lying at the present time wc.ste; and in addition to these, and with the view of helpinc struggling settlers, they proposed in tho case of bush districts, and where drainage is required, that the rent for the first two years, payable by perpetual lease or deferred payment holders, should be postponed and distributed over the rest of the term, thus giving a further advantage to those who were faking np land with moderate means. Wo find, notwithstanding the alterations which wo have rnado, that settlement sometimes flags because there is a difficulty in making known to colonists the nature and extent of Itnd which is open for disposal. Wo have therefore had under consideration a scheme for disseminating knowledge throughout the colony. Much has been done in this way by means of what is called the ' Land Guide.' We know, however, that thero Is no way so effective as that of either employing local agents, or having persons who have a knowledge of tho nature of the country from time to timo visiting various districts. We have in the past paid lecturers in tho Homo country, and there i 3 no reason why tho same moans should not bo used among ourselve*. To see how settlement has advanceJ, I will c.uote a. few figures -which have been already quoted by tho Premier : In 1576, out of cvory hundred of tho male adult population, between one-sixth and one-seventh had agricultural holdings. In 1887 about one-fifth, and in tho present yoar nearly one-fourth. Tables attached to the Financial Statement aha":? :

From the yoar 1881 (inclusive), tho steady growth in number of small flock-owners. It will be seen also that, notwithstanding tho ravages of the rabbits, the large flock-owners—that is, those owniDg over 20,000 sheep—have incroased in number from 130 to 152, or about 10 per cent.; the intermediate owners—those holding between 10,000 and 20,000—have inoroasod from 201 to 239, or nearly 19 per oent. ; while tho amall owners—those holding under 10,000 sheop—bave increased from 6,517 to 10,140, or 55 per cent. . . .

Then, as to the naturo of tho holdings : Year by oy yoar—or, at any rate, period by period—we 6ee a gradual diminution in the average else of the holdings; and the experience of the last year has shown us that fthe perpetual lease tenuro, as we now have it, is the tenure which gives most satisfaction to the public, enabling the settler to reserve the whole of any capital he may have for tho purpose of establishing himself upon his farm, instead of having to pay it away in buying his land. DEALING WITH LARGE ESTATKS. Olosely allied to the question of the settlement of Crown lands is that of holdings by proprietors in large areas, and the questions which have been raised in connaction with them. I need not tell an Oamaru audience of the great evils which arine from tho large estate system. I pointed them out in former years, and in 1835 I showed their evil tendencies while addressing the electors, and in the first speech which I delivered in tho House. I will, therefore, not onter Into that phase of the question at any length. AMKNDMBNT OF THE PROPERTY TAX. One question whloh I see has been raised during the present election in connection with this is that of the Incidence of taxation, more particularly with refereace to the property tax. I have always recognised that while the property tax, being a tax upon a person's wealth, is an equitable one, the property tax, as levied, is In some respects irritating and unjust. It is discouraging to the holder of a small property, becauso it is unjust that he should be assessed nt what might be called the retail rate of land while his neighboring large proprietor has only to pay upon the wholesale value, I think, therefore, that tho property tax should be amended so that the large proprietor, instead of being assessed upon his whole estate, must have his] land assessed in areas of something like the size of small farms adjoining. The Government recognised that there were other Injustices which ought to be remedied, ami in the year 1889 they introduced a Bill to effect alterations. The first of these was to exempt from property tax all machinery not being stock-in-trade. This would have been a great relief to industries which were not payinv, or at all events which were paying only a flight dividend, and to pursuits where frequent Improvements In machinery are made. Then we proposed to exempt invalids who had only a sufficiency to support them. Next we provided for a revaluation of property every year ; and in the case of buildings which were unoccupied (through no fault of the owner) for a period of say six months in any financial year, we provided that on application there would be a remission or abatement of the tax. Another alteration which we proposed was that companies borrowing money at Homo for investment in their own names should be I'able to pay the property tax on such money. We considered it an iniquitous thing that upon moneys borrowed by companies such as the Loan and Mercantile or the National Mortgage Company at Home, there should not be paid either by the company or by the lender the ordinary property tax. I think that if that Bill had been passed, the worst of the hardships which have been oomplained of in reßpect of the property tax would have been done away with. The Opposition, however, refused to accept this as an Instalment towards the relief of taxpayers, and intercepted the Bill by a long debate and showed such opposition to it that It was usoless, in view of their obstructive policy, to further press it. I trnst that a Bill going a little further may bo passed next session. A LAND AND INCOME TAX, It has been proposed to substitute a land tax and an income tax for the property tax. As a means of raising revenue, it has been shown by the Premier in his statement that this would not be a proper substitute. It is estimated that at the outside from a land tax on unimproved valuations without exemption and an income tax, while more costly to raise and more inquisitorial than the property tax, would fall short of our requirements by between 1104,000 and L 141.000. I will quote a passage from the Premier's statement : No one yet who has been charged with tho responsibility of meeting our public engagements has seen his way to say it was possible to obtain as much as it is neoesßary to get from the property tax by means of a land and income tax ; and a Govornmont, of which Sir Robert Stout, Sir J. Vogel, and Mr Ballance were members, although strongly pledged against the property tax, and, as I believe, heartily desirous to repeal It, found themselves unable to propose any satisfactory substitute to the newly elected Parliament, and had to fall baok on this much-abused tax as tho only practicable form of direct taxation. And Sir R Stout, in his late speech at Napier, has felt it his duty to caution the electors against hasty changes in the incideoco 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 great injustice to the countiy settlers. . . . But whether it might not be fair and wise as a matter of public policy to give further exceptions to the farmers is, I think, a proper matter for consideration, and one which I have no doubt the new Parliament will consider. A land tax has been advocated as a means of dealing with the question of public land settlement, viz., th»t of the discouragement of large estates. Now I have at all times been an upholder of the principle that small estates are these conducive to the well-being of the country, but notwithstanding my anxiety by any means possible to promote the cutting up of large estates, I have failed, after careful reading and study of all that has been said to us, to see either the justice or the efficacy of such a tax. In the first place, viewing the matter simply from the point of expediency, I feel quite satisfied that in view of the relations of parties in the country, it is impossible to carry any such measure. Then it would press heavily upon the small settler aB well as the large one. Then, vlewiug it in the light of experience, we hare not found that where any

suoh tax has been in existence it has resulted in giving effect to the objeots contemplated. There Is no donbt In my mind that the large landed proprietor is able to pay any tax whloh the publio conscience would permit to be put upon him. Other means must, therefore. In my opinion, be sought for dealing with this difficulty. I prefer to follow the precedents whioh we have had laid down for us in other countries : Firstly, because we have the benefls of experience; and secondly, because in following such precedents we are not in any way deviating from what may be considered an honest course, inasmuch as it has always been considered that proprietors in these parts hold upon the same equities as the proprietors in the Home Oountry. A USKFOL KXFERIMKNT. Now, the Government attempted to do a little towards the settlement of this question. | In the first session of their office they brought down a vote of LIO.OOO, which they intended to expend upon the experiment In the purchase of lands near towns. They intended that this should be applied on the principle of a Bill introduced into the Imperial Parliament in 1885. Unfortunately, that vote was thrown out by a majority of the House. Had we got our way on that occasion, I am satisfied that much good would have been done. Among the proposals of tho Government for last session was one whioh is reiterated in the address of the Premier : Wo think also that thero are parts ef the colony whore, in the interests of the people, land for settlement in smnll holdings must bo obtained from private owners, as indicated in the Land Act of 1335. This will requiro to be done tentatively and with caution, and by special Act; but a sum of, say, from LIO.OOO to L 20.000 can bo most profitably spent in making so desirable an experiment. If wo 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. In view of what has been done in the Home Country, notwithstanding the ridicule which at one time was cast upon persons who advocated three acres and a cow movement; also in Ireland, and of the experience in other places, there is no doubt that the scheme which has been advocated from time to time of compulsorily purchasing out of large estates areaß for the purpose of closer settlement could be carried out. There is also the question of the rights if OWNEHHHIP 1)Y MOItTOAOEKS 01' LAND. Probably you will remember that in the past I fought against tbe great powers which were given to them. I think that in the future mortgagees should be required to convert their estates within a certain time of their foreclosure, Instead of, as at present, simply holding over with the hope of a rise occasioned by the exertions of others ; and that before a sale U sanctioned through the registrar of Urge blocks, an officer ahould certify that it will not soil in smaller ones. This, you will understand, is my own individual opinion ; but it is one upon which I feel strongly, and which I will do my beat to advocate. Many proposals have been made as to the proper means of carrying out a 03MPUL3ORY SYSTEM 01'' PURCHASE. In the Home Oountry advantage was sought to be taken of the machinery of the local governing bodies. I think that before we can carry on the matter on an extensive scale and very successfully, we shall have to alter our local government system by amalgamating many of our local governing bodies. However, to-night I have not time to enter into that vory vexed question. We cannot wait for a local governing system to give effect to a scheme for purchasing lands for the purposes indicated in the Government's scheme. This can be done either by our present local bocließ or by commissioners appointed by the Government. It would be necessary, of course, to so appoint them and conduct the business as to be free from tho risk of imputation of fraud. Some are frightened from the scheme by what they consider will be its gigantic proportions, but after inquiry I am quite satisfied that it would take a comparatively small sum to carry out the scheme. On a future occasion I shall probably go more fully into the means of carrying out those views. It may be In the recolleotion of some that in addressing an Oamaru audience some years ago I fully expounded a Bill which I had then drafted. I am glad to notice that one matter which I then advocated has been upheld by speakers during the present election —that was, that the right should be recognised of tbe State at the death of a proprietor of any large area of land to determine how it should be disposed of after his death. I am quite satisfied that proprietors will shortly recognise that, unless duo regard is paid to the necessities which exist for breaking up estates for settlement, they themselves will, with others, suffer in the long run. I presume that it will be thought necessary on my part to make some Blhrht reference to the question which has been upheaving society in this and tho neighboring colonies. (To be continued. J