FORECAST OF THE FINANCIAL STATEMENT.

Evening Star, Issue 9771, 30 July 1895, Page 2

FORECAST OF THE FINANCIAL STATEMENT.

TO THZ EDITOR. Sib,—Mr Sneak, who lately married the caretaker’s widow at the Government Build* logs, and who now holds a subordinate posi> tlon in the Audit Department, writes me that he has been able, through his wife (who dis* covered the document whilst cleaning out the offices on Saturday afternoon), to obtain a look at the rongh draft of tbe Financial Statement, and sends me a few hurried notes—for obvious reasons, not along the wires.—l am, etc., PEKPINO Tom. Dunedin, July 30.

The Treasurer will refer to the statement of the Premier in the Governor’s Speech that this time the Honse shall have a Financial Statement that will stand any honest criticism, and will defy all hia cowardly assailants. He will point out that it is absurd to think tbat-this colony can raise four millions a year to provide current - expenses and interest on loans; that no Treasurer ever did more than pretend to do it; that so tor he has been weak enough to follow in their footsteps, but that now he will throw off the mask and will openly declare that the colony ia bankrupt; that the only way our obligations for interest on loans and general administration can be met is by continuous borrowing. He will admit candidly that is what has been done, and that is what has got to be done unless the expedient ho proposes to lay before the House be adopted. He will run shortly through the state of affairs since last October, when the Land Tax was prematurely collected, as at that time the cashbox was empty, and it is thus a good point to start from. Up to that time for some time past tbe colony had been kept from open insolvency by using all the trust funds of the colony as fast as they came in. By using the savings of the people as they came into the Post Office Savings Bank and other similar departments a sum of three millions iiad been used to stop various leaks in general revenue ; but these once Government had to look abroad for funds to carry on. As a stop.gap the Lan 1 Tax this collected four months before it was due. That gave £OOO,OOO, which just paid the interest duo in London in October. Fortunately for the Government, at that time a crisis took place in the affairs of the Bank of Jtew Zealand, which occasion the Government seized with masterly promptitude to raise two millions, of which tluy gave the bank one and kept one for themselves. They then called on the bank to raise half a million of capital, all of which they kept to repay themselves the million they had knt the bank. They thus got & million and a-half out of the bank’s difficulties. They then raised a million and a-half in London, making three millions they got hold of by these means. They only intend to dribble enough out to the settlers out of the million and a-half raided in London, to keep thejh sweet; fully three fourths must go to keep the pot boiling. And this is just the point at which we have arrived. We have enough left out of these moneys thus raised to pay the interest in October, hut no more. How, then, are we to carry on for another year ? Let the House look the matter for once square in the face. Borrow or bust—is that the alternative - ; We cannot expect, although we may hope, for another bank crisis to arrive in the nick of time. As in Newfoundland and Victoria, all trust funds are spent. What then ? We nail our colors to the mast; we follow the example of the noble Argentine Republic. We declare a moratorium, a postponement of payment of all debts, public and private, for twelve months, and are prepared logo to the country on it.