THE Grey River Argus. THURSDAY, SEPTEMBER 10, 1868.

Grey River Argus, Volume VI, Issue 415, 10 September 1868, Page 2

THE Grey River Argus. THURSDAY, SEPTEMBER 10, 1868.

Tiie option \\'e have so, frequently expressed that the present session of Parliament would seal the doom of the Provincial system of Government^ is amply borne oiit by a. carpful study of the financial statement for the year which was made tp, the Hous.e of Re t prosentatives by the Hon. J. Hall, in the absence of the Treasurer, Mr. Fitzherbert, last week, and a suminaty of which, we gave in our last. It is there put plainly and openly that, in the opinion o.f the present Government, the time has come when the partnership hitherto existing between the Colonial or Provincial Governments should cease, so far as participation in the Consolidated Revenue pf the Colony is concerned ; or, in other words, that the Provincial Governments should submit to be quietly extinguished, by permitting the largest portion of their revenues tp be taken from them, and subsist solely upon their laud -funds and local taxation, receiving for the support of their gaols and police establishments, from the General Government, a capita tion rate of seveu shillings per hea(", according to population. This is the boldest move which the Government has yet made — one which will not be mistaken by believers in the Provincial system, for they have been told plainly and emphatically by the Acting-Trea-surer that upon the main question which his propositions embodied — the the termination of the partnership account between the Provinces and the Colony — the Government were prepared to stand or fall. The gauntlet thus defiantly thrown down, has been taken up by Mr. Fox, the leader of the Opposition, who has given notice of his intention to move thereon a vote of want of confidence in the present Ministry. This will bring ths matter to a fair issue, and the country will watch with much interest the course of the decisive struggle which is now about to ensue between the upholders of Centralism and Provincialism. The causes which have led to these financial propositions being made, and the independent position thus taken up by the Government, are worthy of some consideration. That commercial depression existed throughout the Colony during the past year, in common with the other colonies and the mother country, was weil known ; but it was never anticipated that it could affect our Customs revenue to the amount it has done.

Last year's estimate of revenue has not been realised by a sum of £103,293, and this falling off has been divided between the Customs duties, stamps, bonded stores, and miscellaneous. This is a very serious deficiency, which was. met by retrenchment in the departments and the issue of treasury bills to the amount of £25,00Q, which can be redeemed out of an actual balance remaining to the crpdit of the Consolidated Fund at the end of the financial period, which will now be available for the public reveuue. For the current year, the revenue is estimated at £1,000,500, and the expenditure at c£7o4 5 6-±T, shpwing a large saying if these figure? can be realised. This saying \s tq be effected in th.c postal service, caused in a great measure by the smaller contribution which, owing tp the establishment of the Panama Mail Service, is now made by New Zealand to the cost of that by way of Sydney, causing a saving pf nearly £20,000 a-year ; and in the Law and Justice and Native and Defence Departments, all of which have been considerably cut clown. Several inland mail services h*l ve been dispensed with, the total saving on the postal services alone amounting to £42,178. It is also expected that an attetn.pt will be made to put off entirely th.fi small capitation allowancp no\y given to the Volunteer Qprns. thyQijgho.u.t the Colony, which amp.unts iv a\) to £G216 £s.; and cprre&r I ponding redactions in other directions. In prder tq effect these reductions and efficiently tp carry on the business of the country, the Government have j stated their fundamental principle to be the ceasing pf the Provinces to participate in the Consolidated Fuud ; because, giving as it does the Provincial Governments a pecuniary interest in maintaining a heavy rate of taxation, there is otherwise no possibility of reducing it. Although the Government held out no |inpe of immediate relief from the heavy taxation under which the Colony is now labouring, they recommend as a last resource, keeping in view this uultimate object, that, on j the Ist January iiex*, " this partnership account should be finally closed," that the Central Government should pay all interest and sinking funds on Provincial loans, and that the funds which may ! hereafter be issued from the Colonial j Treasury for Provincial Administration should be voted annually for specific services by the Central Legislature, the! only remaining source of revenue to the Provinces or Counties being the land fund and local taxation. But in order to bring this arrangement about equitably, and to place all the Provinces on a fair footing — the indebtedness of all not being equal — Southland is to pay from her land fund £55,117, while Nelson will receive out of the .Consolidated Fund a lump sum of £90,000, and Wellington £15,000. Supposing the scheme to be carried out in its entirety, and in the spirit of equity in which its promoters put it forth for the acceptance of the Colony, it ought to go much further, and adjust the accounts of every portion of the Colony with the General Government with as much nicety as those we have mentioned. But this has not been done. Take, for example, the case of Westland. The new arrangement would make an annual loss in its revenue of £2213 7s. 10d., as shown by Mr. Hall's own figures, and for this there is no consideration given. We cannot anticipate for such a proposition anything but the stem opposition of the Westland members, unless it is modified so as to meet the requirements of every case alike, and a readjustment of all debts similar to that granted to Wellington and Nelson be entertained. Equal-handed justice ought to be meted out to all in such an important matter as this, and we can see no reason why the just claims of every portion of the. country should not be as seriously considered as those of the favored Provinces.