The Lyttelton Times. FRIDAY, SEPTEMBER 7, 1866.

Lyttelton Times, Volume XXVI, Issue 1786, 7 September 1866, Page 2

The Lyttelton Times. FRIDAY, SEPTEMBER 7, 1866.

An early advantage has been obtained from the completion of the cable across Cook Straits, in the receipt of the somewhat lengthened telegram which we published yesterday, containing the substance of Mr.Fitzherbert's financial statement. That statement will be read with some surprise. It certainly helps to preserve New Zealand from the charge now so often made against new colonies, of changing their Governments too frequently; for it shows that a great change of the personnel may be effected with little or no change of measures, Mr. Pitzherbert's budget is a confessed repetition of Mr. Jollie's in all save a very few details. The new Treasurer expects rather less revenue from the charge on bonded warehouses, and Jess from the distillation duties; and he makes up,the difference by an increase of the Postoffice charges. He insists upon the Stamp duties, and values them at the same ainouut, £50,000 a-year. He brings both the ordinary revenue and the ordinary expenditure to within a few hundreds of one million and fiftyeiuht thousand pounds. But in the ordinary expenditure he includes the three-eighths of. Customs.: duties apportioned to the provinces; and he charges against the balance of the Three 'Million Loan, the cost of the military settlers, telegraph, &c.

Perhaps the alterations he has effected will be best laid before our readers, by a slight transposition of some of the items, and a reference to our own criticisms upon Mr. Jollie's budget, of date 17th and 18th ult.

On these occasions we drew attention to the fact that the total estimated expenditure on account of native affairs, amounted to £339,176, which was almost exactly equal to three-eighths of the estimated increased taxation. Mr. Fitzherbert reduces the expenditure upon native affairs by the odd thirtynine thousand pounds, and charges it against the balance of the three million loan. He is thus enabled to pay to the provinces their three-eighths of Customs duties, amounting to £318,750. Another point in Mr. Jollie's financial statement which formerly claimed our notice was that he made no reference to the balance of the loan, amounting to £179,000. This, as we have seen, is ivhatMr.Etzherbert looks to for meeting a portion of the native expenditure ; while he asks the House to authorise him to issue Exchequer Bills, redeemable within the next three years, to meet the deficiency. The precise amount he asks for is £150,000, or about £14,000 in excess of his actual requirements. This, however, he civilly offers to place to the credit of the ordinary revenue, in case any sudden depression of the goldfields' prosperity might seriously reduce the Customs. It is possible that, like those members of Assembly whose advice he has followed in proposing to issue these Exchequer Bills, he anticipates a sufficient increase of Customs revenue to meet the difference between the balance of the loan and the native expenditure. So much are we ourselves impressed with this idea, that we would faia see his power to issue these bills limited to his actual necessities. Somehow or other a little suspicion lurks in our mind as to the repayment of the hundred thousand pounds lent to Auckland, and promised by Mr. Jollie to be in some way refunded about the end of this year. Mr. Jollie's successor, by the arrangements he has made, will probably have ample means for accommodating Auckland with an extension of time, and it is just possible that next year he would be prepared to repeat Mr. Jollie's information that the money had been lent and spent, and would, be refunded sometime and somehow.

Our telegram does not go sufficiently into detail to inform us what is the decision of the Government about the expenses of the British regiment and the Taupo barracks. It is certainly a little unfortunate for that scheme of virtual invasion that the price at which we are offered the regiment is exactly the amount of the obnoxious Stamp Duties. There is a combination of simplicity and completeness in the policy which would say Send back the regiment which costs us fifty thousand pounds, and cut off the Stamp Duties, which it is no longer necessary to impose,—that must have powerful attractions to the Weldifces, if such there be, and to all the members of the Middle Island, who are not compromised by their connection with the Government or by secret pledges. We shall look with interest to the proceedings of the Assembly to see how far these two objectionable measures, the retention of the soldiers and the imposition of the tax, stand or fall together. . There is yet another matter in connection with the Budget which is worthy of serious consideration by those who advocate the interests of the provinces. It is the question for the first time brought into view by the imposition of direct taxes, whether the provinces are to be held entitled to three-eighths of them or not. We hold they ought to have their share of the direct, as well as of the indirect taxation. The principle has never yet been divided, for it has never before been brought out. Postal duties, telegraph duties, and such like, are not really of the nature of taxes, for no sane Government would ever propose to make them sources of revenue beyond meetting their own expenses, and, perhaps, refunding original outlay. But now, when direct taies are to be imposed for the sake of revenue, we hope to see the principle insisted on, that the provinces shall have a proportional benefit from them for behoof of their local expenditure. Above all things, the decided tendencies of the present Government towards ultra-centraliza-tion call for some such practical check as the adoption of this principle by the Assembly would most effectually give,