WELLINGTON.

Lyttelton Times, Volume XXVI, Issue 1793, 15 September 1866, Page 2

WELLINGTON.

|feoh a correspondent.]

Tuesday, Sept. 4. The Government has made no sign as yet of having.a financial policy. To-day or tomorrow has been talked of as going to produce the new budget; and now that to-day has come, the budget stands still postponed. Nothing has leaked out concerning the intentions of the Treasurer, who indeed possesses a fine talent for mystery, beyond the facts which I have already mentioned : first, that a regiment of the Queen's soldiers is to be retained, without, as Mr. Stafford asserts, the Government proposing " one penny of additional expenditure" ; secondly, that the proposal incidentally made by private members to spread some of the non-recurring outlay of this year over future years seemed to be looked upon with some favour by the Government and the House. Should these two elements of economy form part of the financial | scheme for the year, I don't see any reason why the Provinces should not get their three-eighths without any additional burden of taxation being laid upon the people. You may-be quite sure at any rate, that neither the Stamp Duty, nor, any other tax, will be carried without opposition of the most vigourous and pertinacious kind.

As to the retention of the regiment of troops, I have spoken of it only in its financial aspect. Beyond all doubt, if a thousand men can be got to garrison a central post in this Island without any cost to the colony, the question of defence is simplified enormously and reduced from an insoluble problem to a commonplace and every-day proceeding. No one can be insensible to the relief which would be afforded by such a change of plans; but at the same time, no one can overlook the extent of the change in a political point of view. People wonder greatly what the old colleagues of Mr. Weld will think it right to advise. Will Major Eichardson, Mr. Fitzherbert, and Mr. Richmond concur in preferring the Queen's troops to Colonial forces, or even in permitting the former to interfere in the task of defending the colony. If we are to judge by old protestations, the Ministers whom I have named would decline the services of Her Majesty's soldiers with thanks, and would esteem it a little hard that the War Office should insist upon vexing New Zealand with the presence of a colonel and so many officers and men. But General Chute has'been and seen and done wonders, since the days of the triumphant self-reliance cry; and I am not sure that the sentiment of those who shouted so loudly a year ago has not evaporated under the conviction that self-reliance is neither fo practicable, so cheap, so effective, nor so free from danger as they once taught themselves to believe. lam sure that they do not grieve over the determination to keep the last of the Eegiments; and I suspect that if exact compliance with the stipulations of the Home Government in leaving the troops cannot be conveniently carried out, they will consent nevertheless to keep the troops and leave the question of compliance to be argued afterwards. It will be easy to throw the responsibility on the Governor, and by a form of words to explain that they do not advise His Excellency definitely one way or the other. But I doubt whether Mr. Weld would have consented that the Queen's troops should be employed by anyone's orders in the defence of the colony while he was Minister; or that the conditions required by the Home Government should be ignored and lef unfulfilled without remark while the services of its soldiers were as quietly accepted. It is the penalty of last year's false enthusiasm that Mr. Stafford's new colleagues should be put in the awkward dilemma of either having recourse a?ain to the Queen's army, or saddling the country with a burden of expense which they now know that it cannot bear. It will be for them to justify themselves, and all outsiders are anxious to know how that will be done. As to private members of the Middle Island, I anticipate that they will not vote against the retention of the troops, and the consequent retrenchment, but they will not urge the adoption of the new policy. If the North thinks it can be well defended by the regular soldiers, it is not for the South by denying the fact to incur the expense of some hundreds of thousands a year. But I know nothing that will tend to cut off the North from the sympathies of the South, and to break the sentimental bond wlHcn has united the Many*, more certainly than this rejection of the policy of self-re liance.

I trust your readers will forgive the dissertation into which I hare just been led in trying to give an account of the present state of political feeling on an important topic. There is, indeed, little else to write about. The Legislative Council has not sat at all, and the House of Representatives hut a few hours, since I last wrote. The one event worth narrating of those few hours—the extra Monday sitting—was the passing of the fearful and wonderful Otago Waste Lands Bill through Committee. Only those who know the extraordinary splitting up of parties and opinions in that favoured province, the importance attached to this particular Bill, and the eagerness and pertinacity with which advocates of each party and opinion support their own side and attack their opponents, can realise the excitement displayed by the Otago members over the clauses as they went slowly through Committee. Substantially the bill has passed as the Provincial Council intended ; and, subject to the vicissitudes of the remaining slaees. it ought accordingly to satisfy the province. The hundreds system is retained; land will be sold at 20s an acre, without tax or condition, but if not sold within seven years may be put up to auction at 10*; outside hundreds and goldfields, runs will be leased, if the present holders like to come in within six months, for a long fixed term at an asssessed rent of 7d on every sheep, and 3s 6d on every head of large cattle. This is a higher rent by far than is paid in Canterbury ; but then the Otago runholders have an actual lease of their lands, without the risk of being bought out, unless the land be declared into hundreds, of which, in the great majority of cases, there is not the smallest probability. • ■ Mr. Stevens, yesterday, asked the Government a question of interest to the mercantile community with reference to the Debtors aud Creditors Act. He wanted to know whether the Inspectors wererightinclaimingthepp.rcentage payments imposed under the last Act upon estates which have been in liquidation for some time and the work which is now all but complete. Mr. Stafford, said in the first place that these fees were not perquisites of the Inspector, as seemed to be generally sup-

posed, but were carried to the account of a Fund over which the Inspector had no power at all. In consequence of applications from Dunedin, the Inspector there had been directed not to insist upon the payment of fees, in cases such as were spoken of by Mr. Stevens until after the close of the present session ; and it was the intention of the Government to bring in a short measure at once to amend the Debtors and Creditors Act, as he had already promised, in this and other minor particulars.

There has been an undercurrent of agitation, throughout the session which I hardly think I have even spoken, relative to an attempt to be made presently by Hawke's Bay to annex the Poverty Bay and East Cape districts of the province of Auckland. It is said now that Mr. M'Lean has secured a large majority of votes in favour of the proposal, and that he will now bring in a hill to give it effect. The application will he based upon certain largely signed petitions from the natives of those districts, praying to be placed under the Government of Hawke's Bay. Auckland is indignant, angry, and I may add frightened. A rumour goes to the effect that all other objects will be sacrificed by the members of that province in order to avert this piece of spoliation. With that view, say the current report, the Government has been waited upon, and a declaration made that if the whole weight and authority of the Ministry is thrown Yigonrously into the scale to oppose Mr. M'Lean in this matter, Ministers may depend on the Auckland votes through thick and thin on every other question. But if not, then—. The blank needs no filling up. Now it is said that Mr. Stafford has always objected to the annexation, and would oppose it on principle ; but that several of his present colleagues, while still private members, had been won over to promise their support to the Hawke's Bay project. Will they alter their minds willingly? or can the Premier coerce them ? or will the Government disregard the threat of Auckland, and vote, some one way, some another, on this question. A bill for imposing a duty on Bonded Warehouses, which has long been before the Legislature, has, to-day, been read a second

time in the Lower House. There was a debate and a good deal of opposition expressed in words, but the antagonism was not pressed to a [division. Those interested, will, perhaps find it news to be informed that the proposed duty is on stores containing— Under 200 tons £25 per annum. 200 tons and under 500 ... £SO „ ~ 500 „ „ 1000 ... £75 „ „ 1000 „ and upwards ... £IOO „ „ Mr. George Armstrong, member for Akaroa, has to-day been compelled to take his trial on a charge of" wilful and corrupt perjury," arising out of the evidence given by him on the trial of his action against Mr. Watson for false imprisonment, which was heard in this town in June last. He had denied using abusive language towards Captain Greaves when on the bench at Akaroa, which language it was alleged that he did use. The preliminary investigation took place in Christchurch and your readers will therefore be familiar with the facts. Mr. Armstrong has been acquitted, the jury finding that there had been no wilful perjury. The Judge summed up most ably and temperately, but with an evident expression of opinion in favour of the accused. He said that, considering the lapse of time since the occurrence, the excitement which then prevailed on both sides, and a certain amount of animus which clearly existed on the other side the jury could hardly bring in an affirmative verdict on this count. At the same time the evidence in question was held to have been material to the issue.

Wednesday, Sept. 5,

The Star of the Evening, which goes down with cattle, and takes an occasional mail, has been delayed till to-day.

Yesterday, I wrote as if the Otago Waste Lands Bill had passed through committee on Monday; hut this was an error, for the Bill was recommitted last evening, and occupied several hours in discussion on a very interesting point. The ingenious Mr. Vogel proposed two new clauses by which the Canterbury principle of free selection for purchase over the whole country might bo introduced into Otago. After the next general election, the Provincial Council might address the Governor requesting him to throw open all the pastoral lands to purchase outside of the goldfields. The Governor was then to have power to give effect to the request, and deprived of the power to proclaim any more hundreds. The proposal elicited from many members, including Mr. Whitaker, warm pauegyrics on the Canterbury system; and had it not been for two causes, or perhaps I may say three, the suggestions of Mr. Vogel might have been carried into effect. The first obstacle was a difference of opinion about the price at which the land should be open for selection. The runholders agreed to the principle, but asked for 30s an acre to be named as the price. Some of the other members wished 20s, which had been adopted already, to be adopted throughout. The former carried their point, and the latter then voted against the clause altogether. A second obstacle to success was that the charge would necessarily keep the

land question in Otago open so much longer, when it was exceedingly desirable that it should be settled after so many changes and so much vexation. And what I conceive helped in a third degree to hinder success was the fact that Mr. Vogel was the proposer. A large number of high-minded and intellectual members deemed it their duty always to vote with their friends, and against those they do not like, and Mr. Vogel has the misfortune to be in the latter category. The clauses were rejected. After Otngo came estimates. The " Miscellaneous" items were gone through, among which two or three are interesting. In the first place, Dr. Ilochstetter's book on New Zealand is to have a grant at last of £525, in order that it may be translated. The Government say that the amount is granted by way of purchase of 500 copies, of which perhaps fifty will be circulated to libraries: and the remainder will be open for sale at a guinea. Looked at in this light the grant is most judicious: for, apart from the satisfaction of having so valuable a work within the reach of ordinary readers, it must not be forgotten that Dr. Ilochstetter's book has been a capital advertisement for New Zealand, among persons and in places where no other information about the colony might ever circulate.

The new Postmaster General on coming into office found himself in charge of the new Submarine Telegraph : and I much fear that his generally acute and practical mind has been a little upset by the new sensation. A small boy who hasjobtained a new mechanical

toy first works it excessively and then begins to pull it to pieces. Mr. Hall has not come to the destructive stage yet; he is in the full glow of the novel delight. Last evening he came down radiant to the House, and showed members how quickly messages could be sent through and replies received from all stations in the colony. His particular pride was that his telegraph could carry messages to the Bluff quite as qnickly as to Nelson or Christchurch, as if that were a new feature of electricity never before developed. I enclose the messages sent to and replies received from the various stations, with the time of commencement and ending of each. Mr. Fitzherbert is positively to make his financial statement to-night.

Thursday, Sept. 6. The steamer which was to have taken this letter to Lyttelton two days ago, has not yet started. Some of what is above written has

therefore become stale news; and even that which I have now to write about—the budget speech of Mr. Fitzherbert—has been anticipated by the telegraph. Yesterday evening the Colonial Treasurer redeemed his promise of laying before the representatives of the people, his financial proposals for the coming year. I enclose a report which appears in the Independent, and which is said to have been supplied from head quarters. But it is said also that one or two material points have been strangely omitted in the written statement though distinctly mentioned in that which was spoken. I have not had time to compare the report carefully ; but I think all the important portions may he condensed into a space and shape more easily comprehensible by your readers than the statement in full. Mr. Fitzherbert accepts Mr, Jollie's facts and figures, and his estimates generally, except in such points as are specially mentioned. He proposes one reduction only in

the expenditure, namely under the head of Defence, from £107,000 to £70,000, or a decrease of £37,000. This is done in pursuance of the new plan of keeping one Queen's regiment in the colony; and the new force is not to be a "rudimentary army," but a constabulary force. Notwithstanding these changes, he protests in warm language that the Government do not abandon the principle of self-reliance; and Mr. Stafford cries" hear, hear." A few trifling reductions on the original estimates being made in committee, Mr. Fitzherbert finds that the real current expenditure of the General Government for this year will be £738,808 ; to which he adds three-eighths of the estimated Customs, or £318,750, to be secured by appropriation to the provinces The total out-going is therefore £1,057,558. He has removed from the year's estimates, in making this calculation, all the items (military

settlers, telegraphs, &c.,) which are of a permanent and not annual character. To balance ,the expenditure he expects a revenue of £1,058,500 to be thus made up:Customs , £850,000 Other ordinary revenue... 146,500 Additional postal taxation 7,000 Stamp duties 50,000 Bonded warehouses 4,500 Distillation duties 1,000 £1,058,500 The first two items are the same as estimated by Mr. Jollie. The third is to be the result of an assault on newspapers and letter writers. The fourth speaks for itself. And the last two are' slightly reduced trom the figures assumed by the former Treasurer.

Mr. Fitzherbert distinctly states that no increase of taxation is intended in the new tariff. The gross amount willremain the same, but the duties will be otherwise adjustel and all the items will be specified. As to the items taken off the year's estimates and to be charged as works of a permanent character. Mr. Fitzherbert proposes to charge : Military settlers ... £207,000 Do final settlement... 50,000 Telegraph extension 38,000 Expenses of moving 1 seat of Government J ll ' m

£306,500 —upon the remainder of the loan.whichis only £170,000, but which will be supplemented by Treasury bills for £150,000, to be paid off out of revenue over a period of four or five years, thus distributing the burden without incurring a fresh loan. The second item in the above list is new ; the House had been told before that £207,000 would meet all charges: but this it seems is not to be so. The telegraph item includes the remaining cost of the Submarine Cable, and the extension of a land line to Napier and Auckland in this year and next. And the last item consists of Treasury bills, issued at the time, and now becoming due.

It is noticeable that the £170,000, called the balance of the Three Million Loan, includes the £IOO,OOO paid away to Auckland, and which will not be an asset of the colony till in some shape or other the money is repaid. But the Treasurer makes no comment on this fact, being satisfied simply to state it. Bills are to be brought in to authorise the operation proposed. No alteration will be made in the Surplus Revenue Act this session. But a beginning will be made, by giving the provinces, not just so much or so little revenue as may be to spare, but the fixed sum of £318,750 for the current year, neither more nor less. There is an impression abroad in the House that the Government really anticipate a larger Customs revenue, even if they do not increase the tariff; and that they mean to enjoy nil the advantages of such a state of things, instead of leaving that pleasure to the provinces. Last year the provinces got in all £288,991.

Finally, the Government will not propose any dealing with Provincial Loans hy way of consolidation this year, though they recognise such a proceeding as possible, desirable, and profitable. But with respect to the colonial loans a bill is to be brought down for their ' conversion,' the meaning of which term ii not quite clear. And then the Treasurer concludes with an earnest recommendation to mercy of Ids New Taxation bis 5: tamp Duties,

Mr. Moorhouse followed in a powerful and warmly applauded speech, denouncing the Stamp Duties, and protesting against a policy which claimed everything for the General Government and refused to consider the provinces except on the terms that they should place an injurious tax on themselves to find the money which they might require. The speech was a long one and I am quite unable to do justice to its arguments, but I can say that it had a wonderful effect on the House; and there is far more probability now of the Stamp Duties being thrown out than there waa this time yesterd»y.

Saturday, Sept. 8. Since the Treasurer's statement on Wednesday evening matters political have remained, to all outward appearance, in statu quo. Thursday was devoted entirely to current business; and on Friday, when two o'clock came, there was not a quorum of members present, and the House was counted out. But underneath the surface the current runs strong; and perhaps I can give you no better indication of its strength and direction than by reporting a little incident which happened at the "count out." Major Richardson was in his place on the G wernment benches, and Mr. Cracroft Wilson occupied his own usual seat not far away. When the fact of there being no House was made apparent, the latter gentleman rose in indignation. He declared that the Government had done this thing, had kept members away in order to postpone the consideration of the stamp duty question. They had, he alleged, bought over two provinces; but these were not enough, and they wanted time to buy another. Now you must understand that Mr. Cracroft Wilson is a firm opponent of stamp duties, as a pestilent injury to the people; and last year he merely consented that the injury should be done in order to oblige Mr. Weld. He will not abate his public spirit or his personal independence for any other man or Government; and the proposal which he supported last year he resists when repeated this year, with all his strength. As to the buying of provinces, I assume that Wellington is one of them, and that the purchase has been of some general kind, for no particular transaction is rumoured about. The other must be Auckland, concerning whose members a rumour has been going about—darkly hinted at in a fermer letter of mine—that, if the Government will secure them against spoliation by Hawke's Bay they will vote for Government with the utmost faithfulness en every question thereafter, Mr. Wilson's reproaches were too much for the gallant member of the Ministry who sat opposite. Major Richardson rose in wrath, protested against everything in general and all things in particular and denounced the imputations of his distinguished friend as unjust, ungenerous and unwarrantable. I never knew a Government so captious, or protest so much against any charge which was not to some extent true; and therefore I am afraid I must say that the " count-out " was not entirely unexpected by them. Of this at least I am sure that the Opposition had nothing to

do with it, for their interest was to bring on the discussion without delay. The little narrative will serve to show how far the disaffection from the Weld policy of selftaxation, as a part of belf-reliance, has spread; and I do not hesitate to say that not only Mr. Cracroft Wilson, but three-fourths of those who voted with him last year, will now vote against stamps if the Government do not make it a Ministerial question, Doubtless they will go out on a defeat if the counter resolution be directed to the abstract propriety of the proposed tax; but if it be put merely as a question between the tax and a grant of so much less money to the provinces, the Government will probably not consider their own policy interfered with, and will leave the provinces to settle the account in the way which best suits them, There can he' no doubt that the Northern provinces will suffer if they do not get their full expected share of the revenue; and they will submit to be taxed for the purpose. But there is as little doubt that the Southern provinces can do with a little less Customs revenue, and would be much injured by the imposition of the tax. The South, heing in a majority, has the alternative before it of either injuring itself for the sake of the North, or tyrannising over the North for the sake of the South. In other words, the same rule cannot be applied to the advantage of both, which is a tolerably well marked sign that the days of financial separation are ap-

preaching near. Mr. Alfred Cox has presented a petition signed by 200 electors of Timaru and Gladstone praying that their district may be constituted a county with certain privileges independent of the province of Canterbury. Mr. Cox has had this petition with him from the beginning of the session and only now produced it, in order to give weight to the consideration of a huge Bill called the 'District Boards" Bill. This measure contains no less than 31G clause?, and its effect is to provide a ponderous machinery for dividing, any province into districts, and furnishing them with certain ponderous forms of procedure, The Bill has been introduced by Mr. Vogel, who attempted to get a second reading on Thursday night. But the House was so unmistakeably bewildered by the mere size of the mass of print pushed down before it that the mover almost apologised for his boldness, and consentei to name a long day for resuming the question. The Goldfields Consolidation Bill with

upwards of a hundred clauses passed through committee on Thursday. It was this which took up the chief part of the day and evening and prevented the financial discussion, for which the House is rather impatient, from coming on. When the Bill seemed at an end, two or three more hours were consumed by the active and ingenious but somewhat wrong-headed Mr. Vogel, who quite unexpectedly proposed a new clause which nobody understood but which everybody believed on that very account must be excessively mischievous. The discussion was prolonged and the clause was withdrawn, and the time and the labour consumed went for nothing. The bill for exempting Volunteers from «erving on juries has passed through every danger in the Lower House to a third readI ing. But the exemption is restricted so as not to apply to coroners' juries or grand

juries. Ido not know how it may fare in the Legislative Council.

Mr. Whitaker closed the business on Thursday evening by raising a subject quite new to the House. He wishes to bring in a bill '• to declare the power of the Supreme Court to enforce and give effect to decisions of tribunals established by religious bodies," It is said that the bill originated with the Bishop and Synod of Auckland. I don't think it has any chance of passing. A 9 soon as copies are printed I will send down one for your information and that of the religious authorities and others interested in the matter in Canterbury.

As I have already told you, Friday was a dies non. The House will meet again on Monday, when some fun may be expected, whichever way the voting may go.

The Rakaia, this month's boat for Panama, has come down from Sydney in five days and Ave hours—a capital passage. She is in beautiful order and trim, and will carry a full

average number of passengers. Captain Yine Hall, who has been General Manager of the Company in these seas for five years, goes home by this opportunity, to take up in England another branch of the same service.

The following is the text of an amendment which was placed on the Supplementary Order Paper of the House of Representatives for Monday, the 10th day of September, 1866 :-

Mr. Crosbie Ward to move in Committee of Ways and Means, by way of amendment—1. That, regard heing had to the existing burdens on the people of this colony, it is not advisable to impose any additional taxation which can be avoided. 2. That, in the opinion of this committee, the present financial condition of the colony does not warrant a resort to extraordinary taxation in order to provide for the necessary expenditure of the General and Provincial Governments. 3. That, in the opinion of this committee, direct taxation in any form must operate more or less injuriously on the future of the cobny, and under no circumstances ought to be adopted, except for the purpose of relieving undue pressure from existing methods of collecting revenue. 4. That, accordingly, until such a revised tariff of Customs Duties as the Legislature may in this session think fit to adopt shall have been for a sufficient period in operation, it is inexpedient to make good the supply to Her Majesty by means of Stamp Duties.