The Lyttelton Times. SATURDAY, FEB. 10, 1877.

Lyttelton Times, Volume XLVII, Issue 4986, 10 February 1877, Page 2

The Lyttelton Times. SATURDAY, FEB. 10, 1877.

The Statement, published in the New Zealand Gazette of Feb. 1, of the Receipts and Expenditure of the Public A ccount for the quarter ended Dec. 30, 1876, enables us, »y its aid, and that of the similar Statement for the preceding quarter, to ascertain the amounts received respectively from the Consolidated Revenue and from the Land Fund for the first half of the current financial year, and thereby to apply an approximate test to the Estimated Ways and Means of the Colonial Treasurer from both sources. The fair mode of applying this test will be, with respect to the Consolidated Revenue, to double the actual receipts for the first half-year, and, with respect to the Land Fund, the new disposal of which commences on Jan, 1, to compare the actual receipts therefrom during the six months ended Dec. 30 with the estimate by the Colonial Treasurer of receipts during the six months ending June 30. The official return does not include Dec. 31, but in whichever halfyear the receipts for that day are ultimately comprised the result will not be appreciably affected. Before we make these comparisons, we may observe that, probably from some technical difference in keeping the Customs and the Treasury accounts, the Customs’ receipts shown for one quarter by the Secretary for Customs differ from the amount shown for the same quarter by the Treasury. This discrepancy is, of course, only a matter of account, and will not practically affect comparisons founded on the receipts for a half-year ; but we mention the circumstance because, in our recent article on the Customs Revenue for the last quarter, we referred to the fact that the Customs’ returns, showed a decrease during that quarter in comparison with the preceding quarter, while in the Treasury returns since published an increase is shown. As we have stated on former occasions, conclusions based on statistics for small isolated periods, such as one quarter, are, for the purpose of comparison, the one with the other, of no material value, but, as wo wish our criticism to bo quite fair, wo think it only right to make this explanation. We now proceed to apply the test to which we have referred, and the following return, omitting shillings and ponce, furnishes it with respect to the Consolidated Revenue :

comparative return is, we are observe, better than that shown in too calculation which, in our issue of Nov. 11 last, we made on the receipts during the first quarter of this financial year, for then, on that basis, wo estimated the probable deficiency for the whole year ae £156,956, while, on the basis of a half-year’s receipts, the probable deficiency is now shown as £117,076. So fur, then, the second quarter has redressed the unfavourable balance shown by the first, but that is, wo apprehend, to a great extent, if not altogether, attributable to the fact, explained by the Colonial Treasurer last session, that, from the mode of keeping the accounts, the first quarter after the close of the financial year, comprises a shorter period of receipt of revenue than succeeding quarters. We are afraid that, on the aggregate of the first half-year, no such redress will bo shown during the succeeding half-year, but that the result will to some extent, be in an opposite direction. The deficiency now shown on the basis of the half-year’s receipts may be taken, unless some extraordinary good fortune should take place within the next three or four months, as a fair approximation to the actual deficiency at the end of Juno next, and it certainly says little for the Colonial Treasurer’s foresight, and, what is of infinitely more importance, says much for the rapid approach of financial disaster. In an aggregate of £1,649,000, Major Atkinson is short in his estimate by £117,000, or by a little more than seven per cent. We have omitted railways from our comparison because receipts from Provincial railways are not included in the official statement for the last quarter, and Major Atkinson in his estimate lumps together receipts from Colonial railways for the year and from Provincial railways for the latter half of it. But we can derive no comfort from the estimate under that head. The actual receipts from Colonial railways during the six months ended December 30, 1876, are £40,307. If we add to that amount £60,000, the probable amount, allowance being made for extended lengths, derived from those railways, thesum will be £100,307. The Public Works Minister last session in his Public Works Statement estimated the revenue from the Canterbury and Otago lines, which were Provincial railways, for the current financial year, at £313,600. The half of that estimate, the probable amount for the latter half of that year, is £156,800. If we add this last sum to £100,307, the sum we estimate from what are contra-distin-guished as Colonial railways, the total will be £257,107. But Major Atkinson’s estimate for both sources is £345,000, or in excess by £87,893. Even allowing a liberal margin of £50,000 in favour of his estimate, his over-estimate will be £30,893. Including, therefore, this last sum his aggregate deficiency at the end of the present financial year under all the heads which we have named, or, in other words, of his estimate of Consolidated Revenue, would amount to £147,969. In a former article on the statement of receipts and expenditure for the September quarter, we noticed that the Consolidated Fund had received .0160,000 iilj a 11 teaipUlaijr adrauvo “ from Public Works Account, under “ section 14, ‘ Public Revenues Act, “ 1875,’” and we remarked that this sum was required by law to be repaid within three months from the date of its advance, and that, probably in the statement for the following quarter, we should find that it was repaid and reborrowed. Thanks to the legislation of last session, the Government have improved on this conjecture. In the statement for the December quarter we find the repayment of this advance, and a “ temporary advance from Public “ Works Account, under section 4 of ‘ The Public Revenues Act, 1876,’ ” of £300,000, This is a new way to pay old debts. The idea of borrowing from a friend a pound to pay him a debt of ten shillings out-Yogels Vogel. A double portion of his spirit has fallen upon his successor. It reminds us of a story which we always until now regarded as mythical. Tom asks Dick to lend him half a sovereign. Dick declines, as he has only five shillings. “ Oh! then,” retorts the ready Tom, “ lend me that, and yon will owe me “ five.” We are now convinced that that story is true. We are sorry to think that this ingenious mode of raising the wind and satisfying morality at the same time cannot be repeated next quarter, but the Act under which this feat of finance was performed unfortunately limits “ the total amount of all “ sums so borrowed and so advanced, at “ any time outstanding and unpaid,” to £300,000, a limit now reached. And, as we read the Act, it still keeps in force the provision requiring repayment within three months ; but that obligation can be easily evaded by paying the sum due one day, and borrowing it again the next. We feel, however, that such an easy stroke would bo quite clumsy and commonplace by the side of the skilful “ pocketing off ” the Public Works Account which has been exhibited. We also notice in the Treasury statement, “ Advances to Provincial Districts “ in aid of revenue, under section 10 of “‘The Appropriation Act, 1876,”' to the amount of £102,050. That section authorises advances for this purpose in the Provinces of Auckland, Wellington, and Westland, amt untiug altogether to £IIO,OOO. Nothing is said about repayment, and, except for euphemism, these “ advances ” might as well be called gifts from the Colony to the Provinces named Wo must postpone to another day our consideration of the state of the Land Fund Account.

m o oC-2'K Estimated by aS e; yto C] oi} VK ■S'oS *•“ •*£ o To <a . ■d o« gfi h £ Major Atkiuaou tor 1870-7. g 0 01 Q l w w e £ £ £ Customs 1,210,000 1,185,112 54,883 Stumps Postal 115,000 106,822 8,378 98,000 86,468 9,532 Telegraphic 07,000 64,461 2,536 Judicial Registration and 38,000 38,522 6,000 522 other (oca 47.C00 41*000 Incidental ... 48.000 0,738 36,264 Deficiency Deduct excess... 117,593 522 522 Total defloenoy... 117,076 The probable result shown by this