FIRST EDITION. The Ensign. GORE: THURSDAY, AUGUST 1, 1895 THE FINANCIAL STATEMENT

Mataura Ensign, Issue 14, 1 August 1895, Page 2

FIRST EDITION. The Ensign. GORE : THURSDAY, AUGUST 1, 1895 THE FINANCIAL STATEMENT

The opportunity does not yet permit of an exhaustive criticism of the Budget pnt forward by the Colonial Treasurer on Tuesday evening, but even a first perusal ol thst unusually voluminous deliverance reveals to the initiated in suoh productions and in tbe ways of Governments generally, that the financial end of this Government is looming nearer. AU sources of revenue show a serious falling off, and if it were not for the windfall of nearly LBOO.OOO of accumulated sinking funds set free by conversion operations, the sorow of taxation would have to be given a further turn than the paltry LII.OOO it is proposed to ezaot by means of the Custom.*. The financial methods of the Government are well illustrated by tbe position of the New Zealand Cod soli acconnt. Tbere has been a turn of L 158,025 lent to the Govercmrnt on Colonial U.nsols, be. ring interest at 4 per cent. Of tbis sum, L 150,000 was inscribed by the Bank of Now Zealand as a special investment of a portion ofthe second guaranteed million. "By arrangement with the Bank, in the event of the pubic desiring to make deposits in excess of the limit fixed by law, the arrangement provides that the L 150,000 referred to, or any portion thereof, should be transferred to tbe investing public." This portion of the Statement and oihers also, points to the undesirable conclusion that the Colony's affairs and those of tbe Bank are now irretrievably mixed up, and to tbe probability of an amalgamation with the Colonial Bank of New Zealand, thus clearly pointing to the undisguised establishment of a State Bank. A State Bank may or may not be a desirable thing. In view of the tendency of colonial finance, we have always been of the opinion that it would be a very bad and injurious thing, but snrely even those who advocate it will demur to the Colony being dragged iDto it nolens volens to assist a tottering institution. The public .debt has inereosed dnring the year by L760,5_1, and now stands at nearly forty millions. It is true that the annual charge for interest has decreased from L 1.866 588 to L 1.656 970, but no financier bas yet reckoned what the final effect of the conversion operations will be. To go on to the end of converting all the public debt to a 3 per cent. basis, will in a few years have inoreased the public debt to an appalling sum. By tbat timo tbe Government will bs unable to point to an annual saving in interest, while, in the interval, all tbe sinking funds have been swallowed up and applied to purposes of ordinary revenue The cake ia now being eaten, but the paying for it has yet to be arranged for. The tendency is also increasing to utilise the great departments of the colony as money-mating engine?. Not only are the vast accumulated funds hnrltd into the " maelstrom of colonial finance,' but the " earnings '' are also claim, d. In this way a large amount of taxation is indirectly levied. It is wrong in principle to utilise the Trust Office, and the P, st Offiof, and the Insurance Office for revenue purposes. If the charges admit of large profits (hey ought to be reduced or returned in the shape of conveniences to the public. It js abmrd for a Treasurer to speak iD one breath of the depressed condition of trade, and, in the other, to point with exultation to the large sums earned by State monopolies. Even so sanguine a person as Mr Warl is compelled to look upon the outlook as a gloomy one. He pslimales tbo revenue for this year at L 86.196 less than the actual receipts for the year that has gone. Though he has clapped an additional £11,000 on the tariff, he estimates thtt the revenue from tbis source will fall off by LS7B*, and that from stamp*, by no less than L3'2,#2s, No reason is vouchsafed for tbis expected decrease — unless we are to assume that it is not considered likely tbat so many "worthy c-ionisis " will die during the yea-, leaving large succession duties to pay. But Mr Ward will have a surplus though he died in tbe attempt. He estimates the revenue at L_ 311, 200, and the expenditure at L|,331,8|3, leaving a surplus of L.357, This _urplu», added to the balmce carried forward of L180,02_, leaves a total available surplus of LlB9 381, out of which it is proposed to deduot Ll5O 000 as a " donation " to the Public Works Fund, and thut leave a balance cf L 39.381 for contingent expenses. This is all very nice on paper. But, last year, L 83.487 was spent less than was appropriated, while L-6.9.5 came in re ore than was expected. We have thus L130,_82 tbat the Government .; might have spent, according to iti own account, pn<j[ did not, and this in the face of unoxampled hardship among the industrial population, ft is sorely '$. sad commentary on th,e cojony's position- that private citizens fh#<44 have to put their hands into their po.ekets to provide starving laborers with work on objects of adornment, while the Treasurer boasts of his surplus of ready money. Soup kitchens aro. not .usually established when the affairs of thg State are prosperous. The forthcoming embarrassment of the Government is predicted by its attitude towards the Tariff. During tbe recess a Oommission has been peregrinating the colony taking evidence,, and baying a frigta o£d time at tbe public expense. The report <ol thia Pojjfvyisrion is a bulky document of §00 pages, and £t pas laid on the House almost simultaneously jvitjh the Financial Statement, Jt lya'.i not intended, therefore, tbat memb?rt should have much time to digest the finding of the commission. But thero were ample proofs of its purpose. The Commission was simply sent out to find wbere tbe screw could be tightened. We find an invertebrate member like Mr Hutchison, senior^ actually telling the Government that tf the recommendation of the C mmission were n#t ftdopted, ho would be found in opposition, PVJpher, ,1 ke tbe lady, dofch protest 100 mnch. ftr we find that tho member of this Com.mission with a backbone— wo refer to Mr T. Mackenzie— found it necessary te submit a 1 dissentient report on tbe ground that some of the mor oases of duty vere obviously recommended for tbe jpurpose of protection. This straw sbows how the wind blew. 4. 'free breakfast iteble" has b een brought nearer by the redaction of the duty on bu(k tea by jtd a pound, while the duty on the packed article is to remain,. When we remember the controversy that has been maintained in the northern press on this < subject, and that the duty has been charged at the request of leading tea 1 importers, all tbst the working man

set mi likely to get from the alteration is , a deterioration in quality without, a corresponding reduction in price. But the bcotm&kers get a "lift" by increasing tbe duty on the imported article to 25 per cent. If Victorian experience goes f r anything, the extra duty will go ; nto lhe pookets of the manufacturers, and the wearers will hare to pnt np with an inferior artiole. But, then, B ime one will say, " Look at the rx-mptions." Yes. Tbe remissions are on woolpacks, bntter paper, cettaiu drugs nsed in manufacture, papers used for making stationery, and wooden handles for tools. But wo must apoloiiie. We omitted to mention that the duty on the poor man's gas, kerosene, has been reduoed from 6d to Sd the gallon. Also, he will not hava to pay dnty on mutton birds ! But P we shall on an early date devote speci il attention to this mat er of the tariff; Suffice it for the present •to say that the Colonial Treasurer, in the T.macular, keeps a stiff upper lip. He is still in the heyday of spending funds accrued for ths purpoie of paying off the debts of th. colony. Thatplets ing task (rill not Ikst much longer. When it is completed we are afraid the ungrateful work of retracing to the right path will be lrft to other and more capable hands.