The Manawatu Hearald. FRIDAY, NOVEMBER 14, 1879. THE FINANCIAL POSITION.

Manawatu Herald, Volume II, Issue 24, 14 November 1879, Page 2

The Manawatu Hearald. FRIDAY, NOVEMBER 14, 1879. THE FINANCIAL POSITION.

The present financial position of,, the Colony is by no means satisfactory, and well it behoves those who 'are placed at the head of affairs to lay aside all party feeling, and calmly consider the question of how our revenue can be increased, and our expenditure lessened to such an extent as will make both ends meet. When the Grey Government took office, loud promises of departmental retrenchment were made, but a very - short experience proved the impracticability of their fulfilment ; whilst the period intervening has Avitnessed, especially m the Native Department, an extravagance unparalleled in the history of the Colony. The damaging statements of the condition of the Colonial finances made by Major Atkinson a few weeks ago have never been answered ; nor has any attempt been made to show their incorrectness. It is therefore admitted that the Colony must either submit to largely increased taxation, or very great retrenchment must be practised. We believe the policy of the future will partake largely of the two elements mentioned, and the Colony is on the tiptoe of excitement and expectancy as to the financial proposals of the Government which will be embodied in the statement Major Atkinson will make to the House on Monday next. It-is generally understood the Qoyei^nneint, will propose the re-iu-troauptidn'of "the tea and sugar duties, which were abolished for the purpose of giving "the working man " a free breakfast table. The individual mentioned may have enjoyed the luxury during the last year or two, but we are certain he has not been aware of it. Storekeepers have chargedhim precisely the same amount for his tea and his sugar, and experience proves that the only persons bene : fitted by the abolition of the duty were the importers, who have pocketed nearly £100,000, without benefitting in the least degree the particular class intended to be blessed by the " free breakfast table." It is also probable that the land tax will be abolished, and an income and property tax substituted for it ; whilst increased stamp duties, and an increase of 2s per gallon on spirits, will in all likelihood form part of the Government proposals. Whatever form it may take, increased taxation, until the present crisis iv the finances of the Colony is tided over, may be regarded as certain. Upon this subject, the Timaru Herald remarks : — " Customs duties iipon luxuries, or rather upon articles of general consumption which are not necessaries of life, best answer the conditions for increased taxation. The inhabitants of this colony are a very spending people, and therefore a very taxable people. They consume every year imported goods to an enormous value which they could quite well do without, andyetnot suffer any real inconvenience. These should form the subject of Major Atkinson's operations. Wines and spirits, tobacco and cigars, plate and jewellery, silks, velvets, millinery, broadcloth, and a great many other articles which all classes use profusely, would bear much heavier duties than are at present charged upon them. The taxation thus levied would be paid voluntarily. No one need pay a shilling against his will, because none of the articles are necessaries of life. It would be collected absolutely at no additional expense whatever, because it costs no more to collect a high Customs duty than low one, and all the articles we have referred to already contribute largely to the revenue." The other matter, of retrenchment, is a more difficult one to deal with, and we are of opinion that instead of leaving it to the Government to cut down this salary, and that, the House should boldly deal with the question, and by resolution instruct the Government to systematically reduce upon the estimates all incomes over a certain sum. The fault in past attempts at retrenchment has been that no method was adopted, and the consequence was that those enjoying fat salaries continued in prosperity, whilst some poor, wretched starveling had his miserable pittance reduced. If a system were adopted, by which all salaries over £150 a^year were reduced so much per cent, upon a graduated scale, increasing with the amount, we believe it would meet the purpose. Let Ministers begin with themselves, and not cut off the twigs, whilst sparing the branches. This

matter must be faced, and that at once. We do not by any means grudge Civil servants their salaries, but in this instance, tho ordinary rules of servant and master should apply. The Colony, which is the employer, has not sufficient income to pay the present salaries. The employe must therefore accept a re duction, or seek another situation. We believe, however, such a reduction would be only a tcrpporary remedy, as we believe the evil is merely temporary. The Colony has become thoroughly awakened to the tremendous extravagance which has gone on, especially in native affairs, and we believe that will cease. We also trust the depression in commerce which has affected the Colony, and as a consequence its revenue, will soon be dispelled, and that retrenchment this year will give place to the full salary next.