THE NEW ZEALAND BUDGET.

North Otago Times, Volume XXXVII, Issue 8080, 19 September 1894, Page 1

THE NEW ZEALAND BUDGET.

The marked success which attended this important operation has tended to accentuate the general feeling of disquietude and resentment with which the now proposals of the Sow Zealand Go] vernment have been received in the city. Full details are anxiously waited for. In the original Router telegram which conveyed the substance of tho Budget there was manifest error of transcription, for ifc stated that a further sum of L 750,000 was to be rained by means of a land tax. This in officially explained today by a statement that it is not intended to increase or alter tho land tax, and that tho L 750,000 is to bo raised locally, Maori land alone being affected. Tho Westminster Gazette '• inter- 1 viewed " Sir Westby Perceval yesterday with reference to tho Budget, but does not soem to have profited much. It says that the Agent-General •'sought to minimise in a quiot manner the unfavorablo features in tho Budget," but that, 44 although ho made some reassuring statements, ho was unablo to explain away tho fact that the colonial Government proposes to raise Ly,230,000 in addition to the L 2,000,000 guaranteed on account of tho Bank of Now Zealand." And 44 he smiled," says tho Westminster, 44 recognising tho point when it suggested that tho object [of compelling 44 foreign " — including British — insurance companies to mako largo deposits] might be to obtain a supply of funds at a low rate of interest." Sir Westby explained, however, that tho reason was that the policyholders needed greater security as 44 some weak companies wero in the field." 44 Still, after all Sir VV, B. Perceval'B statements," sums up the Westminster, 44 this fact remained — viz., that New Zealand, which we have so often been told did not moan *o borrow, because thero was no necessity, is going to make largo demands on the loan market." And that is what everybody ia saying. Thero is a prevalent feeling thao deception has been practised. So many assurances have been given —not invited, but volunteered— that tho colony had not idea of borrowing — could do without it and meant to avoid it — that tho prcbent Government were resolutely opposed to the borrowing policy, and that the revenue was ample for all requirements, that this disclosure of tho Budget has produced a very unpleasant revulsion of feeling. 44 Now Zealand is a humbug," one man remarked. ** All that brag about surpluses aud non-borrowing is now exposed, and can be judged at its true value. It ib tho old story over again." Indeed I fear very much that tho effect of this remarkable sudden wlte face on tho part of your Government, has done, it, doing, and will do great harm to tho colony's credit. People aro saying here now that the whole scheme looks Jiko provision for jobbery on a vast scale. All this proposed lending money to farmers, however desirable or justifiable it may bo— aB to which I oiler no opinion, — is looked on hero as Bimply a means of purchasing or influencing votes. It is remarked that at any rate if any Government had such an idea, this is just tho way they would go to work to carry it out. It is just as well that this should be clearly understood in tho colony, b<>eauso fcho effects aro bound to bo felt in various ways, and so the cause ought to bo known. You cannot play thoso tricks on the London money market with impunity. Financiers resent anything like a want of .straightforwardness. 44 Why need the Government have gone out of their way over and over again," it is asked 44 to proclaim their abhorrence of borrowing, when all the time this largo scheme of now borrowing must have boon in contemplation, if not actually decided upon T This will require a good deal of explaining away. At present it is regarded as a plain ciso of gross deception and misrepresentation, and I should be very glad to sco some satisfactory explanation put forward, as these things do Now Zealand and New Z slanders a great deal of harm in England. Now Zealand .'3£ per cent fell to 100 yesterday immediately on the publication of the telegraphic summary of New Zealand Budget. In tho llouso of Commons, Mr Dixon asked tho Undcr-sccretary for tho Colonies whether tho Now Zealand Legislative had power to pass an act substituting a paper currency for gold and silver, and whether it would be competent for the Ciown to veto such an act were it passed by tho Now Zealand Legislature Mr Buxton in his reply said 4l tho colony has tho power to pass such an act as that sugg. stod in question. Tho Queen has power, if she should be ho advised, to disallow such an act ; and the Governor is required by his instructions to reserve for tho signification of her Majesty's pleasure any bill affecting the currency of tho colony, unless m tho case of urgent necessity,"