DIRECT TAXATION. No. 7.

New Zealander, Volume XVII, Issue 1584, 22 June 1861, Page 5

DIRECT TAXATION. No. 7.

To the Editor of the NjaV-^EXLAM)LU. j. q’he mass of the people do not comprehend fiscal system under indirect taxation, where great wenuitv is exerted to cover up and hide heavy imnst« on the people by an appearance of g-ent moderap u Men are more conversant with principles than details ’ with names than with things. Names are necessary for the press, (or society, and they often cloy enrinsitv which but for them would apply itself to facts. E cts by our complications, are difficult of access, and fhe reference of effects to causes too fatiguing for enmmon attention. A labourer cannot be expected to delate, in the price of a pound of.tea and sugar, how n U ch he contributes to the support of the Government, how much he pays for the collection of custom how much to the tea grower, how much to the sugar planter, md how much to the importer or grocer, who has advanced his capital to pay the duties on the tea and * which the labourer buys. Consequently, lie c nnot trace to their sources the influences that affect him and if he complains, it is ot wrongs for which he

himself can suggest no remedy, and often neither can his representative whom ho has sent to parliament to redrew them; but suppose there were three open windows, one at which he paid for the actual cost of t'ic necessaries of life, another the profits of importers ami dealers on duties advanced, the other where lie paid the customs’ duties, he then would come to know L f ac fy what he actually did contribute Under direct taxation no such complication would exist, and men would know who takes their money, and could judge of the justice or injustice of its appropriation. Freedom of commerce and of industry is a consc nticncc which flows from, and never can he separated from direct taxation. Ido not mean freedom of commerce while taxed for revenue, from prohibitions ami discriminating duties, hut that freedom which facilitates the exchange of commodities with the \iew of cnhancj n „ t h c value of land and property from which « revenue should be drawn. The burdening of the exchange of commodities for the sake of revenue, must he detrimental to commerce, besides being the most expensive

Wav of raising it. I repeat, that I wish to sec the ports of Ncw'Zcahmd open to the commerce of all the world ; no duties, no prohibitions, and no restrictions on cither export or import; thou we should never have disordered movements occasioned by the sudden deficiency of swell and such merchandize, exorbitantly raising prices, which me the scourges of the lower ranks, by unsettling their habits and by inflicting privations. Fro n the system •of duties, restrictions, and prohibitions, arise those devouring tides and ebbs which sweep away in a day the labour of years, and convert commerce into a career of alarms and perpetual dangers. By direct taxation Government is emancipated from much em-

ibarrassment and opposition, the colony from much excitement, and industry and commerce from all restriction. The revenue, depending on the accumulation of wealth, must instantly feel the effects of any interference with industry; and'though the Government extracts the irmost it can, its own interest prevents it from exacting in such a manner as to interfere with the sources of production, or exhausting or destroying the substance on which revenue feeds. With direct taxation the revenue increases in a ratio with the wealth of (he population from whom it is derived, and the people pay taxes according to their means; no one being allowed to escape, every man pavs according to what he has, and not according to what he has not. It is palpable that, as the population gain wealth, the Government get, or can get, an increased revenue, without distressing industry or convulsing commerce, lint with indirect taxation every one must pay not according to what he has, hut according to his consumption of taxed necessaries, and his portion of the Government revenue, by this process, is taken from him bit by bit, and he is obliged to pay nearly 70 per cent more than he should pay if fairly and justly taxed. This system of indirect taxation is the true root of the insolvencies which constantly alarm and injure the trader, and distress many a family. Kvery political question resolves itself into one of finance,' and the grand point towards which disquisitions, in appearance the most abstract, converge, is the amount, ami above all, the mode of taxation. When Lord Kobert Grosvenor was arguing in favour of direct taxation, he said: —“There had been many petitions presented on the subject of the Income Tax, but he never presented one against it.” The mode of levying was where the objection lay. The Chancellor of the Exchequer, in his argument for direct taxation, made the bold and manly avowal that to tax one class and relieve another is unjust, and cannot he tolerated; also that any direct tax which touches certain classes and relieves other classes is “ confiscation.” What was wanted was an Act to apply direct taxation to all incomes without exception. lam aware that no minister will be able to carry a comprehensive reform of taxation without the cordial co-operation of the people, and from the hitherto inert slate of our Parliaments in regard to taxation and expenditure, I fear it will lie difficult to find a member who has the time to spare, the independence, and the determination to have the great question of Trade and Taxation thoroughly investigated by the House of Representatives. If prosperity and progress is to mark the future history of tins Colony, the i'kopm; must look to their own interests, and not rely on the efi'orts of any member or party within thcllonse. They must inform Parliament of their wishes by petitions or memorials; each Chamber of Commerce should consider the matter, and report thereon to th ir members, so that it may be known if it is the will of the people that nil be taxed according to their menus, and that free trade be extended thromjhout the whole Colony. Some persons have supposed that wc should follow England by coming on by degrees to the system of direct taxation; but I say that, considering the position of England—a country with eight hundred millions of debt, and raising a revenue of seventy-two millions,--I think she has come on to the system by by strides; for In 1842 the Income Tax barely reached three millions, hat last year it reached thirteen millions! Tl e pationngc and corruption of the privileged classes in England, which have been accumulating for years from different administrations, until they possess great power and wealth, arc most difficult opponents for the Government to contend with, and to convince of their erroneous impressions as to direct taxation; but in this Colony no such antagonism exist', save in a minor degree. Other persons, with consummate folly, coolly assert that the debt of England has been and is her greatest blessing! debt a blessing! Every debt which the Government of a country become indebted for to her people, denudes the latter of a portion of their independence, as the creditors of the State arc then bound by self interest to uphold the source from whence their interest comes, and where their treasure lies. Again, the more money the people lend to the Govarnment the less trading capital is there left for the people to extend the profitable relations of the country, or, if the debt is incurred to foreigners, the people are forced to tax themselves to pay the interest, which capital is sent out of the country.

There arc persons who suppose that the largeness of the revenue required in England and France has led to the introduction of indirect taxes. Such persons arc arc not informed of its history, and arc wholly ignorant of the principles of taxation. William, the great founder of leudalism in England, 800 years ago, raised his enormous revenue, which historians calculate as equal to ten millions of our present money, wholly and solely by direct taxation. It was Edward 1., the robber of Scotland and the murderer of Sir William Wallace, who first commenced the imposition of thrce-pcnco in the pound on commerce. and then English navigation extended from the Baltic to the Adriatic. Edward 111., the son of the English king whose 100,000 m-n were beaten at Bannockburn hy 30,000 Scots, raised the poundage-rate to that common to the rest of Europe—that was, sixpence in the pound or 2.j per cent; but the perversion or destruction of the municipal principle, the offensive mode of collecting it, rendered direct taxation so galling to the people when they began to enjoy a little political freedom, and so dangerous to the Government, that the indirect mode acquired favour in the eyes of both, and this withering system has continued to thepresent day, when now the enormous amount of debt ami the immense revenue of £72,000,000, which it has rendered necessary to drag from the legitimate trading capital of the people, startles the statesmen of England and occasions their present struggle to increase the direct, ami decrease the indirect, system of taxation. I am afraid to trespass larthcr in this letter on your space, and remain, Your most obedient servant, Fuki>. A. Bki.i,.

OUU COLONIAL DEFENCES, AND HOW ARE WE TO SUITORT AN ARMY? To the Editor of the New-Zealandeh. Sib, —This subject will doubtless now have to he considered, and there is no shirking the subject. It is also clear that the Imperial Government arc arriving at a determination that their various Colonics should, at all events, hear a portion of the expenses of a standing army. And again, there is no shirking the truth that something of the sort is very just and reasonable, ■t is only a question nt what stage of the various colonial establishments should it ho incumbent upon tjiein to bear a, considerable portion of the expenses of their own protection, both from external foes and internal strife. It quite true that many years after the establishment of a colony under JJritisli rule, the

defence of such colony must be borne by the Imperial Government, or there would be little probability of such colony being peopled by British subjects who look for protection from the mother country. But after a time, when the child becomes a man, it is equally true that such man must be bis own defender. The question then arises, How could the colonies best support a standing army? and I write now more particularly with a view to the colony in which I am myself located, New Zealand. Is it not possible, then to organize such a semi-military body as a “A Working Army by which I mean a body of men not altogether of the old pensioner class, but men who would be willing to emigrate, and be formed into a military body cither here or at home before they set our, and who, from various prospective advantages, would devote say half their time to military dutv and half their lime to “Public Works” for the advancement and opening rip of the colony ; —say three days a-week ordinary military duty, and three days a-week labour. I can conceive many young men at home who, for their rations per day and a plot of land which would become their own at the termination of a certain number of

years (similar to the pensioners', would be glad b come out under such regulations. Then comes the question of the expense of their passage out, and 1 should think it the colony undertake the entire expense of them after landing, that the Home Government wou’d pay the passage out; and the advantage to the colony of such an amount of labour for “Public Works” would be amazing. Conceive 2,000 of such an army, having a fatigue party of 1,000 men always at work, opening up trunk roads ihroughout the country, so that free land communication could he had with every settlement throughout the island. Such advantages would he worth a great effort and a considerable expenditure. The land contiguous to such lines of road must necessarily become greatly enhanced in price, and I can sec no possible evil in a well regulated land tax upon all land within a mile of such road on cither side. I know this notion will he met by numerous objections, and I am not so conceited of my own crude notions as to say that all objections can he overcome, and that the plan must ho good. There may he insuperable objections which I do not at this moment see, but the ventilation of such a subject at all events can do no harm. The first objection by one class would be that it would interfere with the labour of the

colony—and so it would in a certain degree, and so would the arrival of any 2,000 working immigrants. But if by such a plan the Government can undertake works for the benefit of the Provinces which they could not otherwise undertake, I think very little harm would accrue to our ordinary labour market. It would be quite different if a portion of the time of such military men were allowed to be used by any private individuals. Then our labourers might justly complain, hut on public works the case is different. Then, again, barrack room for a large body' of men thus on the move would bo an objection But this, I think, is easily’ overcome; for moveable barracks could surely be formed to be removed according to convenience. I will now go into a rough calculation of the probable results of such an army : Take, then, the annual cost of 2,Out) men at what, I believe, is the actual cost of soldiers at £3O each £OO,OOO Then from this sum it is fair to deduct 10 per cent, as returning to the Government in shape of taxes 0,000

Total cost £51,000 Now we will suppose 1,000 of these men constantly at work on our great roads, and their value may surely be estimated at IBs. per week each, which would amount to £46,000, thus leaving only a deficit of X’B.oo0 —and we have a regular standing army always ready for our defence at a very small cost. Now how is the amount to be raised? I would suggest fid. per acre tax upon all land within a mile of such road on cither side. A considerable sum would thus he raised, which would at all events pay interest on capital borrowed for the purpose, and give a fair amount for a sinking fund. And land purchased of the Natives would of course sell for a greatly increased price in consequence of such roads. The Natives would have a real positive interest in these roads in the increased value of their lands. I had written thus far when I perused the very excellent letter of my old friend, Mr. F. Carrington, in the Cross, and I am glad to sec how much our opinions coincide ns to the vast importance of great trunk roads being made throughout the ength and breadth of the island, I am, Sir, Yours, &c. Old I’uacticai..

To the Editor of the Ni:w-Zj;ai.axdi;k

Sin, —In the House of Representatives our own Superintendent, Mr. Robert Graham, Mr. Hell, ami lew others, speak in voices which all can hear, whilst Mr. Stafford, Mr. Carleton, Air. Fit/.herbcrt, &c , generally speak to those around them only. Then, whilst Mr. Dillon Hell was speaking the oth-r dav, some gentlemen were standing and parading in front of the bar. The rule in the House of Commons is, that no one but the member speaking is allowed to stand, in order that Mr. Speaker may distinctly see who addresses the House and when he resumes his seat. Be so good as to mention these facts to honourable gentlemen, and oblige The I’eoim.k’s Gai.i.i.uv. Auckland, June 14, 1861,

WATER SUPPLY FOR AUCKLAND,

To the Editor of the New-Zealandeu

Sin, —Mr. James Stewart having in his letter which appeared in the Southern Cross of the 24th instant indulged in some remarks upon my first article on “ Water Supply for Auckland,” (sec Cross of .March 8) which appear to me to require notice, I shall be obliged if you will give insertion to my reply, as the Cross is unable to find room for it. Mr. Stewart a-ks, “ Does Mr. Filing not know that the only reason of Mr. Bycroft’s springs being above high water is that they are artificially raised?” and lie characterizes my opinion that the water supplying the scoria springs has free communication under ground as “ a mos, extraordinary statement.” In reply, I submit the following extract from the Report of the Preliminary Committee (see New-Zealundcr of the 4th April, I860): —A dam has been constructed by which the water is raised a foot or two above high water at spring tides, but such is Iho porous nature of the lava stream through which the springs flow, that all efforts to confine the water sufficiently to raise it to a higher level have failed; as soon as one outlet is stopped the water finds its way through another channel at or near the same level. The fact that the subterranean channels through which these springs find their way, communicate one with another, was curiously proved by the accidental observation, that the water in a well half u ijnle from the mill was raised to a higher level by the construction of the mill dam above mentioned.” Mr. Stewart himself can best tell whether he supplied the Committee with the evidence upon which this “ most extraordinary statement ’ was founded, Mr. Stewart admits thatjhc “ estimated the flow of the Western Springs at about 2,000,000 gallons daily,” at the same period as be did those of Onehnnga at l,44»,0l)0 gallons, but he then very coolly asserts that my estimate of their discharge “ isfevidently the result of some sort of gauging at the end of this last unusually wet season;” now my guagings were taken on Feb. 23 and March 5 last, the weather having, for the previous five months been unusually dry instead of unusually wet.

Mr. Stewart “cannot recall to mind any place within three quarters of a mile of the springs which oftbis a site for a reservoir to command the City or even onefourth of the City.” Well, then, I will tell him where to find such a site. The top of Young's hill is 173 feet above high water —a sufficient elevation to command more than three-fourths ol the City, and it was here that I at first thought of placing the reservoir. My reason for altering this arrangement was given in my second letter. (Sec C>oss, March 19.) I have not leisure to enter in this letter upon the question of the power of steam engines, but will revert to it on a future occasion. I must observe, however, that I have not the least doubt that, according to calculations founded ui>on Mr. Stewart’s own data, his engines should be of sufficient size to raise 1, 00,000 gallons of water to the height of 301 feet in a straight pipe, though that (ns I hare shown) is not all the engines would have to do ; but, notwithstanding Mr. Stewart’s array of figures, I still doubt that t hey would do it economical!g. Mr. Stewart asks why I have not given among my illustrations the duty of the real Cornish engine at the East London Water-works ? 1 reply, that I hove done so ; the real Cornish engine, according to Mr. Wieksteed’s own account, having a cylinder of inches, instead of 10.5 as Mr. Stewart states it. I admit that the same engine is said to have performed a duly of 10.5,000,00'', but that was the result of an experiment, and not the average of its ordinary work. Mr. Stewart is also in error when he asserts (alter again expressing his conviction of my ignorance of arithmetic) that I have adopted the “ arrangement of duplicate high pressure engines non-condensing ” in my own scheme ; if hy dnjtlientc he means couplet / engines. I did not use the word duplicate at all, hut said, “ to guard against accident or any unforeseen contingency, a non-conacnsing engine capable of doing ■ the same amount of work in hours should be provided.” J"will just give one or two more examples of

f Mr.Stewart’s candid mode of argument, and then have done with engines for the present. lie says, “One statement does he make which here again gives the unit with which to measure Mr linings knowledge of the working arrangements of machinery as displayed nJI through this paper of his. He has auidea that a

pair of coupled engines require n double sot of engincet s and firemen.” Now I challenge Mr. Steuait point to such a statement, or even to any expression of mine conveving any such idea. Strange that Mr. Stewart should not know his own ideas when dressed in dilfcicnt cloth ns (see Ids estimate of working expenses), and I now beg to introduce the wanderer to its unnatural parent. In concluding his notice of my remarks upon his scheme, Mr. Stewart says, “It is no wondei that he lias touched at none ot the weak points ia ni> scheme ; for I presume him to be acquainted with it only in its published form, and not in its mote matured sta'c, as prepared for the Committee on the Bill last Assembly ; and even since then I ha\e designed alterations in the pumps which are great improvements. So then, the yreat Stewart scheme realiu mis weak points! It appears, however, that in its infancy the babe was strong and healthy, hut (owing, pose, to lad nursing) ns it approached matinU\ it became rickctty ; possibly the last “ alterations in t he pumps ” were “designed’’ to remove water horn the brain. But, joking apart, the pumps rcnluj needed

improvement. I will now notice some of Mr. Stewart s remarks upon the plans proposed by myself In his usual ingenuous style lie begins by misquoting my language. Bead and judge: ‘ The citizens of Auckland hate next propounded to llieoi no less than three sources from which ‘ ample supply can be obtained, at cheaper cost, equally good, and equally abundant.’ Snell, in almost Mr. Uttines own words, is this very remarkable statement.” 'I bis is indeed a very remarkable statement as will be seen by comparison with the original, which reads as follows: —“ It remains to inquire whether any source exists from which Auckland can obtain a supply equally good and equally abundant, as Mr. Stewart’s scheme would give, and at the same time much cheaper? I have no hesitation in answering the question in the affirmative, There are at least three sources from any oi which an ample supply can he obtained at a lower cost.” It. is unnecessary to

reply to all Mr. Stewart's frivolous and vexatious objections to the plan of collecting tlic rainfall, as 1 have already stated that I should not recommend that plan in preference to the others. 1 will however just inform him that the total expense of management in the Paisley and Glasgow works (with which he professes to be so weli acquainted) is, including the expensive filtration, in the first case less Hum 3(1. and in the other less than one penny per head per annum ! Mr. Stewart next attacks my plan No. 2, which proposes to derive the supply from the Western Springs. At the outset he accuses me of having made it blunder which he says “stamps the value of all this gentleman’s knowledge of hydraulics.’’ Now it so happens that the point in question is a matter not of Hydraulics but of P/iuewalics , a fact which equally slumps the value of his own knowledge of the subject. He says. “.Mr. Utting thinks that by placing the pumps 25 feet above the water to be raised that he is at liberty to deduct that amount from the whole height lifted.” I did not say anything about lilting but “the pumps would have 25 feet less head to overcome. If :t single acting Cornish engine working a plunger pump were employed, the expression would be correct, its in that case the 25 feet would be lifted by the ascent of the plunger, and the upper and heavier column would be forced upwards by its descent, in which case it is clear that the pump would have 2.) feet less head to work against. With a double acting engine working two plunger pumps alternately, the case would he different, as the work of the engine would be uniform ; for while one plunger was employed in forcing the upper column of water, the other would be engaged in lilting the lower one. 1 admit therefore that the engine would have to raise the whole of the water, as the atmospheric pressure transmitted through the lower column to the under side of the plunger, would he diminished by the weight of the water. 1 still contend however that the plan of placing the pumps 25 feet above the water level is practically superior to placing them near us surface; and 1 suppose that even Mr. Stewart will not dispute that, when not at work, the pressure upon the valves and on the lower part of the pipes would be less than in the other case bv a column of water 25 feet high.

But, although 1 am willing to make Mr Stewart a present of part of the 25 feet, 1 am by no means disposed to make any concession up n the question of levels. I have said that the springs could be collected at a height of 20 feet above high water. Mr. Stewart tells me flatly “ they can be nothing of the sort,” (and he elsewhere states that they cannot be collected at a higher level than 10 feet). Of course he has taken the levels himself or he could not speak so positively (and courteously!) Now the upper water wheel tit Messrs. Low .and Motion’s Mill is 16 feet diameter, (he water in the mill-race about two feet above the top of the wheel, and the surface of water at the springs is 3 feet 6 in. higher than in the mill race. It therefore follows, according to Mr. Stewart’s levels, that at the time of high water, the wheel sudors immersion to the dept of 11 feet 6 in. !! Talk about “ perpetual motion” after this ! Mr. Stewart “must submit to be set right on this subject” its being not a matter of opinion, hut of fact’’ by one who hits at least had as much experience in levelling as himself. Mr. Stewart tries to strike ns with astonishment at the great cost of tanking an impounding reservoir in low clay ground, by telling us that the cost of puddling his hole in a cinder heap (which after till will contain only half a day’s supply) will he over .£IOOO.

I must confess myself at a. loss to understand what lie means by this luminous sentence “ I should think that if he only takes the water in wet seasons it will always require filtration.’’ It'this he wit, I cannot sec die point. He then indulges in “ a lot of talk” about my reservoir arrangements, hut as lie has made no specific objections to them, 1 shall not at present notice it further. In his remarks upon i’lau No. 3, Mr. Stewart converts what I have advanced us tuy own opinions merely, into positive assertions, and then makes himself merry with the idea that I have “ claimed eiwn/lhiny from a scoria well to an artisan well.” Such an idea is, as he truly observes, “ the effort of a strong imagination.” If Mr. Stewart were to draw less upon his imagination and indulge less in personalities, perhaps his arguments would he heller appreciated. If I were to notice all the irrelevant matter with which Mr. Stewart has crannie d his paper I should encroach too much upon jour valuable space, hut when he has completed his review of my subsequent letters, 1 shall again take up the subject. Yours respectfully, Fur. i). ,T. Urn no. Auckland, May 2!)ih, ISGI.