SUBSIDIES.

New Zealand Herald, Volume I, Issue 253, 3 September 1864, Page 4

SUBSIDIES.

Politioax economy and the service of Government though subjects of the deepest importance to those who are charged with the duly of laying the foundations of a new country, are nevertheless subjects which, from particular reasons have never had any very special share of attention bestowed upon thein by the majority of those persons who from time to time have the administration of our local government. It is from this cause that we so often perceive evidences of crude and imperfect legislation, andol misdirected efforts. The intention may be to do what is perhaps right and proper, but mistakes ot a serious character are constantly being made. A wider knowledge, with a mind enlarged by it, that could take in a more extensive view of things might often prevent these mistakes being made. Among the questions of importance which from time to time crop up among us is that of subsidising coasting steamers. There are many points of view from which this question may be surveyed. Private interests are too often imported into it, and these are made to assume so much the appearance ol public interest's that at first sight an unthinking person might confound the two. And the parties most nearly interested try to persuade themselves, and then the public, that the interests of both are identical, when in point of fact they are not more so ill their case than in thousands ot others. Subsidy, if by that term is meant an amount paid for one person or company performing certain duties which only a fleet the public indirectly, may just as well be claimed for every branch of industry in this province as for one. A subsidy in this sense, an amount paid for no direct and special service performed, is simply the payment of a sum of money to one or more persons to carry on their occupation because it is conceived that no gain would accrue to those engaged in it unless Government gave a subsidy. Now it is quite evident that on the general principle, as a point ot political economy, it is as competent for a man engaged as a common carrier between any two districts, to ask for a subsidy from Government to help him to pay his expenses and to make a profit, as it is for the owner or owners of a steam-boat, to come and ask for a subsidy to make their business pay. The carrier by laud has just as good a plea to make as the carrier by water. He can show that but for the journies he proposes to make a good deal of produce, would never get to market, that a good many people would occasionally find his cart a convenience in many ways, but his customers after all would not pay him sufficient to make him a good profit and so he endeavours to dip his hand into the public purse, and get his profits out of the general public, many of whom never see his cart or perhaps hear tell of it, and are certainly not benefited one'pin'sworth by it. The argument for subsidies to enable a non-paying steamboat speculation to pay, inav be used to a non-paying candle making, a non-paying mining company, or to any individual trade carried on among us. Anil the plea of public good might just as well be urged for a subsidy to enable them to carry on their operations as to a steamboat company. I'or the public would be greatly benefited by the establishment of mining and manufacturing companies among us. They would probably reduce the price of many articles now imported ; they would give remunerative employment to a large number of people who would be consumers of taxed produce, and so cause a considerable addition to the revenue ; aud would thus aid the rapid development of the resources and prosperity of the Colony. In point of fact; they would give employment to a. very much larger number of men than would any steamboat company, and so, cteterix paribux, there would be greater and more varied advantages accruing from subsidising schemes which required a very large number of persons to conduct lliem, than there would lie from subsidising schemes which would only employ a small number of men. and put the money paid by the public into the hands of a few persons. The system of subsidy, that is of payment by a Government without any service performed for it, is a remnant of the policy which was in force several hundred years ago, when the Monarch granted monopolies and freedoms from taxation, and other privileges, to individuals ami companies engaged in trade. This was the old-fashioned way of giving a subsidy ; modern times have seen the folly ot such monopolies and favours to particular persons and companies. Adam .Smith brushed away a great many cobwebs from, and let ' the light of reason and common sense find its way into, many chirk corners, mid the result of his very appropriately termed book 11 Wealth ot is at ions." has entirely revolutionized the feelings of the country 011 matters of trade and commerce, aud the principles of government. 011 no subject has he had a greater inlluence than on that of monopoly, and the freedom of trade; and hence the linn conviction of nil enlightened statesmen of the present day is, to grant, 110 monopoly, 110 subsidy, no premium to any particular trade (jiatent excepted, and even that individual case has been lately discussed) ; and on the other hand to put as little restriction upon trade as possible. Trade and commerce are two rivers that make, and llow, in their own channel. All that is required from any government is to allow them to llow 011 without ai+y artificial restriction or harrassing regulations.

The ease then ot' subsidising steamers on our coast is a return to an exploded system of the middle ages, when the alphabet of tho principles that ought to regulate trade and commerce was scarcely yet mastered. Tho plausible plea that a public good is effected in return for the expenditure of the public money is entirely unsound and incorrect. What public good, for instance, be gained to the tax payers on the AY est Coast of this Province by the -expenditure of their money on a. line ot si earners on the Jiast; Coast. ? \Y hat. would be thought of a proposal made to the British Parliament for a subsidy to be paid to a steamer to run between Hull and Loudon, the reason for making that preposterous request being that certain parties wished to run a steamer between tho two points for their convenience, but that it would not pay to do so unless the Government would give them so much per month as a subsidy. They would doubtless get a double advantage, their goods and themselves carried between tho two places, partially at the cost ot the rest of the country. The man who made

such a proposal -would be at; once committed to the care of the Commissioners in and bo carefully watched as being evidently of unsound mind. And yet this is the very principle that was advocated the other day with respect to providing a steamer to ply between Auckland aud Coromandel. There is a small trade between these two placeß ; ifc would doubtless be an excellent arrangement so far as the shareholders in the mining operations and the owners of property at Coromandel are concerned, if a steamer did ply regularly between Auckland and that place; but why should the Government- —that is the general public, out of whose money the proposed subsidy has to be paid, hand over ao much per month to the gentlemen interested, in order that they aud their merchandise may be carried between the two ports at a cheaper rate than they otherwise could be, and a subsidy means nothing more nor less than this. We single out this case, not from any opposition to that particular proposal, but simply to illustrate our argument. Our opposition is to all such subsidies.

But it may be said that although the ideas sought to be forced upon the Government have long ago been exploded in England, yet that the British Government does pay a subsidy to ocean steamers. The British Government pays a, certain stipulated amount to various companies for carrying the mails across the ocean, but here is service performed for money paid. And the amount of this subsidy, and even the principle of it has been warmly discussed in the House of Commons, a large party advocating thorough free trade in the carrying of letters by sea, each vessel which so carried thein to be paid for the amount of work actually done, and not at so much per annum, no matter how many or how few packages of postal matter was conveyed. And the discussion elicited this remarkable fact with respect to the Cunard boats carrying the North American mail, viz., that the postage of the letters and papers they conveyed more than paid tho amount they received from Government for carrying them: This circumstance, and the fact that the company, for a long series ol years, had performed its duty in such a remarkably excellent manner, influenced the debate, and their contract is scarcely likely to be altered.

Let us then act in a similar manner; pay any steamer or sailing boat plying between any ports of the Province or island, a fair and proper, and even liberal amount for carrying the mails, or performing any other public work, but pay them not a farthing more. To do so is to turn our back upon the teachings of political economy, to ignoro all principles upon which government should be carried on, for it is no part of the duty of a government to engage in paying a portion of the expenses ot any trade, occupation, or calling, which cannot be carried on without that aid. The arguments adduced for a different line of conduct may be plausible, but they are unsound ; and totally irreconcileable with the principles that ought to rule both Government and trade. It is the business of (xovcrnment, local or general, to see that highways and roads are made through a count ry for the common beneiit; it is not a part of its business to do more than this. Let it provide roads in the interior, and, as necessity requires, dock and harbour accomodation "to the fullest possible extent, and then let trade find its own level, and be carried 011 entirely by individuals singly or in company, without the public taxes ot the country being paid to render a profitless undertaking profitable, or to force by artificial means particular properties into a special money value.