THE New Zealand Herald WEDNESDAY, AUGUST 1, 1877.

New Zealand Herald, Volume XIV, Issue 4901, 1 August 1877, Page 2

THE New Zealand Herald WEDNESDAY, AUGUST 1, 1877.

Our latest telegram from Europe is of great importance. When Russia a few months ago, in defiance of the wishes of united Europe, made war upon Turkey in the name of religion, but for her own aggrandisement, grave fears were entertained that the war so wilfully and needlessly begun, might extend until all the European Powers became involved. After tho commencement of the war, when the theatro of bloodshed was confined to Asia Minor, hopes were cherished that the previous gloomy anticipations would not be realised. Defeat followed tho Russian invasion of Turkish Asiatic territory, and Russia then bent all her strength to gain in Europe those victories for her arms which wore denied in Asia. The telegrams published in another column this morilillg show that Russian European exploits are likely to be more productive of a general war than her attack upon Asiatic Turkey. Already the strong and deep feelings o£ the Mohammedans are aroused, and fears are entertained of an outbreak in the Levant. So grave do the foreign Consuls consider the situation that they demand the use of the war vessels of the several countries to protect the Christians. The Austrian Cabinet have awakened to the danger, and have been summoned to consider the question of a general mobilisation of their army. If the Austrian Army takes active measures in the field, it will not be long before others of the great Powers may become involved, and thus tho war become general.

The Financial Statement of Major Atkinson, a full abstract of which we print elsewhere, is on the whole of a satisfactory character. We have, it is true, a very largo debt for so small a people ; we have to lament a largo amount of waste in our expenditure of borrowed money ; and we are bound to borrow more money. But the falling off which has taken place in our Customs revonnc from the amount whijh it was estimated it would reach, is comparatively trifling, and is <juite accounted for by tho causes stated. The whole of tho figures show that the country is in a sound position, making rapid progress notwithstanding its burdens.

The Colonial Treasurer first stated the particulars of the borrowing operations •7ith the banks, and then passed on to the Public Works expenditure. It is worthy of remark that it is in this department alone that the Ministry shine as economisers of tho public funds. On the vote taken for public works and immigration, the Ministry havo saved £5-51,088. Wo would rather have seen the money saved in departments of unproductive expenditure. To economise here sitnply means that worke proposed to be executed have not been gone on with, and we think that we in Auckland can lay tho best claim to be considered the sufferers. We are taught to look upon the whole of the public works expenditure as reproductive expenditure, so that to save on it, while the cost of the services is maintained, is a left-handed economy. The public debt is stated by the Colonial Treasurer to amount to the very grand total of £20,800,31.1. When tho two millions proposed to be borrowed are added, we shall owe just about twentythree millions. Our population on the 31st of March last amounted to 399,440, and calculating that at tho end of the year it will amount, by immigration and natural increase, to 420,000, in round numbers the indebtedness will amount to somewhat less than £56 per head. On tho 31st December, 1875, the indebtedness per head of the other Australian colonies was as follows :—Victoria, £16 19s ; New South Wftlcs, £18 18s ; Queensland, .£3B Gs ; South Australia, £15 15s ; Tasmania, £14 7 s. The Treasurer, it will be observed, does not view our public debt in this fashion, but tolls us that it does not bear so large a proportion to our revenue as the debt of England. Let him, however, try his method of comparison as against neighbouring colonies. New South Wales, for instance, witli a dobt of £11,470,037, had, for the year ending June 30th, 1877. a revenue of £0,717,842. Turning from this view of tho situation, however, it is gratifying to be able to state that there has been an increase in the amounts received from the railways. In 1875-76 the amount set down as profit on the railways was £57,459 lis 4d, while this year the profits have amounted to £87,924. The deficiency on the receipts from the Customs from the estimate amounts to £40,021, which the Treasurer accounts for by tho disturbance of trade throughout the world, and the uncertainty of the wool market throughout tho year. The proposed total expenditure for 187778, is put down at £3,109,754 ; while the expenditure for 1876-77, for the civil list

£2,317,417. If the figures telegraphed are correct, there would seem to be a large increase. In regard to the Land Fund, the Treasurer has been quite astray in his calculations. It was estimated last year that it would amount to £770,000, while in fact it has reached £1,039,242, solely owing to the increase in Canterbury. The Colonial Treasurer then sets about what we regard as the main feature of this present budget. Ho shows very easily how comfortably everything would be provided for if every district had a land fund, upon which such-and-such charges might bo placed, but a3 that cannot be, and as he dismisses as out of the question tho idea of dispensing with any of our " luxuries," in the way of telegraphs, postal services, and resident magistrates, wo must " temporarily aid the Consolidated Fund." He then considers how this is to be done, and for a moment faces the difficulty of a Property and Income tax. His courage fails hiin, however, at sight of the lions in tho path, he leaves the subject for a more convenient season — and, we have no doubt, for a moro courageous man. The hour has come, but not the men. Ho then developes a theory about the Land Fund, which we cannot at present criticise, coming to the conclusion that ho cannot tako from us who have nothing, but that it is quite right that Canterbury and Otago should pay up. Aa respects Canterbury, Major Atkinson is in the lucky position of being able to " sack" the money (£58,000) at one swoop, and in the case of Otago, it is to be charged with £109,000 for railways. Our only fault with the proposals of tho Colonial Treasurer on this point is, that they do not go far enough, seeing the enormous amount of surplus land revenue that has been lately distributed. Finally, tho Government propose to bcrrow, within tho next year, £2,000,000 for further railway works, and promise that next year a scheme for completion will bo submitted. A lino of 500 miles, in the South Island is mentioned, but nothing is said about any other. Evidently there will bo a scramble for the £2,000,000, in which, probably, Auckland will again go to the wall.