OUR HOME LETTER.

New Zealand Herald, Volume XVI, Issue 5635, 8 December 1879, Page 2

OUR HOME LETTER.

Our last Summary left Mr. Halls Government in oflice, and up till now their occupancy has never been seriously threatened, and it is quite settled that they are to see the session out at all events The country was sick of mere party struggles, and although it is expected and desired that the Oppasition will zealously discharge what are considered the duties of such a party.there ia no popular encouragement for them to seek office. Tt was felt that the financial position of the country was not a safe one, that further taxation mnst be impose 1, and that the present administrators were the fittest persons to deal witii that subject. The bills to reform the electoral system have been passed into law, and now we have manhood suffrage and triennial Parliaments. On November 24, Major Atkinson, the Colonial Treasurer, delivered the Financial Statement, a report of which will be found elsewhere. As a Financial Statement, the speech of the Treasnrer will, we are disposed to think, confirm the high opinion entertained of his large aptitude for the discharge of the duties devolving on him. He has avoided two errors usually committed by Colonial Treasurers —he has refrained from multiplying tho divisions of his subject, and not overlaid it with a mass of figures ; hence it is clear and intelligible. As regards the deficit, it remains pretty much aa alleged by the Treasurer in his original Statement, or upwards of £900,000. There is one very re-assuring feature in connection with the Statement of last night. The deficit is almost entirely due to the large falling off in the revenue derived from land. Had this equalled the receipts of previous years, there would have been a small ' credit balance. The revenue from Customs has been much as usual, a sufficient indication of the material prosperity of the colony. The precise causes of the falling oil" in the land revenue are not obvious, but there can be no doubt that the dearness of money has had something to do with it. The sources whence the Treasurer proposes to acquire additional income are a property tax, estimated to yield £470,000, aud in which, as stated on a previous occasion, the land tax will be merged ; an increase of the stamp duties ; additional taxation through the Custom Eouse. From increased Customs duties the Treasurer anticipates receiving £300,000 additional. A variety of articles are to be added to the tariff, and the duty on others increased ; and here in Auckland it will be learnt with satisfaction that the timber and grain duties are to be re-imposed, and that the . tea and sugar duties are not to be, though they may be next year. Spirits are to be increased two shillings a-g.'.llon, which, with allowances, will really only amount to one shilling and sixpence. On tobacco an additional shilling is to be imposed, and the succession duty—the only stamp duty to be altered— is to be increased, so as to reach more effectually large properties. Thus it will be seen that, with £470,000 to be derived from the property tax, and £300,000 from Customs, a total of £786,000 is reached ; but there has to be deducted £147,000—the j land tax merged in the property tax, and some £20,000, remissions of duties, leaving the increased taxation at .£618,000 in round numbers. As regards the deficiency of the year the Government propose to cover it by Treasuary bills. As respects expenditure there are reductions, and the subsidies to local bodies are to be abolished, the statement of the Treasurer, a3 regards the loan, will cause some dissatisfaction, but the blame rests on other shoulders than his. The intention of the Government to abolish some coastal light dues, to effect reductions in the public departments next session, and also at the same time to deal with the finances of local bodies, displays a comprehensiveness of grasp and a thoroughness which, if not interfered with by party struggles, should lead to a complete and permanent restoration of the finances of the colony. "We print elsewhere the new tariff in a form, showing the present rates and the new and additional duties imposed. The Colonial Treasurer anticipates gaining £300,000 from the new scale of duties, and we think it likely that his estimate is pretty near the mark. The Auckland merchants are accepting the inevitable without much .complaint, and the situation is perhaps softened to them by the fact that they had heavy stocks, which they are now clearing out at the rise. The theory of all theee increases is that they are imposed for revenue purposes, but, in imposing them, the Colonial Treasurer is aided greatly by the fact that they will operate &3 strongly protective. He " holds a candle to the devil." Hβ is badgered on all hands to protect particular individuals or industries, and he complies with these requests under the plea that he must have more revenue. He is in a happy position. Chaff, which was formerly admitted free, ia now charged 10s per ton. We presume the chief reason for imposing a duty on tikis article wa3 to protect the locallyproduced chaff ; for, supposing the duty to have been levied on the whole of the chaff imported into !New Zealand during 1878, it wonld only have amounted to £30S. Next we have cork.3, formerly admitted free, but now charged with 15 per cent. tul valorem. This will operate as a protection to our cork-cutters, or cork cutter, for we have only one in Auckland at all events. The value of the cork and corks imported in 1878, wa3 *5539. The duty on dried fruits is raised Id to 2d per lb., and this simply means additional revenue. | The duty received in 1878, at Id, amounted to £13,365, and probably the 2d duty will return £20,000. Fresh fruits, other than oranges, lemons, bananas, and pineapples, are to be taxed 15 per cent. The value of green fruits imported last year amounted to £49,011. The duty will no doubt greatly reduce this, and operate as a protection to our local fruit growers. The duty on crown, sheet, and common window glass ia raised from from Is to 2s per 100 feet superficial, which, of course, is solely a revenue tax. The duty of 9d per lOOlbs. on maize will operate as a protection to the Canterbury and East Coast growers against imports from Sydney and Fiji, and will, to some extent, prevent vessels coming from these ports to Auckland. The increase on the duty on malt from Is Cd to 2s per bushel will benefit the Southern producer,and the ijelson hop-growers will be secured from the competition of Californian hops by the raising of the duty from 3d to 6d per lb. The amount realised last year from the hop duty was £4204, but probably the doubling of the duty will decrease the amount received to one-half. Iron fencing wire was formerly admitted duty free, but it ia now loaded with 203 per ton. The Colonial Treasurer seems to have no mercy upon thoee who use perfumery and perfumed spirits and Cologne water. Perfumery he lias raised from 10 per cent, to 25 per cent, ad valorem, and perfumed spirits and Cologne water from 12s to 21a per gallon. To show how this operates, we may mention that were informed yesterday by an ' "■'Auckland .merchant that on Cologne , , .fWater which had cost £50 10s, ho had ' paid duty to the amount o£ £31 10s. We hafe to be thankful that eau-de-Cologne is not' a necessary of life. Patent medicines, which used to be admitted at 10 per cent., is now taxed 25 per cent., and this at all events will fall. heaviest on the poorer classes who, in default of the orthodox medical attendant, doctor themselves with HoUoway's pills or Davis's painkiller. The duties upon timber, shingles, palings, posts, and rails are, of course, all in favour of an industry largely carried on in this province. 203 per ton is put upon salt, which we presume to have been put on simply for revenue purposes, as no salt ia made here. The chief gain to the revenue will be on ad valorem goods, the duty on which is increased from 10 per cent, to 15 per cent. The new tariff will make an appreciable difference in the cost of living.

During the last fortnight, several discussions have taken place in the House onfinancial questions. The tone taken by the Opposition is, that it is. unnecessary to impose such a large amount of new taxation as that proposed by the Government ; that the Ministers have endeavoured, for political purposes, to make out that the financial position of the colony was worse than it really is ; and that greater reductions should have been made in expenditure. The feeling of the country is somewhat different from that of either party. It is thought by many that, by continuing for some time longer to use the land revenue as ordinary revenue, the new property tax might bo reduced. But above all things, it is determined that the colony shall be put in a sound condition, financially. It is also quite understood that advantage shall be taken of the present changes, so to adjust the taxation that a fair share of the burden shall be placed on realised property. The news lately received of revival of trade and commerce in England, and of the increased prico of wool and other colonial produce, has had an excellent effect in the colony. A rise of Id. per lb. on wool means samewhere about a million of money for the colony. With a higher range of prices for wool, and with judicious administration of the finance and public works, the temporary check which the advance of the colony has suffered will soon be overcome.