THIS The New Zealand Herald. AND DAILY SOUTHERN CROSS. MONDAY, MAY 22, 1882.

New Zealand Herald, Volume XIX, Issue 6399, 22 May 1882, Page 4

THIS The New Zealand Herald. AND DAILY SOUTHERN CROSS. MONDAY, MAY 22, 1882.

New Zealand in its relations with the Home country stands in much the same position which it has several times done before, in having a prospect of entering the London money market. The Government have, after long and careful consideration, resolved upon proposing a new loan to the House, and we believe that, if they are judicious in their proposals as to its expenditure, they will secure the concurrence of tho representatives of the people. That thero vrill be some resistance we do not doubt. In the allotment of the expenditure of the loan it will be found impossible to please everybody, and those who conceive that they are not fairly treated in the matter of public works will naturally feel inclined to oppose further borrowing. There are also some members who are honestly opposed to increasing the burden of debt which already lies upon tho country. Little doubt, however, is entertained that the proposals of the Ministry for a loan of three millions will be agreed to, and this we think will be easily understood when the circumstances are considered. It has now been maui- j tested that the railways have been a most powerful agent in the advancement and prosperity of the country. Disappointment was felt at first, immediately subsequent to their construction, in many quarters, with the results of the policy of railway construction and immigration, but now, our enterprise is beginning to bear abundant fruit. The stoppage of the profuse expenditure of the loans formerly taken up, tho cessation of immigration, aiid other causes, gave rise to a period of dulnnss. This has now passed away, and is clearly seen to have been but a temporary affair. It had also its good effects while it lasted, for it roused New Zealand to the necessity of the utmost economy in the administration, and also impelled the Government to make great improvements iu the working of the railways. lvT«w Zealand made many mistakes in regard to the railway scheme,, but the result is now, beyond all cavil, advantageous. The railways are paying four per cent, on the cost of their construction, and this will in all probabiltty be increased shortly by the mere growth of the population' in the districts through which they pass. The money was borrowed at five per cent., and one per cent, is but little to pay for the indirect advantages the lines have been to the colony. They have given facilities of transport for our natural products, and this has enabled new lands to be brought under cultivation, while thoy have also enabled much larger populations than formerly to reside in the districts which were first occupied. The increase in trad Q . during the last few years has been remarkable. In 1871 the value of the exports from New Zealand amounted to £5,252,054, while in ISBO they were £6,352,092, and in. every other respect the growth and progress of the colony lias been remarkable. In addition to this, tho Government can show a satisfactory state of the finances resulting from their careful and judicious management. The financial year of the colony ends on the 31st of March, and it is expected that when in a few days the Colonial Treasurer makes his financial statement he will show a surplus of £214,000, with which to begin the year. The greater part of this (about £143,000) arises from the great increase which has taken place in the receipts from different branches of revenue. The estimates made . by Major Atkinson last year were considered high, but the prosperity of the colony has developed itself in a most unexpected and gratifying manner. The property tax was first proposed by the Hall Ministry at Id in the £1, last year it was reduced to and there is some expectation that this year there may be a further reduction. However this may bo, it is quite certain that the Treasurer will be able to show that the colony can bear the burden of the additional three millions it is proposed to borrow without having to submit fo any furthor taxation. Indeed, but for that it is improbable that the loan would bo proposed. The Customs duties are already heavy, and cannot be increased by additional impositions, although, of course, a steady increase may be expected from the increase of population. There is a strong feeling against increasing the property tax, which tax it must be remembered was imposed in great part because of the feeling that under the previous system a large amount of property belonging to tho wealthiest people of the colony wholly escaped taxation. A check upon further borrowing would inevitably be I applied if it wero. felt that the transaction would necessitate additional direct taxation, aud this is the boundary of safety for us. The Ministry have stated in the Governor's speech that the chief object of tho new loan is to complete the trunk lilies. In the North Island the railway system is as yot quito incomplete. Thore is a railway southwards from Auckland for about a hundred miles, but the end of the line is not a terminus. It must bo connected with the railways of the southern portion of the island. Thore is some doubt as to the route, but in any case the lino will open up for settlement a largo and fertile territory, rendering it available for settlement, and connecting two of the largest cities in the colony. In nil probability the construction of this lino will be carried on simultaneously with the opening of the " King country" to European enterprise, aud the working of an extensive gokllield at Tuliuii, iu the centre of the island. It is quito evident that if this work of completing the trunk line of tho North Island were further delayed, the settlers of that part of the colony would have good cause of complaint. It was at first thought to raise the new loan at the rate of a million per annum, but tho opinion of the best financial authorities was against such a

mode of appealing .to the money market, aad it was resolved to rasie the whole at once. It will," however, be pot on. the money market at the best time for raising the money. Tho expenditure will, it is believed, be apportioned in the Loan Act. There is one consideration which will greatly tend to overcome tlie disinclination to add to oiir already large indebtedness, and that is that the present Ministry have shown themselves fearless economists and admirable administrators. They have as yet a largo sum in hand from the last loan (about £900,000 it is stated), so that the whole of the works now commenced I can be carried on to completion. The Ministers have judiciously husbanded the expenditure, and thereby the works have bee.n constructed at a much cheaper rate than formerly. The Parliament recently elected by the widest possible suffrage is yefc of a most pronounced Conservative character in respect to public expenditure. New Zealand has realised that anything like waste means heavier taxation, and that it is determined not to submit to.