THE New Zealand Herald. AND DAILY SOUTHERN GROSS. THURSDAY, AUGUST 13, 1885.

New Zealand Herald, Volume XXII, Issue 7405, 13 August 1885, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN GROSS. THURSDAY, AUGUST 13, 1885.

It was quite expected that the Supplementary Financial Statement to be brought down by the Colonial Treasurer would be a "a staggerer," and it is so. That he would have to amend his estimates of receipts and expenditure was pretty clear almost from the moment when he spoke. In the first place, the House refused to listen to his proposals for going into a protective policy, and imposing a vexatious mass of Customs imposts. Then, again, it was clear as mouth after mouth passed, that the revenue was not coming up to the very modest estimate made, but was falling in a most discouraging manner. The Treasurer hoped to have the additional duties about the middle of June, but he will have to pay back all that he collected under the higher scale. And now here we are, with nearly five months gone of the financial year, and with no arrangement made whatever. Sir Julius Vogel estimates that he will lose £70,000 by the House refusing to agree to his proposals with respect to the Customs revenue. The Customs revenue in 1884-85 amounted to 1 £1.411,10- ; for the year ISBS-BG, the Treasurer estimated that the Customs revenue, with all the additions he proposed, would be £1,500,000. This, according to his statement, must now be diminished by £70,000—making it £1,430,000. In fact it seems pretty clear that, although Parliament has granted additional duties on spirits and wines, Sir Julius Vogel will not receive more- Customs revenue than he did last year, if, indeed, he receives so much. As the Parliament would not allow Sir Julius to make his new succession duties retrospective, he says he has lost by that £30,000. That is a gross exaggeration, but it is convenient for Sir Julius. The revenue from stamps in 188-1 was £510,011) ; this year, with the additional duties, the Treasurer estimated that he would obtain £538,500. Now he estimates that 1 the amount received will be £508,500, so that, with the additional imposts, his revenue will be below that for last year. The property tax was estimated this year (whenincreased from jid to:|d) to yield £270,000. The addition proposed the Treasurer estimates will produce £47,000, so that the Property Tax will be £317,000. Last year, Sir Julius Vogel estimated that he would receive from the railways the sum of £1,120,000. The amount actually received was £1,050,743. This year he estimated that he would receive £1,116,000, but already, within a few weeks after he made up his former estimate, he sees that it is utterly fallacious. He now thinks that he will receive £66,000 less than his former estimate. He speaks of an expccted saving in expenditure, but that is a mere figure of speech. The railway revenue, according to the Treasurer's statement, will bo £1,050,000, or somewhat less than last year's receipts. The additional mileage which has been opened, and the percentage of profit (if any) which \ we are now making, we shall perhaps be able to ascertain when the Public Works Statement is made. The Treasurer thus calculates that he has to find £159,000 to make ends meet, and that he doe 3

upon the theory that his supplementary estimates will only amount to £12,000. They will no doubt considerably exceed that sum. Ho chokes the deficit by sweeping off his anticipated surplus, by increasing the Property Tax, by floating for two years jt>so,ooo of deficiency, bills that ought to have been paid this year, by charging to the Public Works Fund (that is, to loan) £-5,000 which ought properly to be charged to revenue, by taking possesion of the small sum which was to be devoted to the reorganisation of the Civil Service. As to reduction of expenditure, Sir Julius is quite helpless.* That is not his forte. He has, it seems, pored over the estimates to find where he could apply the pruning knife, but in vain. He says : " I regret we are not able to do much. We are willing to reduce the vote for A.C. and Defence by £10,000, and I thiuk we »may save soma thousands in the expenditure of other depart--1 ments, without, however, taking less votes than those set down." That is all, and even that is nothing; for wo learn from Wellington that the Government mean to propose a defence loan of £300,000, out of which will be taken ail the savings spoken of.' Sir Julius says nothing about the proposal to borrow another million, but we will be informed on that point when the Public Works Statement is made. The thing is bad enough as it appears, and it does not require much looking under the surface to see that we cannot meet our expenditure without falling back , on borrowed money. Sir Julius Vogel complains that it has been stated that in the four months his estimates are short by £70,000, but he admits that the deficiency is £21,000, and that, besides, repayments of Customs duties have to be made. In all probability it will turn out that £70,000 is nearer the mark than £21,000, which would make us £280,000 short at the end of March next.