THE LATEST.

New Zealand Herald, Volume XXV, Issue 9066, 29 May 1888, Page 5

THE LATEST.

FORECAST OF THE STATEMENT.

FINANCIAL CONDITION OF THE

COLONY.

THE NEW TAXATION.

Later.

I understand that the investigations of the Colonial Treasurer into the finances of the colony have been of a most exhaustive character, and that the result is to satisfy him that the colony is in a perfectly solvent conditionwell able to bear her burdens, and to fulfil all her obligations. After what has been recently uttered in "another place," this assurance will be gratifying to the general public, and doubly so as coming from so high a financial authority; as, perhaps, there is no other colonial statesman, at present in the councils of the colony who has so completo a knowledge and grasp of its finances as Sir Harry Atkinson.

Various schemes of taxation to meet the increasing necessities of tho colony, have been submitted and discussed in Cabinet during the past month ; but I have reason to believe that tho result is that the property tax remains untouched, both as to its amount and the £500 exemption, and that an income and land tax are alike dispensed with, either as being unsuitable to the present position of the colony or impracticable, owing to the cost of collection. The savings effected by retrenchment have not come up to the amount estimated last' year by some £30,000, but reductions are still going on. I understand that the Treasurer will go fully into the question of the reduction and the re-organi-sation of the Civil Service, so as to make it more permanent, efficient, and economical. The additional taxation will be over £200,000. This may appear large, but the increased amount will provide for a good many necessary works out of consolidated revenue, hitherto borne by loan. It is rumoured that great changes are pending, and are to bo effected in the Public Works and Native Departments, and the expenditure associated therewith greatly diminished. There is no likelihood of stamp duties or succession duty being interfered with. I understand that the fresh taxation (over £200,000) will be borne entirely by the Customs. The merchants are making heavy speculative clearances, principally of tea and sugar, being under the apprehension that these two articles will bear a very large share of the increase. Tho revised tariff tends, as was expected, in the direction of protection, but whether it goes far enough to satisfy the purely Protection Party remains to be seen. It is said nothing but purely prohibitive duties will satisfy them, and that they are irreconcileable. Broadly speaking the revised tariff should give reasonable protection to local industries, and at the same time bo of service for revenue-producing purposes. Tho rumoured disagreements in the Cabinet on financial proposals are authoritatively denied. Of course there were the usual independent criticism, and interchange of opinion which facilitate concord rather than prevent it, which is a very different thing to bickering and personal disagreements. The above outlines, I have reason to believe, will be found to be substantially correct.

Nothing is definitely fixed yet as to the delivery of the Financial Statement tomorrow night. All that is authoritatively known is that the Treasurer will do his best to be ready with it. It was the occasion of some surprise that the increased taxation will be borne principally by the Customs. I presume the reason is that under the property tax, property is bearing all it can bear, and that the fresh taxation must be spread over the shoulders of all classes of the community.