OUR HOME LETTER

New Zealand Herald, Volume XXV, Issue 9083, 18 June 1888, Page 9

OUR HOME LETTER

Orjß last monthly summary was published on May 21, and in it we stated the principal points in the proceedings of Parliament from its meeting on the 10th of May. The Government may be said to have commenced the session by bringing forward the Loan Bill empowering them to go on the London market tor two millions. The Bill was passed during the session of 1887, but owing to a verbal error in the clause pledging the colony not to go on the market again for a certain time, it was thought better to wait till the present Parliament rectified the error temporary provision being made in the meantime through loans from the Bank 0 New Zealand and the Colonial Bank. There was some resistance this session to the passing of the Loan Bill, even in these circumstances, as the feeling is strong in the colony that any inconvenience should be endured here rather than that we should increase our indebtedness. Mr. Scobie Mackenzie, a rising politician, and who represents a considerable force of public opinion throughout the colony, moved, " That it is inexpedient to proceed with the Loan Bill until the House is satisfied from information supplied by the Government that the expenditure under it will so far complete the railways as to enable the public works railway policy to be laid aside until the increase of the population of the colony, the recovery of its revenue, and the expansion of its trade are such as to warrant its resumption." This amendment was defeated, the Loan Bill was passed, and sent to London by the San Fransisco mail. Within the last few days we have received information of the floating of the loan at an average price of £97 15s 7d. This is regarded in the colony as being, all things considered, a fair price. We are pledged not again to go on the market for three years, and indeed there is a general sentiment that we must cease all borrowing for a considerable time longer than that. The great Parliamentary event of the month has been the delivery of the Financial Statement, which was brought forward in the House of Representatives on the 20th of May, by Sir H. Atkinson. Premier and Colonial Treasurer. We give elsewhere the larger portion of the Statement, so that readers in England may have full information respecting the financial position of the colony, but may here briefly summarise the heads. The revenue for the year ended the 31st of March, I?SS, did not realise the amount estimated by £103,336. The expenditure was less than the estimate by £33,942, or. excluding compensation paid for loss of office (£22,104), it was £56,046 less than estimated, which sum, deducted from the revenue short received, gave an excess deficit of £47,290 for the year. For the last two years there has been a deficit of £395,253 in the ordinary revenue account, and £133,350 in the laud fund account, making a total of £528,603. Last session it was agreed to fund £400,000 of the deficit, so that now there remained £128,603 to deal with. The Premier calculated that, to clear the year and leave a small surplus, lie would have to raise £146,193. The property tax is to be left, untouched at Id in the pound. The duty on tea is to be raised from 4d to 6d per lb., while large increases are to be made on almost everv article on the tariff. The deficit on 31st March last of £128,603 is not to be added to the permanent debt, as has been done with former deficits, but is to be met by a primage duty of 1 per cent, levied on all goods imported into the colony, whether free or dutiable, for two years. The primage duty, it is estimated, will yield about £58,000 a year. From the increased Customs duties it is estimated that £207.000 will be realised. The total Customs revenue last year was £1,251,651 Bs, so that the increase made is very considerable. But there is a strong feeling throughout NewZealand that revenue and expenditure must be equalised without any reference to borrowed money, and that our income must be made to meet our expenditure. To attain this object great sacrifices will be made. On this point of a resolution to have done with borrowing, and to prevent the recurrence of deficits, there is but one sentiment. But there is considerable difference as to the action of the Ministry. Several of them are declared Freetraders, but justify themselves for bringing in the present tariff by saying that it is imperative that they should raise every penny they can from the Customs. The majority of the Protectionists in the House are members of the Opposition, and the Protectionist aspect of the tariff has taken them so completely that they have determined to support the Government in this matter * Without the support of the Protectionists the Government would never have been able to place such large duties on the Customs. Whether the tariff will operate as Protective in keeping out imports and fostering the- establishment of manufactures here, and at the same time will increase the revenue to the extent estimated, remains to be seen. Our own belief is, that the new tariff will be burdensome to trade and commerce, and that the Government ought to have made still greater reductions than they have made in expenditure. For instance, the expenditure on the education system amounts to about £400,000. By alterations on this system which would not impair its efficiency for affording a free education to the working classes of the towns, and the settlers in country districts, the expenditure could be reduced by about £200,000, thus obviating the necessity for a heavy and vexatious tariff upon merchandise. The Ministry have, it is true, largely reduced the expenditure in all departments, but it would be better for us to make large sacrifices even in the conveniences and accommodations to which we have been accustomed, than unduly to increase taxation. However, the Customs Duties Bill has so far been carried through the House of Representatives by large majorities, and in all probabibility will be passed in very much the same shape as it was introduced. _ Next, perhaps, to the tariff, in the interest it has excited is the Chinese question, which has indeed been a " burning' one in all the Australasian colonies. - All these colonies, and especially those on the continent of Australia, are threatened with an enormous migration of Chinese. They come in i large numbers, and as they work hard from morning till night, and live in a very wretched manner, they can easily accumulate money. The working classes are exceedingly averse to having a large Chinese population here, and their sentiments are participated in by the great majority of the colonists. It is felt that there might be such an influx of Chinamen that in a short time their numbers would approach to those of the European population. Supposing they were admitted to naturalisation and to all the rights of citizenship, these colonies, instead of being purely European communities carrying with them in their steady progress the fruits of European civilisation, would be regulated by the ideas of a people altogether alien, and obnoxious in religion, habits, and customs. With these people we could not mix. They would either assume control of the colony, or would subside into the condition of a servile class. To have them here in large numbers would exclude the labouring and handicraft Europeans, from which our society is constituted. It is felt also that if there were many Chinese here, ready to work at wages which would not maintain a European labourer with his wife and family I

in an adequate position, that all of that healthful immigration which has been the main cause of the progress of these communities, would be stopped. The landing of Chinamen in Australia was opposed, and the New South Wales Government passed an Act of a kind which was condemned, as tending to embarrass the Imperial authorities in their negotiations with China. A conference on the subject has just sat in Sydney, and it has been agreed to ask the Imperial authorities to negotiate with China, so as to secure that the Australian colonies shall not be flooded by Chinese. As America has lately concluded such a treaty, it is anticipated that there will not be much difficulty in obtaining similar provisions applicable to the Australian colonies.

The annual statement of the Minister of Public Works has not yet been made, but its nature is pretty certain. The new railway works will be of a very restricted nature, and the completion of some will be deferred for a period. The construction of the North Island Trunk Railway will not be gone on with beyond the present contracts let. There has been much discussion regarding the best route for that line, and several parties are now out surveying the country _ between where the works are being at present carried on and Tarauaki. In all probability, when the work is resumed, we shall know so much more respecting the interior of the island that we shall be able to complete the work to better advantage than if it were gone on with at present. For several years past, the purchase of native lands has been practically stopped. For one. thing, there has been but very little demand,"land speculation having been a very unprofitable branch of business in the North Island of late years. The law affecting the purchase of land from the natives had also been altered as an experiment by Mr. Ballance, under the idea that the natives would conduct sales through the officers of the Government. The experiment was an entire failure, as the Maoris would do nothing under the new law. The Government propose to remove the restrictions and disabilities that have been enacted, and it is believed that this will lead to the Maoris disposing of their surplus land. Tawhiao, who with his immediate followers has been living since the war in the territory of the Ngatimaniapoto tribe, has at last agreed to the terms of the Government, and will take up his residence at Mangere, near the city of Auckland, at the same place where his father (Potatau) resided for many years. An important event has occurred during the past month as affecting the interests of Auckland. For some years past there has been no profit in the trade in kauri timber, owing to the keen competition amongst the companies owning the bushes and mills. The kauri tree grows only in the northern portion of the Province of Auckland, and for many building purposes the timber is unequalled. But owing to the competition spoken of, the timber was being cleared off and sold at the price of the cutting. Some persons interested in the trade in Melbourne conceived the idea of purchasing all the existing companies, and so regulating the market to a paying price. Mr. David Blair, who has been connected with the timber trade in Melbourne for many years past, organised a syndicate to make the purchase, and he and Mr. G. Holdship, of Auckland, completed the negotiations. Twentyeight sawmills have been purchased ; 160,000 acres of freehold land, and 270,000 acres of leasehold, and 1,600,000,000 feet of kauri timber. The completion of this transaction will liberate a large amount of Auckland capital, which for some time has been locked up without giving any return. An attack on the San Francisco service has been threatened by some of the Southern members on the score of ; economy. They have, however, no case, as it lias been shown that the cost of the service is more than repaid by the postages. The service by the direct steamers is beaten, not only by the San Francisco, but by the different lines winch come to Australia and tranship to New Zealand. The Queen's Birthday was celebrated on the 24th of May in the usual manner. The day was kept as a holiday. The volunteers fired a feu-de-joie, while a royal salute was fired from the guns in the Albert Park.

Two old and well-known citizens of Auckland have died during the last month. Mr. W. R. Waddel, who had been mayor for three terms, and had for many years taken an active part in till public matters here, died on June 8. On June 11 Mr. Samuel Browning, a director of the Bank of New Zealand, and who had been connected with several commercial institutions, died at his house, near Auckland.