THE PREMIER'S FINANCIAL STATEMENT.

New Zealand Herald, Volume XXVIII, Issue 8581, 1 June 1891, Page 5

THE PREMIER'S FINANCIAL STATEMENT.

[Bi* TELEGRAPH.—OWN CORRESPONDENT.] ' ■ " - ■ , Wellington, Saturday. Interest is taken in the effect of possible alterations in the . incidence of taxation ; which it is expected will cover the whole ' field of fiscal adjustment, from the Customs tariff to the fixed deposits in banks. The . Hon. Mr. Ballance naturally declines to bo drawn on this subject. He is < not left, however, without abundunt suggestions. The Post this evening furnishes a series of r . prolific expedients-in, the resources of the t: 't colony which a skilful financier may mani■i''.' pulate with effectfixed deposits, passengers tickets, mortgages owned by absent mortgagees, commissions of Justices of the frV Peace, a graduated tax. according .to value fir on receipt stamps, amending the present feSSV rates of -stamps for every, purpose, stamps on i art unions and raffles, and an amend* te--' ment in the. fees of all licenses for, special purposes; not interfering - with ordinary ' trade. It is even suggested whether the time has not come to impose certain duties 1 -' on certain exports as well as imports. The I 1 following gives the graver aspects of the possible now taxation to whioh the Premier may 1 have recourse in his forthcoming Budget —"The succession duties should * be revised and'i; increased' in several directions and the expedient by which these < duties are now in some measure at times evaded by deeds of gift, executed 'when death is approaching closely, should be provided against. The stamp duty on mortgages where the mortgagee resides out of '~ • the colony should also be made, we think, considerably heavier than that on mortgagees where the interest remains; iu i the, colony for use or re-investment. The difference ,of - interest between what can be obtained in - England and what is paid in this colony is so ; groat ' that we do 'not believe a differential stamp duty would in the ■■ sightest degree operate in the reduction of • the amount of foreign capital seeking investment. in the colony. The drain of interest on private indebtedness to ; foreign lenders is scarcely less a serious drawback to colo- . nial prosperity than the drain caused by V payment of the interest on the public debt.One form :of investment which absorbs a large amount of colonial capital ; in a com- ■ paratively unproductive and undesirable' •vmanner might also be subjected to a higher rate of stamp duty than it now is. . We allude to fixed deposits on interest in the • Banks. . The amount so deposited is be- ; 'tween f5,000,000 and £9,000,000, and only a penny stamp is required on the document acknowledging the receipt of each deposit, however large. ■ A special rate of stamp duty, graduated f according to the amount,• "might,very fairly bo levied, and indeed we ■ - do"not See why a graduated rate of-stamp S": ■ duty should not be applied to receipts gene- ! rally, according; to amount, as is now the case in regard to promissory notes and bills of exchange. " An / ordinary ; scale, ranging ■- from the present penny up to, say, a shilling," would bring in a; large amount of re-; i ,venue, and nob be felt severely by anybody, | a higher scale applying :to deposit receipts ! in' Banks and Loan Companies."