THE TIMES ON NEW ZEALAND LEGISLATION.

New Zealand Herald, Volume XXIX, Issue 8767, 6 January 1892, Page 5

THE TIMES ON NEW ZEALAND LEGISLATION.

Our London correspondent writes :— " Whenever capital is supposed to be imperilled byf the assaults of labour, the ,great organ of British plutocracy is sure to take a hand in the fray. To do it justice, however, it always makes an offorfc to get at the root of the matter; even if it scarcely cares to disguise the side on which its sympathies lie. It has followed this course before committing itself to a decided opinion upon the policy of the Labour party in New Zealand, as embodied in the Land Tax Act of the Ballance Government. For some months now the Times has published every weok or ten days a leaded article on 'The Colonies.' These clever articles are the work of a Miss Shaw, a lady journalist who has developed into a bright particular star with great rapidity. I do nob think she has any persouai acquaintance of the colonies, but she writes with equal facility about all. Whenever any particular topic assumes importance in any portion of the colonial empire, she makes it her business to seek out experts, and elicit from them the real merits of the case. As a rule she is singularly successful. Her memory is very retentive, and the result is that though she rarely takes a note at any of her interviews, she is able to present the information she has collectedin an admirably lucid and intelligible style. As she generally gleans her facts from several sources, she is able to throw light upon the subjects she deals with from several points of view. Her comments are temperate in tone, and I am convinced she is far from being desirous of being considered as a partizun. I have mentioned these facts (which are no secret in colonial circles at homo) in order that you may judge of the weight to be attached to an article which appeared on the 9th November, and which evidently reflected the views of persona able to apeak with authority on the effects likely to result from the avowed attempt of tho Labour Party in Now Zealand to levy a prohibitive tax upon tho larger landed estates in order to destroy them. These views have probably boon expressed ad nausewn in New Zealand, but such is not the case on this side, and this clear and temperate exposition of the aims of the new Labour Party cannot but produce a decided impression in a community which, as tho writer points out, has invested, either by way of mortgage or by direct proprietorship, somo £40,000,000 sterling in land in Now Zealand. " The conclusions arrived at arc—that if the Bill becomes law tho mortgage system of Now Zealand must, come to an.end on estates which exceed £5000 in capital value ; as mortgages will lose their value tho money invested will bo recalled, and will £0 elsewhere. la proof of the correctness of this deduction, it is mentioned that the uncertainty which is caused by the present condition of affairs is sufficiently illustrated by the fact that one important English company is in doubt whether the taxation which it may bo called upon to pay will be increased next year to the extent of £15,000. Other English companies, it is stated, are showing very plainly the view they take of the situation, by instructing their agents to call in all capital which can be realised. This, you will observe, exactly corroborates information which has reached me from a variety of independent sources, and which I have communicated from time to time. " Tho arguments by which Mr. XV. P. Reeves supported his contention that tho mortgage system would not bo endangered are not very respectfully dealt with. Ho is reminded that if ho suppressed the mortgagor there would bo no place for the mortgagee, and that mortgagees may find it desirable to transfer their investments to other lands which do no tax investments to the same extent. Looking at the Land Tax Bill as a practical measure likely to affect the agricultural prospects of New Zealand, and through them the probable returns of capital which is invested there, the writer of the article in question holds that it is almost impossible to doubt that tho effect can bo anything but disastrous. Even tho general tax alone will, it is thought, prove so heavy that New Zealand agriculture will labour under a serious difficulty. It is hoped that the time for reflection provided by tho action of tho Legislative Council will enable public opinion in the colony to change considerably before legislation is again attempted. How Miss Shaw fell into the mistake of supposing the Land Tax Act had not become law it is difficult to imagine, for a copy of the Act was in her possession. However, even Homer sometimes nods. Mr. Walter Kenneway has promptly removed tho misconception thus created, but not a few absentee landowners have expressed great disgust at learning that tho legislature had taken the fatal plunge and had crossed the Rubicon. They foresee red ruin and the breaking up of homes." i