BANQUET TO THE POSTMASTERGENERAL.

New Zealand Herald, Volume XXIX, Issue 8887, 25 May 1892, Page 6

BANQUET TO THE POSTMASTERGENERAL.

The Hon. the Postmaster-General, Mr. J. G. Ward, addressed the electors of the Awarua district at Winton on May 6. He was afterwards entertained at a banquet, at which the Premier was present. We give the mere important part of his speech. Mr. Ward, who was received with enthusiasm, said ho desired to thank the meeting for the flattering reception they had accorded him. He was there to tell them what the Government had done, what they had left undone, what they had attempted, and what they proposed doing. He would ask them, as all were liable to forget what had transpired in so short a time, to carry their minds back to the period before the Government took office. There were leaving our shores thousands of the manhood of the colony ; the colony was passing through a severe period of depression ; there was beginning the great conflict between labour and capital, which, it was believed, would make serious inroads on the revenue of the colony. The present Government took otiice in troublous times. It was broadly said that they could not conduct the affairs of the colony with satisfaction, and it was predicted that they would be certain to adopt a borrowing policy. It was said that there would probably be a large deficit at the end of the financial year; that they would be reckless in their expenditure, and many things were said by those who criticised, which were calculated to do harm to the reputation of the colony. It was also said that they should never have altered the incidence of taxation in the direction of a land and income tax, and it would be his endeavour to elucidate these matters for their bonefih that evening. The people who had said all these things could not have been watching the progress of events within the colony. The voice of the colony had said at a general election that the policy of the Government must bo changed. Members were returned to the House who were opposed to the policy of the Atkinson Government, and who were favourable to a change in the incidence of taxation, and he considered it was the duty of the new Ministry to effect the changes they believed so necessary. They came into office to effect this, and, if his hearers would follow him, he would endeavour to indicate some of ths chief changes which the Government had seen fit to introduce.

FINANCIAL. In his Financial Statement his colleague, the Colonial Treasurer, hail provided that £.'50,000 should bo set aside for the purpose of forming roads to lands that were thrown open for settlement. They had remitted a tax amounting to £6000, which was levied upon the sale of native lands. They had also resolved to reduce the floating debt by £200,000, and they had done it, and he thought this was something the Government might take credit to themselves for. Ti)at step redeemed them from the charge of being reckless. What inducement could they have had to do this if they were really what they had been called, "the scatter-cash Government.'' (Applause,) They had likewiseintroduced an innovation. Believing that the sporting community were willing to contribute thcir~eh ur« to the expenses of Government they had placed a tax of2i percent, upon the totalisatac, and thus asked those supporting it to contribute to this moderate extent. They had effected a change in the administration of public accounts by amalgamating tho land fund with the consolidated fund, and had found a home for what the Colonial Treasurer had very correctly termed "a wandering and erratic child." They had not intimated that they intended borrowing and had thus defeated the prognostications of their opponents. (Applause.) They had deemed it essential to effect retrenchment in the public service where it was possible, and without pressing unduly on the rights of the officers of the service, and they had thus effected a saving of £45,000 per annum. They had also introduced innovations in postal matters by the introduction of a penny postage scheme, and the proposed reduction in the charge for newspapers to the Australian colonies to one half-penny. They had improved the telephonic service by tho reduction of the charges. They were determined to tackle the unemployed question by relieving those who were in want of work, ami finding work for them in their proper sphere. (Applause.) They had also determined to tackle the " exodus " question, to abolish the property tax, to introduce a tax on absentees, and to impose a land and income tax. {Loud applause.) Ho had now indicated some of the changes which the Government had proposed to introduce, and to some of which effect had been given. What had been said regarding them was that they would severely tax the settlers on the land ; that they would be unable to obtain sufficient revenue, and that tho effect of their taxation would be to drive away capital from the country. Ho would call tho attention of those who said capital would be driven away from the country to the fact that the deposits in the banks had increased, and he thought that as good an answer as could be got to their contention. Regarding the statement that their scheme of taxation would frighten away investors, he would give them an instance of a large landowner in the North who was so frightened that he decided no longer to be a landowner under such a Government, and sold out to a man who cut it up, and resold it at a profit of £3000 over the price he gave for it, and, further than that, put half a dozen moro settlers on the land to replace the frightened individual who sold out. (Laughter and applause.) He was quite aware that in some farming communities some misconceptions were likely to arise regarding the operation of

TIIE NEW TAXATION, and he would like to place before them one or two considerations. Some of the instances given by the public press had been based on imaginative cases, or else those who condemned the policy of the Government could not have understood the operations of tho tax. He would base his statements upon some cases which had been carefully prepared, and had been examined by experts. There was the case of an estate, owned privately, valued at £101,000; mortgages, £17,000 improvements, £30,000. It paid under the land tax £646; under the property tax, £500, or £146 more under the present Government proposals than the last. Another case was an estate valued at £130,000; mortgages, £86,000; improvements, £22,000. Under this system it paid £621 ; under the old, £240, being £381 more under tho present tax. The less tho value of the improvements, the more in proportion would tho owners of large estates have to pay on tho value of their holdings. Another case showed land value £101,000; mortgages, £5000; improvements, £35,000. This under tho land tax paiu £593, under the property tax, £500, or £93 more under tho present tax. In this case the amount of the mortgages and improvements was very small. Another estate showed a value of £340,000. Under the land tax it paid £3593, under tho property tax £1600, or an increase of £1993 to tho present revenue. (Applause.) Another estate showed a value of £196,000 ; it would pay £1910 under the land tax, under tho property tax only £1100, being an increase of £810. In another estate the value was £196,000; mortgages, £226,930. It was a peculiar case, but cases of this kind did sometimes occur. Tho improvements were £9600. Under their taxation tho amount to be paid would be £1166, under the old system £60. The new tax would perhaps induce the owner to cut it up and yet rid of it. (Laughter and applause.) Another estate valued at £73,000, with mortgages of £27,600, paid £1616; under the old system £1550, being an increase of £66. One other case. An estate valued at £50,000, with mortgages of £24,000, being of a more moderate size, paid £192, as against £200 under the property tax, being a deCrease of £8 under the now system. When they came down in size the position was different to that of the large and unimproved estates.- Now he came to the case of the absentee owner. The Government believed that it was fair that tho absentee owner, to be equal to the residential owner, should pay an extra 20 per cent. Why ? Because they believed the residential owner contributed through the Customs and railways, a great deal more in proportion than the owner who was absent. At the same time they took care that no one desiring to leave the colony, and remaining away a reasonable time, should como under the penalty. As an instance of the working of this part of the system, a property valued at £140,000, with improvements of only £400, would now pay £1420, of which £141 would represent the owner's extra 20 per cent. ; under the property tax he only paid £620, or £800 less than under the new ays*

tern. Coming to the case of the small farmers —a man with a holding worth £5118, with improvements worth £1920, and mortgaged to the extent of £4000, v, ould have paid £8 per annum under the old system, whereas, under the Government's proposals he would go free. After giving further illustrations of how the new taxation would operate in favour of small holders as compared with the property tax, the hon. gentleman said it was necessary to go into these details when a desire apparently existed in some quarters to create a wrong impression. Some people had asked why improvements had not been exempted altogether, while others thought the exemption fixed too high. With regard to that, he would point out th&fc the total amount required from the land and income tax was about £350,000 per annum. If they had an ideal land tax and exempted improvements it would only realise about £170,000 per annum. The late Property Tax Commissioner estimated that a land tax pure and simple would only return £125,000 per annum, so that those who thought that linpovements should be exempted either overlooked the financial necessities of the case I or thought that a sum of about £200,000 could bo raised by the wave of a magician's wand. Several farmers had pointed out to him that the valuations recently made in connection with the land and income tax would cause local assessments to be higher than before. If this did happen it would also have taken place under the Property Tax, and assuming that it had occurred the natural inference would be that the rate would yield more than was required, and in that case the ratepayers would approach their representatives on local bodies and point out that a rate of say .fd in the £ would produce too much, and the rate would then bo reduced. (Applause). Under the property tax a farmer paid on his stock, furniture, and effects, but under the now system these would be exempt, and no one who contributed to the revenue under the land tax would be called upon to pay a sixpence under the income tax. Some people might ask why

THE GRADUATED SYSTEM had been introduced in connection with the land tax, and his reply was the necessity for it had arisen owing to the way in which large blocks of country had been locked up and kept from settlement. In proof of this he might mention that there were 47 holdings representing three million acres, and that 33 public companies owned 2,073,700 acres, of the value of £4,000,000. Unimproved land was held by 1143 persons, its value being estimated at £15,000,000, which was certainly a large amount to bo held by that number of persons, many of whom were simply speculators. Some companies found themselves in the unfortunate position of having properties thrown on their hands, which they were holding in the hope that the improvements effected by other people would enable them to come out all right in the course of a few years. In the ordinary course of business if a man made a mistake he had to bear the consequences, aud while it might be an easy way to get out of a difficulty of that kind—by waiting till the exertions of a neighbour made up a loss—such a system was not calculated to encourage settlement. The Government had therefore introduced a graduated tax with a view of inducing the holders of large areas to cut them up into farms of reasonable size, and allow settlement to take place in localities were little or none now existed. (Applause.)

SETTLEMENT OF THE LAND. Mr. Ward quoted from the return published of the land taken up during the last year, and pointed out that even in newspapers hostile to the Government this had been headed " A remarkable record in the progress of settlement." During the current year it was proposed to open '200,OOOacres in Southland alone, and he thought it must bo admitted in fairness that his colleagues had done a great deal to promote settlement, while the area sold under the cash system was a sufficient answer to those who declared that Mr. McKenzie was opposed to freehold tenure. In connection with the Native Department he might mention that 200,000 acres had been acquired, of which they had resold 50,000 acres in small farm allotments under the special settlement system. It was sometimes necessary to make comparisons, and he wished to point out that their predecessors during tneir three years only acquired 50,000 acres from the natives as against '200,000 acres by the present Ministry during a period of fifteen months. In addition to this the Government had, thanks to Mr.Cadtnan (with whom he sincerely sympathised in tho bereavement that had befallen him) reduced the expenditure of tho department to about £400 within the estimates for the year, and he might say that this was the first time for many years that the unauthorised expenditure vote had not been called into requisition to assist in carrying out tho department. The Native Lund Court Judges had been reduced from 12 to 7, and the work was as well done now as before, and it had now been decided to abolish the Native Department altogether. Tho Native Land Courts had been transferred to the Justice Department, which it was considered was as much entitled to take up the business of the Native Land Courts as that of the Resident Magistrate Courts. The Government, moreover, thought the time had arrived when the laws dealing with tho natives should bo identical with those under which Europeans lived.

MR. PERCEVAL. Passing to another subject, he might say that the Government, believing that the time had arrived when the colony should bo represented in London by a young and energetic Agent-General, had appointed Mr. Perceval to that oflieo, and in saying this he wished it to be understood that he was making 110 reflection on the distinguished gentleman who had so long rilled that office with credit to himself and to the colony. Since Mr. Perceval's assumption of his duties several alterations had been made, one being the establishment of an information bureau in connection with his department, at which people from all parts of Britain or the Continent could obtain all the particulars they desired with reference to tho land laws of the colony and other points of interest to people desiring to emigrate. In this way a large amount of information regarding the colony had been disseminated, and in addition to this Mr. Perceval was laying himself out to induce three classes of people to come to the colony —tourists, persons in receipt of fixed incomes, and practical farmers with small capital. If tho department induced an influx of this kind it would not only benefit the colony, but those who came here, for they would find New Zealand in no respect behind the old country. He had said enough to show that the Government had acted wisely in the matter of the AgentGeneralship. Thev had also effected a reform in another direction, lie referred to the

UPPER HOUSE. Instead of members being appointed for life as formerly, they were only to bo appointed for seven years, so that in the event of anyone doing anything incompatible with his retention of the position (and these things sometimes occurred) he would probably at the end of the seven years, instead of drawing his salary for life, have to vacate in favour of someone else. (Applause.) Tho Government had no desire to conceal their intentions with regard to the Upper House. They believed that if they had tho confidence of the people, and introduced measures into the House of Representatives embodying what the Government believed to be the feeling of the country, and these Bills were thrown out by the Council, they (the Ministry) would be only exercising a proper right in seeking to have a number of members added to tho Council in order to give effect to proposals which they considered to be in the interest of the colony at large. And in speaking of the hostility that might be shown by the Council to Government measures he did not wish it to be understood that they objected to anything in the shape of proper criticism on the part of that body. After what he had told the electors they need not be surprised if the Ministry, on the arrival of the now Governor, made an intimation to His Excellency that it was their desire to have some new blood introduced into the Legislative Council. (Applause.) Referring to the

POSTAL AND TELEGRAPH DEPARTMENTS, over which he had control, Mr. Ward said that both had kept well ahead of the settlement and progress of the colony. During the past year a number of changes had been effected. It was proposed shortly to increase the value of postal notes from £1 to £5, and in addition postal notes had already been issued to many country offices not money order offices, and this boon would no doubt be appreciated by the settlers in remote and scattered districts. The maximum of money orders had

been raised to £20 for all parts of the colony, Australia, and England. The number of money orders had increased by 18,812, and the value by £49,900. The telephone subscription had been reduced to an all-round charge of £5. In this respect he instanced that the reduction had resulted in the return of only £1707 less revenue than the previous year's transactions. The home letter rate had been reduced to 2£d, formerly it was 6d, Bd, and a shilling. Since this reduction the inward letters to the colony had increased 23 per cent., and the outward letters by B'B per cent. The book and packet rates had also been reduced 50 per cent. All these reductions had been the result of the colony joining the Postal Union, and were, everyone would admit,in the true interests of the colony. Iu the case of the Telegraph Department a great reform had been effected in the matter of securing perfect secrecy in the telegrams despatched. Formerly a copy of each telegram put in had been kept at every forwarding station, and also at the receiving end. This system was now abolished, annd no copies were kept, the original messages being sealed up immediately after transmission and afterwards destroyed. He maintained that persons sending telegrams should be placed in the same position as those using the Post Office, and the same secrecy secured as in the case of a letter. This ho claimed the Government had done. Young women were now undertaking the duties of operators in the telephone exchanges. This change had been tried in America, Australia, and other countries, and the experiment had worked well. Fifty had been placed in the chief exchanges, and if the trial were successful the system would bo extended. The young men now employed in the exchanges would not suffer, as they would be transferred to the Postal and Telegraph Department as the young women became proficient. The classification of officers had been improved, several defects the present Government found on taking office having been remedied. The officers of combined departments now numbered 2311 (excluding letter-carries and mail contractors), and these officers had now gome heart and life in their work. It was a fact that they were now better satisfied and in a better position than they were fifteen months ago. He paid a high tribute to the zeal, energy, and ability displayed by all ranks of the service, including the executive officers. Embezzlement and drunkenness were almost unknown. Notwithstanding the enormous reductions caused by the numerous concessions to the public, the revenue of the department during the past year was no less than £309,423, and if the department took credit for the work performed for other departments, the revenue over expenditure would have amounted to the sum of £134,328 the actual surplus, however, was £52,686. Wherever settlement was going on, the department had kept pace with it, and during the last twelvemonths, not less than 4S additional offices had been established. The averago number of post offices to inhabitants in the colony was now one to every 520 ; in the United Kingdom it was one to 2071; in the United States one to 1001 ; in Canada one to 628 ; Victoria, one to 695; New South Wales, one to 899. During the year the Savings Banks accounts had increased by 14,000. and the amount deposited by £190,000 over the previous year. Had the policy of the Government been what some writers said, would the department have been entrusted with this large amount of the earnings of the people? And he would say a word as to the two postal conferences at Sydney and Hobart. He had represented the Government at the former, but, as regards Hobart, the business was not of a nature in which New Zealand particularly was interested. The Pacific cable did not concern us as it might do had the proposed cable been intended to touch at New Zealand. He entertained a very decided opinion that, instead of paying a large subsidy to the Pacific Cable Company by way of guarantee it would be to the interests of the colony that it should provide a cable of its own to Australia. This could be done at a cost not exceeding £150,000. The revenue derived by the existing cable companies was £30,000 per annum, and the rates and charges to our own colony were excessive. The Government were very seriously thinking of the propriety of establishing an independent cable. It would bring New Zealand into more active touch with the outside world. It was at present very isolated and distinct from other colonies, and by cheap communication in this respect no one would derive greater benefits than the farming community. He also proposed to connect Stewart Island with the mainland by cable. Regarding the ocean mail services the Government had taken considerable trouble, and they had now a service equal to a mail every two weeks to Europe, and the total cost of all the services was £30,000 less than formerly. Regarding the

PENNY POSTAGE PROPOSALS of the Government, they were no doubt aware that a Bill to that effect had been passed last session, and he would say a few words upon this matter. For very good reasons the Government believed that it was not desirable to bring it in at present. He would specially direct attention to the fact that when the Government carried this proposal they did not fix any specific date for it to come into operation. They took power in tho Act to bring the penny rate into operation by Order in Council, and when the Government believed the time for putting the order in force had arrived it would be done. They had not abandoned the penny post proposals, it was simply deferred in accordance with the Act, and when tho time was considered judicious it would come into operation.

AGRICULTURAL INTERESTS. Representing as ho did to a large extent an agricultural constituency, he would place before them a few facts on this head. As one or two of the interests connected with the pastoral country were now assuming very large proportions, he would briefly refer to cheese and butter, because these interests had not received that consideration their importance demanded. Taking cheese: in 1881 the production of this reached 3,171,6941b ; in 1886 the production was 4,594,7951b, and in 1891 it still furthor increased to 6,975,6951b. The butter producedin 1881 amounted t08,453,8151b, and' in 1891 to 16,310,0121b. He would point out that the production of both articles had nearly doubled in ten years. The Government realised the importance of both these industries, and his colleague, the Minister for Agriculture, was now giving the matter very careful consideration in order that by some means assistance could be given to develop these two large industries. As one haying considerable experience in the cereal business, he would say that throughout the colony the settlers should give more attention to the manufacture of cheese and butter, and less attention to the raisingof certain classesof grain crops. Ho would also point out that our sheep had increased from 16,564,595 in 1886 to 17,865,423 in 1891. This was a considerable increase considering the enormous in-road made upon the stock of sheep by the export of frozen meat. In the matter of the number of sheep New Zealand ranked second amongst the Australian colonies, New South Wales heading the list. In making comparisons he thought they must admit that the colony had attained to a very great position indeed. He did not believe in crying the colony down as some people apparently did. Its position was a good one, and it was desirable for all to recognise this. They saw people in the street and asked them how they were getting on, and they replied, " We are going to the dogs." He regretted to say this tendency had existed-for many years past, and he for one would like to see this changed and everyone to know the real facts and importance of our position. He would also point out to them that the total acreage under cultivation (including grass-sown land broken up, but not in crop) last year was 8,462,495 acres, an increase of 447,069 over 1890. Now Zealand had an acreage of sown grass land eight times greater than all Australia and Tasmania taken together. Comparing New Zealand with the other colonies we were the smallest, but when the grazing capabilities were taken into account the position of New Zealand was very much altered. He had taken reliable statistics, and they proved conclusively that our land was worth nine times that of Australia. Looking at the matter in this way we must attach a great deal more importance to New Zealand, and have more hope in tho colony than we have shown in the past. Ho would mention that the Government fully believed that New Zealand should adopt a reciprocal tariff with Australia. They felt that our products should flow into Australia, and there should be no hindrances against the products of the other colonies coming into ours. Eflorts were being made by the present Government to bring about) a

reciprocal tariff between the differ colonies. He also mentioned that j 0 Minister for Lands had now in preparati*, a Drainage Bill, which would give reli« to many settlers who were labouring undei disadvantages at the present time through the absence of such a measure. With regard to the Civil Service, the Government felt that the time had arrived when it should be properly classified, and the system of retiring allowances discontinued. They believed a system should be established under which every officer in the service should contribute a small part of his wages to a fund from which a retiring allowance could be formed, anl that officers in the various departments should be compelled to insure their lives. The Government proposed to introduce a Bill to give effect to these proposals.

IN CONCLUSION Mr. Ward said he was not foolish enough to believe that the whole of the proposals of the Government met with unanimous approbation. They should consider the variety of interests involved in the colony as a whole, and they must realise that it was almost impossible for any Government or for any Ministry to give universal satisfaction. He claimed, on behalf of the Government —although they had received an amount of abuse quite unprecedented and had also been grossly misrepresented— that they had endeavoured to do what right so far as they were able. All parts of the colony had received attention at the hands of the Ministry, and he would ask them, in the face of facts such as these, not to be misled by adverse criticism. Let them look into the policy of the Government for themselves, and judge it impartially and give it a fair trial; let them realise that when the Government took office they were surrounded by difficulties, and that they had emerged from these, he had no hesitation in saying, successfully. They had not done what was predicted —gone in for more borrowed millions or landed the colony in a deficit; on the contrary, they would have to announce to the House a large surplus. They had taken means to stop the outflow of population. They had not, as some people said, carrie a system of taxation that had driven capital from the colony. If what he had told them was right, and they believed it, he would ask them to give the present Government some credit for not having given effect to the wild and extravagant policy some people believed they were going to do ; if there had been a deficit, a large exodus of people still going on, if money had been going out of the colony, what would t4ie position of the Government have been? Undoubtedly they would have been held up to obloquy and derision. If it would have been unjust to have blamed the Government under these circumstances —the worst side of the picture—they had a right to ask for some credit, and as to the future, he would ask them or any other fair-minded man who had the interests of New Zealand at heart to look at the returning population ; the improvement in settlement; the rising revenue; the large increase in our exports and imports. All departments of the State were being well administered. Let them all put their shoulders to the wheel and do what they could to assist generally in the promotion of the well being of the colony, for he felt the time was coming when New Zealand would take its proper place amongst Her Majesty's possessions as one of the most favoured and prosperous States in the British empire. (Loud and continued applause.) Mr. Andrew Kinross moved, "That this meeting thanks the Hon. J. G. Ward for the able address he has just delivered; expresses its confidence in him as member for Awarua; and heartily supports the policy and administration of the present Government." Captain Brown seconded the motion. On being put the motion was carried unanimously and with enthusiasm.