THE BUDGET PROPOSALS.

New Zealand Herald, Volume XXXI, Issue 9581, 4 August 1894, Page 3

THE BUDGET PROPOSALS.

OPINIONS OP THE NATIONAL > ' - ASSOCIATION. INTERVIEW WITH THE PRESIDENT. The Council of the National Association met j yesterday and finally formulated its opinion in regard ■to the : Budget, which has been, under, consideration more or less . for some - time r-: past. .. After the meeting, a Herald representative interviewed Mr. J. Batger,' the president of the association, for the purpose of gathering the views of the body of which, that gentleman is the head. - ; PRESENT FINANCIAL POSITION. " 1 5fes," said Mr. Batger, in answer to our representative's query, " Has the Counoil of the National Association had the Budget . under its,consideration?'' - "»We have carefully studied the Financial Statement lately made by the Colonial both as regards the position of the ' colonial accounts, and v.the financial policy ot the Government. 'The Budget falls naturally into two divisions i the report up oil the present and past, and the proposals affecting the future." ' ' j " What about the present financial position?" ' ' .!>!■ _ ; "As to the past year's accounts," replied Mr. Batger, " the general result appears to be that, whereas the year began with an available crodit balance of „ £283,779 it (ended, with £290,238, showing that the surplus for the year, on the ordinary revenue account of the consolidated fund, was £6454. Included in the year's revenue, however, is the sum of £284,500, which is not revenue, strictly spealdng, but the amount of liberated sinking, fund, applied ; to general purposes.' It is further noticeable that the Colonial Treasurer -admits that his expenditure is lighter than' was . expected, through the postponement ot expenditure which he had estimated would have been required during" the year." '• : "■ * rr"°i *f,> INCREASE IN PUBLIC DEBT. 'y V Then the public debt," went on he, " has been increased during the year by £730,421. And it is suggestive of bad management that, notwithstanding the large balances on first of April the Government are now proposing to anticipate, by four months, the collection of the year's Land Tax." " How does the Budget Statement illustrate Mr. Ward's complaint about the National - Association's criticisms on the previous Budget ?' "We are gratified to find that, notwithstanding the Treasurer's ill-will to the National Association, he seems to have been converted to our view, that the public accounts can be made simpler in form, and ought to be intelligibly rendered. It is remarkable that Mr. Ward, who two short months ago tried :to create an impression that the public debt was reduced, when at Oatnaru he said that it was less per head of population (dividing it equally among men, women, and infants in the colony) now than when his party came into power, should have to admit in his official Budget speech that instead of being less it had actually increased during the last year by £730,421. < If we compare the present debt with what it was when affairs passed into the hands of the present administrators, with their "non-borrowing policy," the figures are these : Net amount of public debt 31st March, •1891 ... .. .. .. .. £37,343,308 Met amount of public debt 31st March, •189*,,.. v..- •• •• •• - 38,874,491 > ;•Or an increase of .. .. £1,531,183 Another feature worthy of remark disclosed by the Budget is that the ostensible reason tor' converting the £500,000 Imperial guaranteed deX»ehtui'es, namely, to lessen the annual burden of interest thereon, proves to have been wholly inadequate as a motive, and the true reason for the procedure would seem to be, as was suspected at the time, to make use of . the accrued sinking fund for general purposes." BORROWING PROPOSALS. " What do you think of the Government's borrowing proposals ?" " If the Government have been false to their non-borrowing policy in the past, it seems that they are openly to repudiate - it in the future. And the Council thinks their borrowing proposals are fraught with great danger to the colony. Taxation is already too high. It presses hard upon enterprise and industry, ana accounts in great measure for the present depression. Increased taxation must follow fresh-loans." , . '." But the Government propose to apply the greater part ot their loan to making advances which will be paid by the individual borrowers to whom Government will advance i iuoney ?" * , iSMTJie chief proposal as regards borrowing ifVjfbat of introducing £1,500,000 of capital antiually on the public accouut, for the pUrpose of lending it at 5 per cent, per annum to farmers; in order to promote settlement. It is questionable whether this would have the effect desired. It would, of course, tond to create more or less of 'a boom,' buyers being tempted to offer higher prices, through being able to secure loans at n low rate of interest, but this would tend to reaction afterwards and would return the land market of the colony again to its present congested state. Mr.: Ward seems to consider that the present selling value of real estate is at " bed rock." But .this cannot be, unless it can be shown thac the price of produce is also at bed rock, for the selling value of an estate depends upon the return it can be made to yield ; and it our frozen meat, wool, grain, and other produce continue to fall in value, land must ot course become also less valuable. There is a danger that the : colony may gradually become hampered with immense " globo assets" from the operation of the same causes that have brought banks and other financial institutions to grief. And in the case of the colony there is the additional danger arising from party or personal bias, and the difficulty of managing so special a business through the ordinary official channels. ' The alternative would be to create an army of valuers, inspectors, etc., and to open the door to all sorts of favouritism and corruption." COLONIAL CONSOLS. , " How about the proposal for colonial consols ' "The Government proposal for issuing £1,000,000 of colonial consols at 4 per cent, simply means depleting the open markets in order to swell the resources at the command of Government. Of the same nature is th« i proposal to close the trustee savings banks." " Does not th? Council think _ that the Government are justified in borrowing money for reproductive purposes?" ;; ',C "The displacing of private enterprise 'by the Government investing and controlling the capital of the country forms a serious danger. So far, the investment of borrowed money in public works, called "reproductive," has not been a success; and does not encourage, any hope ,of better results in the future, for we have the Treasurer's own authority tor saying that instead of improving returns, there is just now a distincl falling off in the revenue from public works.' NO GRASP OP THE SITUATION. " The Budget proposals of the Government ' as a whole," concluded Mr. Batger, " confirm our fears that Government does not grasp the , situation. They appear to think that legislation can remedy the present depression, and lead to a return of prosperity, while from our point of view the interference with and harassing of enterprise only make matters worse, and prevent the free use of capital in the employment of labour ; while the attempt to concentrate the currency of the colony m the hands of Government, tends still furthei to restrict enterprise and destroy confidence in the colony's future."