New Zealand Mail. PUBLISHED DAILY. SATURDAY, JULY, 8, 1876.

New Zealand Mail, Issue 242, 8 July 1876, Page 12

New Zealand Mail. PUBLISHED DAILY. SAT URDAY, JULY, 8, 1876.

The task before Sir Julius Vogel on Tuesday evening last, was the most important that has ever fallen to a Colonial Treasurer in this colony. It is not mere stereotyped praise to say that he was equal to the occasion, nor is it detracting from the ability he displayed to assert that whilst the occasion, from its importance, presented no ordinary difficulties, it yet, by that very importance and by the novelty which in some respects surrounded it, enabled a capable statesman to add to his reputation. There was one feature about the circumstances under which the Financial Statement was made that was especially favorable for the Minister whose duty it was tomakeit. That feature was the opportunity which was at last given for putting the absolute income of the colony before the world. Hitherto the other Australian colonies have had, as it were, a statistical advantage over us, inasmuch as their published annual revenues always included the sums received from the sale or rents of their waste lands; whilst in New Zealand, owing to the existence of Provincial Governments, these items never appeared as forming a true portion of our resources, and inconsequence these resources have had unfair comparison with those of our neighbors. Mr. Anthony Trollope whose reputation as an English novelist doubtless admirably qualified him to write of public men and public matters m New Zealand, fell into the mistake we have indicated, and forgetting that the published revenue of Victoria, for instance, was largely indebted for its apparent amount to the land fund of that colony, whilst in New Zealand the land fund was excluded from general ealeulations, inferred that our national income was small in comparison with that ot other Australian colonies. As a matter of fact, and as figures show, our national income is. per head of the population, largely in excess of the other colonies, the only difference being that in the past we have not included the land fund. In the future this fund will appear in. our annua national statement, and whilst that appearance will not prevent its expenditure locally, it will yet show the public creditor, as well as the public from whom it may be found necessary to borrow, the real condition of our resources. As a truth, the appearance of the land fund in the budgets of the other Australian colonies has not altered practically the position of their resources as contrasted with ours. That position has simplv been that, whereas with them the receipts from the land fund appeared on one side of the general balance sheet, and a large expenditure for mere local works in different districts appeared upon the

other, with us similar receipts and similar expenditure appeared only in the annual provincial budgets. Hence the apparent disadvantage to which allusion has been made, and which has led even better qnalified gentlemen than Mr. Anthony Trollope into mistakes similar to that which he committed. If the entire actual indebtedness of the colony cannot be exactly defined under the altered financial circumstances produced by abolition, the reason, as the Colonial Treasurer has clearly pub it, is to be found in the difficulty at the present moment of obtaining the exact amount of provincial indebtedness. Howevei, it is fairly estimated (having ducted th , e accrued sinking fund) at £18,313,994, involving an annual charge of about £815,000 on the Consolidated Revenue, and £220,000 on the land revenue. And here we may he permitted to point out to those gentlemen in the colony who, for the pettiest political reasons, are anxious to destroy our financial credit, and to those abroad who it is proper should be well informed as to our exact financial position, that of this total indebtedness a very large proportion means an indebtedness incurred during former times for war purposes; whilst that proportion which under our present enlightened policy has. been iucurred tor the carrying on of immigration and the construction of public works, is now proved by actual tangible receipts to be an investment which, as a mere matter ot enterprise, will prove enormously remunerative directly and indirectly.. With regard to the Consolidated. Itevenue the experience of the past year cannot be said to be disappointing. I he expenditure has been less than the receipts, and those receipts show an actual increase on tlie previous period, winch, under the conditions is satisfactory. It will be remembered that the revenue foi the financial year 1873-74 showed an increase of £312,000 ; that for 1874-/5, an increase of £184,000 ; whilst that for the year just concluded shows an increase ot £29,000 —or, for the three years, a total sum of £525,000. Now, for purposes of comparison with the other Australian colonies, it must be borne in mind that where increases have been shown by them, those increases have very largely consisted of sums acquired by parting with the public estate. The increase shown with us has, oil the contrary, been wholly due to the commercial and social prosperity of the country; and that such an increase did not leap up last year by hundreds of thousands of pounds is merely indicative that forthe moment our prosperity has reached a certain standpoint. The increase that does appear, is sufficient proof that we are not retrograding ; and the experience of Victoria and New South Wales is sufficient to show that with our railway system , at work on something like an extensive scale, as it is just beginning to be, we shall find our future trade healthily stimulated, our national production largely increased, our great resources daily receiving further development, and in consequence our national income showing an annual increment. With the practical indication before us, however, that we are just at present at a standpoint, and with the commercial fact that a large product (wool) has fallen in price during the past year, the wisdom of—for a time at least—curtailing immigration and exercising in all directions the utmost possible economy, is apparent, and it is pleasing to notice has at once been recognised by the Treasurer. The financial policy rendered necessary by abolition has been clearly and fairly stated by Sir Julius Vogel. Although some of the Otago members are as much excited about their land fund as CsRVANr tes’ old maid was about her honor, we think it will be at once admitted that the principle of localisation of the land revenue, which has been . so strictly insisted on by them, and which the Treasurer has frecjusißiy stated that he is prepared to carry out, is recognised to its fullest extent, for it is very properly stated that the land revenue of each province must bear its just proportion of the interest on the cost of public works carried out in that province. There is no disposition shown to do that which not a few malevolent persons have asserted would be done, namely, to make the land resources o£ one province civaiilcible for expenditure in another. And here we come to the question which on Tuesday night created such an utterly unnecessary debate : the determination to raise the price of land throughout New Zealand. With that determination we may say a once that we completely concur. It is at common practice for people whose experience with regard to the disposal of the public estate is about as extensive as that of those gentlemen who get a living by cutting small pieces of turf for the recreation of caged larks, to prate about the admirable policy of giving away the public lands in order to promote settlement. Whilst it is quite true that the main object to be held in view in disposing of the public lands is the promotion of settlement, it is equally true tha/b any indiscriminate sacrifice of those lands, or any scheme of settlement which does not

bear in view that all men are not born farmers, and that industry and a little money are absolutely required by settlers, will simply defeat its own object, by ultitimately handing over our land in large tracts to monopolists. Fixing a fair price upon the land can in no way discourage settlement, for this by no means carries with it the condition that in all instances the bonce fide settler must pay cash down; it simply provides that, under whatever plan he may be put in possession of land, he will have in time to return directly to the State the full value of that land. On the other hand, fixing now the price of land at a value which will prevent its being sacrificed, gives the public creditor the best security. Sir Julius Vogel’s tribute of praise to his predecessor was at once gracefully made and was fully deserved, whilst his initiatory utterance that the question of abolition cannot be considered to be undecided, but that it is beyond doubt settled, was important to start with, and at once showed that he was prepared to meet the situation with decision. It is impossible within the limits of one article to deal with the questions suggested by the Financial Statement, we must therefore reserve much else that we have to say for a subsequent issue.