EDITORIALS.

New Zealand Mail, Issue 771, 10 December 1886, Page 22

EDITORIALS.

Hitherto some hopes have been entertained that there would be a recovery in the Customs and Railway revenue during the latter half of the current financial year, and that some of the heavy deficit exhibited by the j first half would thus be wiped off. Unfortunately the prospects of this hope being realized seem to grow fainter and fainter. Instead of fiscal matters improving they have gone steadily from bad to worse, and the latest report is the worst of all. It is startling to find a month’s Customs falling short of “ six figures.” Yet last month’s receipts only amounted in round numbers to £99,400, and for the fifst eight months of the official year the return is under £852,000, whereas it ought to have been £940,000 at the proportionate rate of the Treasurer’s estimate. At this rate the year’s Customs would bring in less than £1,280,000 instead of £1,410,000, representing a deficiency of over £130,000. This is a very awkward state of affairs, and it must be confessed that, so far, there seems no valid ground for entertaining any hope that this heavy deficiency in Customs will be averted. There are no present indications of any appreciable expansion of importation. The low price of imported goods, of which the Colony reaps the benefit, tells seriously against the ad valorem duties, and the happily improving habits of the people in respect of temperance involve a substantial and increasing loss in the wine and spirit duties. No one could wish that the revenue should increase in that particular branch. Yet it is a formidable item, and the loss is much more than the revenue can afford. It is plain that a resolute and carefully-thought-out policy of financial reform must be a prominent feature in the Government’s policy. “The good old rule, the simple plan ” of restoring equilibrium by imposing, fresh taxation is no longer applicable. Some increase in ’taxation is perhaps inevitableand practicable—an augmentation of the Property Tax, for instance —but in most respects it will be found that the limit of. elasticity has been reached, and that increased taxation would not produce enlarged revenue. In these circumstances the necessity for stringent retrenchment in expenditure becomes of paramount importance, and some definite move in that direction cannot be much longer delayed without grave risk of disaster.