THE New Zealand Times (PUBLISHED DAILY). TUESDAY, APRIL 21, 1891.

New Zealand Times, Volume LII, Issue 9274, 21 April 1891, Page 2

THE New Zealand Times (PUBLISHED DAILY).

TUESDAY, APRIL 21, 1891.

With which are incorporated the iVdlwjton Independent, established 1815, anti the New Zealander.

In welcoming Sir Ilany Atkinson back to New Zealand wo have much pleasure in congratulating him, not so much on the great improvement in his health as on the superiority his condition shows over the disquieting bulletins of the last few weeks. That the journey and work have not overtaiedhis strength and retarded bis recovery we are glad to find, and in that feeling all New Zealand will, we feel sure, be with us. Sir Harry’s views (which he was kind enough to give us) on the subject of Federation, and of whut he saw in Hyduey, appear in another column. He has evidently done his work on behalf of the Colony very thoroughly, working out all the bearings of the Federation problem as it affects this country. Once more he has displayed his accustomed thoroughness. One thing in connection with this question of Federation with Australia is perfectly clear. However strong the reasons for Federating may be, the question is deprived by its financial aspect of all immediate importance to us. If ws Federate with Australia on the basis offered to us we submit at once to an absolutely impossible finance. We should lose L 400,000 (in round figures) of our Customs revenue, assuming that the Federation adopts, as it most probably will do, the Victorian tariff as the tariff of the Federation. Wo should have to pay our share of the Federal expenditure, which is calculated at £2,220,000, or 11s 5d per head. Our proportion at lls 61 on 600,000 people would be £342,000. But as we should receive back Gs 3d for collection of revenue, defence and other purposes, our fresh expenditure for Federal purposes would be 5a 3d, or £157 500. This, with the loss on the Customs Revenue of £400,000 (calculated by the Government statist at Sydney, Sir Harry explains) wou'd bring our deficiency up to £557,000. it would be impossible to make up so large a sum out of any source what ever. Therefore, Federation with Australia is now impossible for New Zealand. If Federated Australia chooses to federate the public debts of the various colonies, the finance becomes at once easy. The Federal Customs duties would be increased and the interest charges would be met; moreover, the increased security given by Federation would in time operate towards the reduction of the charges. But would the Australians bo likely ever to Federate the debts F It is not improbable thac they may see that Federation is impracticable without the Federation ot the debts. The second Federation appears to some minds to be a necessary accompaniment of the first. The bearing of the Tariff question can only be discussed when we have possession of the same sort of information as Sir Harry has given us about the effect of the Victorian Tariff on our revenue. That is a question for the Australians. But until they settle it by federalising the debts, and agreeing to alter the Federal Tariff accordingly so as to enable each Colony to raise the proportion of the interest charges it now gets from the Customs revenue wo cannot talk of Federation except in debating society fashion. The Australians have first to Federate ; and having Federated themselves they have to Federate their debts, before we cau take ad van tage of the provisions of the Federal Constitution for the admission of new States. For the present Federation for us is hung up in the clouds.