THE New Zealand Times. (PUBLISHED DAILY.) TUESDAY, MAY 24, 1898. THE TRUTH ABOUT PUBLIC FINANCE.

New Zealand Times, Volume LXVII, Issue 3441, 24 May 1898, Page 2

THE New Zealand Times. (PUBLISHED DAILY.)

TUESDAY, MAY 24, 1898. THE TRUTH ABOUT PUBLIC FINANCE.

With which are incorporated the Wellington Independent, established 1845, and the New Zealander.

We are told that “ many false prophets shall rise and shall deceive many.” The prophets have arisen to bear false witness with respect to the Colonial Treasurer’s finance, and the promise has therefore been fulfilled in part; the rest is not likely to be redeemed, because the testimony preferred is too inaccurate and biassed to deceive anyone who thinks twice about it. A ponderous effort has Just been made, with the aid of some figures compiled by Mr G. F. Richardson, to prove that the surplus of .£521,144 is purely mythical, and that instead of a surplus there is really a deficit of .£873,022. The process by which this conclusion is arrived at lacks even the meretricious qualification of ingenuity; it is simply the manufacturing of a deficit by what either is a wilful perversion of facts and misapplication of figures or a series of stupid blunders. The Consolidated Fund for the last seven years is bulked, probably in the hope of making tbo calculation more mystifying. Even that palpable device fails to conceal the facts, however. Taking the figures for the seven years it will be found that the surplus of £521,144 claimed by Mr Seddon is no myth, but a solid and incontestable reality. It can only be made otherwise by Juggling with the figures. Let these figures be examined in their true hearing. They are as follow; BECSTPTS. Ordinary revenue .£29,207,371 Territorial revenue 2.007,259 £31,274,630 EXPENDITURE. DepartmeataTand interest ... £30,683,135 Surplus 591,495

£31,274,630 That is the correct way of showing the accounts. It will bo replied that there are to be taken into account the balance brought forward from previous year, or the surplus left by the Atkinson and the (borrowed) receipts in aid. These are:— Atkinson surplus ... £143,966 Receipts in aid 1,250,200 £1,391,166 But what has been done with these amounts ? The Government has paid off £IOO,OOO ®f the floating debt (a legacy from a previous Government), and transferred to Public Works Fund £1,330,017, which accounts for a total of £1,430,017. Expenditure on public works is expenditure on capital account. The (government has not done wrong in transferring to the Public Works Fund the whole of the borrowed money received in aid of revenue, neither can it for a moment be accused of trickery in using the Atkinson surplus to reduce the floating debt. Taking these additional figures into consideration we have £1,130,017 as the apparent expenditure and £1,394,166 as the receipts, thus showing an excess of expenditure of £35,851, which has been taken out of the surplus of £591,495 shown above. Two other items of expenditure should also be deducted from the surplus. These are sums of £21,500 advanced to the Advances to Settlers management account, and £IO,OOO paid for the cyanide patent. Both these expenditures will be recovered—tho former by repayment so soon as the office is in funds, while the Cyanide Act provides for a small tax or royalty that will return in the course pf a few years the sum paid away by the Govern meut in acquiring tho patent. But these amounts have been spent, and they accordingly reduce the surplus. We therefore arrive at tho true position thus: — Surplus of revenue over expenditure £591,495

Excess amount paid in reduction of debt and transferred to Public Works Fund • .635,851 Advances to settlers 21,500 Cyanide patent 10,000 £70,351 Net surplus 521,144 £591.495 There is, nothing fictitious about the surplus, as we have shown. Conservative members and Conservative amateur financiers and the Conservative press may twist the true figures as they choose. But they will find it impossible to disprove the fact that Sir Seddon’s surplus is £521,144.