THE OTAGO DAILY TIMES SATURDAY, JANUARY 26, 1895.

Otago Daily Times, Issue 10267, 26 January 1895, Page 4

THE OTAGO DAILY TIMES SATURDAY, JANUARY 26, 1895.

A New Zealand cable published [in London on the 22nd announcing an estimated deficiency of .£250,000 in the colony's revenue has, we learn from a Press Association cable published in to-day's issue, occasioned surprise and uneasiness in the city. The statements of receipts and expenditure of the consolidated fund for the first three quarters of the year -which hare been published enable us to estimate what is likely to be the result on the 31st March. Unless there is a large increase in the revenue it is not likely that the estimates of the Treasurer will be reached. We may point out shortly what the results have been. If we leave out the sinking fund released— 1 as much of it has been utilised for the payment of debentures—but include in the receipts the debentures issued under " The Consolidated Stock Act 1884 " in aid of revenue, it will be found that on the whole—we are using round figures—our expenditure has exceeded our revenue by no less a sum than £374,000 for nine months. If we deduct from this the £290,000 carried forward from last year, the net deficiency will be £84,000*5 We observe that the New Zealand' Times has arrived at the same figures and has published a balance sheet showing that the revenue amounts to £3,118,225 and the expenditure to £3,492,636, leaving the deficiency we have mentioned. It is true that during the last quarter of the year the amount of payments for permanent appropriations, such as interest, sinking fund, pensions, &c , &c, will be small compared with the previous quarters. Still, the amount will not be less than £325,000. It may be a little more. We have then to pay in addition £200,000, being contributions to the public works fund, for up to the present only £50,000 of the £250,000 has been paid. That will make, outside the provision for annual appropriations, a sum of £525,000 to be paid in the last quarter. This is about the average for the year of the permanent appropriations. Starting with a deficit of. .£84,000, the revenue will have ta

come up far better than it did any previous quarter, unless wo have to face, wo do not say a deficit, but a sura to bo carried forward next year of perhaps only £100,000 to £150,000. This was, we think, tho estimate of the surplus that was given by Sir Hoiibrt Stout in his speech in the House when he dealt with finance. The Treasurer states that he thinks tho other items of revenue will make up the loss of customs and railways revenue which will be below his estimate. We do riot think that the revenue will be made up, but, on the contrary, we think the shrinkage will continue during this quarter, and if this proves to be the case, next year the Treasurer will be placed iti this position: he will be unable to transfer to the public works fund" a sum of money equal to what has been transferred during the present year, and in previous years. How then is the public works fund to be aided ? It seems to us that we are face to face with the problem either of borrowing or of drastic retrenchment in the public service. "We need not point out that on the present year's transactions, excluding the 'amount carried forward, the deficiency for the nine months amounts to about £374,000. Of course the Treasurer may say that he has the right to take to credit the balance with which he began his financial year. No doubt this is so, but still' it must, be borne in mind that oh the actual year's transactions there will be no surplus, but there will, in all probability, be a deficit. The surplus this year, if any, will be made up out of moneys carried forward from last year's surplus. The financial position of the colony is therefore exceedingly grave. Compared with the revenue of 1893-94, the revenue for 1894-95' will be" less. This need not have been unexpected, for with the fall in the prices of our products the purchasing power of the people is less, and consequently less dutiable goods will be consumed. iTurther, if the owners of land, as they have a right to do, demand a reduction ■in the capital value of their properties, next year the land and income tax must be less than it is this year. We therefore have to face a shrinkage in the revenue which will be more emphasised next year, because not only will the indirect taxation of the colony be less— customs duties, stamps, &c.^but the direct taxation must also fall. We do not mention this for the purpose of alarming or shaking confidence. It is our duty, however, to point out the true financial condition •of -the -colony, and the sooner the Ministry and members of both Houses recognise the truth the better. It is useless to go about the country talking about the prosperity of the colony when our revenues are falling, the power of consumption of our people lessening, and prices declining. Wages are also declining, and we understand that those acquainted with the labour market affirm that never, perhaps, during the last 25 years has there been less chance of employment than now for even agricultural labourers at remunerative wages. We do not mean to say that this fall in revenue is wholly attributable to the Government. It has no doubt been brought about in many ways by circumstances over which, they have had. no control. It is absurd, however, to-say that the colony is prosperous a.nd that they have made it so. It is not prosperous, and in too many instances Ministerial efforts that have been put forth, have-.nqt been in the direction of promdtihg-prosperity. The colony^ as we have said, is suffering from lowness of prices of its products. It is also suffering from a lack-.of confidence in those who have money to invest and those who would otherwise think of improving their properties. No one can meet property-owners, farmers, capitalists, &cl without feeling that there is a widespread want of confidence abroad in the community: nor do we think that there can be any doubt as to the cause of .this lack, of confidence. Much of it is political. There are many men who. have not, only no confidence in the present Administration, but who assert that it is politically corrupt, and we do not wonder at such an opinion when the Government boldly declare that their administration is founded on the principle of " spoils to the victors." The inevitable'result of what has happened in New Zealand is that all classes of the community are being injured. The capitalist is getting less for his capital, the farmer less for his products, and it must follow that the labourer will get less wages and less employment. A. prosperous country is always the best for the workers. In a poor country they suffer most, they suffer soonest,' and they suffer longest. We have pointed out the financial position. It cannot be denied. Unfortunately few of our members seem to be aware of it, or able to deal with it. They talk about "State banks," "capitalists," "trusts," and " syndicates," and during all their talk the colony is sinking financially. Work is getting scarcer and wages lower, and all that the Government are doing is talking and providing for themselves and their friends.