A FINANCIAL POLICY. (From the Otago Daily Trains, October 30 )

Otago Witness, Issue 571, 8 November 1862, Page 3

A FINANCIAL POL ICY. (From the Otago Daily Trains, October 30 )

It Is to be hoped that the Executive besides presenting to the Provincial Council an estiimte of Revenue and Expenditure will deliver itself of something like a nnanciii policy. Last bession, the passing the estimates, consisted in voting awa\ r sundry sumwithout reference to the suppos d revet. ue, aud in reality the result of the appropriations showed a much larger sum put clown for expenditure than the es'imited Revenue. The deficiency was vaguely supposed to be covered by the sale of small parcels of debentures, and by leaving it to the discretion of the Executive to permit certain votvs to lap^e. Such a course is calculated to impair tl c credit of the Province, inasmuch as it leaves it in a state of no funds at its hankers, and a condition of hard-upness, that bears the appearance if it does not represent poverty.

We believe there is no colony that has attained to a position of prosperity that has not involved itself deeply in de'it. Paradoxicil as it may seem, the am mat of r leht up to a cer Mm limst ahno-t represents the iitn<iU'it of prosperity. A slight examination will, however, explain the seeming anom ly. The ordinary revenues of a colony o ighfc to \ve;l maintain the current expenili*ure. But there is a class of expenditure which tiny be termed an investment iv reproductive »orks — on works the u>es and purposes of which wiil outlast the season ol their cost, the defrayal of which legitiniably enough should lie spread over a term of \ ears. Roads and jetties, waterworks, telegraph and tramway lines, are reproductive works, because, if not directly reproductive, they art collaterally so. They are not only reproductive because they enhance the value of property, or beciuse, in the shapes of dues and charges, they bring- in revenues, but beciuse their uses to the bod\ of the people, save money. Thus j;ood roads into the interior will save immense sums for cartage; good jetties and d'ipened Harbors will save charges on imports and exports; waterworks will supply a neci'<sary want at a snaller co-t than indivi lual effirt — an I so on, the same line of a'gumeiit tan be applied to every work of public utility. Ol course the line is tobeunwn between locui, aud what, when we say national, nn-ans, in the present instance, Provincial woks. Tims water-works may be purely a local chirge; jetties, a local or a n ition.il charge ; roads, according to whether they are branch or main, the sime ; — but in e\ery case the sani" artc-nient pie ails; the state .should avail itself of the credit af its c nnna id to procure the funds necess-iry to co struct tlie works, which serving purposes of economy over a term of years, should be defrayed by extended payment*. Supposing that t:ie ost of a road could be covered by the t m ye ir3' sa\ ings of its use, surely it is a w policy to expend the savin s in procuring it, aid at the end of the time have the road a-s it were for nothing As we have said the main argument is not disturbed hy the question of whe-' ther the works re piired a c local or nati inal. If local, local bodies should be able to | rocure the funds on the s-une principle ol'deier.-cl payments as if national. But local bodits sho fid as little as possible en'er into re at ions •.. idi foreign capitalists, i is far bett r for them to di'.il with their Government, and the Govjrnment to be the negotiain^ party. It will now be seen vr y we ask the Executive to enunciate a Provincial policy. We want to know how it is proposed to carry out the Provincial public works, how it is proposed to extend assistance to the i onstructi nof public works that should be charged locally? it first should he shown to what extent the Province is hitherto indebted, not only in defa 'ntures already issued, but for liabilities for oitstmiini contracts. Then it should tie determ ned what sum fie Province requires for the construction of public works, the nawnent of wlvc i may ue !< iiititn-itely ex'enle 1 over a term of years Then the con-idetation should be taken into siccount of what assistance m-*y be roqii'red by local bodies for local works. Having arrived at the conclusion of the total amount it would he wise to take the power of bon owing, the mean* of repayment by sinking fund or by gradual redem -tion should be determined. The details of these points, the principles of wbiih we only refer to, should properly be elaborated by the Government.

That Otago is in a portion to borrow, no one who knows its conlition can question. Its population has much increased, and I romises still to increase, and all hough that population cannot afford, to be tax--d to the extent of the outlay required for public works, it citi well afford to pay interest on the co^ and year by year reduce a portion of it. To pi\t the matter hypothetically, silthongh they might not he able to expend £400,000 (£lO a man), in reproductive woik«, they might wol! afford to pay €40,000 a )ear, or £l-p-r man, for interest and redemption. But bor owers ask security and this Otago is in a position t<> show. It can point to its gold fields, the revenue from Which there can be no douhr will permanently increase. It can point to its laniN, not "only those suited for agricultural purposes, but those fitted for sheep fanning, and for giazim;. In a few years it can say the htter will be free, and it can add that t c re.enue then to he derive 1 tbr them whether by sale, o> iur hur leasing will much d pend on the facilities of conimuniration with the interior effected in the meanwhile In short, < -ta-jro not only requires and isjusti-fk-d iti borrow in-jf money, but those who' have i are justified in lending it. The borrower can make good use of it, the lender \vi<l be amply *ecure of repa\m nt