The County Councils and the Gold Duty.

Otago Witness, Issue 1952, 23 July 1891, Page 12

The County Councils and the Gold Duty.

TO THE BDITOB.

Sir,— ln a note of The Week in your Issue of June 22 you made certain statements with regard to the abolition of the gold duty and the sequences therefrom. You *ay that the tax in its entirety was paid over to the local bodies. This is not correct. Two and a-half per cent, was deducted for collection. 3 his amounted to about the present coit of the valuation of claims, &a. You say that the effect of the abolition has driven the county councils into a panic for want of funds. I shall give a tew facts | bearing upon thia. Some of the Otago counoils making statements of inability to carry on for want of funds are simply making gross misrepresentation of existing facts ; for, although the maximum of rate is six farthings, all the rate levied up to date is only half of that amount — or three farthings. Secondly, the valuation of property is on the lowest aeale, for in this county there are farms of 200 acres only valued at the upiefc price of £200. or perhaps 50 per cent, higher, and it is ridiculous to say that the sum of 12s 6d per year, or even double that amount, would be excessive on a property of that sort, for having the privilege of good roads. The more intelligent of the farmers are now recognising that a tax upon the gold causes many of the miners to abandon mining and start farming, thus inducing over-production, and therefore keener competition in localities where the market is getting more and more limited through the miners deserting their old pursuits. You cay that upon principle it is impossible to formulate a defence for the gold duty, and stillyon finish your article with pointing out the fact that the gold duty not having been abolished in the North Island iB " a suggestive element in the solution of the difficulty." Is it really come to this, that the leading paper in this colony propounds a principle and still in the next breath sees fit to double npon it?— l am, &0. JOHK WKBNKB, Secretary Confederated Goldmlners' Asiooiation of Otago. Lowburn Ferry, Jnly 12. [We have omitted portion of the above letter, ss it is written in an excedingly offensive tone, and contains statements whioh are In no way justified by the facts of the case, and further do not bear in any way upon the matter under disctufton,— H».]