THE NEW TAXATION AND ITS EFFECTS.

Otago Witness, Issue 1994, 12 May 1892, Page 26

THE NEW TAXATION AND ITS EFFECTS.

As a cogent illustration of the way in which .he new taxation is operating in discouraging the employment of labour I may mention a little incident that came under my notice. A well-to-do country landowner was paying into a local bank a large sum of money, A friend who met him then remarked — " That's a good lump of money, you are paying in." The depositor replied — " Yes, and I Bhallnottakeit out again in a hurry. But for this new taxation, and the uncertainty as to what else this Government may do after the hints various Ministers and their friends have thrown out, I should have laid it all out -as I used to do in improvements on my place, where I formerly employed a large amount of labour in this way. As it is, I am afraid to do anything, because I never know what Ministers may do, and so I shall simply deposit my money until I see how things turn out. Of course, all this money is thus kept out of the pockets of the working classes, who otherwise would have had every penny in the shape of wages, but I cannot afford to run the risk of investing more money in improvements in the present uncertainty, and in view of the further penal action Ministers have foreshadowed against capital, so my money goes into the bank and the labouring class go without it." This particular depositor was not a party politician, but merely a practical large farmer, who spoke from the practical standpoint, irrespective of politics and parties. His words are consequently all the more significant.