THE FINANCIAL DEBATE.

Otago Witness, Volume 25, Issue 2321, 25 August 1898, Page 26

THE FINANCIAL DEBATE.

_ «> RO-COJS'FJDENCE MOTION REJECTED. WELLINGTON, August 16. In the House of Representatives this even- j Iny, ! The Right Hon. Mr SEDDON, Colonial Treasurer, in moving that the House go into Committee of Supply, said that since the delivery of the Financial Statement it had been much discussed, and he intended to review iho reviewers. Objection, had been taken to a most interesting and correct table which he contended was a sound one standing on strong legs. Ho quoted from the appendices of the House to show that the figures in the table relating to surpluses and deficits were accurate. Tho table had been insortod in the Statement as a beacon to warn future Treasurers of the shoals and dangers which had been experienced in finance in tho past. To ignore Treasury and deficiency bills outstanding and never to meet them was absolutely wrong finance. In 1887-88, to wipe off past deficits, £2,232,000 had to be added to the public debt in order to show a surplus of £W5 in that year. Ho had beon accused of dishonesty with reference to the drawing loans, but the system had been introduced by Sir J. Vogel in order to provide funds during the first month of the financial year, when there was no revenue coming in, and he had the use of such funds for the whole year. Since 1895, when an alteration had been made, ho had not had the use of this money, but if he had had the use of it, it would not have made any difference to his finances. By adding the amounts transferred to the public works fund to last year's surplus, making a total of £1,851,144, the total of the surpluses since he had held office would be arrived at. He referred at length tcr the necessity for proceeding with railway works, which could only be done by raising money for the purpose. Speaking of the increases under the new tariff, he quoted figures to show that, taking the years from 1895 to 1898, and deducting articles on which remissions were made and the increases on goods not affected by the tariff, and the net increase was only £47,160. It was best to allow the tariff to remain as at present in order that it could be tested. Since he took office he pointed out that the amount of Treasury bills outstanding had been reduced by nearly £300,000. He quoted from the population and agricultural statistics to show the progress of the colony since the present Administration took the reins of government. As compared with 1390, the public debt was now fourpence per head less, and the colony's credit in England had also ' steadily improved. With reference to the increased expenditure, he pointed out this was rtecessary to cope with the expansion of the colony, and he said that after Janua-ry next , the Minister for Railways intended increasing tho pay of those working on the lines by six- , penca per day. Referring to the preferential tariff proposals, he said it was in the colony's Lest interest to foster the closest commercial relationship with the mother country. The time was ripe for reciprocity, and he hoped , tho proposal would meet with tha general approval of the House. ] Captain RUSSELL pointed out the irregularity of the Treasurer making two speeches , on th« question of Supply, which was an m- , i fring*aaent of parliamentary procedure. The ( r Treasurer's speech was a peculiar ono, and ■ ( reminded him of the proverb, " He who ex- i cuses accuses," as the Treasurer had con- ! . siderod it necessary before a single word had t ' heen said against the Statement to rise to i]f> j fend himself from newspaper attacks. tie ' . complained that the Houso knew nothing of ( ' where tho money voted had been expended, - and if the House had had that knowledge it ; ' ■would hasre taken care to make provision [or ,' ( railway trucks rondored necessary by the in- 1 creased traffic. He intended moving an ' amendment later on, which he hoped the \ Treasurer would receive with pleasure and ". good nature, as it was intended to get him 7 out of a hole. Referring to the table of surpluses and deficits, he said it had been com- ' , piled either by an unsophisticated plodder or • l a very sopliistieated perverter. He admitted that he possessed no financial skill, but the Financial Statement seemed to him to have , lioen compiled with a view to conceal rather than disclose. He questioned whether it wa.s closirftble that there should be such large sur- j plusM every year, and thought more care , should be taken witli r?spect to the estimate . of r«Temie and expenditure, as surpluses cvi- ] dently were manufactured by under-estimat-ing tha revonue. Respecting increases under j c the new tariff, he said members were placed ! , at a disadvantage owing to insufficient data i befora them, but he pointed out that in 1596- J &7 considerable revenue had been secured from j mining machinery, as the mining boom had ' then be&ti p/« its height. As showing that the , neAv, tariff had increased tho pressure on the ; - people of the colony, he pointed out that" i*i • 7 1892, before tho revision of the tariff, tho cus- , j toms duty per head was £2 6s 4d, while in ' f 1837 it vfas £2 13s. With respect to prefer- : \ Oritial duties, he asked what did tho Treisurev ' \ really moan by bio reference to theso duties? T],e only explanation he (Captain Ru^pll) ] itould find was that the Treasurer, whilst 3 tinder the influence of the Secretary for Slate j for tha Colonies, had made some promise in 1 the direction of favouring British as compared ' with German goods. The attack made in the j table of deficits and surpluses was an ungene- [ rous one. The table was intended to hhnw ; fthat deficits had been the rule previous to the present Administration. With respect to the deficit of 51.522,77?. shown in 1850, and attri- 1 buted to Sir 11. Atkinson, ho said Sir H. ; c Atkinson took office at the end of 1879, and ! c was not responsible for this deficit. "With re- ; ' fwence to railways, ho pointed out tf'nt dis- . 1 trie!; traffic or.gincer.-i reported that there was t every indication that the receipts would be in- t isea<iP(l by £50.000, instead of there bcin?;, as i slated in the Budget, a decrease in revenue \ Bo moved as nn amendment — "That in the _ 1 opinion of this House it is desirable that the t Government should take immediate steps to . \ provide sufficient monoy to enable the oon- j strnction of railway rolling stock to be pro- 1 cee-ded with at onco, thus making due pro- ; J vision for tlip pressing reeds of the colony . C a'-d the immediate ro-omploymcnt of men out ' vi \.oc\" , r llic PREMIER suggested that the dcbr.te & jihoiild close at onco, when the Houso could t deal practically with the matter in Captain •- Ru^ell's amendment. ' \ Tlw Zion Mr CARROLL said it would ii have been well if Capfain Russell had devoted ' v more time to an explanation of liift anipnd- j t. nißnt. Hp described Captain Russell's aii.ack 1 o on tho colony's finances as woa'c. Ueferrinc: p to the table of su'-ulnsc: s>iid deficits, he said i: it Lfid brpn compiled by officials wlso had n spent a lifetime in studying finiuice, and thpir ti ptatoments w^ro worthy of credence. He de 1 fended tho Premier from the attack that he b had bf«n ungenerous, and snid the Premier was ono wlio had a Hgh and cconorrms iiflmira- : ri tion of >Sir 11. Atkinson, and would not use liis official position to reflfct on tbn character tl of that #*ntlomai). Spenkinq of the inrrea j cd < l( customs rcTenue, ho pointpfl out tf.p.t tl"3 in- t crc-R39 was attributablo not &o mucli to Ihe '1

ovision of the tariff as to increased spandir lower of the psople. Speaking of the i; reaso in the public debt since the presei kvernment took office, he pointed out thi f thn six millions increase, fire million wi or reproductive works. Surpluses wore nece ary in order to meet a possible emergenc; ml were evidences of prudent finance. 1 top expenditure on public works and servic rould mean stagnation and retrogrcs&io: Mule considering the time had arrived whe he Government should cease purchasir Tativo lands, he considered they were to 1 aedited with purchasing in the past lan< n the back districts for settlement. Ho r erred to the sober nature of the debate, ar > oped that the tone would be sustained. Wil c-ference to the amendment moved, I lointec] out that no account was taken of tl mount spent by the Government in additic o open lines. Mr M'GOWAN pointed out that tl: mondment had been framed in very ii idious terms. Referring to increase in II: ustoms revenue, he said when n ~ '-.riff wr evised by Sir H. Atkinson it lv/ "• ■"■« o-i Kited to yield £173,000, which had bctn ore: stiraated by £55,000, but still showed a coi iderable not increase. He praised the a( ministration of the railways by the Hon. 1J )admpn. which he characterised as able an irogressive. He advocated an energefc tolicy with regard to railway coi truction in the North Island, and, ;< : erring to the revision of the tarit oped the Government would devole t attei ion to reducing duties on the necessities c ifo. Proof of progress of the colon nder Liberal administration was to I ound in the increase of exports, of settL lent, and of the spending power of tli >eople. Mr MORRISON characterised the amenc lent as a cunning one, and drafted for tl: iiirpose of catching a few members who ha large railway vote in their constituencie le challenged Captain Russell, if he wei incere, to vote for an additional £100, 0( 0 provide for railway rolling stock. Wit sference to the increased customs revenui c contend* I that the amount of custorr uties collected per head was not the resu 1 the revision of the tariff. He contende liat the railways are fairly well equipped i ompared with the railways of Victoria, an 10 Minister could have foretold the extr: rdinary increase of railway traffic. He oj osed the proposed preferential duties. Mr SYMES moved Uie adjournment of tl: obate. Captain KUSSELL urged that a divisio o taken on his amendment. The PREMIER said he could not accer n amendment which he considered was a n< onfidence motion. Captain RUSSELL pointed out that rh Ipposition were prepared to go to a vote o le amendment without further discussion i rder that the work of constructing raihva rolling stock be put in hand at the earlies pporiunity. The Hon. J. M'KENZIE said the Oopos on had arranged with memDers ot the Hove ) carry the amendment against the Goverr nent. and had refused to give pairs to Gc orument supporters. Mr MASSEY said no reasonable pair ha sen refused by the Opposition. The Hon. Mr ROLLESTON said it wa perfect oiitrage that the amendment shoul o taken as a want-of-coniidence motior he whole parliamentary procedure was be sniing a system of dodging and trickery. After further remarks tha debato was ac mrned, and the Houso roso at 1 a.m. August 17. In the House of Representatives this afte oon, Mr SYMES resumed the financial dobali [c contended that the amendment had bee loved in order to catch the vote of raihva Dployees and discredit the Government coi ■ol of the railways. Under the coinmi oners' control, he said, the railways "had bee arved for revenue purposes, and it was nc I* the Government took control that the rai ays had been properly equipped and til scessary accommodation provided. He di: jveed with the proposals respecting prefe: itial duties, and argued that tho consume ould not reap any benefit by the remissio t duties. Despite tho -Tact that there ha ?en a good many forfeitures, the reason ft hich ■« as inability to obtain- roads, the in roved farm settlements had marked a ne^ •a in the history of the colony. Speaking c ip daii-y industry, he eulogized tho Goveri .ent for tlieii efforts in establishing and fo: sriiig it, and suggested that the carriage c xhf produce should be subsidised. Captain Russell's amendment was negative v 39 to 27. The following is the division liat: — Against the Amendment (39). — Messrs E. 3 lien, Cad man, Camcross, Carroll, Duncar :e!cl, Fisher, Flatman, G-ilfecldcr, Gralian: uinness, Hall-Jo.ies, Hogg, tioliaiid, liour-tor Hutcheson, Joyce, Larnach, Lawij 'Gowan, J. M'Kenzie, B. irKenzie, M'Na!: eredith, Millar, Mills, Mojit°omej y, Morri hi, O'Meara, O1O 1 Regan, Parma, Setklc-£ levens, Symes, TsMiner, it. Thoinpbon, r i liompsod, Ward, Wilson. Fox Lhc Amendment (27).— Messrs Bolhnd rown, Buchanan. Carbon, Crowther, Duthic rarer, Heine's, Iliuitw, KoLly, Lang, Lewis !'Guire, M. J. fj. Mackenzie, M'Lean, Masse} onk, Mooic, Piiani, Itollestcm, Russet: lijjo. Smith, Taylor, J. "W. Thomson, Wasor 'risjht. Pairs. — Against the Amendment: Messrs W ere, Steward, Kailiau. For the Amendment c&srs Lethbridge, George Hutchison, Heke. Mr MOOTI}J asserted that the railways wer .uch better managed when under the contrc the commissioners than under Governmcn >ntrol. He condemned the Government' ,nd policy, and said this year's laud repor :\s the mobl d.una°hig ono to an Adminisfcra un ever laid ou the table of the House. Fron s tables containi'd therein, ho showed tha •cro was n, sreneral desire on the part of tli ioplo of the colony lor frceliolds, as com ired witli leaseholds. Ho. pointed oiit tha c liabilities on the consolidated and publi orks fur.dd at the end of the financial yea ero larger than tUey liad been for some time liich )ic considered was not sound finiinct: bo proposed j)r<?terential duties in favour o reat Britain a stop in the right direction Mr BliO^VN, to show tiio rahmanagemen the railways imder Goveriiinent contro] id he had frequently to wait, not Iwo o ree dayd, Imt over a week, for trucks ,cal:ing of the co-ojierativo system, lie sail v york done under it was costing more thai 11 had been done under contract. He di< •t consider tho large amount of deposits ii c Post OiHce Savings Bank an indicatioi proaj'erity, :s-3 a qjivat deal of it was de •sited in order to obtain a iiiglier rate o bore»t. Uo w.n.ld 'mo pivforred to sec jre money invented in trade and agi'icui nil industries than deposited in the bank contended that the middleman would reaj nefit of tho proposed preferential duties, flic House adjourned frcm 5.30 to 7.30. Or mining. \fr MONTGOMERY expressed tho opinior it tiio am<»ndmont of the Opj>osition wa« h'-idrrinj> tho ociasion, a trivial ( nc, ani illy t!i<- policy of the Government, io fiuanueb of tko colony wore undoubted!}

5 1 in ft stronger position than, in 1880, but this - was not due to any particular party, but to tho t general prosperity of tho colony. It was alb 11 ost a scandal tho way in which tho revenue 3 of tho colony was under-estimated in order to . swell the surpluses, and it was a trick unworthy of the Colonial Treasurer. Ho con- \ tended that the amount transferred to tha s public works fund from the consolidated revenue bhould be eliminated from the con- [ sclidatcd 3urphw, which would for tho past f year have been £539,280. Speaking of loan 5 conversions, ho said the colony would havo j teen in a much better position if the Conver- . sion Act had not been passed, as conversion 1 operations relieved the interest charge for the x time being only, and added to the debt of the 3 Colony without the authority of Parliament. 3 The sooner the consols account was done away i vath the better. I Mr DUTHIE referred to the fact that the last speaker had devoted a great part of his ( sneech to bemoaning the shortcomings of the [ drovprnment, and advised him to consider ! whether it was liid duty to continue to support \ tho present Administration. He (Mr ' Duthie) was pleased to find tho finances of the colony in such a strong po?ition, and the country was to be congratulated upon it. If \ there was any principle in connection with i finance it was accuracy, and so far as tho , Colonial Treasurer was concerned he knew ' nothing of it, as l»o was no v er accurate. As evidenco of this, ho pointed out hhat there ' , was a difference of over £740,000 between ' i tlio amount of surpluses under the present • ! Administration a^ stated by Mr Ward in ; London in 1895 and in this year's Financial Statement. He complained that owing to i tho refusal of the Government to supply ret turns it was impossible to discuss the effects '! of the rovisal of the tarifF. "With respect to t land settlement, 1-e pointed out that, with ' ; about 20 difl'erent tenures to choose from, I : settlement of the land was not being 1 carried I on with that success one would have ex- ' j pected. The prosperity of the colony was \ ' due to private enterprise, and not to the Goj vernment. Tho expenditure on the goldL ■ fields had not been warranted by results. ' ; The accumulation of money in the Savir.gs ' | Bank was not a sign of prosperity, and was I really a source of danger in case of a crisis , \ occurring. • j Mr LAWRY, referring to the arguments of previous speakers, pointed out that the customs duties were a voluntary form of taxation, and a rich man in one night might contribute more than a settler would in a ' j year. Although he had l.ad doubts respecting the probable result of lending money to 1 settlers in Auckland province, owing to the 1 poor quality of the soil, he was pleased to ' 1 &ay that the advances made by the Governj ment to Auckland settlers had. been more i successful and attended with loss loss than 1 I in any other part of tho colony. Referring ' | to the attack made on the Government con.- \ , irol of railways, he said if there was one 1 thing moro than another which had mack ' tho Government popular it bad been the ! administration of the Minister for Railways, He warmly supported the Government'; y I Native land uropo&als. ! Mr WASON said ihe country was wearyiijp of tho present Administration and of the . Premier's iron rule. Everything indicated that tho present minority woulc ' soon ba ihe majority. He condeinuec the Government's 'action in connectior with the Midland railway, the Bank oJ New Zealand, and the Assets RoalifAtior , Board. With respect to the Bank of Nev; ; Zealand estates, he considered it would pax , the colony to put people on the:n to worl them rent free. The land for settlements policy had done more, probably, than any , thing else to enhance the prestige of the Go i vernment in the country. To a certain ok , tent he sympathised with that policy ; but il P had one very grent defect, in that the lands were cut up into too small areas. By far the greatest defect in the syntem m tho lefuca L of Ministers to permit settlers under tin ; Lands for Settlement Act to convert theii leasehold 1 ? into freeholds. , Mr JfMRRTER pointed ov.t that tho public works fund had been under-spent by £123.000 . which meant that the expenditure had bees . over-Pstimated, and settlers in the country , deceived. Votes were parsed for road* hiv. ■ bridges, and Fottlcrs' hearts rejoiced tint thei '. wore getting iu&tice clone them, but (hey sub Boqiienlly found that none of Ihe votes hh r • been ppoat. The Fame -y^tpm had been i'ol ■ lowed in collection with the Lranls depart . ment. where_ the nmount nuder-spent v<-a . £207,000. He condemned the co-operativi system, which lie characterised as humbug [ the settlers under the Laud for Settlement ' Act were all anxiouf, to obtain the freehold. | On the mofion of Mr FLATAfAN, tho de • bate was adjourned, and the lici;so rose a 12.35. j August 13. | In tho Hou<-e of Representatives this after noon, after the Impounding Bill had been in p troduccd and read a Gut time, the debate oi ' tho Financial Statement was resumed by r Mr FLATMAN", who showed that uncle 1 Government control ths railways had bcei , managed in the interests of the fannois. I ! was impossible to flatter the lvailwat r depait ment too much on ths manner in which th railways were managed. He considered lha if the Opposition had 1101 moved the amend ment on Tuesday the financial debate wouli now havo beun ended,' and money would hay been voted and men re-employed on the rai] way rolling slock. He was in favour of the es tablishmeui, o^ Stale farms, provided they vver sj'ateinatically I'lanaged. 11e c />ecting His Ha\ ings Bank dopopiis, he eontendo'i that the prr gress of tho countiy was evidenced by thei amount, and quoted examples 61 piohporov. countries in support of his argument. Mr -tiUXTER quoted figures to show tha tliere had been moie deaths and accidents o: the railways since tlio Government took thei: over as compaied with tho period they hai been under tho control of tho commissioijeif llefcrring to ihe statement that the OpooMlio: had no policy, lie said tbe principal policy o an opposition was io expose ihe shortcoming of the Government, and they were not callc upon to enunciate a policy until they wetin a, position to »ive effect to it. When thi time arrived he believed ths present Opposi | tioii would be Tin a position to propound policy which would be acceptable to the pec j plo of the colony, hi order to prevent acci dents on ilia railways the lines should b j fenced ; but when he had asked this to b done to a portion of the line in his distric he had leceivod a reply that it would hay ( to stand down until more urgently necessar, works were done. Mr MEREDITH considered the time hai | not arrived for borrowing for railway exton ' sion, but ho believed that in a few yearf ' when more laud was taken up and occupied | and tho volume of produce increased. Hi , people of tho colony would bo callocl on t I express an opinion on tho question of boi I rowing for railway extension. Bofrnre boi rowiiig even the half a million proposed v the Budget there should ba a remissio: of taxation to tlio same amount, lio \va much pleased with the propQHals for a it mi'-sion of dutioq in favour of Great Britain v.'hioh ho thought v/ould bo approved of b.

a majority of the members of the House. Ho considered the administration of the Laiub department for tho year had been most satisfactory, and the number of forfeitures — 533 and surrenders 171 — was comparativaly small compared with the number vrho took up sections—2osß. Taking into consideration that £100,000 had been remitted in railway freights! on the carriage of stock, fencing and building material, and manures, he considered the railways had been managed by the Minister for Railways in the interests of the peoplo of the colony. Ho thought tho Government should expend at least £5000 in advertising New Zealand frozen meat. Mr BUCHANAN said if the Government had been roally anxious to re- employ men on the construction of railway rolling stock they should have brought the financial Statement down earlier. It could not be urged that the Opposition had beon blocking business in view of the fact that the Government still posseted an overwhelming majority. Ho suggested that tho Auditor-gene-ral should be authorised to grant returns approved by Mr Speakor to members of tho Hoi^e in order thnt they should get the information now denied by the despotic gentlemen in power. Mr Buchanan, wlwo spech was interrupted by the 5.30 adjournment, resumed speaking when the House reassembled at 7.30. Ho combated the Premier's statement that tho public debt per head had decreased under the present Administration. In 1891, ho pointed out, the indebtedness per head was £59 12s, while bst year it was £60 9s. The taxation had also increased in the same period from £2 7s lid to £2 12s 6d. The Government valuation had been tho worst ho had witne.-sed &inco ho had had anything to do with public liCe. Many of the valuers had not gone on the land at all, but the worst feature had been tint the values in many cases had been made in the Welling lon oifice. Mr DUNCAN paid members of the Government party were ju^t as desirous of getting information as members of the Opposition were, but the latter mado the mistako of asking for information in an unreasonable form. He hoped the Local Government Bill would soon pass in order to remove ihe question of roods and bridges from the floor of the House. The Banking Bill was moro \ necessary thrai many of the bills before tiie - House, as it would end what appeared to be an interminable trouble in connection with ; tho bank. Tho advances to settlers hod done more for tho progress of the colony than anything else, and the lands for settlement system had been next in importance in this , respect. Mr SCOBIE MACKENZIE, referring <o tlia remarks of Lho laF.t speaker, raid that in ' accusing members of the Opposition of being under tho thumb of the Bank of New Zea- ', land, he had been appealing to the lowest and i most ignorant feelings of human nature. .So t fsr as he (Mr Mackenzie) knew, no member ' of the Opposition side of the JToubo owed the : bank anything. Taking tho Financial Stite- ( ment in one hand, he proceeded to ask what ■ comprehensive phraro de-cribed its dominant characteristic. In his opinion, tho Statement ! as respecting some of its figure,? levelled ; nothing. more nor le?.-< than an audacious, and at the same time odious, fobiftcatioa. of tho • public accounts. Th'S was borne out by an i oxaminaiion of the toble of Furplupcs tnd '. deficits, tho figures of which, he contended, i could not bo verified by tho audited public | accounts. The tahlo had the effect of tra- ! ducing the political reputation of tho late Mr i Ballanco, as tho deficit attributed to Sir H. | Atkinson was in reality to be attributed to } Mr Ballanco. In 18S1 a. surplus was at- ! Iribulscl to Mr Ballanco, while in leality Sir i H. Atkinson should has o had the credit. No [ languaso was too strong to condemn and de ; nounce a table of this kind, which had been | compiled with no other object than to dei ceive the peor>le of the colony, who had no , means of verifying it. As a proof that no i reliance could be placc-1 on any assertion or ] proposal in the Statement, hs referrel to <he > proposal respecting the amount required fur I a r.ow library as ttatod ia last year's Budget i and the amount now required to complete the ! work. Tho (10-» em mere's altitude in the mat- ' tor bad been a. cor.r-pirr.ey to deceive iho ! people of New Zetland and throw psvliampn- ; tery authority to the winds. Tho^e who hrj > voted with the Go"orvnienl were accoisori' 1 * I after the fret in <his conspiracy. He had ' mcl m?ny who con^idcied felllement of lan-i ! had commenced when ihe pra-ent Government ciimo inlo oflics, but he quoted from a table to show that horn 1878 until tho time the • present Government took cfiVft land sotlloj ment had bojn more vigorous than under tho present Administration. One compensating j fact in tho Statement was that there was a. I legal surplus, v.hich. though a legal one, was none tho les-i a manufactured one. He could not move an amendment, but could he havo S done go he would have moved that no surplus real or fictitious i^ or ought to be con«ideicd I a pet-off against Ihe moral evils engendered under the proper)!. Government, and iba administrative blunders they have committed. He adversely criticised the recent appointments to the Legislative Council. Mr HOG (4 complimented tho last s-peakor on having introduced some animation into a dsbalo which had opened more tamely than any other financial clob.it o he could recoiled. The number of forfeitures under the present Administration was not due to the bad land I system, but to the fact thai the eyes of the j country had been secured by land mmicrxi- | li-tf; and poltleis ai prereut hao 1 to conteiul { with rough country. The prosperity of the | colouv was due in a Luge measure to the pro gres.~ivo policy of the Government, and ; t ! ii o time had hm\ brought srucli good price*, j He considered t!>o Minister for Land" had done i mcro for the prosperity of the colony than any i other pi-evioiw Minislov for Lsuc-s. Se' tiers j could bo matemlly ar^isted by giving thorn ! cheap land and by making land acc.e^iblo, ! and tho Minister for Lands was doing his beet wiih the means at his dispo- al. i Mr J. W. THOMSON, referring to the ! table of deficits and surpluses in the Statemeut. said the Colonial Treasurer before compiling it should have had somo oonpidorii- . tion for his late colleague Mr Ballanco^ and . should, not have throwii a brick at Sir J. i j Vosrel, \yhom ho had supported. He hoppd ; tho' Treasurer's estimate of revenue for the ne\t. yeiv would prove incorrect, and that the , expenditure would be under what was csli- , inatod. Ho intended to oppo?e the proposed • increases in the wa^e<? of surfacemen on rail- , ways, which he considered was uncalled-for expenditure and would be unpopular in country districts. Tho increase in wages would mean that there would be an increase in tha ; number of applications from young men for , work on the railways. He considered they " wore attempting 100 much legislation this | session. j On tho motion of Mr E. G. ALLEN, iho j j debate was adjourned, and the House rose at midnight- I : August 19. { In the TTou"P of Representatives to-day a question of alleged breach of privilege having been disposed of and the Saleyards Act Amendment Bill having been read a first time,

the debate on the Financial Statement was resumed by 1 Mr E. G. ALLEN, who said the' leader of iho Opposition had been unable to discover in the Financial Statement anything on which, to base a damaging want- of -confidence motion. With, respect to the amendment ho had moved, he would do Captain Russell the- compliment of thinking that he had not been the author of it. He congratulated the Colonial Treasurer on the clear and concise statement of the finances of the colony placed before the House. There had been no "luggling with figures nor mystification, as was often the case with respect to Budgets. It was difficult for a young country to progress without relying: on the foreign money-lenders, and he believed there was a feeling in the colony in favour of borrowing largo sums of money for tho prosecution of public works and railway construction. Mr BOLLARD aroused the Government of having trampled on the liberties of Iho people, ond said their preferred regard for the will of the people was simply moonshine There hpd never been a time in tho history of the colony when there was so little to show for Iho expenditure of millions as at present. He asserted that the Government would not remain six months in office were it not for their system of political bribery. The Minister for Hallways was, he said, an honest man and pn honest politician, which was saying a good deal of those sitting on the Ministerial benches, and if the management of tho railways was left in his hands it would be much better. But it was apparent to every unprejudiced mind tha-t he was dominated by the Premier. He did not boliovo the Premier had any intention to remit duties on English manufactured goods, because iho labour unions in the colony would jump oil him if he did. The Hon. Mr LARNACH said, as far aa he was able to judge, there had been a bona fido surplus on the 31st March last. Ha did , not think there was much in the contention that the surplus had been manufactured by the Treasurer over-estimating the expenditure and under-estimating the revenue, as doing so would not affect the receipts. He approved of this being done to a certain extor.fc, as ib was an error on the right and prudent side. It was not quite fair to apply all oxcosg of rovenue in the direction of liublic ■\\orks, a-s it meant they would bo taxing themselves day by clay aud year by year for tbe benefit of posterity. The railway returns showed that tho management of the lines wag excellent, and a very considerable improvement on the previous years. Taking the inereaaet],, traffic on railways into consideration, ho considered the colony should bo making moro progress in railway construction, and tho Government should ask for sufficient money for this purpose lo Keep paco with land settlement and the increase of population. At present juslice wad not being done to either. If !ie read the Financial Statonieat aright, it proposed to increase the direct taxation, but he considered, in viow of these recurring surpluses, our Estimates should bo made more in accord with our roquirpmonta, and we should live more withinour moans. Referring to the accusations o£ the O-dixwiti on against the Government, he said lie had never heard them formulate one tVfioito charge of bribery, corruption, or maladministration . Mr LARNACJT continued his speech on the Financial Statement on tho House resuming at 7.30, and in his concluding remarks scid that if the colony was as prosperous as the Budget showed, and ho believed it was, there was no excuse lor the colony going on with railway construction in the piecemeal fashion of recent years, when only a paltry 302 miles had been built during the past decade. Railway construction would not pay if tho Gover'nmcnb had to pay 6 per cent, on borrowed money, but would decidedly pay when money could ba obtained at 3 per cent. Mr FIELD did not profess to be n friend of tho Manawatu Company, ,but he considered that the Government should have taken over the lino long pgo, and should lake it over at oho earlicoir oppoitunity. Referring to the land policy of the Government, he objected to tho present classification of lands, and oontei,dcd that the area of freehold land which could be acquired should be restricted in tho same way as tho area of leashold is limited. The price of Crown lands should bo on the basis of their producing capacity, and without regard to thoir actual position. He was satisfied that a i'3liable valuation of the colony's lavds had boon urgerfcly needed, but he was not s'iro that the object had heon attained by the recent Government valuation ; and, speaking ol his own district, he thought there should have been moro objections to tho valuations. No one had ever hoard of professional money-lenders voluntarily reducing tka^jate of iptoroefc, and the Advances to »S«ttleis Act ■would have the effect of preventing the rates being raised. Mr GILFEDDFJI said that from one end of the colony to the other it was recognised that the efforts of the present Administration, were in tho direction of ameliorating th* condition of tho people. li tho policy of tho Opposition collated of retrenchment alone it was well the people of the colony should know it, as it was iho same policy which had brought about the defeat of tha Atkinaoa Administration. Though the public debt kad increased under the prefenl Administration, ll.e money had been largely invested in leproductive channels, which created a vuluitble a. -pel against the increased indebtedness. Referring to the comparison between tha land transactions of pad Governments as compared with the present Government, he pointed out thai tho Government had not the s»m« area and quality of land to deal with a3 their predecessors. Be warmly advocated tha institution of a peiiodical revaluation in connection with Crown lo.ises, Z.tr FRAtSI'Ui pointed out that whilst Ministerialists, instead of discussing finance, »poke on every other conceivable bubjeet, the Opposition wore not so trustful. He proceeded io diseeel the &urplus, aud showed that after deducting certain sums, which he contended ought not to have been included, there remained a net surplus of £326,000. Reipecling the sale of Bushy Park, he paid -that to a bvi'-hel of truth there had been waggon loads of lies, and falsehoods had been much moro palatable and acceptable, aud were believed. The time had not arrived to ce»se borrowing;, but the present system of borrowing in dribbles led to waste. Throughout kis di«trict there was intense indignation with respect to the excessive and oxtortiormto Government valuations. In view of the fact that the valuations had been incroaaed bj 16 millions it was absurd lo say. as was stated in the Budget, that there would be no increaso from the land and income tax. Mr O 'REGAN, while approving of the increace in the wages of casual hands on the railways, considered a great mistake had been made in the railway claesificalion in fixing the wages of these employees at 6s 6d per day, which might be a Rood wxge in Auckland or Canterbury, but was not adequate on the West Coast, where there was much broken weather and consequent broken work. Referring to the fulling off in the revenuo Iron}

the land tax, he said this was accounted for tc some extent by tho purchase by the Govern ment of large estates, but he considered th« £500 exemption was largely responsible foi this falling off. He would not be suvprisec to find that owing to the exemption the colony was getting only half the revenue it ought to be receiving. Referring to lands settle ment, he pointed out the danger that holders •under the lease in perpetuity would in time become land monopolists, and when their voting had increased they would demand the conversion of their leaseholds into freeholds. The indirect taxation, he asserted, was exces sive, and the people of the colony were called on to pay too much through tho customs. The time had arrived when some attempt should be made to relieve the people of the burdens they had to bear. Mr HOLLAND said that the Financial f^atemont had given general satisfaction from o^xe end of tho colony to tho other. He complained of the slow progress made with the construction of the North Island main trunk railway and paid that at the present rate of progress it would take 33 years to complete it. He advanced aiguments in favour of the more vigorous prosecuticn of the work. Under the cooperative system railway formation and road works could be done cheaper than by contract, and the system also ga% r e employment 1o men who would otherwise be unemployed. In view of the small imports from foreign countries ho did not see that any advantage would be gained by the proposed preferential duties on English manufactured goods, and lie pointed out that the United States might retaliate by placing a high import duty on kauri gum, which would mean the ruination of the Auckland gumdiggers. On the motion of Mr M'LExiN, the debate was adjourned, and the House rose at 12.35.