The Poverty Bay Herald AND East Coast News Letter. PUBLISHED EVERY EVENING. Friday, October 31, 1879.

Poverty Bay Herald, Volume VI, Issue 938, 31 October 1879, Page 2

The Poverty Bay Herald AND East Coast News Letter. PUBLISHED EVERY EVENING. Friday, October 31, 1879.

A PEW nights back, Mr. Murray m the Assembly asked the Government, if they had received *any information regarding the negotiation of the £5,000,000 loan; and if there would be any objection to lay such information before the House? In reply to this question a most unsatisfactory answer was returned by the Premier, who stated the Government had received a telegram on this subject on the previous evening, during the delivery of the Financial Statement by the Colonial Treasurer. The loan had not yet been placed, and the Government did not think it desirable that the telegram should be produced

at present. If it was not desirable that Ministers Bhould inform the House of the knowledge they possessed we can only conclude there are difficulties m the way of floating the loan, otherwise why should the Premier have been reticent m a matter which so vitally affects the interests of the whole Colony. In referring to our financial difficulties, the Hon. Mr. Miller, from his seat m the Council, spoke very strongly. He said it was to be hoped that those who undertake to manage the finances of the country will have a clearer idea of the rerources of the Colony than appeared to be the case with honorable Councillors. I do not, said Mr. Murray, desire to make things appear worse than they are, but when honourable gentlemen get \ip and complain that too gloomy a picture has been made out m reference to the state of the Colony, and say such things should not be done,! desire, for one, to say, m my place m this Council, that I utterly rejest all this talk about painting the finances of the Colony m such black colours. I believe that the truer you make your exposition of the affairs of the Colony the better it will be for the Colony. Whether the deficit is £900,000 or £500,000, the best thing you can do is to tell the truth. lam quite sure you will not raise the credit of the Colony by glossing over the truth and bolstering up a false condition of things with the view of securing a little ephemeral prosperity which, will bo blown away by the first breath of adversity. If you want to estab Jish a sound credit, which shall not be liable to be swept away with the first reverse of fortune, you must tell people really how you stand, and you must not attempt to conceal anything at all, however unpleasant it may be. I, for one, take exception to the language used by those who find fault with the Treasurer for stating what be did. What was he put m office for, but to tell the truth 1 And the truth he has told, as he believed it. It is possible his figures may not be absolutely correct ; but, with the greatest deference to my honourable friend the Hon. Sir Dillon Bell — who has had great experience as a politician, and for whose advice we are most grateful m the Council — I prefer to take the Treasurer's figures, and I only hope we may not find that the Treasurer, so far from exaggerating the amount of the deficiency, has under estimated it. I think that those persons m this Colony who are true settlers, and who have a real interest and a stake m the country, would do well to express their satisfaction at having a gentleman m the Government who is not afraid to fearlessly expose the real position. I, for one, am not m the least afraid of the position of the Colony. I believe the Colony only requires to be governed by a firm and strong Government, who will administer affairs as they ought to be administered, who will act straightforwardly without reference to consequences to themselves ; and then the finances of the Colony will be restored to prosperity. We know that our resources are very great indeed, and we know that we are, and have been, indulging m luxuries such as no community like this has ever before indulged m, and it is only reasonable to expect temporary difficulties, though we shall be able with proper managemens to tide them over. Speaking on the same subject the Hon. Mr. Waterhouse expressed himself m the following words : — " I tnink that one of the worst features m colonial politics for some years past has been the apparent determination of politicians m New Zealand not to realize the true financial position of the colony — a determination, apparently to shut their eyes to the inevitable consequences of the policy that was adopted ; and if we are to havet that healthy system of finance thad we should have, the first step towar its accomplishment will be thoroughly to realize our true position, and not allow ourselves any longer to be deceived m any respect. My honorable friend (Sir F. Dillion Bell) has told us that m his opinion there will be no deficit such as has been referred to, and that there cannot occur a deficit of £912,000. Well, there is at the present time undoubtedly a deficiency m existence. What the Colonial Treasurer has said is simply this ; that between our ways and means as existing at the present time, and the expenditure, based upon the system which has hitherto prevailed, at the end of the year there must be — m »the absence of retrenchment, and m the absence of the fresh taxation—a deficiency of £9 1 2,000." The reasons assigned by these experienced statesmen and financiers lead to the conclusion that the five 'million loan will not be raised quite so soon or so easily as the Grey Government have led us to believe. If this be the case, as there is too good reason to believe, then will the country be m the throes of a serious crisis.