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Poverty Bay Herald, Volume VI, Issue 968, 5 December 1879, Page 2

New Zealand, just now, is being discussed m relation tb'ifcs'financial position by moat of the leading journals of England. The Manchester Gxiardian pooh-poohs our difficulties, which it oon« siders can only exist m the imagination of people. " Why," says that powerful organ, ' • New Zealand m coal alone could m time pay off the National debt of England, while probably its gold would discharge the public indebtedness of all Europe." The Northern Advocate thinks that m a few years an enormous amount of capital will be withdrawn from England to be employed m important industries m one of the finest countries the sun shines on. A writer m the Ewropedn Mail speaks m the following strain : — " Some bondholders

affect to be alarmed at the state of the New Zealand finances, and certainly; prinva facie, the industries of 'ihat* colony would appear to be;, m a somewhat depressed condition! ;• Then, again, they think the situation is not reassuring* when, to meet the deficiency m the revenue, recourse is had to fresh taxation m the nature of a property and income tax, but to all who have studied the history of New Zealand gnch a procedure would seem to follow us as the inevitable outcome of the borrowing which has been going on for Home years, though it must be admitted that the money which has heen borrowed has, on the whole, been fairly employed upon reproductive industries. If these taxes are necessary to tide over the difficulty connected with existing engagements, an equitable and judiciously arranged income and property tax ought not be objected to, because then every one would contribute according to his means. It must ba remembered that the Government hold the works which have been constructed by aid of borrowed capital m trust, as it were for the country, and that these works will become more valuable just m proportion as the resources of the colony are opened up to trade and to commerce. It is, therefore clear that every colonist m interested m supporting the Government to the extent of furnishing it with the means to push on that development which is the very key-stone of a prosperity to which are all looking forward with so much anxiety. Under these conditions, then, the alarmists on this side need not fear for their dividends. A tax such as is proposed will tide over depressed times, and when things improve the tax can be reduced m every successive budget until it may happily disappear altogether. Great as has been the progress of this colony within a few years, it may be as well to remind the capitalists and manufacturers of this country that the colony is not yet half developed,. ; and it is capable of supporting an additional population equal to that of London. I As numbers, then, mean power and wealth and influence, it is almost im- | possihle to forecast the future of this splendid colony as times move on. Every year adds to the growth .of its population, and every year n«w works are created which react favorably upon the old country, by swelling the amount of its export returns. Thus the wealth of England is increased jnat m proportion as the reproductive industries of colonies are mado to expand.