The Southland Times. FRIDAY, JUNE 3, 1870.

Southland Times, Issue 1260, 3 June 1870, Page 2

The Southland Times. FRIDAY, JUNE 3, 1870.

Oite conclusion as to the financial position of Otago aa equally embarrassed with ourselves— based on the revenue and expenditure of Otago for 1869-70— is borne out by the tone of the discussion in the Otago Provincial Council on the Treasurer's financial statement. The assertion has, among ourselves, been so frequently made that Otago has enough and to spare, that, after due provision for all her admitted necessities, she constantly rejoices in the possession of an available surplus to meet any possible contingency, or to prosecute any work for which reasonable pretence can be urged, that, even in the face of facts which conclusively prove the contrary, a few persons may be found who believe it. It has been stated as an illustration of the tenacity with which persons cling to assertions of their own making, that a known untruth may be uttered so frequently that the utterer may end in believing it. "Whether this be true or no, or whether or no the persistent utterers of the cuckoo-cry of Qtagan prosperity have arrived at the stage in which they have persuaded themselves, of its truth, cannot be told. Doubtless there are some honest advocates of the re-union of this province with Otago, who think of it as a panacea for all our financial ailments, and who really believe in the glowing picture they present to us. It will be well, however, to look at the matter in the light in which it is viewed in Otago. Any one who will take the trouble to read the debate on the financial statement cannot fail to observe the evident gloom pervading the minds of the speakers, and the ill-concealed dread of approaching the question of finance. The Otago Daily Times — generally disposed to employ rather vaunting terms in writing of provincials prospects — says :— " The fear arises that there is a reason which 'does not appear on the surface for this general indisposition to tackle the consideration of our financial position as a province. An uncomfortable feeling as to our position and prospects is no doubt pretty generally diffused, and there is also evidently a general feeling that the less said about it the better." It is matter beyond dispute that the Provincial Treasurer would have been unable to meet the demands upon him but for money which had come in unexpectedly from a source which had not been anticipated, and which could not in any way be considered as ordinary revenue. The prevalent opinion in the Council is that the prospective revenue has been much overrated ; and even in the disposal of the anticipated revenue it has been found impossible to make provision for works long promised, much needed, but not yet begun — the | Oamaru Dock, for example. In reference to this work it was remarked by one of the speakers in the Council that "it was as far from commencement now as it was twelve months ago, and in twelve I months hence they would seethe dock no j further advanced than it was now." The I same speaker further remarked, " He did not expect the province to be brought into upstate of bankruptcy during the present year — it was far too buoyant and possessed an estate of too great value to do that— but he would not be surprised |to find matters come to a. dead-lock, simply for want of funds to carry on the business of the country." The Daily Times of the 18th ult. says : — " A review of the present condi- ; tion of the province, especially in relation to its producing interests, is not encouraging. Depression is more or less visible in all directions. The farmers are loud in their complaints ; the squatters have nothing to rejoice over; the miners content themselves with moderate returns for their labor. Commercially, we are in the throes of a crisis, from which we cannot hope to emerge without ruinous Buffering. Industry is stagnant, while capital is unproductive. Laborers are asking for employment, and employers of labor profess themselves unable to pay the current rate of wages. A more unsatisfactory state of affairs could scarcely be imagined." Tet in the face of representations of this kind, as well as of that which is ordinarily supposed to carry more weight than the most forcible representations, " a balance on the wrong side of the ledger," it has been determined that there is to be no retrenchment ; and, not only so, but item after item of the Estimates has been passed at an increased rate of expenditure. It is easy to perceive what the results of this will be. With so large a portion of the revenue absorbed by the salaries of officials, and the revenue itself not reaching the amount at which it was estimated, either the amount voted

for the various public works will have to be seriously curtailed, or the balance on the wrong side must be materially increased. Hon. gentlemen in the Council, whether in the Government or in opposition, do not, however, appear to regard this view of the matter as of eqi^al importance with that of the payment of their honorarium — a motion to reduce the sum (£1300) placed on .the Estimates for that purpose to one-half tha£ amount having met with a decided negative. The immediate escape from the financial difficulty appears to be "* loan of £600,000," that is, if it can bg obtained ! We presume Southland's" lfa^' bilities might be paid off, after the same fashion, but in either caß^the reckoning must come sooner or later, and in refery ence to the loan project the Daily Time* has the following : — "We have about £63,500 on the present Estimates as a provision for interest and sinking funds on existing provincial liabilities, including some items of guaranteed interest. "With a population of 50,000, and no apparent probability of an increase of numbers from without — with a very moderate area of good land, and that carefully locked up by the policy of the powers that be — with a large liability as an integral part of the colony, a liability which may at any time render it necessary for the Assembly still further to cut down the share of the consolidated revenue which now flows into the Provincial Treasury — are we in a position to entice capitalists to trust us with a cool £600,000 for works which in themselves are not likely to bring in any revenue ? That is the fundamental question, because if a capitalist should hesitate about lending money to ns, the reasons which will carry weight with him ought to have far greater force with ourselves. To run heedlessly into debt beyond our means, and as a retribution to have to pass through a similar phase of things to that which our neighbors in Southland, for instance, are. suffering, means something, very mucbV worse for us than anything that can happen to the man of money, who may unwisely trust us. Wetalkin loud tar.^ of reprobation about the, r bver-trkding . which our Bankruptcy Courts disclose? Are we to be indifferent to" the prospect of our committing the same reprehensible folly as a community? This is the fundamental question, but it is not the only one. What is it proposed to raise this loan for ? A few minor works are set down against a part of it, but the bulk of the money, if we get it, is to be spent j on undertakings which, compared with our means, are gigantic in their propor- ! tions. Can we trust a Provincial Executive with the superintendence of such an expenditure ? We all know how the last half million we borrowed was frittered away. There were some excuses then in the exciting .and peculiar .times through, which the province was passing. Few but those who would immediately benefit by it, can honestly believe it desirable that the Government should undertake the construction of the Southern Titunk Bailway, or of extensive water-works; on the Goldfields. Is the history of the Government Railways of other countries so encouraging that we should seek to imitate it ? Is it not proverbial that in such cases a Government gets the most inferior work at the highest cost ? And things will be even worse in this respect with the works which it is proposed to execute in t the interior. This borrowing, and these purposes for the use of the money to be borrowed, are cardinal features in the financial policy of the Government." With such a summary of position and prospects before us, it is evident that if the re-union of Southland with Otago be advocated at all, it cannot hone3tly be advocated on the ground of the prosperous condition of the litter ; province. '