THE FINANCIAL STATEMENT.

Colonist, Volume XVI, Issue 1663, 26 August 1873, Page 7 (Supplement)

THE FINANCIAL STATEMENT.

■ (From tht Nelso* Colonist, Auc/Htt 8.) , Five times in succession bag it been the singular good fortune of Mr. Vogeitobe the exponent of Colonial finance, and ia each statement; while there has been pftiin evidence of complete mastery of the subject, there is also made apparent that steady growth in prosperity which the Public Works policy was expected to produce, and this expectation being so decidedly: realised, affordß conclusive proof of the soundness of the principles on which it is founded; and of its perfect adaptation to the requirements of the Colony. To recall the'ptedicriona of evil that for long, coupfod t '%ithI'|irulent abuse and slanderous falsehoods/fcbbut Mr. Vogel, formed the stock-in-trade of Opposition journals would be no more than his former assailants richly deserve, but the most severe censure could not pretend to rival the condemnation passed on themselves now they are found constantly , designating what they formerly denounced as ruinous ! and reckless—the policy of the Colony .n The results of the. past two years show that not only have the estimates of income been exceeded by the actual receipts, but that the expenditure has been bo carefully guarded as to enable the Government to pay off more than £90,000 of Treasury bills, so that, apart from the outlay for Public Works and Immigration, there haß been a reduction of Colonial debt without any increase, of taxation. Further savings are provided for during the current year, aud the large amount of £500,000 for Treasury bills falling due in Novt>mber, 1874, is proposed to be mot by renewals for a short term of years, and to be gradually extinguished from surplus income instead of being added » to the permanent debt, as would be done by a financier of lesa prudence. It is well known that the prospect of having to meet these bills, was viewed by Mr. Stafford with no . little, appreheneion, and under his timid and shortsighted administration we should have had a loan to do what there is every reason to believe a firm resolve to save is quite capable of effecting. The growing prosperity of the Colouy is also shown to be . appreciated by capitalists in the remarkable rise in the value of our securities and the possibility that presented itself for reducing the rate of interest to four per cent., an operation which the Loan Agent advised without being aware that it had been actually attempted, and which has had a success here and in Australia beyond what was considered probable even in the glutted money market of London. When loaus are raised to eke out a deficient revenue, or to meet expenditure for war, the lender may fairly expect to have the repayment of the principle rendered more secure by means of a sinking fund, and probably without it he would be disposed to exact higher interest for what he would consider a greater risk. The case is entirely different where borrowed money is applied to the construction of, reproductive works and the introduction of immigrants. Every year that passes increases the value, and productive powers of a railway which may begin by barely paying working expenses, and grow with increased population into a source of large revenue/ Every settler induced to come amongst us is at once a sharer of our burdens and a surety for the repayment of a certain portion of our loans. Money lent for such purposes is not merely secured on the existing value of the Colony, but actually creates for itself the means for payment of interest and principal. To go on adding a fifth to our annual charges to provide means for the extinction of debt in thirty years would be imposing on the present, not only the task of building up a valuable estate for the future, but also that of securing to the taxpayer in after years the enjoyment of a large revenue from public works without paying the interest on their cost. Our present small population has no right to be called on for a. sacrifice which would limit its power of ensuring the rapid settlement and development of the country, and would thus postpone the period when a large iucrease of numbers would furnish the means for a decrease of taxation. That fresh loans of considerable amount are proposed is no matter of surprise, for every one knew how far appropriations for public works exceeded existing funds, but the proposals for borrowiug to purchase native lands and for various other purposes will be keenly debated, and it is not unlikely may to some extent be modified. The far-sighted prudence displayed by Mr. Vogel in treating £800,000 of the loan guaranteed by the Home Government as a reserve fund, ought to dispel the fears of those who have-so frequently dwelt on the danger of public works being stopped, should a loan be required at the time of some future monetary crisis. Whatever temporary distrust might prevail as to our securities, there could never be the least difficulty in obtaining money with the Imperial endorsement, and this large sum would be 'amply sufficient te ride over the worst period of financial distress. The excitement against the proposition for doing away with measurement duties and substituting ad valorem, is a fair instance of the rashness with which some people will, in the absence of gomplete information, commit themselves io the designs of men who value a. party success far more than the welfare of the people. That it is unfair*to levy the same amount of duty on cheap, coarse goods as on fine and expensive must be apparent, and so long as Customs duties are required, it is difficult to understand bow anyone 'can object to value as their basis. The shameless plea of probable . fraudulent misrepresentation by the importer ought not to weigh against relief being given to the working man: by means of heavier charges against the wealthier classes An attempt is made to prove.from the declared values of imports that a large 'additional revenue will be raised under the altered system. We ■ take leave to • say- that no reliance can be; placed, on Jhe Values shown in returns.... under the present system, for it is admitted that amounts^ are given frequently for the purpqra or *

ministering to the vanity of the importer, and Mr. Vogel must have been better informed than his critics when he declared that he did not anticipate an increased revenue. It is quite likely that in some instances an alteration of rates may be juit, and where this is proved it will doubtless be conceded. Nothing can be more unjust than to condemn in the absence of complete information, and till that is obtained, it will be well to refrain from agitation against an alteration sound in principle though perhaps faulty in some minor details. The* strong feeling which was at first felt against these new duties, or rather, against more taxation, for that was the idea with which people signed the petition, bids fair to turn in the opposite direction, arrd the ad valorem system of duties, subject to certain adjustments, which will no .doubt be made, are likely to be thoroughly endorsed here,