COLONISATION.

Taranaki Daily News, 14 September 1926, Page 12

COLONISATION.

THE MAORI WAR. COST TO THE DOMINION. A piece of ancient history in connection with the Maori war is unearthed in a document dealing with the allocation of the Public Debt which was presented to Parliament on Wednesday. All told, the war appeared to have cost the country about £2,750,000. “The Maori War,” states the Seerc- ' tary of the Treasury (Mr. R. E. Hayes) in a covering memorandum, “started in 1860, and in 1861 £1'50,000 was raised at 6 per cent, through the Union Bank of Australia, for war purposes, part of it being absorbed in payment of compensation to settlers in Taranaki. A further loan of £500,000 was authorised in 1862, but was. later incorporated in a loan of £3,000,000 authorised in 1863. The first issue of £1,000,000 at. 5 per cent, was offered on the London market at a time of financial stringency, and proved a failure. The bonds were eventually disposed, of, but discount and charges amounted to £196,343. A further £500,000 with an Imperial guarantee was issued at 4 per cent, at par, and the proceeds went to the Imperial Government in payment for the services of troops sent to New Zealand. To save forcing the balance of the loan on the Loudon market,

authority was obtained in 1864 to issue £1,000,600 of short-datc4 debentures in Australia at 8 per cent., these to be redeemed out of the permanent loan when raised. The balance of the £3,000,000 loan was eventually issued in instalments at 6 per cent, mostly at an issue price of about 92. The original idea behind the loan was to drive back the Maoris, put immigrants on the lands, undertake the necessary public works, and arm the whole colony. Charges and expenses absorbed £275,000, and, including £150,000 for the reinstatement of Taranaki, about threefourths of the remainder was expended on the war. and the balance oa public works. This immigration and pirjblio' works scheme was a new departure, in that previously the provinces had been responsible for these. Practically the whole revenue of the colony at thia time was derived from Customs and sales of land. The land revenue and [■art. of the Customs receipts vent to provide for publie works out of surli revenues. By 1866 the Government was in financial difficulties, and two loans raised by the Taranaki Province, totalling £70,750, were diverted and taken over by the General Government. A further source of revenue, stamp duties, was also instituted at this time, while the colonising and public works scheme of ISU3 was definitely wound up. All told, the Maori War appears to have cost the country about £2,750,000, and in nine years ending in 1867. the permanent charges bad risem from £20,205 to £31'5,3(15.