THE Temuka Leader. TUESDAY, AUGUST 13, 1895. THE PUBLIC DEBT.

Temuka Leader, Issue 2854, 13 August 1895, Page 2

THE Temuka Leader. TUESDAY, AUGUST 13, 1895. THE PUBLIC DEBT.

In his rocont Financial Stutomout tho Hon, J. G. Ward spoko as follows : " The question of the extinction of our loans has yiveii me much concern. The time is approaching- when in my opinion it will add to the stability of the colony and place it in the forefront of any country in the world if we would resolve to make a moderate sacrifice in providing with our annual interest u. .small payment to tho loan extinguished within a reasonable period upon a system somewhat similar to that which is now allied to our loans to local bodies. The ijtiestiou of how various administrations use the Winking- Fund of the colony would, under such a proposal as I. am endeavouring to sketch, completely disappear, inasmuch as the sinking fund would be included in the annual payments of jntero t. It we realise to the full t!:o :i '- Vhiit.-'ircs "hut would follow a <j-.:n r.d conversion "d £>?T stock into '.'> per cents., ami utilise the largo tsinual saving in mt:-ro;-t : thu< obtained to repay ni, r iii-iebte-Irusj, the ability of the taxpayers to provide tho redemption fund v/iH not be taxed beyond present limits. I fully recognise the fact that linaurual authorities that u borrowing counify should not provide a sinkin;,'fund until it had cease 1 Lo borrow. Circumstances .alter ca;cs. and I my that with the novel prospects of obtamiagmoney at such a lov. cai'3 as would enable us to" provhle for the grail-.nd n-dm-tioii and extinction of our debt wiihou:, addine; to tlie annual burdens, the provision of a sinking fund is a course thai ha.i much to couiiuend it. I am seriously of opinion

that it would give greater stability to this colony were we, when the right time arrives, to adopt an effective system for tho extinction of our indebtedness." Tho proposal contained in this, put briefly, is that all our public debt should bo converted into 3 per cents,, and that the sum thus saved annually should be sot aside for eventually extinguishing our liabilities. 'I his system existed some years ago. It was the custom then to pay into a sinking fund a certain sum annually with a view to wiping out our loans. This is the sinking fund concerning which all the noise has been made. This sinking fund has been utilised by one Government after another, until it has nearly vanished. If Mr Ward wore to adopt a similar system now some necessitous Treasurer would in tho course course of time lay violent hands on it and utilise it. But there is a better way of managing tho matter. Lot tho Treasurer apply a certain sum yearly to purchasing our debentures in the open market in London. If this plan is adopted the money will be applied at once in reducing our liabilities, and consequently will not bo a temptation in tho way of future Treasurers, whilst our debts will be growing "small by degrees, and boauti fully less" evory year. We may say, however, that wo cannot see how this can be done without increasing taxation. Tho prosont Government havo been able to carry on public works for the last four years without borrowing, but they had nearly half a million of borrowed money in hand when they started, and largo Bums came in from the sinking fund. Now tho loan money is gono, and tho revenue is falling oIF, but we must contin no to carry on public works. That being so, where is the money for public works to como from I It must come from one of two sources: it must bo borrowed, or it must come from taxation. There is a residuum of sinking fund still left, but that cannot go on for over, and when it is gone we must fall back ou borrowing or taxation. Now people complain of taxation already, and say it would not do to increase it, and for this reason it appoars to us that it would be better to apply the annual saving which would result from conversions to tho construction of public works than to extinguish our debt. It is no use to borrow with one hand and pay off with the other ; that could only result in a loss. If Mr Ward can carry ou the Government without further borrowing, with tho help of sinking funds, or conversions, or any other means, we shall bo perfectly satisfied. Our debt is'not now too large, and future generations will be better able to pay it oil' than the present one. But we supposo that ho has not seriously contemplated such a proposal, and therefore it is not necessary to discuss it at greater length.

THE LEGISLATIVE COUNCIL. If the Legislative Council goes on as it has commenced the Governor will have to agree to fresh appointments. Already the Council has, in the most cavalier manner, thrown out some very important measures passed by the Lower House. It has thrown out the Repeal of the Contagious Diseases Act, the raising of the age of the consent, and the reform of the jury system, quite regardless of the fact that these measures were passed almost unanimously iu the Lower House. It is really very regrettable that the work of the Lower House is to be blotted out as soon as it goes to the Upper House. It appears to us plain that the old members of the Upper House are determined to resist all social reform. No measure of that nature has so far been accepted by them, except as it wero at the point of the bayonet. For three years they kept back some of the measures of the present Government, and it was only the threat of the Council being swamped that induced them to pass the policy measures of the Government last session. The worst of it is that the opponents of the Government are so numerous iu the Council now that only a large number of fresh appointments would do any good. It has been sa;d that the Government waited to put in four new members, but that number would not do. We doubt if twelve more would give the Government a majority in the Upper House, and that number would be too many to appoint. Still there can be no doubt something ought to be done with the Council. Half tho members do not attend. The number of Councillors on the roll is forty-four, but no division exceeds twenty-two members. That moans that, including the Speaker, twenty-three members are present, and that tho other twentyone are absent. All tho younger men attend, but some of the members are now so old that they are unable to do so. This is a rotten system. Theso gentlemen have been appointed for life at a salary of £l5O a year and a free pass over tho railways, but they never attend or do anything for their money. One old member proposes that leave of absence bo granted to another momber, and the thing is settled. The Hon. Mr Oliver is away in Englaud, and will draw close on £IOO this year as a member of tho Council. Tliis ought to be roctitiod. Members ought to be compelled to attend to their duties or rosign. Here wo are now with forty-four Members in the Council and only twenty-three of them in attendance, and the whole of the work of the Lower House can be sot aside by these. We have frequently pointed out that the reform suggoated by the Premier should be carried out, but no doubt the Governor is standing in the way. Ho will not make appointments, and consequently tho Government cannot help themselves. It is really very annoying that one man can control a whole nation iu this way, especially when that man has no interest whatever in tho country —when, in fact, ho is only a paid servant of tho people. How differently wero the Conservatives treated when aftor the election of IBDO Sir Harry Atkinson found himself defeated. At that time the country decided against Sir Harry by a large majorityyet tho Governor appointed seven new Councillors on his recommendation. This was a disgraceful business. Hero was a Premier who really had no right +.> tender advice to His Excellency at all. but, his advice was accepted, while tho advice of a Premier supported by two-third.-, of Parliament is rejected. It is tim-> tho Elective Govornor Lill was carried, even if it does cut tho painter, when a stupid old man who knows very little- of constitutional government can con rol a whole nation in this mannor. [This article has been in typo for over a w.eek, but lias been crushed out by other matter. Sinco writing it we find that the attendance in tho Council has increased to lit), of whom 20 voter! for throwing out | anotiu-i- Pill and 10 for parsing it. This ! was a Pill brought into flu* Lower ilotiuby Mr J. A. Millar, and entitled "'lhe Employers"' Private Benefit Society Bill." It appoars that tho I nion Steamship Company have started a benefit society for their employees, and it is said that it in iiof managed as it ought to bo. Mr Millar brought in :*. Bill with a view of having it placed under Government Mipbrvision, liko other benefit societies, but, the Lords mustered in full force and throw it out. |