The Taranaki Herald PUBLISHED DAILY. MONDAY, SEPTEMBER 8, 1879.

Taranaki Herald, Volume XXVII, Issue 3221, 8 September 1879, Page 2

The Taranaki Herald PUBLISHED DAILY. MONDAY, SEPTEMBER 8, 1879.

Fkom the speeches both of Major Atkinson and Mr. JCelly it Appears that a large deficiency may be looked for during the present financial year which will have to be provided for either by the reduction of expenditure or the imposition of new taxation. There aro three large items of expenditure, and three only, on which reduction could be made ; and the question is whether it is wise and politic to make such reductions, or whether the better course would be to increase tho revenue by taxation. The items wo refer to aro education, £220,000, defence, £180,000, and subsidies to local bodies and the j)er centage to counties, £860,000, making a total of £760,000. As our readers aro aware, primary education is now provided free, being a charge on the consolidated fund. The only aid the revenue receives is from the rents of the Educational Reserves, which amounted for the past year to some £20,000, comparatively a small sum at present, but one which will in the future materially lessen the charge on the ordinary revenue. As it is essential that tho State .should make adequate provision for primary education, and as it is hopeless that any special tax could bo devised that would maintain this service in a satisfactory manner, wo may conclude that no saving can bo effected in this department. With regard to defence, considering the present aspect of native affairs, this unproductive expenditure will probably be necessary for a few years longer. We now como to tho last item, which may be separated into two parts ; first, the twenty per cent, of the land fund paid to counties, equal last year to £142,000, and the subsidios to local bodies of £220,000. The payment of the twenty per cent, to counties we may at onco dismiss from consideration as it is an item of expenditure that cannot bo reduced. This expenditure is simply the appropriation of a small share of the money derived from tho sale of land in making roads to and through tho

land sold, and this being in tho nature of re-productive expenditure, ought to he maintained. With respect to the last item, tho subsidy to local bodies, it is partially of tho same charaoter as that paid to counties, but it is a charge properly on the ordinary revenue instead of the land revenue Being paid to Road Boards, and Boroughs, it is really a voto to maintain existing works rather than a vote for new works only. The question, therefore, arises, whether in the event of new taxation being necessary, the Colony would prefer submitting to the new tax, or whether it would rather sacrifice tho payment of the local subsidies out of ordinary revenue, and thus relieve tho Legislature from the unpleasant duty of imposing additional taxation. The pressure of direct taxation is no doubt salutary in New Zealand under our system of largo 'borrowing for public works. It applies the drag in the most effective way. It makes? people think, and ask the question^ very seriously, are we or are we noi paying too inuoh for the prosperity which public expenditure produces? But when wo ask the local governing bodies to exercise some self-denial by relinquishing their subsidies in order to relievo the Assembly from an unpleasant duty, we fear those bodieß will respectfully declino to sacrifice themselves for the good of the Colony. They will truthfully say, if you deprive us of our usual subsidies, which for years we have treated as ordinary revenue, you deprive us of the power of useful work, we would have to impose almost double the present local taxation in order to carry on our ordinary local public works, and it would not he fair to thrust on us the odium of imposing additional local taxation in order to save the Legislature doing so for, Colonial purposes. Under these circumstances what is the proper course? The only remedy is to reduce where possible on all the general expenditure of the Colony. To restrict fancy expenditure in every direction that is not} of a reproductive character or absolutely necessary for the public service. If proper economy is shown by the Government in all services on this basis we cannot complain if in order to meet the proper demands on the Treasury a property tax is imposed. But in order that such a tax should meet with public approval the Government must show that they have reduced the public expenditure of tho Colony on works not strictly of a reproductive character to the lowest possible limits.

Four inebriates were charged at the Police' Court this mprning with drunkenness, and were mulcted in the usual penalties,

Captain Edwin telegraphed at 2.10 p.tn. to-day — "Bad weather approaching in any direction betweon west aud couth and southeast. Glass will further rise."

We hayc to acknowledge the receipt of the September part of " Bradshaw's Guide," forwarded to us by Mr. Cholwill, the local agent. It appears to have been thoroughly revised, and is as useful as ever.

The millers of New Plymouth hayc raised the price of flour £1 per ton from to-day, owing to the Canterbury millers having done the same thing.

The town was thronged with natives to-day, who wore on their way to Parihaka for the ( purpose, we learn, of planting potatpes for the prophet. The four-in-hand break, which was purchased by tho natives recently, passed through the town this morning freighted with a full complement of natives, theirdestination being Te Whiti's settlement,

More than usual interest was exhibited in tho election to-day for a member to represent the Grey and Bell district in Parliament. It was thought that there would be a "closo run" between the candidates, they being botli possessed of a large amount of influence. Each candidate having a good " following," the work of electioneering was carried on with spirit on both sides, and electors were hunted up and brought to the poll from all directions, Vehicles of every available description were in requisition, and wore kept hard at work throughout the day conveying the electors to the principal polling places.

The Cosmopolitan Dioramic Exhibition opened on Saturday evening in Courtney's store, near the Hkuald ollicc, and notwithstanding the inclemency of the weather, it waa well patronised, There are about 100 views of the principal cities and places of note, including Paris, Notre Dnnic, the Seine, Italy, and scenes of the Turko-ltussiau war. The views arc inside a large varnished wooden screen, in which aro placed microscopes of considerable power, through which the scenes are observed. All the views are of a high order of merit, and will repay the visitor by an inspection. An additional attraction is also provided in the shape of presents, which arc given to everyone who outcry tho exhibition, some of them being of considerable value. The exhibition is not contiuud to tho same set of views, as we aro iuforinod there are six different rolls of sconery, and n change of scenery' will be lmido at suitable intervals,