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Star (Christchurch), Issue 675, 22 July 1870, Page 3

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: — "• THE FINANCIAL POLICY AGEEED TO. Wellington, July 21, 11.15 a.m. Mr Driver supported the proposals, but would insist on precautions to prevent the money being wasted. He suggested the appointment of a Minister of Works. He strongly opposed the Provincial Governments having anything to do with the expenditure. He regretted that the proposals were not accompanied by a scheme to remodel the political institutions of the country. Whatever good Provincial Governments had done in the past, they were only productive of harm now. He approved the construction of railways on the guarantee system, but opposed payment in land. The refusal to accept the Imperial guarantee would raise the credit of the colony. Mr Eyes supported the proposals of the Government entirely. It would be a great mistake if they did not consult the Provincial Governments on the expenditure. Mr Yogel spoke in reply for three hours and a half. He made an admirable speech and was at times loudly cheered. The first three hours were devoted to reviewing and answering the speeches of previous speakers. He said there was nothing in the alleged pledge by the Commissioners against further borrowing. He read a private letter of Dr Featherston's, in which that gentleman said, City men had urged the acceptance of the Imperial guarantee for half a million, saying the colony could on its own credit raise, at low rates, any further sum it required for legitimate undertakings, and that the colony had only to ask money in order to receive it, if no further change in the Government took place. Unless war could be regarded as its normal condition, the colony was not living beyond its income. Since 1853, the colony had spent five millions nine hundred and fifteen thousand pounds in war and for Native purposes. It was not intended to carry out all the proposed loans or works

immediately.. The Bills were only intended to supply the machinery to do so as it was found desirable. He read a letter just received from Sir Charles Fox and Sons, London, offering to construct suitable lines of railway, on guarantee, at from £3000 to £4000 per mile. He reviewed the reasons for and against appealing to the country before finally proceeding with the measures. The Government had decided to modify their proposals, and if, after waiting a few days, the House was disposed to accept the modifications, they would go on with the Bills, but they would not consent to allow them to be torn up or mangled in committee by crude amendments. They would rather withdraw them if they were not to be accepted in their modified form. The modifications were as follows : To efface the Bailway Schedule, and the Government during the recess to obtain all possible information regarding proposed Railways, leaving next Parliament to decide, on that information, what lines were to be constructed. To reduce the amount of the proposed loan from six to four millions, to be apportioned as follows: One million for miscellaneous purposes ; one million for immigration ; two millions for railways. The amount for the purchase of land in the North Island, not necessarily Native land, to be reduced one-half, that is, to £100,000, and the amount for supply of water to goldfields to be correspondingly increased, from £200,000 to £300,000. To provide machinery for keeping the loan account entirely distinct from all other moneys. To have one Central Immigration Agency in the United Kingdom, to which the various Provincial Agencies would be subordinate. The members of the Ministry would vote for the new tariff duties, but would leave them an open question, and would not object to their rejection this session. He believed the country, in the new elections, would approve them. In deference to Mr Travers' suggestions, the Government would withdraw the proposed bonus on the importation of Australian wines, and would bring down a bill admitting them at a differential rate of duty. The new loan would be placed on the market at such rate as would ensure that purchasers should not receive more than six per cent. The Government would consent to excise clause 22 of the Public "Works and Immigration Bill, but would adhere to a five years' loan for defence, consenting that the annual appropriation for that purpose should remain in the hands of Parliament. Mr Eolleston asked if the Government would refuse the Imperial guarantee if the conditions were such that the loan would not fall in with the general scheme. Mr Yogel replied that the Government were not yet aware what the conditions are. If they precluded the colony from further borrowing till the million loan was taken up, the Government would refuse to accept the guarantee. The Commissioners would be instructed to endeavour to obtain the Imperial guarantee, at a low rate, for a short period, say 15 years, for the whole of the four millions, instead of a 40 years' guarantee for one million. He believed this arrangement would better suit the policy of the Imperial Government. la reply to Mr Barff, Mr Yogel said the Government would not consent to make the capitation grant to the provinces apply only to adult males. To encourage the settlement of families and the marriage of young men they would make the infant born yesterday as much entitled to a grant as adults. In reply to Mr Peacock, Mr Yogel said none of the loan was intended for harbour works. The Government did not approve of making new harbours, and the improvement of existing ones could best be effected by special Acts forming local trusts, with borrowing powers. In reply to the Hon. J. Hall, Mr Yogel said no railways would be made without the special authority of Parliament. The proposals as to land grants would remain as in the Statement. The Four Million Loan would not include a guarantee on any railways Parliament might authorise to be constructed on that system. Mr Yogel was loudly cheered at the conclusion, and the resolutions were

agreed to on the voices, only two Noes being given. Mr Collins bad an amendment ready, proposing to limit the expenditure for the current year to the guaranteed million, and to take the voice of the country on the larger proposals, but he did not move it after the modifications were announced. 7.30 p.m. The Government supports the Bill for the payment of common jurors, and intends to abolish the present exemption of volunteers. Mr Creighton moved his resolutions on the land question in a very moderate speech, disclaiming nil idea of spoliation, but accusing the Middle Island provinces of mal-adtninistration of the land revenue. Mr Armstrong seconded the motion. The Government objected to the discussion of the resolutions as inopportune. Mr Bunny moved the previous question, and a rambling and acrimonious debate ensued, a number of members making short speeches. The debate was ultimately adjourned.