Wairarapa Standard Published Tri-weekly, Price 1d. WEDNESDAY, AUGUST 4, 1886. The Revenue Falling off.

Wairarapa Standard, Volume XIX, Issue 1866, 4 August 1886, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. WEDNESDAY, AUGUST 4, 1886. The Revenue Falling off.

When Bir Julius Vogel in bis Financial Statement announced that be was able to show a surplus, people who understood the financial position quietly smiled at the audacity of the assertion. Since then it has been proved to demonstration that the “ surplus ” of the Colonial Treasurer really means a “ deficit.” At the present moment another grave circumstance connected with finance has arisen, and demands the most careful consideration. A very serious falling off is shown in the Customs and Railway revenue for the quarter of the financial year, ending on 30th Jane. The deficiency in Customs for the first quarter is at the rate of over L 160.000 per annum. The deficiency in railways is at the rate [of L 150.000 per annum. Tiiese figures are calculated to create much uneasiness, and they also threaten to affect materially the realisation of the revenue estimates for the financial year. Taking the railway revenue all over the colony it is undoubted that there is a serious falling off, and we do not see any immediate prospect of an improvement in this direction. With respect to the falling off in the Customs revenue, the New Zealand Trade Review offers an explanation. Our contemporary remarks“ The decrease is, to some extent, capable of satisfactory explanation. We allude more especially to the items of sugar and tea, the receipts for which in the June quarter of 1885 were abnormally inflated by speculative clearances in anticipation of an increase in tbe rates of duty. The extent to which this took place on that occasion was more than sufficient to account for tbe whole of the above deficient cies in these two items. The decline in spirits is, we presume, evidence of a continuation of the diminished consumption of alcoholic stimulants that has been going on for tbe last three or tour years. The other items we must regard,as indicative, to some exiept at all events, of the severity of the depression which has existed, mors or less, throughout the colony.” The foregoing explanation holds good to a certain extent, but by no means altogether satisfactory. We are firmly convinced that the falling off in Customs revenue which has been taking place since 1883 is dne to the fact that nearly all classes of the colonists—bat more especially the working and wages earning classes—have been making less and consequently spending less. When a prudent man of business, country settler, clerk, mechanic, or “ working man,” finds his income or wages reduced, he usually contracts his expenditure. Now it is impossible to ecsnomise much in expenditure on actual necessaries. A man and his must have bread, milk, tea, sugar, butebers’ meat, potatoes, boots, clothing, candles, firewood, and a few other household requisites. He still buys about the same quantity of those things as before for himself and family. There is little or no Customs duty paid on those necessaries, except the ad valorem tax on imported slothing. But there are a hundred ether things on which heavy Customs duties are levied, which a man will buy if he is earning good wages. Tobacco, spirits, wines, beer, imported pickles, jellies, oysters, fruits, and a lot of ether delicacies and luxuries are amongst these things. The man getting less wages |buys very little of those luxuries, or ceases to buy them at all. Jewellery, and the more expensive articles of drapery also come within the category of luxuries on which expenditure is materially ont down. Thus it comes about that when times are bad and tbe working classes earn much less, the Customs revenue must fall off materially. The falling off in the revenue from the spirit, ,beer and wine duties has been very great. That is partly due to the spread of total abstinence principles, bat it is also partly—and we think vminly due to the fact that the mass of the people have far less money to spend than they had some years back, and consequently they often refrain from taking a glass of ale or a ” nip ” of spirits just because they cannot afford the ontlay. But to come back to tbe main subject. The fact is undoubted that the Railway and Customs Revenue has materially fallen off, and the Government should therefore try to practice every possible economy and retrenchment in the public expenditure. In the case of the majority of the people, the salutary lesson ol economy has already been forced upon them.