Mr Buchanan, M.H.R, at Carterton.

Wairarapa Standard, Volume XX, Issue 2058, 22 April 1887, Page 2

Mr Buchanan, M.H.R, at Carterton.

Tho following is the continuation of Mr Buchanan’s speech, which was delivered at Carterton on Tuesday night last FISAHCE, So much for the more prominent bills which were before the House last session, and now I come to what is unfortunately the question of questions—overshadowing all others at the present moment—the question of finance. Settlers throughout New Zealand have been suffering from great depression in business, for low prices for almost every article of produce, and in the case of the working classes, from scarcity of employment and low wages. It is almost needless then to point out that money has been very tight and that there has been the greatest difficulty to make both ends meet. How then, has the Colony been fating during the year which ended on the 31st of last month, and has our income been sufficient to meet oar expenditure ? Last year’s financial statement showed an apparent surplus of L 37.859, but, it was not a real surplus, because a slightly larger sum was due on subsidies to local bodies, so that roughly speaking we commenced the year with an even balance between income and expenditure. The income for the year just ended was estimated by Sir Jnlins Vogel at L 4,074,920, of which L 1,410,000 from customs, and LI, 150,000 from railways were the principal items. Stamps, property tax, beer duty, &0., &0., come next in order of consequence, bat 1 refrain from quoting the dry figures which would only mystify and confuse yon. The expenditure lor the year on the ether hand was estimated at a earn barely over LISOO short of the income I have stated, so that practically we should have oome out at the end of the year with a clean balance sheet if Sir Jnlins Vogel’s estimates had proved reliable. Yon will, of course, have seen by the papers that this, unfortunately, is not se and that oar deficiency on Customs alono for the year amounts to no less a snm than LUO,BOO. Then as to railways, we find that instead of receiving the estimated amount of £1,150,000 they have yielded only L 990.000. Fall particulars of the other items of income will not oome into onr possession until the year’s financial statement is put before the House, and the same remark is true as to the expenditure. The Government it is true, have been stating that they have been making large savings on that head, bat giving them the full allowance due to their statements the fact remains that with a taxation per head largely in excess of any other Colony in these seas, we find ourselves face to face with a deficiency probably but little short of L200.C00. Gentlemen, nothing could be more serious than the state of affairs which this statement discloses, and nothing oonld be plainer than the dnty which lies upon your representatives to find effectual remedies when the House meets and to insist that these remedies shall be effectually applied. There ate three obvious ways which at once suggest themselves to ns, by eitber of which or by the partial application of all three we might find a way of meeting our difficulties, viz,, increasing taxation, reducing our expenditure and getting a better return for the largo amount tt i ,-rowed money we have invested in out r 1 • ,-i and other works. First, as to increased taxation. Wo owe now in round numbers to our English creditors a sum of 33 millions, in other words a debt per head for every man, woman and child in New Zealand of L 57. Taking it in another way, it means a debt per head for every male in the country between the ages of 15 and 65 of £IBO. 1 do not propose to ; go into elaborate figures of comparison with other colonies, but it is quite sufficient to say that the amonnt of our indebtedness is much beyond that of any other colony, and that it has been made a subject of reproach to us throughout the English speaking world. We have not only to admit that this is true, but also that we have spent more than half of the money on purposes which give no direct retarn and that the interest has therefore to be fonnd out of taxation. Then again, as to our power to pay increased taxation, we find that in the main the prices of every article produced by settlers and out of which taxation has to come have been reduced daring late years to the lowest ebb. Onr wool, our graio, onr dairy produce have greatly reduced in value and the employment on which so many of our population depends has also become scarce and the rate of wages very much reduced in some parts of the colony. All these facts—indisputable facts, point clearly to the conclusion that every other means of paying our debts should be exhausted before we are asked to pay a heavier taxation. But is this the conclusion of the Government ? Not at all. On the contrary they all agree in their recent speeches that farther taxation must be proposed as soon as the House meets, and Mr Bailanoe jauntily gives as his excuse that we are now paying only L 3 2s 7d per bead, the eame amount as jn 1869, before the Fnblio Works scheme was initiated. Mr Bailanoe has been Colonial Treasurer in a previous Government and therefore ought to know something about out finances. On this occasion he has forgotten one very important feature in coming to his conclusions. No census was taken in 3869, but it bo refers to the figures of 1871 he will find that the male population between the ages of 15 and 65 numbered 97283 or about 38 per cent of tbe whole population, and that the taxation per head en these males—the workers of the population, was at the rate of L 8 5s per head. If he now turns to the census which was taken last year he will find that the number of males of the same ages numbered 181,000 or only 32 per cent of the whole population and that instead of these workers paying only L 8 5s perffiead as before, they are actually paying L 9 14s 7d per head. The difference of LI 9s 7d at first sight does not look very important, but it really means that the country last year paid no less a snm than L 275,000 over Mr Ballance’s estimate, and you must also bear in mind that the working pait of the population has also to maintain not less than 35,000 women and children which we now have in excess of the proportions of 1871. So much then for Mr Balance's facts and figures and tbe ease with which we can stand a little more taxation. Sir Jnlins Vogel on the other hand takes up different ground and I at once admit that, taken by itself, there is a good deal of weight in his argument. He tells us that the falling off in customs duty is largely owing to the reduced value at which we can now buy imported goods and tj tho duty which tho consumers pay • :■ ns, - queutly much less. He also toll- , ( , ,t, W c have been baying much less beer "hits aud that ou those grounds we can o i , * near a Ihlie moio taxation. As to tho reuuction iu oar drinking lull I an: sine we all cordially congratulate eaeh other and cmnr-tlv -■'‘o.wSi the hope that the reduction may ho coiiimuing o""‘ we aleo recognise (ho cloven hioi oi the special pi'",' lHr ‘ insatiable tax gatherer, in complete omission of the well known faot that the deere oe iu customs was mainly caused by the absolute inability of tbe people to buy the necessaries and luxuries which better times formerly enabled them to purchase. Further taxation also affects one of the most important questions which a young colony like this can deal with ; I refer to immigration. It goes without saying that the steady inflow of population combined with capital, is ooe of the most important questions which could engage tbe altertion of any country such as ours. How then are we to offer any attrao tions to outside populations if year by year we add tax to tux until tbe cost of living here approximates to, if it does not exceed that of the countries from which they seek to escape? In 1883 the nett gain to the colony between arrivals and departures was 10,029; in 1881, 9,321; to 1885 it had dwindled down in 4.504, and for the year ending lust December 1.064, of whom no less than 542 were asbislcd Government immigrants. Here then we have the fact that io years gone by the colony olfeied such attrao tions as brought large numbers to our shores I to people our waste lands aud help to lighten j the burden of taxation, but also the disagree-

a Ip fact forced upon us that the fertilizing t dc tiapparently turned elsewhere and that w are barely doing mote than holding our own. A gleam of hope turns up however from returns covering the first two months of the present year which show a nett gain of 1410 in favor of arrivals against departures and of whom 262 were Government immigrants. We all know that this mean* the return of many a weary sunburnt Kimberley digger, and let us hope that they have returned wiser if sadder men and at the same time determine that no act of ours either by increased taxation or otherwise shall be permuted to mat the many attractions of our adopted home. And now we turn to the next point the possibility of reducing our expenditure. Mr Fisher, one of the Wellington members, told you a few days ago in his very able speech, that an annual sum of no less than L 1,750,000 had to be paid to our English creditors as interest on our borrowed money and that the whole of our customs end property tax revenue fell L 149,000 short by meeting this annual payment. This is substantially corraot as a matter of account, but the inference sought to be drawn that our borrowed money is yielding us nothing in reduction of this enormous sum of L 1,760,000 is obviously nn« fait and he should have referred to the fact that the L 317,000 nett profit which our railways yielded ns for the year ending March, 1886, should go in reduction cf this amount. We also get some direct return from borrowed money invested in Native Lands and in other directions; so yon will see that we must make considerable redactions in the sum mentioned by Mr Fisher. No argument can permanently gain by exaggeration, and the naked facts of our financial condition are in themselves sufficiently serious without stepping one inch beyond them. It is of course clear that we must continue to pay our yearly interest to the English creditor despite what Mr Fronde has said to the contrary—and that we cannot possibly look for any economy or reductions in that direction. The Premier, Sir Julius Togel and Mr Ballauoe all tell us that they are doing everything in their power to reduce expenses and that they will submit estimates to the House next session showing more comprehensive reductions than any Government ever presented before.

Looking at the actions of these gentlemen in the past, especially Sir Julius Vogel, is it reasonable to place any faith in their pro* raises of economy ? Knowing what we do of the holder of the purse strings, is it net positively ludicrous to expect anything like the economy and careful administration which the gravity of the situation demands f Can we forget the programme with wbioh he announced himself when he arrived amongst us in 1884 f Can we forget the fact that his whole public career has been one continued record of borrowing, debt and extravagance ? Have we forgotten the East and West Coast Hallway transaotions and the burden they were prepared to cast on the whole colony to favor the Canterbury laud owners and their political friends ? Let us bear in mind also that part of our railway deficiency arises directly from their paying away large sums of money in purchasing the district railways from the Southern land rings—pressing the votes again and again upon an unwilling House for amounts much beyoud the valuations fixed by tlifiir own responsible officers. Take even minor matters such as Ministers’ travelling expenses and maintenance of .Ministerial residences. We find that while the average travelling expenses of previous Governments covering a period of five years did not exceed LI7OO per annum, the present Government sunoeeded in running up a bill of nearly L2IUO for the first six months of 1886, and for the twelve months ending March, 1886, they got nd of no less a sum than L2BOO. And so with Ministerial residences also, the same extravagant expenditure, the same determination te live in clover no matter who suffers. The Wellington members deprecate the cheese paring which hj i been attempted with the civil service and point out the unfairness of making the unfortunate clerks in the Government the 'scapegoats of every attempted redaction. In this I largely agree with them, but at the same time feel satisfied that large reductions could be made by amalgamation of offices and by securing that while fait payment should be made to every officer, be certainly should be kept fully employed and give the country value for his pay. Tou may have seen bythe papers that beth the South Australian aud New South Wales Government have made large reductions in the cost of their Civil Services, and I can see no reason wiiy we should not follow their example. Sonth Australia contains only about half of our population, and yet they are reported to have saved L 222.000 on their annual budget, and New South Wales the still larger sum of L 450,000. But lor my part I have no faith whatever in the reduction of our expend!* tore while the present Government remains on the benches. I have now told you what X think of increased taxation and of our prospects of reduced expenditure—it remains for me to deal with the remaining point—the question of getting a better return from the L 13,726,000 which we have expended on onr railways, and I am strongly impressed with the fact that in this direction we mnst find the main solution of our financial difficulties. When any one of us gets into a difficulty about our own private business, our first impulse is to turn to some friend for advice, or we make enquiries as to the course followed by somebody else under similar oiroumstanoes. Applying this to our railways, and turning to Victoria we find that in 1883 their papers were full of complaints as to railway jobbery, corruption political of course—and mismanagement. 1431 miles was the total length of lines opened at that time, and the nett results of the year's working i left a profit of L 624.389, or L2lßs 2d per cent, on the total cost of the railways. Reckoning 4J per cent, as the interest payable to the English creditor, these figures indicate that the sum of L 320.000 had to be found out of taxation to make up for deficiency in railway earnings. This was the state of affairs under political management, and I invite your close attention to the parallel which it affords to the state of our railways at the present time. The Victorian Parliament thereupon decided to place the railways under the control of a Board of three commissioners, the chairman of whom was selected in England from the sole point of view of business ability and long experience of traffio in the large railway centres there. Let us now turn from 1883 to 18S6 and ascertain what the result has been. We find that the length of lines opened hj is increased io 1600 miles, and that the year's working left a nett profit of L 1,018,689, or 1.1 'is: 7d per cent, on too total cost of the r lilways, besides a further sum of no less :ii to L 61.483 paid into the consolidated fund u> assistance of ordinary taxation The nett results of the three years’ working may be summed up in another way, viz., 260 miles of new railway opened, increased receipts amounting to L!„n OIK', and only L37.0U0 additional expenditure to work the increased traffic. The immediate outcome of these results was that, that the commissioners were S''4bK’4 to reduce the rates all round by a sum estimated at LIOO.POO per annum to the great relief of the country producers and users of the railway t irooghout the country, tlere, then it seems to me, is the oleir solution of oue of our greatest difficulties-the Jiilluulty of retaining under our own control -tu investment which has cost us so many millions of money—and at the same time freeing it from the political mismanagement, which has cost os so dear in the past. Our Piss on our railways for the year ending March of 1886 was at least L 200.000, and the year just passed must necessarily shew a much worse result. Can we therefore lesilate in following the example set us by Victoria ? Surely the Minister lor Public iV'orks and the Government generally must sue that the taxpayers of the colony cannot afford to have our railways worked any I mger after the present wasteful andextrava pint manner. I am well aware that some i ave said this district would suffer if the r lilways were put under a Board — that I issenger.s and freight rates would have to be ■ deed before our local line would pay interest a co it of construction. Such is not by any myaus my opinion, because we ail kuow that

the traffic is increasing every year, and lam very glad now to inform yon that last year’s working has given over L3OOO more than any previous year. I think it also right to take into consideration how much more sa’isfac tory would be the position of the large number of men that are now employed under the railways. As matters stand now what hope can merit have of recognition or promotion when pitted against political patronage and favouritism. I venture to say that in a very short time we should have a very different spirit pervading our railway service —the spirit begotten of a consciousness that good service would always meet with its deserts, and not as at present snubbed and humiliated till many of our best men are reduced to the levels of mere machines. And if we wish to know anything further as to the value of business management in the construction and working of railways, what better example could we have than that afforded by the Manawatu Railway Company, the successful working of which is so well known to all of you through the Frees that I would not be justified in taking up your time by going into details. 1 hope I have not by remarks led you for a moment into the belief that our present Minister of Public Works is blind to the advantages of business manage' ment on our railways. When he took office two years and a hall ago this is bow he expressed himself, " It is a matter of the deepest regret to me that owing to the late period of the year the Government has come to the conclusion that it will bo impossible to carry a Bill through this session creating Boards of Management, which would be responsible for the working of onr railways, and did 1 not feel convinced that the Govern* ment and the House were determined to take this course at the earliest date possible I should not have consented to take office.” There is the opinion and the intention definite and unmistakable, and I will not do Mi Richardson the injustice of doubting for a moment that be meant to carry out what he said, but the fact remains that the Minister is still in office and not a step taken to create the Board of which be spoke so strongly. Mr Travers and others advocate the leasing of our railways, but I shall be no party to such a scheme except as a last resource. We want no second Brogden Co. domiciled in New Zealand to further corrupt and warp our politics. A Board of Management would be in every way more advantages ous. BOBBOWING. I have dwelt on our finance at the risk of wearying yon, but I cannot leave the subject without a reference to borrowing. Before last session Sir Julius Vogel in bis several speeches during the recess gave rise to a wide impression that the Government intended going in for on extensive scheme of borrowing, bat they soon realised that the country would have none of it, and we were very pleased to find their ideas reduced to a million and a half to be devoted to railways alone and to have the expenditure spread over a period of two years. The Government have all along declared their intention to confine borrowed money to the completion of unfinished lines, but the House found on examining the Bill that the sum of L 175,000 was set down against two entirely new lines to connect Inangahua with Westport, and Blenheim with Tophouse on the East and West Coast Railway. The opposition would have nothing to do with these new lines, and despite the bitterest opposition by the Government, compelled them to pass the Bill minus the amount 1 have stated. Hera you have another instance, gentlemen, of the value to be attached to Government promises of economy when one or two member’s votes have to be angled for. And now we come to the results of that loan on the London market, a result so humiliating that onr minds fill with indignation at the mis government that has brought the credit of this fine country to such a low ebb. L 97 was all we could get on the London market for each debenture of LIOO, in other words we had to pay the money lenders no less a sum than L 45,000 before they wonld have any> thing to do with the debentures representing this onr last venture on the London market. The Government tell us that Mr Fronde's book has been the cause of ruining our credit, and that the London newspapers have also been instrumental in the same direction. There can be no doubt whatever that this is to a certain extent right, but there can also be no doubt that the main cause was nothing elee but the absolute knowledge on the Stock Exchange that we have been for a long time borrowing beyond any other colony in the British Empire, and this is the just and I hope salutary punishment which has been meted oat to us. We recently bad a visit from a Mr Brodie Hoare, a high financial authority in London, and chairman of the Midland Railway Com, pany, and what does be say as to London impressions about us ? That we borrow money too largely for political railways and to buy votes. That where two or three people are gathered together they go in straight away for a mayor and corporation who duly maintain their dignity by going in lor a loan. That every locality possessed of a ditch or horsepond must go in for a harbor, and that onr land owners are too fond of adding field to field by borrowing instead of saving. These are a few of the lessons he reads as, and the causes which bring us to grief in the London market. I will now leave ,the subject by expressing the hope that the House will absolutely refuse any power to borrow except upon a greatly reduced scale, for works which it would be folly to leave uncompleted. We mast also make provision for education buildings—for roads to open up Crown Lands, and for the purchase of Native Lands.

LAND SETTLEMENT. And this brings me to the question of land settlement, and the various steps which ths Government have been taking in this direction. First, let me express my belief sincerely and earnestly that Mr Ballanoe is honestly desirous of furthering this important work iu every way that lies in his power, and that I willingly give him the credit which is his due. Cun any one ol us doubt for a moment that land settlement in a young country like this with its thousands of acres ol unoccupied country, is one of the most important duties which oau engage the attention of any Government. This being so it is also clearly of the utmost consequence that practical skill and knowledge may be brought to bear on the conditions under which settlement is invited so that the operation may be a successful one. It is of the first importance for instance that if a settler is to be restricted to a small area—say 50 to 100 acres—that his holding [should be of land of the very best iu quality. It is only necessary to travel along the Forty Mile Bush Road to see that this ludispcusibtc condition has been set at nought and that iu the limber which is now being felled and burnt, the laud is beating the best crops that this generation is likely to see upon it. For my part I cannot imagine anything sadaer than to see settlement attempted under such conditions—conditions that mast entail loss and disap* I poiutment both upon ihi settler and the country at large. The settlement of Mauriceyille affords many instances ol working settlers toiling away lor years upon an ungrateful soil, while thousands of acres in the Fuketoi country of the richest limestone soil have been lying unoccupied in the bands of the Crown for more than 20 years past. Take again the case ol those village settle* moots on which men ore being placed in all directions without money without any chance of getting work within reach of their homesteads even if they did possess the special qualifications which ws all know to be eo necessary to bash settlement. The Government, it is Iras, advance them the means of building a shelter for themselves and of clearing their land, but I am satisfied that a very few years will see s great m my ol these homes abandoned from sheer iusblitv upon the part of these men to make a living ou the land under these conditions. Recognising as I do the great impoitaace ol sac cesslul settlement ou the land, it is with great regret, that I find my*ell forced into these conclusions, but I shall only bo too well pleased to find myself mistaken. The Premier and Mr Reliance tell us they do not believe in freehold, and stale tinintention of the Government oi bringing iu a

Bill with a view to its while Sir Julius Vogel from ht« Christchurch appears sti.l to h-.0 opinion of land nationalization a« wn dabbed it with the uncomplimentary * '« unmitigated humbug. Mr Boys asked if Mr Bncb *?“ w ? in Uvor of on© electorate for too with three members ? . M Mr Buchanan said he might be pn to make one electorate with two «e« but as the district would Waipawa he questioned if it would be B& Mr'Boys asked if Mr Buchanan wool his utmost endeavors to get the P exorbitant freight on firewood convey tail reduced ? , Mr Buchanan said he had waited npo Minister of Public Works and Mr Ma but without avail. He would be plea act upon any suggestion that would pr« aov effect. Mr Callister asked if Mr be in favor of assisting farmers to max Irish flax industry a success? He said than ten millions of money went from land for this aitiole. Mr Buchanan said an attempt had made at Ranpiora and am ther at Ten but both had been discontinued, despite natural advantages of those districts. In reply to Mr Partridge, Mr Bncb said he would only be in favor of intrude settlers to this colony who could depo sum of money with the Agent Genera Home and show that they were woit least LSO per adult. _ In answer to Mr Parker. Mr Bach said he would be in favor of reducing number of members of the House, if | ticable. Mr Booth moved and Mr Callister secon a vote of thanks to Mr Buchanan, which carried unanimously. Mr Buchanan, in thanking the meet said that when next he appeared before t it would be as a candidate for election. A vote of thanks to the chairman eluded a most orderly meeting.

MB BDOHANAN AT FEATBBB3TOH Mr Buchanan addressed his Featherfton on Wednesday night, Mr Reynolds in the chair. His remarks neatly to the same effect as those reported. Alter a most attentive hearing, speaker concluded his remarks amid applat^H Mr Viles asked Mr Buchanan il he that the members o( the Government, had to deal with the settlement of the did not deserve to be placed in leading ness and driven into the Wellington lor so hoodwinking the people at Home aiß the quality oi the land f 01 the millions acres spoken of by Sir J. Vogel, he ask —How many thousands were worthUiH when they have sold the ribs, sides, flanks of the bills, what was there Ifl worth having 1 The Government had ifl tiated settlement in the Forty Mile BnsH but what was the nse of a man living in ■ dense bush, without any roads to and frofl his place, or without any chance of obtainigpemployment ? Mr Buchanan said he was unable to gragf the point of question put by Mr Jas Vi'.esr but he was glad that Mr Viles had toucbsf upon the subject He (Mr Buchanan) wsa not a lawyer like Mr Stout, or he might perhaps explain the matter and teach kb Viles how it could be done. His opinion wsa that il would have been much better to ban not taken the railway beyond Masterton until the country had been opened up by roads. Mr Wtlby Jackson asked Mr Buchanan if he did not think the present expenditure on education could be reduced ? He considered that it was a question that interested the present settlers very much. He was of opinion that too much money was spent on ornamental education —drawing, Ac. Mr Buchanan said the education question was one he bad down on his list. His reply was, that while it should be our endeavor to lop off all that is unnecessary, still hs attached so much veins to the educational system that he considered every other departmental expenditure should be reduced before it. At present a great number of children in the Waitarapa did not go to school because they had no chance, and the teachers were not overpaid, it was only recently that at Gladstone the teacher was provided with a suitable residence. He differed from Mr Jackson as to drawing being ornamental education, and considered it of the greatest practical vain#. The present system no doubt had Its drawbacks and disadvantages, bnt economy shonld be looked to in every item before reducing the expans ditnre in this direction. Mr J Q- Cox proposed a vote of thanks to Mr Buchanan lor his able address. Hs was delighted to hear Mr Buchanan spaak in the way he did about education. We are in a transition state, but we must not go bank in education. _ Mr J. Donald seconded the motion. Hs thought “ confidence" might have bean addad, but that could be expressed at the ballot. The vote of thanks was carried noanimously. Mr Bnchanan, in thanking the meeting, said that when next addressing them ha would appear as a candidate lot election against all comers. Mr Bnchanan proposed a vote of thanks to the chairman, which was carried, and tha meeting adjourned.

GHEYTOWN. Mr Buchanan delivered bit address to the Qreytown electors in the Town Hall last night. The attendance was not large, bat was a most attentive one, and the proceedings throughout most quiet and orderly. Mr Hart Udy, the Mayor, presided, and in introducing the Kepresentative, said it gave him great pleasure to do so, and he was satisfied that any promises that Mr Buchanan gave as to Lis services next session he would keep as in the past; be thought if Mr Buchanan could assist in bringing in an income tax it would be a boon to the country as it was the most (air and equitable tax ; he hoped they would soon be relieved of the property tax. Mr Buchanan, to opening his address, said that the Greytown people had always treated him with the utmost courtesy and attention, and that was the greatest compliment that could be paid to a speaker. As an evidence that there was no discontent with his action oi the past and no grievances to air the attendance was not large, but the newspapers in the district had reported him so fully that every one already was in possession ol his views. Mr Buchanan's address was almost exactly the same as delivered before at Carterton and Featherston, and at the couclnsion he was greatly applauded. Mr Brooks asked if Mr Buchanan would support the Female Suffrage Bill. Mr Buchanan said he did not see any sound objection to female suffrage, but he did not deem the next session as the suitable time to settle such a question. Ths matter should be disposed of by the next Parliament. Mr E. Gray proposed a hearty vote ol thanks to Mr Buchanan lor his able address ; be considered no representative could have worked much better for the constituency, but he could have wished him to have gone further sometimes. Ur Q. Sayers seconded the vote of thanks, which was carried by acclamation. A vote ol thanks to the ohsir con eluded the meeting.