Wellington Independent. "NOTHING EXTENUATE; NOR SET DOWN AUGHT IN NALICE." SATURDAY, 30th NOVEMBER, 1867.

Wellington Independent, Volume XXII, Issue 2604, 30 November 1867, Page 4

Wellington Independent. "NOTHING EXTENUATE; NOR SET DOWN AUGHT IN NALICE." SATURDAY, 30th NOVEMBER, 1867.

Tiie Financial Eeform movement-, which originated some time ago in Nelson, has been taken up by Canterbury with a promptitude we would do well to imitate hero. At a public meeting held in that province on the 13th inst., it was resolved to constitute a Financial Eeform Association, and a few days afterwards the committee appointed for the purpose drew up a set of rules and decided upon a scheme of operations. The objects of the Association are defined in these rules to be — (1) to collect and diffuse accurate information respecting the finances of the colony, and the province of Canterbury in particular; (2) to promote all well considered improvements in the mode of raising the public revenue; (3) to enforce by all constitutional means the practice of economy in the public service without detriment to its efficiency. A

careful perusal of tho speeches delivered at the meeting shows in the 'strongest light the necessity which exists in the province of Canterbury for such an association, because it is apparent that many of the people there arc profoundly ignorant of the actual financial position of the colony, and have yet to learn in what direction the work of reform should commence. "We do not say this in any spirit of reproach to Canterbury, because if the people of any other province in New Zealand were to grapple fairly with tin's large and important question, they would experience, through lack of knowledge, a precisely similar difficulty at the outset. If; is therefore of the highest importance that accurate information respecting the finances of the coloivy should be collected and diffused amongst the taxpayers, and we do not see that this could uo better accomplished in any other way than^ by the formation of such an association. Without a thorough knowledge of the evil, it is impossible to discover and apply its remedy. "When we protest against the enormous expenditure of the Grovcrnment and groan under the crushing load of taxation which it involves, we should at the same time point out in what direction and in what manner a reduction can be effected. This the Press may in a measure accomjriish ; but the efforts of public writers will be comparatively useless if tho people themselves will not organise and act. Besides, the subject of colonial finance is one which can only be properly understood by those who will investigate it for themselves, and till people do that there is but little hope of remedy for existing evils. "We therefore give our most hearty support to tho movement now going on in Canterbury and Nelson. It is one which should not be confined to those provinces, and we trust that not only Wellington but every other settlement throughout the colony, will follow the example now set before them.

Although those present at the Canterbury meeting wore in the position " of men commencing to learn a lesson," — to use the phrase of one of the speakers — yet they talked much sound sense, and followed it up by business-like action. In Mr Wynn Williams, we have found a vigorous supporter of our argument, that only by the imposition of direct taxation can the people be mado to understand how much they really pay ; and that a certain security would thus be afforded for economy in the public expenditure, because a dislike to meet the direct demands of the tax-collector would make them continually insist upon economy in the administration of Grovernment. Mr Stevens, whose speeches we have often listened to with pleasure in the Assembly, put the preliminary difficulty to which wehavealreadyalluded,very clearly, by saying that when they talked of reform it was necessary to know exactly the change that was desired. We do not, however, agree with his implied argument that because engagements have been contracted, colonially and proviucially, to the amount of nearly £7,000,000, on' which interest and sinking fund have to be paid, there is, therefore, little margin for retrenchment. Permanent charges must, of course, be paid, because the colony is legally bound to do bo, but as we are so largely in debt, that affords the strongest reason why we should institute a system of retrenchment in every department where it is possible. The expenditure for 1867-8, was estimated by the Colonial Treasurer in his budget speech at £7M.,178 7s 6d, of which £6305,818 5s 5d came under the head of permanent charges, thus leaving a margin of £438,360 2s Id, in the expenditure of which retrenchment is perfectly practicable. In previous articles on the estimates, we have stated in detail what savings could be effected, but in reality little was done during the session in that direction. Now, if a Financial Eeform Association were constituted in every province throughout New Zealand, such an amount of pressure could be brought to bear, both upon the Assembly and the Government, that the perpetration of extravagant jobbery and lavish expenditure would be no longer possible. Mr Stafford, with characteristic cunning, parades the few trifling reductions he makes, with the view of securing the reputation of being a financial reformer, but this is also done to divert attention from instances of needless and extravagant expenditure which, if fully known to the people, would be borne no longer. One important use of a financial association would be to keep the people thoroughly informed on such matters, and thereby to change their tame endurance into energetic action.

On the question of taxation, we can, to a great extent, endorse the views expressed by Mr Stevens. "He was convinced thero were a great many now who would bear him out in saying that the present system of taxation did not fall fairly on the population. That a system of direct taxation was one cure for their difficulties could not be questioned. Ho did not mean that a change should come Buddenly on the country, but a w'iae and carefully considered scheme of direct taxation would tend to relieve the country from the difficulties that surrounded it. He knew it required a long time to bring in a favorable light to the minds of those who had not thought much about the matter, the advisability of the adoption of a direct system of taxation. But when ho saw the large amount paid not only on public but on private liabilities, and when he observed the large amount of debt which the colony was staggering under, he came to the conclusion that the only cure was to make everyone pay equitably his share of taxation, whetlier they held property ns residents of New Zealand or as absentees They would think' it rather remarkable that, representing as he did, the absentee interest in a very great degree, he should speak thus, but he did bo through

an honest conviction that tho state of the finances were such, that unless there was an alteration in the system of taxation, there was a very great doubt whether the colony would be able to pay tho charges upon it. In the interests of their creditors it was necessary that something should be done to give better security to property than at present. He hoped tho Association about to be formed would take the matter into their earnest consideration. There were some members of the General Assembly,— lie believed an increasing number of them — who agreed with him that a system of direct taxation, well considered and wisely imposed, would be the best cure for present evils. No doubt, it would take a long time and a vast amount of attention to bring about a thoroughly good and unobjectionable system, but he sincerely trusted tho press would take tho matter up, and that the Financial Eeform Association would be instrumental in conveying to the minds of the people that which he believed to bo the only cure for their present condition."

Though we do not go the length of advocating tho complete substitution of direct for indirect taxation, yet there is no doubt that to lower the present Customs' duties — to raise the revenue by the taxation of a few articles, leaving all the rest free, and to make up the deficit by an income and land tax — the latter to affect absentees — would confer an immense benefit on the working classes of the colony, who at present pay tho largest share of tho taxation. The burden is not at present placed fairly. The man of property pays far less in proportion than the tradesman and laborer, because Customs 1 duties press more hardly on the latter than on the former. Direct taxation would shift a portion of tho burden to the shoulders of those best able to bear it, and in a measure relieve the class who at present are staggering under its weight But it would do more than this. It would awaken the people to the necessity of looking into the administration of their affairs, and seeing that the money taken from their pockets was expended with judgment and economy.