THE NEW EVANGEL.

Waikato Times, Volume XXXI, Issue 2528, 22 September 1888, Page 2 (Supplement)

THE NEW EVANGEL.

« IV.—The Main Issues. FINANCE-ECONOMY. WEALTH-PRODUCIIOX, PAIR-LEGISLATION. " A national debt is vicious in principle, dehurtful to posterity which must pay, and tending to lead'rulers into useless wars and extravagant expenditure of public raon«y." — Thomas Spenchr. The facts, as disclosed in "The Balancesheets of the Colony 1832 to 1888," just published by the Controller and Auditor-General, are so startling that I reproduce some, and present a few inferences; and, with the time at ray command, necessarily, but few, although the facts deserve exhaustive study find remark. Ever since IS4I there has always been an annual " excess of expenditure " Drift at an average for tho 18 years (to say nothing of all the previous yearn since 1841) of £1,654,109 annually. Of course, the excesses are covered by loans ; several of them—such an tho«e under the A<it*of 1870, 1873, 1879, 18S4 and 18SG —effected in pnrsuance of an express policy. But tho extreme gravity of these figures consists not merely in the hugeness of the amounts—for that would be, comparatively, immaterial, but in tho following facts:—

1. That the loan expenditure has most seriously demoralised not only our public men. but us all—privately as well as publicly—a far weijrhter consideration than, probably, all other considerations combined.

2. That a ven/ large portion of the " excess " represents purely the current expenditure of the colony—not immigration or public works investments—to say nothing of the immense sums paid for raising the loans, amounting alone (from 1864 5 to 31st March, 1883), to £1,404,036 143 4d, of which £56,168 16s was incurred even ao lately aa last year. 3. That even of the money expended on public \Torks, a further very large portion has been wasted on political railways and party jobs ; not merely unremunerative, but useless.

4. That even in respect of the comparatively small proportion of the lor.ns wisely allocated for public works, the sums spent in construction have been so extravagantly disbursed and the management of the works since completion has been so imprudent those—such as railways—which should not only repay the interest on their cost but leave a. profit, have been, and are still, worked at an immense loss.

5. And that, in addition to the foregoing facts, the main object of the policy inaugurated by the Immigration and Public Works Act, 1870 (" An Act to provide for Immigration and the Construction of Railways and other Public Works, and to promote Settlement "), and expressly recognised by the Loan Acts of 187S, 1870, and 18S1—that is, to populate the colony by immigration and, part patm, open it up for settlement by means of railways and otherwise, has been defeated by the virtual stoppage for years past of immigration, but the non-stoppage of borrowing , and public works expenditure. In other words, the only circumstance under which the huge loan policy might have been justifiable at all, that of directly promoting immigration and settlement, and thereby fostering wealth-pro-dnction, by supplying capital, labonr, and transit facilities, has been the very circumstance which has for years past been persistently, and evidently designedly neglected, when not openly—as last yosr —opposed. Snch an infatuation is not only an ignoring of the rery basis— immigration and promotion of settlement—upon which the whole policy of the huge loan expenditure was in 1870 launched, and upon which alone it could bo justified (if it could be justified at all), but dishonest madness ; a mere pandering to the selfishness of Labour—an insane objection to the class-injury which it was assumed labour competition might effect. The result is, we are not only left with the burdens without the backs which should be here to bear them, but in a condition unfavourable for the production of wealth ; by reason of lack of labour available at such a price as would, whilst paying the employer to produce, work no hardship on the employed. The consequence is that the immense interest on the terrible debt that has been incurred, and the immense interest thereon, has to be paid without a corresponding income available from produce, which income we might, of course, have reasonably expected from wealth-production—the result of immigration and settlement—if the 1870 policy had been in its entirety persistently and faithfully pursued.

Our troubles have thus been largely created ; and—to aay nothing here of misappropriation, and extravagant and useless disbursements—the expenditure on public works and native lands (for the Act of 1879 expressly contemplates such land purchase out of that Loan Act) has, consequently, been entirely disproportionate to what the population warranted. The policy which has, by stopping , immigration, been pursued, is the result of personal selfishness, cowardice, and economic ignorance on the part of our public men ; and the fruit is now seen in financial exhaustion, no population, capital scared, and, therefore, labour depressed. Tho advantages of tho immigration and public works policy have not only been thereby minimised, but are daily decreasiug in value, by reason of the oxodus from New some time past, and even now going on. Against the huge net pnblio debt (after deducting the sinking funds accrued)— £35,536,381 on 31st March last— Tiriually loans, seem to me to be the railways estimated ns costing £14.603,100), telegraphs, any other publio works saleable, and the native lands still on hand.

Of course, in addition to the realisable assets, that I have indicated, there exist on the side of advantages certain indirect, although most disproportionnl, benefits derived from the loan expenditure. But on the side of disadvantages, we have the debt, involving an annual. interest millstone of at least £1,838.539 (less the comparatively paltry set-off in tho way of income doriveable from railways, etc.): but, what is wcwo, wa fcevo iffe

borrowing demoralisation—a factor, the harm of which has been, is, and will be for years to come, incalculable.

Granted, for the sake of argument, that thp principle of "The Immigration anil Public Works " policy is sound, it mint bo conceded that its administration ha." been such an has rendered our condition infinitely worso than if no such policy had ever been initiated.

Notwithstanding that virtually the men now in the House have, either as Ministers, or members, ruled the colony for many, many years past, each year thp Government for the timo being succeed* in gammoning the House and the public that the financial mesa existent is due to their predecessors, and that now by the former's financial ability revenue has been made to approximate expenditure ; and yet each year the terriblo current doficit continues.

And so the tragic farce goes merrily on. The poor public—the plucked goosebeing still content to return to power tlie men who pluck—so that the plucking may gaily continue. And this, notwithstanding' that our representatives frankly admit their inability to mend matters. It seems never to occur to electors to say, " Well, if you are incompetent, we must return those who are competent." Or can it bo an illustration, even unrlcr our own eyes, of what history teaches— as noticed in my last article—" that democracies do not choose, or wish to choose, the beet men procurable ?"

[To be Continued.)