POLITICAL NEWS.

Ashburton Guardian, Volume VII, Issue 1694, 25 October 1887, Page 2

POLITICAL NEWS.

[/BOH OUB OWN COBBESPONDENT.j 1 Wellington, October 24. A very decided statement has been m oiroa'ation to-day to the effsot th»t the Government are meeting with almoat unBarmountable difficulties m the preparation of a serviceable, adequate, and acceptable scheme of retrenchment, and , that they now recognise that the only j way to restore equilibrium m the finances j ia by increasing the property tax to a Id m the £. Tt is estimated that this would I yield £200,000 additional revenue. Whether this calculation 1b oorreot or not, I have it on good authority that the Government consider it a necessity to raise that amount by additional taxation. The statement that further borrowing ia a necessity is also revived. At the oloae of the session it Is stated that the Government will propose to reduce the expenditure on the defence and i volunteers by one-hali. Aa the outcome of the Conference last week between the Government and Mr Alan Sooti, the repreaentative m New Zealand of the M.dland Railway, there is a utatoment to the eff-ct that the Government will not take any responsible action m regard to the alleged complication of the Midland railway contract, but they will lay oectain proposals m oonneotlon therewith before Parliament;