The Akaroa Mail. FRIDAY, JUNE 11.

Akaroa Mail and Banks Peninsula Advertiser, Volume 4, Issue 402, 11 June 1880, Page 2

The Akaroa Mail. FRIDAY, JUNE 11.

In the place of our usual editorial, we purpose to-day laying before our readers a summary of the financial statement delivered by the Colonial Treasurer on Tuesday evering. Like many similar productions it is exceedingly difficult to follow clearly and intelligently. Figures are massed and grouped in most admired disorder, and the reader no sooner thinks that he has got at the true state of some particular fund or account than he finds that he must " allow for " some .trifle of £50,000 or so on the other side, having done which, the Treasurer calls upon him to give him credit for perhaps £800G odd, which disturbs the balance in the other direction. However, it behoves every citizen at a critical time like the present to endeavor to understand something of the state of our finances, which is, after all, the most important question of the day. Major Atkinson commences by recalling the attention of the House to the fact that in November last he had estimated the deficiency for which it would be necessary to make provision by the Ist of April last at £800,000. He regretted that his anticipations in this respect had been more than realised. After going at length' into the different items which showed how this has accrued, he summarizes the whole as follows:— " The deficit during 1878-79 has been shown to be £133,790, the expenditure for the nine months ended 31st March last £2,772,276, and the liabilities on the same date £271,774, making a total of £3,178,840. The receipts for the period ended 31st March were £2,133,758,, land 'tax due Ist April £50,000, assets £5000, making a total of £2,188,758. Taking therefore the total revenue from the total expenditure we arrive at a deficit of £990.081 for the period ended 31st March, 1880, to meet which, as I have already stated, Treasury and deficiency bills have been issued on the amount of £1,000,000, leaving a credit balance of £9918 to be carried forward to the next financial period. . , Further on the Treasurer explains how the funds have been obtained to: provide for this large excess of income over expenditure. He says :—" it has been necessary up to the present time to use the loan to the extent of upwards of £3,060,000, of which £1,818,000 was for expenditure, and £1,842,000 for advances to the Consolidated Fund on Treasury and deficiency bills." As to the total receipts and expenditure of the Public Works Account from 1870 to the 31st March last, they amount respectively to £19,064,794= receipts, and £15,802,384 expenditure, leaving a balance of £3,262,410 available for> further works. Of this sum, however, £992,000 has been advanced to the Consolidated Fund, and must.be recovered from that fund by means of sell-, ing debentures to the extent of £1,000.000.

So much for the past. Having wiped •out his deficit by transferring it to the funded debt, the Treasurer proceeds to explain by what means he intends to keep expenditure within the bounds of income. First as to local finance. Subeidies are to be done away with, as also the twenty per cent, of the Land Fund at present payable to Counties. In lieu •of this assistance, it is proposed (1) to authorize local bodies to levy rates up to 2s instead of Is as at present; (2) to allow them to borrow at any rate of interest and only to any amount the ratepayers think fit to authorize, provided, before doing so, they levy a special rate sufficient to cover interest and sinking fund, such rate I*> be continuous till the loan is extinguished ; (3) Government property and Native Lands are to be liable to sates, with the exception of the Government buildings in Auckland and Wellington,-and railways and wharves ; (4) a Board is to be created, the duties of which will be to pay the rates on all waste lands of the Crown, to pay the rates -on the Maori country, lands, to make grants in aid of the construction of main ronds, io advance money to construct district roads. The funds for these purposes are to be derived from the proceeds of the sale of Crown lands. To supplement these furads, this Board is to be authorized to borrow money-'from the Postmaster General and the Government Insurance Commissioner at five per cent., and lend it out to local bodies at four. By some process of legerdermain, the Treasurer clearly shows that this can be done without loss. But how, we must confess ourselves unable to follow him. In tfce matter of reduction of expenditure, Major AtkinsGia says :— " Besides several minor reductions, my hon. friend the Minister for Public; Works lias reduced the expenditure of his department by £30.000 without impairing in any Way its efficiency. Tlie Native Minister has snociifcdecl in reducing the expenses of his department from £46,944, which was last yunr'e estimate, to £14,202 (?) this year, or after allowing transfers to other departments, to nearly 50 per cent. (Salaries and contingencies were last year £21,164, this year they are estimated at £13,453. Nor is tln'saH, for in the land purchase department, which ha<l grown into a serious excrescence on the Native office, he has reduced the salaries from I

£10,000 to £6000 n year, or about 40 per cent, and in both cases I venture to assert the service is being better performed than formerly.

Besides these reductions he proposes for thie year a reduction of 20 per cent._ from Ministers' salaries, though he does not consider them overpaid. -Heiikewise invites the House to strike off £50,000, or 5 per cent, from the votes for salaries, pay, and wages, and if-the House agrees/to this, promises-'to-' .effect the saving of that amount, if necessary,by a pro" rata deduction all round. There'will.then remain an expenditure of £8,198,70.9, fc which .provision : has. to be made.. ; •• • . ,;•••■■:• '■ ■: Willi regard,to -future ,\ taxation, Gor vernment proposes tb -exempt personal effects, furniture,- bqokSj&Qi; from assessment for the Property Tax, and to make up the loss thus accruing by a tax of Is a gallon on colonidl tieer\aud\an additional 6d Customs' duty on the imported article. • ....... Such is abriel outline .of .the financial prospects of the, Government. We must defer any comment,.upon them.,till ..a. ! future occasion.. ...