MAJOR ATKINSON ADDRESSES THE ELECTORS.

Daily Telegraph (Napier), Issue 3038, 22 March 1881, Page 3

MAJOR ATKINSON ADDRESSES THE ELECTORS.

(bt telegraph.)

Patea, March 22

Major Atkinson addressed his constituents last night. Mr Sherwood was voted to tbe chair. After a few preliminary remarks. Major Atkinson said that when the Government took office the position of the colonial finances was utterly unknown, as there had been no statement from the late Government for fifteen or sixteen months, and the state of native affaire was most unsatisfactory. In addition to this there was a general depression prevailing, the commercial crisis being such as had never been previously experienced in this colony. That waa the position, and when the present Government in October came to enquire into the finances they found a deficit of £900,000, or near a million as it tamed out, which had to be made up by the following March. The first thing to do was to retrench, but it was difficult to suddenly stop the spending machine, seeing that the weekly expenditure during the Jast two years of the Grey Administration was £110,000. A sudden stoppage would have intensified the distress. Tbe Government, however, saw the necessity of stopping the expenditure to some extent, and the result of their efforts was that tbe weekly expenditure now was down to £60,000 or £70,000. Major Atkinson then referred to the measures of taxation which had been found necessary to increase the general revenue. Speaking of the customs, he regretted to say that the only effect of the increase of duties had been that the total yield was bo more now than it had been two and a half years before. That showed that much more economy was observed in the colony now. Some might argue that it indicated decreased spending power, but from an examination of stastistics be was convinced that the spending power of the people of New Zealand was higher than that of the people in any other part of the world. He defended the property tax as against an income t?xon the ground that it wae right and just that property ehould

contribute directly to the burdens of the State—that if a man possessed property requiring protection he should, whether that property was productive or unproductive, whether he ased it well or ill, contribute to the cost of government in respect of the amount of property he held. He objected to the income tax because it was already paid through the Customs, and because it was necessary to get at something besides income to maintain the finances in a sound state. This was really a practical question which would come before the electors for decision at the ensuing election. It was proposed by some to impose aland tax and an income tax, but he confessed himself unable to find out what they meant, unless it was to double the taxation upon the farmers and landholders. Income from land was just the same as income from any other source, and he could not see where the line was to be drawn. The general results of the year promised to be satisfactory, and he hoped the revenue would quite cover the expenditure —no small achievement, seeing that twelve or eighteen months ago there was a deficit of £900,000. He believed he could assure the colony that the Government had retrenched to the extent of £250,000.