PROVINCIALISM. POLICY OF THE EXECUTIVE.

Dunstan Times, Issue 323, 3 July 1868, Page 3

PROVINCIALISM. POLICY OF THE EXECUTIVE.

(To the Editor ok the Dxtnstas Times.) Sir, —In my \aai communication I attempted to explain the character and ten-' dencies of the land policy of the Opposition, or popular party. I now propose to consider the policy of the Executive Government, or the principles of Conservative' Provincialism—principles which, the. Secretary tells us, the Opposition have not dared to impugn, and which he evidently believes to be impregnable. It is necessary to premise that the theory of colonisation upon which the principles are supposed to he founded, is that promulgated by Mr. Gibbon Wakefield—a theory which I believe to be politically judicious, and the soundness of which has been recognised by its general adoption as the basis of the land systems of most of the British Colonies. The principal features of this theory are the application of revenue derived from the public lands to the execution of works of general utility, and, as subservient to this object, encouraging immigration. -?I cannot here enter into details. It may' Sufficient to state that it was assumed, as a Jundamontal fact, that Crown lanHs, tt/e agricultural purposes, were worth £1 per text, and that at this price, after

deducting expenses of survey, a surplus would remain for public works. It is consequently obvious that the land revenue, being the source from which the fund for public works is derived, the amount to be expended is limited by the amount of the proceeds of the land sales, fcc, that is, of the land revenue. It will be readily admitted, as a legitimate deduction from the the theory, that, as the purchase-money for land is the price paid for its natural capabilities, and constitutes the national capital, the re-investment of this capital in public works should subserve the general interest, and this requires its appropriation in and for the benefit of. the districts settled. Hence it may be fairly inferred that the amount to be expended at any time must be proportional to, and limited by, the amount of :the actual revenue. There may be occasions, as in the early stages of settlement, of a sudden inilux of population, or disasters arising from natural or accidental causes, when the prospective revenue may be anticipated in expenditure j but ordinarily the credit of the system requires that the expenditure be kept within the revenue. Now what are the characteristics of the policy of our local government ? Not only to apply the actual surplus of the present and forestall the future revenue, but also to borrow money " ad libitum" for expenditure on public works and immigration. Last year it was proposed to borrow one million sterling, and this year another million would probably have been asked for, if there were the slightest chance of obtaining it. This discloses the spirit of their policy, with which the Superintendent is especially identified, if he be not the originator. Upon what grounds has this policy been adopted? By what necessity, in the present circumstances of the colony, is it required ! Is the condition of the colony or the province so very prosperous as to warrant this financial extravagance? Are new sources of industry being opened up, er new centres of activity created?. The records of events, individual experience, and popular opinion emphatically answerNo ! The true principle of the colonisation theory is subverted : its purpose misapprehended ? the means mistaken for the end. Instead of public works being a re-invest-ment, a re-production of the national capital for the public benefit, they are valued on their own account, and their execution is relied upon as a means of promoting the prosperity of the country. They are supposed to contain some abstract virtue some "elixir vitas," a remedy for all social disorders. Such policy betrays gross ignorance of the sources of the public revenue—it kills the goose which lays the golden eggs. It diverts capital from its legitimate employment in the business of production, to expend it in conduits for merchandise and and carrying travellers over rivers and ravines. Some of this work is necessary, and is required by 'the theory of colonization as above shown ; but the error consists in the degree of application, in ignoring the relation between the resources of the country and its actual necessities, and in overlooking the real purpose and principle of adaptation in the adoption of the means. It is as unreasonable and impolitic as if an individual should expend agricultural capital in building a fine house, purchasing expensive furniture, laying-out avenues and ornamental grounds, to the neglect of cropping and cultivation. If I have £I,OOO for the current expen. ses of business for a year, including £IOO for rent and taxes due to Government, and the Government demand £2OO. my business transactions must be limited by the withdrawal of an additional hundred pounds from my means of operation—and my profits will be reduced. The whole Government revenue, from whatever source derived, or in whatever form collected, is paid out of the profits of industry ; and the case above supposed illustrates the actual effect on the springs of industry and tho resources of the country. The floating capital of the country is as the power in the storage reservoir of a water engine, it is only the overflow that is available for movement. Against this extravagant policy 1 protest ; as foreign to tho legitimate functions of Government, as tending to derange the natural progress of colonization, to divert industry from its legitimate channels, to check individual enterprise, and by creating an adventitious and temporary prosperity, causing constant fluctuations in the course of colonial pro;, 'ess, which give rise to a feeling of uncertainty in the future, and checks the development of industry. A few words must suffice on the immigration policy, it is characterized by the same mistaken views of the public necessities, and is equally injudicious and uneconomical as that of the Public Works. Wnen some of the opposition members pretended that their object in requiring land to be proclaimed open for selection, was to obtain settlement for immigrants, the Secretary ridiculed the idea aud asserted that their real object was£o obtain cheap labor for the Taierr farmers. But whatever the motives of its advocates, their measures will be foiled of its intended effect.— Ist.—Because they will be neutralise 1 by the increased demand occasioned by the public works ; and secondly, if one hundred immigrants are imported, one hundred will be added to the number of persons now resident that will leave tne country. Never, since the gold discoveries, has there been so many men travelling about in search of employment ; some have traversed the country from Southland, some from the Canterbury side, and all concur in stating that nowhere in the Province, is employment to be obtained at all proportionate to the numbers seeking it: and in consequence the settled purpose of many, is to leave the country on the first opportunity. Some of these men state that the Government are in the

habit of issuing tickets for employment on the roads to newJy arrived immigrants and others, who are thus guaranteed • employment, and the " old hands " are discharged on the first opportunity. This is I am informed is to prevent in Dunedin the exciting scene, of the burning " coram populo" —of the " Daily Times ", or the effigies of its " quondam " editor. This being the case, it is evident that the supply of labour is in excess of the demand ; and it is a gross perversion of the colonization theory, and a wasteful application of the public money to expend it in importing population under such circumstances, and is besides deceptive and un. just to the class of labourers both resident and immigrant. I must reserve for a future communication Ml 9 further consideration of the colojrsK.tion policy of the Government. I am, &c. COLONUS. Gorge Kawnvu River, July 1, 18ti8.