The Evening Star THURSDAY, JUNE 1, 1871.

Evening Star, Volume IX, Issue 2586, 1 June 1871, Page 2

The Evening Star THURSDAY, JUNE 1, 1871.

The analysis of the Provincial Balance Sheet, which we give elsewhere, discloses a state of affairs that should lead every member of the Council to ask what has led to it. We were complimented by Mr Reid last evening, as being the organ of the Government — meaning thereby, the Executive who have tendered their resignations. We really were not aware that we had attained to that honor, for, so far as we knew, we were not favored by them with any advantage of priority or greater accuracy of information than was accorded to our morning contemporary. Mr Reid is again invited to become the head of an administration, and we tell him candidly that we do not wish to throw any impediment in the way ; for the affairs of the Province are too much deranged to permit of any other course than the adoption of measures to relieve ns of our increasing debt. We have no wish to travel over ground so often trodden as the past; but it is necessary for us to look the matter in the face, and to show the consequences of faction. On the 31st March, 18G9, the last year of Mr Vogel’s treasurership, the Provincial expenditure avus met, and the Treasury had in excess £24,769. The first year of Mr Reid’s administration absorbed this surplus, and left us in debt £43,350. The second year increased the adverse balance by £54,228 13s Id ; so that in two years our expenccs have overrun our income by about £122,288. Now there are two Avays in which income may fall short of expenditure, which are very different in their effects upon a community—either the revenue may fall short and be mainly absorbed in departmental expences, or there may be such an amount of work carried on as to render it necessary to anticipate income. Unfortunately for the Province, the first has been the case, and on comparing the financial statements of the last three years, the reason is not difficult to discover. In 1859, the goldfields were not producing more than two thirds their present yield. The goldfields revenue of the year ending 31st March, 1869, was only £12,062. In 1870, it is set down at £19,460 \ and for last year, £19,89 G. Had there been nothing wrong in our condition then, it is fair to presume the revenue of the Province in 1869-70, and 1870-1, would have been larger than in 1868 9. But in 1868-9, the sale of Crown Lands realised £108,907, while in 1869-70 it was only £35,013, and in 1870-1 but £33,434. This was the work of faction, we cannot dignify it with the name of party; and avc regret to find from an expression dropped by Mr Reid that he has not learnt wisdom from the past. He stated in his remarks yesterday, that he purposed choosing colleagues from the ranks of men who he considered were elected for the purpose of repealing the Hundreds Regulation Act, We should have liked better to have heard him say, that although lie purposed seeking its repeal, the circumstances of the Province are too grave to permit any further sacrifice for the triumph of faction. Although we have spoken freely on the subject in times past, it was Avith no other purpose than an earnest desire to prevent the Province drifting into the difficulties in which faction has involved it. We have no hostility to Mr Reid ; and if his or any other Government brings forward measures likely to benefit the Province, it shall have the utmost support we cair give it. We are bound to no party nor class, nor ever have been. We have always been fully prepared to support any measure calculated to foster industry, and forward sound and and healthy settlement. But Avhile thus free to advocate Avhat was beneficial, we are equally free to denounce what is prejudicial, and it is the factiousness of Mr Reid’s former proceedings that we have denounced—not himself or his colleagues, excepting so far as those proceedings appeared to be the result of unworthy motives. He has now a chance of retrieving the ground he has lost. It will be a difficult task to undo Avhat has been done. The balance-sheet carefully examined tells a tale which should prove a salutary lesson to him. It tells not only of failing revenue, but of the absorption of funds that should have been useful in the development of commerce, instead of being required to sustain the credit of a Government. No matter how rich a banking establishment is, it cannot advance £83,000 to a Govern-

ment, and with the same money help its customers. There is a limit to the assisting power of the Bank of England, large as it is. But in the case of the Province requiring such accommodation, it reminds one of lighting a candle at both ends. The Provincial Government absorbs the capital in lieu of revenue, and because of using funds that might have been employed in industrial pursuits, the raising of revenue is prevented. The question of the Hundreds Regulation Act is a trifle compared with that of progress; and had the true state of affairs been told, instead of men being elected to support or sustain it, their special mission would have been to relieve the country from the burden of a faction.