The Evening Star. FRIDAY, JULY 20, 1872.
Although much nmy bo said in favor of the reduction and final abandonment of the export duty on gold, there are very good reasons why a duty should be retained. The chief argument used in favor of its abolition is that it is a tax upon industry. This is the favorite theory ; and, were it really so, we should be among the first to advocate its being abandoned, fur wo hold that no legislation can be sound that lays special burdens upon any class of men. The word “ tax ” is always offensive to men's ears, and almost invariably rouses animosity. Them can ho no doubt that the gold duty is a “ tax,” and that it is paid by the miners ; but there are peculiarities connected with it that commend it as in many respects a fair contribution to the revenue. In the first place, it is a tax in lieu of rent for the use of land. There can be no principle more thoroughly established than that ho who has the use of land must pay something to the community for the privilege conceded to him, The agriculturist under present arrangements has, as a rule, to purchase the land he uses, and must invest a large sum of money and wait a long time before lie can have a return for his labor. And whether ho oyfir obtains an income from his exertions o</ notthe money must be paid. Circumstances may go against him. The weather may destroy his crops; his horses or cattle may be attacked by disea.se and die ; or, should he haveabundant yield, price* may be low, and he may hardly realise fair interest on the capital invested, A squatter too, although he has not to buy land before using it, but only pays a rental in the shape of assessment on stock which he either has or ought to have, and a small rent for his run, is also subject to many contingencies. His stock is liable to be alfected by inclement seasons, and his produce by markets. ]n the first instance his outlay is heavy, and his returns are dependent for their amount upon a variety of contingencies, His payments are a constant quantity, while his receipts arc liable to constant fluctuations. The state of thu world’s trade, the accident of the position of the money market at the moment when his produce js sold, the political relationship of nations, a rumor of war, or an outbreak between two distant countries, is quite sutlicicnt to add to or diminish the value of the raw material which lie grows. From all these contingencies the miner is free. Excepting in quartz mining, proportionately to the yield, gold mining requires but trifling outlay of capital, and where preliminary investment is necessary, the probability of ample return is usually ascertainable if proper precautions ave adopted. But leaving quartz mining put of the question for a moment, it is evident that by present processes in alluvial mining the country is completely destroyed. It is not a mere turning over of the soil, as in agriculture, where each skilfully conducted operation improves its productive power, and renders it more valuable for the supply of human wants. The soil that the miner works upon is washed away or otherwise rendered unproductive. The gold once taken, the land is doomed to barrenness. Tor this, society receives no equivalent. The cost of a miner’s right is merely a small price paid for personal protection, and the aggregate is not the cost of police on the diggings. But the peculiarity of the gold duty is that it is not payable until the treasure is obtained. In every other instance of taxation, it is an absolute quantity. It may be fairly conceded that mining industry deserves every encouragement. It has its drawbacks. Men who devote themselves to it, must be content to endure many privations. They must ho of the right sort \ strong, fearless, skilled in the
use of primitive implements, patient, and persevering. But for such there arc many compensations. They are free from .control. Competition iuis no
terrors nor anxieties for them. They can see their friends or neighbors become rich without feeding they have had to contend successfully against them. They may not have hit upon equally rich ground, but that was no fault of the man that made his pile. His gold, when brought to market, did not interfere with the sale of that of Lis less fortunate neighbor. The value ot both is fixed by an immutable standard. .Subject to small charges for carriage, a bank will always take it at its value, or the full price of it is obtainable at tin; Sydney or Melbourne mints. The miner to be successful needs no apprenticeship to a skilled trade. Ho need not be learned, nor very wise. His preliminary education requires only to be of the most meagre kind, though like other men, ho is all the better tor knowing much. The application of knowledge may lead to adding to his comforts, guarding against danger, preserving his health, and leading him to avoid wasting his energies in mining in unlikely localities. The chief drawback to mining is uncertainty: but then, so far as the gold duty is concerned, if a miner earns nothing, he pays nothing. If the farmer buys poor land, ho pays for it. So to a certain extent does the squatter; but the miner may work away on the land, good or bad, destroy it by overlaying it with rubbish, or sluice it away without paying a fraction for it, unless he obtains gold from it. So far then as the principle of an export duty is concerned, it can hardly be objected to. There may be a question as to the amount. Taking into consideration that mining is rapidly changing its character, and that henceforth its conditions also must be changed, the policy of continuing the duty at its present amount may be questionable. Quartz mining requires capital, and skilled labor, and two and a-half per cent, on income, which, at a rough estimate, is the duty payable on the yield of gold is more than the fair proportion of the earnings of any man to the revenue. Estimated by this standard, sixpence an ounce would be enough.
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Evening Star, Issue 2944, 26 July 1872, Page 2
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1,058The Evening Star. FRIDAY, JULY 20, 1872. Evening Star, Issue 2944, 26 July 1872, Page 2
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