The Evening Star MONDAY, SEPTEMBER 22, 1873.

Evening Star, Issue 3304, 22 September 1873, Page 2

The Evening Star MONDAY, SEPTEMBER 22, 1873.

There will no doubt be an attempt on the part of the members of the Legislative Council to excuse their opposition to the Provincial Loans Bill, on the ground that the Provinces should not be allowed to borrow, and that all public works executed through loans should be on the credit of the Colony. In the course of the debate in the House of Representatives, where all that could be urged against the proposal was said, the chief argument of the feeble opposition was, that the plan was a renewal of that which was found to work so badly, that Provincial borrowing was put a stop to j tiiat the Provinces had obtained loans at great disadvantages ; and, that in order to maintain the credit of the Colony, the Consolidation of Loans Act was found necessary. Unfortunately there is a class of persons who cannot understand the difference between a special and general security. They cannot see the difference between borrowing on the faith of Provincial revenues, and borrowing on a particular and specified property, of the value of which the lender must satisfy himself before advancing the money ; as his claim docs not go beyond it. But the system of obtaining loans, before the passing of the Loans Consolidation Act, was a widely different matter. The money once obtained gave rise to a scramble by the representatives of different electoral districts, who vied with each other in their efforts to have a large share spent here or there. It did not matter whether the work was absolutely needed or not: the people who lived in the district paid their full share of taxes and had a right to be considered in any division of the spoil. Nor could the Provincial Government gainsay the argument. They might, and did say certain works in other parts of the Province required to be done, while those immediately pressed for, not being equally important, must wait. If supported by a majority the argument of the greatest good to the greatest number prevailed; but not the less discontent resulted. People who pay taxes do not like to see their money, or the proceeds of their money, spent in improvements one hundred miles away from them. It was very hard to convince those who lived at Oamaru that Port Chalmers, being the natural port of the Province, and consequently of general importance, should have money expended in rendering it safe and accessible, while they were left without a breakwater, because of being onlylocally important. And the people of Waikouaiti cannot realise to this day the justice of leaving their harbor unimproved, while huge blocks of concrete are being built in the ocean to brave nature’s fury in, trying to form a shelter for shipping at Oamaru. The result of borrowing by Provincial Governments was that money was not judiciously spent. Half a million of money is soon frittered away in the construction of

roads and bridges. Mr A., a member of the Council, having property in the North ; Mr 8., another member property in the South; M r C. an interest in the|East*; and Mr D. in the West, each had his peculiar views to serve ; and ABC and D entered into a compact to roll each other's logs : and they did so, regardless of the general interest. It is so in the Bouse of Representatives too, and it is this system that Mr Vogel earnestly wishes to put an end to. We do not see that lie could have hit upon a better plan to do it than by localising expenditure. The plan proposed was really applying the principle of borrowing on mortgage with ample security to the lender. The objection has been raised that the Provinces that have despoiled themselves of their estates will have no security to offer; and that, consequently, improvements cannot take place. Possibly so ; but the argument on their part really only amounts to this : “We have sold our land and spent the money, and now we claim the right to a share in the proceeds of the property of those Provinces who have not yet despoiled themselves of theirs.” It is precisely the old story over again. Some years ago the cry was “We cannot protect ourselves ; you. must protect us.” And the South allowed itself to bo impoverished to protect the North, Now it is, u We want railroads and harbor improvements, and roads and bridges; but we have no money to make them ; give us a share of your public property, or you will be going ahead while we are standing still.” The fitting reply is, “ Gentlemen, you had a fine estate, which you have frittered away and wasted. You have spent your money as you thought fit, and now your proper remedy is to tax yourselves. Why come to us 1 Your object is to improve estates that have been given away, or sold as if they were of little value. Is it right that having been thus prodigal of your means, you should seek to narrow ours too 1 We gave you liberally in your distress, although we had no interest in the matter; our own Provinces, but for you, would have been far advanced beyond their present position ; and, therefore, you must in future work out your own progress. Those who bought your land got it cheap enough ; the works you propose to do will add still more to the value of the property they hold ; surely there can be no injustice in their paying the cost of doubling or multiplying fourfold the value of their own estates.” These seem to us business-like views to take. If a man buys a thousand acres of land, and wants five hundred pounds to help him to work it, anybody would lend it him on security of the property. He does not need to go to a Government and ask its sanction to mortgage it. If a man buys a section of land and wants to build a house, any Building Society will help him on his building to a specified plan and giving ample security for the advance, either on the house itself or some other approved property. And in what does a Province with a landed estate differ from an individual, excepting that hitherto, if money was wanted for a specific work, land had to be sold to construct it instead of being mortgaged 1 The action of the Legislative Council, instead of ratifying this obviously sound business principle seems likely to lead to property being taxed; so that, no matter where the proposed work is situated, the rich estates of Dunedin will have to contribute to the construction of a line of railway one hundred miles away, or the improvement of a harbor, intended to compete with ours. Such is the curse of an unintelligent irresponsible Upper Chamber. It is time they were either swept away as useless rubbish, or replaced by men who can make use of brains.