The Evening Star SATURDAY, FEBRUARY 7, 1874

Evening Star, Issue 3421, 7 February 1874, Page 2

The Evening Star SATURDAY, FEBRUARY 7, 1874

The Customs revenue ot* a country is usually considered an index of the social condition of its population. This may be the case in the old countries of Europe, for there the possession of means to spend a few pounds extra in additional comforts for a family very soon exhibits itself in the increase of duties on articles of consumption. We do not think that the like husbanding of their resources is practically found necessary in 1? ew Zealand. Wages are so high, and work so steady and abundant, that most families, in the management of which common produce, prevails, have a full share of the necessities and comforts of life. The cost of them maybe a pound or two more or less during a given year, but the difference is rarely so great as to render it a duty, as a matter of economy, to do without them. We therefore look upon it that other conclusions than increased individual ability to purchase dutiable goods must be arrived at. We have no doubt that one cause of the great increase in the Customs revenue is the change from measurement to ad valorem duties. It was estimated that a considerable difference would be the result; but it appears far to have exceeded what the Treasurer was prepared to expect. Some politicians will be inclined to point to it as a clever ruse of the Government to increase taxation. Perhaps the more correct conclusion would be that through a more equitable adjustment of duty in proportion to the value of the goods, a class of persons well able to contribute to the revenue has been compelled to pay a fairer proportion of it than under the measurement system. The difference, whatever it may be, represents, approximately, the exemption they hitherto enjoyed. But the main cause of the advancing revenue is the increase of population through immigration. Nor must it be forgotten that the Maoris of the North Island are gradually becoming consumers of imported articles, so that many causes have combined to foster the revenue which have more than counterbalanced the tendencies to decrease,. created by the adoption of industries the proceeds of which drive foreign goods out of the market. When the fact is taken into consideration that a time must arrive when, through the establishment of manufactures in New Zealand, the duties now collected on certain classes of goods must cease ; and that to some extent that has already taken place, it is plain that but for this the revenue would have been still larger. But this consideration points to the desirability of a more equitable method of collecting revenue than by taxes on imports. In New Zealand it is a very expensive method, compared with Colonies with a narrow seaboard, and but few ports of import. In each of the principal ports large Customs establishments must be maintained, and more than proportionately expensive staffs in every minor port. On looking over the Government ‘ Gazette’ containing the Customs Returns, we find about twenty ports enumerated, at each of which Customs duty has been collected. At some of them, so far from the amount of revenue received being an advantage to the Colony, it involved an absolute loss, even if the revenue officer only received the wages of a clay laborer, while even at the larger ports the cost of collection forms a very serious drawback to the general revenue. In tuition to this, the groat number of nooks and coves presents temptations to smuggling which there is reason to believe is availed of very extensively, especially in the North Island. Thus it is plain that compared with Victoria, New South Wales, or in fact any of the Australian Colonies, the same amount of Customs duty dots not mean the same nett revenue available for the public service. In those Colonies through trade being concentrated in ono or two places, much more work can be got through by the Customs officers than when it is diffused as in New #ea-

land : there is less cost of supervision and less opportunity for contraband traffic. Anyone taking the trouble to compare the nett revenue that would result, were the trade of this Colony as compactly conducted as in those countries, will be satisfied that, through adopting the traditional mode of taxing imports, we are paying very dearly for our revenue. In Great Britain, in old times, this evil was met by restricting imports from abroad to a few ports. Thus only some four ports were allowed to receive certain classes of goods on which high duties were leviable. No doubt it tended to give a sort of monopoly to certain merchants, but it only serves to prove the impolicy of depending upon import duties for revenue ; for in order to render it just to the community—that is to say in order to have as much money as jiossible to spend in public works and services—restrictions are needed that interfere with liberty of commerce. So interwoven has this expensive and unequal system become with our national habits of thought that there is no hope of an early change. It is, nevertheless, true that import duties operate unequally in proportion to income, create monopolies reducing the public revenue, foster smuggling, and fetter industry.