The Evening Star. WEDNESDAY, JULY 22, 1874.

Evening Star, Issue 3561, 22 July 1874, Page 2

The Evening Star. WEDNESDAY, JULY 22, 1874.

The Financial Statement, received by telegraph, will set at rest the necessity for additional taxation, which a short time since haunted the dreams of a few fear-stricken politicians. So far as the revenue is concerned, it is in a far more prosperous condition than even the most sanguine anticipated. A large surplus above expenditure is in the hands of the Government, and altogether the financial transactions of the year appear to have been properous. The public debt of the Colony—that is the Colonial and Provincial liabilities united—amounts to £12,500,000, the annual interest and sinking fund charge on which is £777,000. Of this large sum £223,000 is payable by the Provinces, so that the general chai’ge is £554,000. This amount a few years back would have looked terrific ; but in view of the immense increase in the Customs revenue, which in one year advanced £300,000 above that of the preceding twelve months, the debt appears not to press , particularly heavily upon the country. One reason for this, which cannot be too strong!y borne in mind, is, that the principal amount of money borrowed has been invested on reproductive works. Heavily as war expenditure pressed upon the country a few years back, the waste in gunpowder and payment of troops and commissariat expenses have now become a small item in comparison with the large sums paid for improvement in the means of cheapening production; and as thus, instead of reducing the value of the national estate, continual addition has been made to its power of sustaining population in wealth and comfort, each contributor to the revenue receives back his taxes with a large increase of interest. We do not wish to judge hastily, however, as to the justice or wisdom of the scheme for assisting the poor Provinces at the expense of the rich ones. We see no reason why Auckland, Taranaki, ]N elson, or Westland should have a surplus revenue divided among them which has been derived from the hard-working enterprise and industry of the population of other districts of the Colony. It seems to us to be part and parcel of the mistaken views of the Treasurer on trade legislation. It cannot be too strongly urged that no legislation that favors one ->class at the expense of another, can succeed in doing more than giving a fictitious prosperity to the protected class or district. Industry that takes root and develops itself naturally —that grows without help, and in spite of discouragement, as it has done in Otago—has no right to be taxed in order to raise the value of property in Auckland, Taranaki, Nelson, or * Westland. If the people of Otago have paid nearly one-third of the Customs revenue, the inevitable conclusion that must be arrived at by sound thinkers is, that the right course is to appropriate a similar proportion of the surplus to re-invest-ment in the Province, either in payment for works, or as interest on a loan for their construction. The idea of reducing all parts of the Colony to a dead equality is as absurd as the notion by trades unions of paying skilled and unskilled workmen a similar rate of wages. The development of the wealthier Province must be to a great extent retarded, just as the skilled workman of superior dexterity is prevented becoming rich; and effort

being thus cramped and fettered, the community, like his family, are maintained at the level of mediocrity nature or indolence has doomed his less gifted companions to. It is an effort to control nature, which must result in loss to the whole country. Just as it has been found profitable to prosecute trade, commerce, and agriculture in Otago and Canterbury, will capital and enterprise flow into the other Provinces when there is a prospect of profitable return. If a road, a railroad, a bridge, or the improvement of a river be needed to develop the resources of a Province or district, let the cost be repaid by it. If the returns do not repay the cost, it is so much money thrown away ; if they do, it can afford to pay for the outlay. The sentimentality of Piovinces “ languishing under a sense of wrong” is no excuse for appropriating the earnings of one section of the people to helping others that will not help themselves. It will be found in all cases that it is better to do the justice of re-investing savings amongst those who have earned them, than to spend them amongst those who have mistaken their vocation, or placed a wrong estimate upon the value of the location in which they have placed themselves. In spite of the continued drain upon the revenue, Auckland does not prosper ; yet more is to be granted : Wellington is to have help : Nelson is to give security for • help : Westland, Marlborough, and Taranaki are to be bolstered up: but Otago cannot be helped excepting by selling its Provincial property—the Winton and Bluff railway. We believe, as a matter of public policy, it will be the best to do so, but we consider the division of the surplus revenue a weak part in Mr Vogel's scheme.