The Gisborne Times PUBLISHED EVERY MORNING. GISBORNE, APRIL 11, 1901. FEDERATION.

Gisborne Times, Volume V, Issue 79, 11 April 1901, Page 2

The Gisborne Times PUBLISHED EVERY MORNING. GISBORNE, APRIL 11, 1901. FEDERATION.

The Melbourne correspondent of the Auckland Star gives some interesting information in regard to Federation matters. Tasmania (the corrospon-. dent states) has been brought faco to face with serious financial difficulties in its State affairs through the los3 of control over its Customs and Excise duties taken over by the Commonwealth Government. The position is this —that if tho Federal Government adopt a medium tariff there will be a deficit in tho Tasmanian State bal-ance-sheet, variously estimated from £IOO,OOO to £150,000 a year, which must be covered either by retrenchment or direct taxation, unless the State chooses to appeal in forma pauperis to tho Federal Government for help, which its leading statesmen are indisposed to do, This, however, is not tho worst of their difficulties, because even if the deficit can bo provided for absolutely nothing remains to carry on the public works, and some prominent public men declare that it will be a good thing for the i country if further expenditure in this direction is suspended for several years. Others fear commercial disaster and stagnation as the result of any sudden termination of a source of employment on which a considerable percentage of the population depended. The Tasmanians were vaguely aware of the difficulties ahead of them when they joined the Commonwealth, but as Australia furnishes the chief market for their produce, they had little option but to go in at any cost, and they hope to reap somo compensation from the latter trade opened up in this direction,

New Zealand’s probable financial loss brings up a serious question, the estimates made differing very widely as to the effect of surrendering the customs. In an artiole on the subject appearing in the Sydney Daily Telegraph, the writer, who is recognised as one of the principal financial authorities in Australia, places the amount at £350,000, which would have to be made good out of the present surplus or by direct taxation. This, however, in the case of Tasmania would, leave New Zealand to make provision for all future State loans on the security of direct taxation in some form. The estimate is based on the following totals:

REVENUES TRANSFERRED. Customs and Excise ... '' ... .£2,190,000 Posts and Telegraphs 490,000 Other (say) 20,000

Total £2,700,000 EXPENDITURES TRANSFERRED. Defence... ... ... ■> £150,000 Posts and Telegraphs 390,000 Customs 75,000 Property Transferred (interest at 3J per cent.; up-keep percent.) ... ... ... 110,000 Other (say) ... 75,000 £BOO,OOO Excess of Revenue Transferred £1,900,000 Total ... ••• ••• £2,700,000 Tlio writer sets down the probable Commonwealth tariff (including New Zealand) at £10,600,000, and the return to New Zealand based on present figures at £1,550,000, as under ' Proportion of £10,590,000 Tariff collected in New Zealand £1,950,000 Less Commonwealth requirements ns above £290,000 Proportion ‘ of new expenditure.,. •... JIO,GOQ Balance returnable ,£1,550,000 The correspondent goes on to show the uncertain condition of the ground that haq t;p be trodden on. .It is evident, he states," that tpj she fork of the Commission proceeds that its report will present the question of New Zealand’s relation to the Commonwealth ip some important lights which b'"a not yet hem' brought Tender the notice of New studroW of the subject. It seems doilb. l^® 9 whether even the leaders of the jc ral movement in Australia have any clear conception of how the financial clauses of the Commonwealth Act will wiU work out in their hearing upon the finances of the several States, which differ very widely in their character and requirements.