The Globe. TUESDAY, APRIL 24, 1877.

Globe, Volume VIII, Issue 883, 24 April 1877, Page 2

The Globe. TUESDAY, APRIL 24, 1877.

There was one great question raised by Mr Kolleston when addressing Ids constituents on Wednesday evening which will soon, we hope, receive a large share of attention at the hands of the public —we mean the financial condition of the Colony. The condition of our finances is such that our legislators will be compelled at no distant date to look: our position fairly in the face. It is plain that when Parliament meets, the Colonial Treasurer will have to aclmoAvledge a considerable deficiency —a deficiency which will not be covered by cutting off the subsidies to local bodies and reducing the salaries of some of our already poorly paid public servants. Of course, it is our duty to reduce our expenditure in every way possible, so long as the efficiency of the public service is not impaired. We must learn to be contented without many of the luxuries, with which the extravagant habits of the last few years have made us acquainted. The expenditure on our inland mail services might, for example, be greatly reduced, without any great inconvenience to the community. Instead of having their letters delivered at their own doors, some of our shepherd princes would have to send a few miles to the nearest railway station for their letters, that would be all. As Mr Stafford pointed out last session we were far more luxurious in this respect than they are in England. We have political railways, post and telegraph offices, which exist only through the weakness of the various governments which have successively ruled us. But our public expenditure will never be reduced to the limits of the actual necessities of the Colony, till we have a ministry strong enough not onlv to meet the attacks of their enemies, but the solicitations of their friends. Now, however well-inten-tioned the members of the present ministry are, we hardly think they are strong enough to make the wholesale reductions necessary to balance our income and expenditure. One thing is quite evident, that is, that the remedy suggested by Mr Kolieston to meet our financial difficulties will not be sufficient, Most people will agree

with him in the belief that the system iii' subsidies-; is not one which is very lefensible. It is. as lie says, talcing 'he people's funds, passing - them through'the government chest, and ioling them out to them again. But were those subsidies entirely done nvay with, the deficiency in our finances would not be covered. Either very much larger reductions must be made, or Ave must have recourse to fresh taxation.

No class in this community have reaped a greater benefit from the expenditure of the borrowed millions, during the last few years, than the owners of real property. Land all over the colony has risen immensely in value since the inauguration of the scheme of immigration and public works; and it is only fair that its owners should bear some .of the burdens this borrowing has placed upon our shoulders. Yet there is the greatest possible aversion to the imposition of a property tax. It is urged that such a step would be fatal to our credit at home, and cripple our power of obtaining funds on easy terms. This argument implies that we arc to be continually borrowing in the English market—a by no means desirable stale of things. It is to lie hoped that our policy, during the-next few years, will be to borrow as little as possible. But, would the imposition of a property tax really have this effect ? It is evidently better that we should adopt this course, and honestly pay our way, than continue to do as Ave are doing—go further and further into debt. Those who lend money to the colony, as a rule, take care to make themselves acquainted with our position, and it will surely cripple our powers of obtaining money on easy terms to a far greater extent, if it becomes known that Ave are sinking deeper and deeper into debt, and paying for current expenses by the issue of Treasury Bills. If fresh taxation has to be resorted to a property tax is by far the fairest that can be levied. As things are at present the wealthy classes, who have been A r ery largely benefitted by railway extension, contribute very little more to the revenue of the colony than the working men do. It is manifestly unfair that those Avho have been the greatest gainers by the railway policy should contribute nothing to the general revenue beyond what they pay as consumers of dutiable goods. Why should the imposition of a property tax frighten the money lender in England more than an increase in the customs tariff, or the levying of an income tax ? We believe there is no foundation Avhatever for the cry — which, we are afraid, has been raised by those Avho are anxious to save their oavii pockets at the expense of the general community.