THE FORTHCOMING ASSEMBLY.

Hawke's Bay Times, Volume IX, Issue 463, 21 March 1867, Page 3

THE FORTHCOMING ASSEMBLY.

(Itfttelton Times.) Ihe next session of the General Assembly will have to solve one of the most interesting and difficult financial questions which can arise in New Zealand; the question, namely, of a Satisfa.-invt? SOttlamunt nf .umm.nro V>« J Wwv«*WiMVMW Vfc MUVVUUbO VU* tween the General Government and the provinces. The latter are deeply indepted to the former; and by a scueme of finance of the most temporary character, which we know not whether to call more absurd or mischievous. the debt has been allowed to stand over for the current year. Not only so, but the transactions between the General Governments and the provinces for the current year are so arranged that in many cases the debt can hardly fail to be considerably increased by the end of the year. We cannot hope that the colony can afford to forgive these debts. Indeed, plain warning has been given that they will be demanded in a peremptory way; and for the best of all reasons—because the money due will be wanted. Unless the Customs revenue should expand surprisingly, and the stamp duties become productive beyond all imagination, the General Government cannot have, in July nest, any surplus to make presents with to the provinces. It is only reasonable to anticipate the contrary. The colony has had to take on itself the whole scheme of the Waikato Settlement since the last esti mates were drawn in addition to the special charges of the Military Settlers there, whose claims are of the most espensive character. The burden of this charge wholly overcame the province of Auckland; and it will be for tunate if, with all the haste that can be made to sell the lauds, the cost of the Waikato settlement does not strain the resources of the colony to the very utmost for a year or two longer.

Looking at the probability that the General Government cannot be in a position to offer to the provinces for another year more than the conven tional three-eighths of the Customs revenue, and will have to demand out of that the repayment of their accumulated debts, the future of some of the provinces becomes matter for great apprehension! Last session there were those among the representatives who went any lengths to secure even temporarily, a supply of money to their own Provincial Governments. The imposition of Stamp Duties is a direct consequence of the determination to have the “ three-eighths” at any price. Auckland, it was averred, could not exist without the concession; Wellington depended entirely upon it; and Southlands revenues are pledged f jr its debts, joined in the same demand for the support of its departmental Government. Other provinces were more or less in the same category; and it was only Canterbury and Otago, whose land revenue gave them something to fall back upon, who were willing to sacrifice a portionof the Customs revenue rather than put an additional tax upon the people. The tax is imposed ; the Customs turiff has been increased ; but the northern provinces are still in the same condition, and worse. The accommodation obtained last year is exhausted ; and what will they do now for money ? The question is not solely a financial one. It involves also s*me political considerations of the highest importance. But it is enough at present to consider the most conspicuous points, —the most evident and the most irritable among the symptoms of provincial disorder. The money difficulty will certainly be at the top of all. It will be suggested by many who have watched public affairs of late that the best way out of the difficulty will be to abolish the needy Provinces, and to take the whole administration of their affairs into the hands of the General Government. On this suggestion we must remark, first, that the actual expense of Government will not be lightened thereby. The consequences of past Provincial mistakes and extravagance cannot be avoided, even if the change were for the future to introduce greater prudence and economy into the administration of Provincial affairs. And secondly, tbs proposal involves a great constitutional change such as can hardly be dealt with in a single session, and without an appeal to the public. Farther, we in this part of the colony have to remember that the absorption.

of Provincial functions into the General Government will not be done partially and in isolated cases, but that Canterbury and Otago must expect the same treatment. Are we prepared to hand over the management of all our concerns to the central Government after next session? We fancy that the most rash of politicians would not advise the step. But if so, we must be careful how we talk about doing the same for Auckland or Southland.

One alteration will suggest itself much more readily to the minds of northern politicians than to our own. Yet we must look it straight in the face. It is that the provinces which are short of money shall supply their wants from the Middle Island land fund. The idea has been broached already; and Southern people need hardly be reminded how readily the North, if driven to desperation, would break down, if it could, the safe-guards which at present surround our land revenues.

For the present New Zealand needs good financial administration rather *U 1:*.! 1 TV tuau puuuctu x* u uiuess, foresight and vigor in the Treausury are worth ten times over any speculative statesmanship. It seems to us, indeed, that it would be well, looking looking to the state of the money market in England to sacrifice a whole year of mere legislation for the sake of holding an immediate session of the Assembly, and at once giving power to the Governmet to consolidate the various loans of the colony and provinces by such a negotiation as is now possible. Be this as it may, we must have representatives who are tried men, practical rather than theorizing; keen enough to see and guard the special interests of our own community ; liberal enough to cast aside prejudice in forming a natural alliance with the neighboring provinces; and above all, deeply and sincerely interested in retaining for Canterbury the administration and revenue of its lauds.