Hawke's Bay Times. THURSDAY, MAY 28, 1868.. MR STAFFORD AT NELSON.

Hawke's Bay Times, Volume XIII, Issue 580, 28 May 1868, Page 2

Hawke's Bay Times.

THURSDAY, MAY 28, 1868.. MR STAFFORD AT NELSON.

NuUiua rJdidus jurars in verba ram/tsin.

Odb readers will probably be almost tired of Mr Stafford and his speech at Nelson, and nothing short of the great importance of the subjects discussed by him in it should induce us to recur to the matter. He justly remarked that he was “ speakiug to New Zealand as well as to his constituents of Nelson, and what he slid would be read all over the Colony,” and of course subjected to the criticism of the whole Colonial press. His defence of the action of the Government in regard to the Public Debts Bill was most weak and unsatisfactory ; yet, it was an admirable instance of making the best of a had cause, —the fact being placed on record in the Guvcrnment’s own authorised report of the proceedings of Parliament that the Government did abandon the ground it had taken, as given in the statement of its Financial Minister, and this from pressure from without—-taking up another posi tion, which yielded to the holders of Provincial bonds all the advantages the proposed, measure was intended to confer on the Colony.

That the Government did anticipate gaining some advantage by the opera tion of the measure they proposed is quite evident from the whole tenor o; the argument used by Mr Fitzherbert, and particularly where he said “ that by ordinary skill and prudence a very appreciable saving may probably be effected in the burdens of the Colony,’" and “ the measures of the Government are framed with the object of relieving the Province to the full extent to which any saving can be effected.” And again, “If we can buy a .£IOO debenture of Otago for £BO, we shall charge against Otago the interest and sinking fund on (only) the £BO of debt which the General Government has incurred.” That by the measure actually passed uo such saving can be effected is also evident, as the immediate effect of the Act was to raise the market value of the debentures from 20 or 30 below to from 5 to t above par, which amounted in effect to an actual bonus to the holders of such debentures of from 25 to 35 per cent, on the debentures in their bauds—such bonus being, m fact, that which was promised by the General Government to the Provinces as their gains by the operations of the Act as originally proposed to tuo Assembly. One of the questions of the Financial Reform League— and a highly important one too—was put aside by Mr Stahord without being answered, the query and the apparent reply being as follows : In the event of the moiety of the Consolidated Revenue accruin': to a province {deductions made for General GoTrrnrnc.it department expenses.) tofeiher with Us territorial revenue,heiny insufficient to meet the charge* on its debts, out of what fund will the deficiency he made good; and. in particular, will the Lund Fund of the other provinces be liable, under the thirteenth clause of the Pmbiic Debts Act'

T:?. ;i T :r.v._T lo ibis, I have to Ray that the Luncl Lcun oMey ouo pwviiNv i.- nr-t liable fur uiu debts M i-roviMce. By .-••.-• lion -lb of "Tho Fube,; Ad,” ii is i e ; ,i that when the or- 4 umary revenue of any province fails to provide, amongst o r her things, for interest and sinking fund of its debt, tlio laud revenue shall be impounded to meet As habiblics. But no law renders the Land I* uud of the other provinces liable for such defaulting province. -Sow, the ouestion v/as —If the orclinary revenue, toy ether iiith the territorial re re une, be insufficient, &c., —the reply voucasalcd yeing, when the ordinary revenue does not suffice, the tcrnlonul revenue snail be impounded, —obviously no answer, as of course the Colony, that is the remaining provinces, must bear the liabilities of any such defaulting province. Mr Stafford takes great credit for the appointment of a Comptroller of Public Revenues, aacl blames the public Press for not awarding bim his due meed of praise on that account. We suppose that, like- ourselves, the Press has failed to see anything praiseworthy in the appointment, and well believe tli at the ,£I,OOO per annum devoted *o this new office would have been better left in the hands of the tax payers. We are informed that only two out of the whole ol the Colonial newspapers gave a consistent support to the proposal of an Income Tax, the Nelson Colonist being one of them. We are not informed as to which was the other one, but we Lave done so—not, in Mr Stafford’s way, as an additional method of taxation—but more consistently still, as the only legitimate means. We cannot approve of two distinct systems, with all the army of officials necessary to their successful practice being in operation at the same time. Consistency in Mr Stafford would lead to the entire abolition of customs duties, and the substitution of a moderate income tax as the most simple, direct, and economical method of raising a revenue. We do not wonder that on the whole Mr Stafford failed in his endeavours to satisfy his Nelson audience—sure we are that bis published speech will fail to satisfy the Colony. lie was hailed with acclamation on his advent to office as the apostle of economy ; but, having failed to fulfil the expectations of the people, only now atvaits the appear* unce of another popular favourite, to yield up his position of office to him.