THE FINANCIAL STATEMENT.

Hawke's Bay Times, Volume 14, Issue 707, 9 August 1869, Page 3

THE FINANCIAL STATEMENT.

(Wellington Independent.) Thebe ia a good deal of ultra-Toryism in the Financial Statement of the Colonial Treasurer. It contains no new policy, proposes no changes of any importance, and simply announces that the existing system of government is going to be carried out in the "possible best" fashion. We shall notice some of its points at present, and discuss its details afterwards. It seems —according to Mr Vogel's assertion—that the Government system of keeping accounts is both complicated and defective, and that the boasted Comptrollership, for which we pay some £BOO a-year, is of no use at all as a cheek on the expenditure. This may or may not be the case, but at all events it is quite clear that there has been something very iike half-a-miliion of money spent in excess of last year's appropriations, a thing which we had thought could not have been done without the sanction of the Assembly obtained in a special session. Some information is next afforded about the consolidation of the loans. Debentures to the sum of £1,114,000 have been negotiated, while £2,723,250 of Colonial and Provincial debentures have been converted under the Consolidated Loan Act. This consolidation of loans, as effected by Mr Fitzherbert, effects a considerable saving to the colony in interest, which the Colonial Treasurer calculates at the rate of £ll,Oßl a-year fhe expenses, however, of the negotiation amounted to about £33,000. The actual revenue for the past year was £1,005,933. The appropriation made by the Assembly for the public service was £995.5. J 5, but the actual expenditure was £1,436,259. This shows that during the hist twelve months the Government has spent £433,232 more than was voted. In other words, while the actual revenue for last year was £i,005 933, we spent the sum of £L,330,259, and thus "outran the constable" to the amount of £130,326. Mr Vogel does not explain very clearly how fhis additional expenditure was incurred, but thac the money was spent is clear enough. Passing from the past to the future, we find that Mr Vo<j;el estimates the revenue for 1869-70 d< £1,C32,0J0 or, if his proposed tax on flour and grain be added, at £1,046,000. The proposed expenditure for the same year he estimates at £969.567, but inasmuch as the appro prialions for the Armed Constabulary and for Defence purposes generally is only £150,0u0, we are disposed to regard this estimate as absolutely worthless. If the war g---es on, as it vvi 1 in all probability, it is simply nonsense to sav that the expenditure can be limited to £150,000. The Government will be forced to spend more money if danger should arise or aggressive action take place upon the part of the enemy, and then the present calculations will all be upset. The other propositions contained in the Budget will require to be discussed at leng h, and our space renders it impossible to do that at present. The Government will be kind to the Provinces, allow them to have overdrafts, and gen rally lend them a helping hand. If any particular province so weak that it cannot stand unaided, it is to be "absorbed." Thus Marlborough is to be absorbed into Nelson, and if Southland can't live it is to be absorbed into Otago. The case of Wellington is stated to be a special one, but no remedy is suggested for its ills. As to matters of general policy, tho Government propose io raise a loan to enable the North Island to make roads, which loan is to be specially chargeable to it; but, nevertheless, the Middle Island is to be a security and endorse tho bill. The Government think that making roads throughout the island, and establishing a base of operations in the interior, will be one of the besc means of settling the Native difficulty,—and so they say they are going to make them ! But we do not attach much value to this assurance, because in the very next sentence we are informed that they will not make road* through the lands of rebels, should the owners object, lf such be their intention, we are tolerably certain that there will be no roads. There is to be a duty on flaui and grain proposed; a bill is to be brought in enabling the Government to go into business as Life Assurance and Annuity agents; the subject of immigration is to be thought over during the recess and dealt with next session; and, finally, the most important question of all —that oi Native and Defence Estimates —is shirked altogether. "I shall leave my colleague, the Aative and Defence Minister, to explain the Native and Defence Estimates' This is what Mr Vogel says, and thus gets rid of the subject which, above all others, requires the fullest possible explanation. VVnhout a lull and definite declaration of the intentions of the Government on this question, tho House is not iu a proper position to discass the rest of the financial proposals. It is a bitter mockery to ask ttie representatives of the people to take into consideration tlie fininciai condition of the country, and to determine what should be done, when the war question is studiously ignored. It is impossible to state any sound opinion on the policy ol the Government till Mr M'Leau has ex plained their intentions with reference to the Native war and the defence of the cjuntry. It may be a clever political trick to evade this explanation at present, but it is one which neither tho Asseinb y°uor the country wnl allow to be played at thcii expense.