The Lyttelton Times. Saturday, July 12.

Lyttelton Times, Volume VI, Issue 385, 12 July 1856, Page 6

The Lyttelton Times. Saturday, July 12.

The most prominent feature of Mr. Fox's financial scheme was a proposal to reserve for the service of the General Government only two shillings and sixpence of the price of every aero of Crown Land sold. This was a very alluring bait for some of the Southern members. But when we inquire it;to the means by which he intended, or rather pretended, to meet impending difficulties, we find that such an arrangement could not. stand without some extraordinary provision en a large scale to meet the liabilities of the Colony. The Southern Provinces could

not allow such a system, without their obtaining1 some valuable compensation, git was so obvious, that the weight of the General Expenditure would fall on the Customs revenue of the North, that Mr, Fox was obliged to guarantee two thirds oi the Customs net Receipts to the Provinces. Let us now see how he has made provision for the wants of the General Government. He has asked for. leave to raise a loan of £50 000 to meet, a balance due to the Union Bank of Australia and (as Mr. Treasurer Brown says,) "any other liabilities of the General Government that may turn up in pigeon holes and corners during our stay in office, with a sum for the extinction of Native title. " Now, according to Mr. SewelFs statement, £35,000 is due for land already purchased, and in course of sale. Without considering the New Zealand Company's Debt, which Mr. Fox has not taken into account at all, Mr. Sewell shews that the following liabilities have to be met.

In round numbers then, Mr. Fox proposed a loan of £50,000 to meet liabilities amountingl to twice that sum, and to provide "a sum for the extinction^ of Native title ". We said that Mr. Fox has kept the New Zealand Company's Debt out of view altogether. Now, it' not during this year, at any rate next year, steps must be taken towards an arrangement. The whole question of the public burthens would then have to be re-opened. It was calculated that, the New Zealand Company having agreed to take £200,000 on the slh cf April 1857, arid to carry any remittances that, might in the meantime accrue from the fourths in liquidation of interest and principal, the money already remitted (about £18.000) would obviate any necessity for making any provision on this account during the ensuing year. Mr. Seweil showed that the fourths would probably he claimed, and pointed out the necessity, for the snlce of our credit, of making- provision for meeting such claim. But under the most favourable supposition provision woald, at all events, have to be made for the interest of the debt and sinking fund, providing payment of principal in 40 years. The interest at 4 per cent would be £8,000. and the sinking Fund £5.000. Thus the yearly charge for this debt would amount to £13,000, to be provided for, at any rate, next year. This item alone would necessitate a re-a.'ljust-ment of the Revenue, supposing that no increase of Revenue took place. Now that the stimulus given to trade by the Gold. Fields has ceased, no prudent financier world build upon such increase.

Nov/, on {.he other hand, Mr. Fox calculates upon the sale of 120,000 acres of land, which, at a contribution of two shillings and sixpence per acre to the General Government, would give a Revenue of £1 0,000. Now dining the last year only 1 1 8,000 acres were sold ; but Scry) and not money was received in pa3'ment for about half of this land. It is therefore only fair to supposp, judging from past experience* that, at the very least, one-third of the estimated. 120,000 acres will be paid for in scrip, so that 40,000 half-crowns, or £-5,000, would have to bededucted from the estimated Land Revenue. Again ; —Mr. Fox has estimated the net receipts i'/om the Customs for the ensuing

year at, £99.000, without consulting any of those most competent to form* an opinion on the subject. The amount estimated by the Auditor-General, upon data supplied from official sources, was £86,000. Mr. Fox took the Customs revenue of the year endino30tii June, 1855, —the largest ever known in New Zealand, —as a guide- According to the opinion of those competent to judge, and from the statements of receipts for 9 months of the last financial 3'ear, there would appear to be no grounds for such an estimate as Mr. Fox put forward. It is not a good sign to see a ministry thus overrating the probable revenue and underrating the probable expenditure. Very little confidence can be placed in any calculations made by them of the assets and liabilities of the country. We, have then, liabilities|amounting to about £50.000 ignored*; the consideration of the New Zealand Company's debt pushed aside ; the revenue overrated, and the expenditure underrated ; the whole question of the public burthens left unadjusted ; and, to crown all, a Treasurer who, (we are informed en creditable authority) when he had his attention drawn to the many omissions in his financial scheme.Ja.ncl was asked how he meant to provide fo^il.o.se services which had been omitted, replied to the effect that unforeseen emergencies had occurred before now, and, as these had been met somehow or [[another, so, he presumed, means would be provided in the present case ! And this is called the adoption of a Financial policy for the country. What we want is a permanent settlement based on equitable principles, not one which may be reopened from year to year. Independently of higher grounds, the policy of trying to gain an apparent advantage for our own. Province, at the expense of the colony, is a very narrow-minded and shallow policy. We need not say that a blow to the credit of the colony would be a blow to t every Province. But, besides this, it so happens

that, just at present, the balance of parties is such that the Middle Island can get failterms. On a future occasion we should probably not have the same vantage ground. Mr. Fox's financial policy was an attempt to frame a popular budget, without consideringl the resources or necessities of the Colony. That'he failed so signally in his attempt to get into power is due, not to the north only which was so palpably defrauded, but to those members of the Southern Island also, who preferred|to take an honest and careful view of the position of the Colony, rather than to grasp greedily and foolishly at the first bait held out lo them by an experienced tactician. Vv re have not space here to enter upon the Financial policy proposed by Mr. Sewell, and must defer cur notice^ ->f it till next week.

Balance due to the Union Bank of Due on Deposit Accounts ~~~—~ Arrears of fourths due to New Zealand Company £26,000 ; together with accounts that may accrue before final arrangements Outstanding liabilities or contracts for purchase of Native Lands \ C • w«-v* «v>>M Due to the Province of Auckland Due to Commissariat chest —, Due to Agent General —-—™~~ £ s- d. 14,000 0 0 5,634- 16 6 30,000 0 0 . 35,000 0 0 5,000 0 0 7,000 0 0 3,000 0 0 £99.634 16 6