Mr J. G. Wilson at Foxton.

Manawatu Herald, 18 June 1892, Page 2

Mr J. G. Wilson at Foxton.

♦ There was a very fair attendance at the Public Hall on Thursday evening, when Mr J. G. Wilson addressed his constituents, though the evening was remarkably cold. Mr A. E. Nixon, in the absence of the Mayor, was voted to the chair. Mr Wilson regretted that there had been a serious visitation of sickness in this district, and that one of the prominent business men ot the town had been taken away. He recalled the loss of prominent politicians, referring very kindly to Mr Macarthur's daath ; recalling his earlier local and political services ; noting that he was lost just at the time it seemed possible he would reach the high position he had so long worked for. The incidence of taxation since last session had been considerably altered. At last election there were a number of Labour members, and a3 all classes should be represented, their advent was a distinct gaiu. It was better to have rfeal hand workers in the House than men who only came in as presumed representatives of labour. Mr Wilson remarked that he had always hitherto spoken between sessions, but waited this time till after tha last session owing to so little having been done at the first ; had left Foxton to the last, as had understood Ministers were coming to the adjoining district, to traverse his speeches, and at Foxton he had an opportunity of beiug reported in case he had to reply to their remarks. Mr Ballance had not only a surplus from the last Government, but also a large estimated surplus this year, and he had proposed to bring in a penny post, costing close on £50,000 to be paid for out of this surplus. It was surprising that a Liberal Premier had not proposed to take duties off the necessaries of life, instead of which he put on fresh taxation. He (the speaker) was in favour of the penny post if it could be done without coating too muoh. The penny

postage, howevei, was in favour of banks and mercantile establishments, of which he gave instances. There was no minting .matters] however) that tlie country desired a change in the incidence of taxation. He admitted it an impossibility to have the repeal of the present tax, but he could not help showing the inequalities of such taxation. If Mr Ballance would only make the incidence of the tax more equal it would do away with a number of objections to that tax. No tax should be made a penal tax, as all taxation should be raised only for the purposes of paying expenses. He referred to the late Mr Robinson, who was a very old settler and also a large landowner who had occupied land during most troublesome times and had always been an improving landlord and an esteemed settler. Supposing he was still alive, and by thrift had got property around him, the Government stepped in and said, you have got too much land and you must be specially taxed. Does it not seem hard that such a proposal of such a nature should be made to a settler who was so much respected and who had bought land years ago when no one else would purchase it ? Directly such a measure is proposed no one can tell what day it may occur when any one may be brought under its scope. Taxation should only be made to secure funds that a r e wanted. Take the Oroua Downs, the other day the land was cut up owing to the owner's death, and we have instead of one large property, many small ones. This is the way property should be divided, at tho will of the owner. If the Government wanted to tax large owners they should have taxed large companies, but not in a penal, but in a different way to that they have. A few years ago when the Hon. Mr Johnston died his heirs had to pay something like £30,000 probate duty. Companies did not pay probate duty, as they were a continuing body. The Government claimed they had done great service to the small farmers. He could mention that before the Goveanment made the proposal to exempt £8000 improvements, this had been proposed by Major Atkinson in his amending Property Tax Bill, and he (the speaker) had mentioned his approval of such a step in one of his addresses. He next instanced that under the Land tax a man who owned land was taxed 8s 4d in the £100 up to £1000 but he only paid 2s Gd in the £100 if his money was in the bank ! If a man has an income of £400 he only pays income tax on £100. Suppose £10,000 was invested at 5 per cent you get £500, which would mean paying a tax of 6d in the £, less the exemption, on £200 equalling £5 per annum ; if you invest the same amount on mortgage, you pay one penny in the £ on £9,500 and that would mean £89 lls ; if you invested it on land and had the maximum of improvements you would pay £29 8s! And if he pays income tax, the exemption of £300 capitalised at 5 per cent means that he has an exemption of £6000 over and abovs the exemption of £3000 if he happens to have it in the shape of freehold property which compares very unfavourable with a country settler who has an only po-sible exemption of £3000. What we want to do is to pay taxation evenly on all, speaking broadly by this taxation you do not. The cities get an actual exemption of £9000 whereas the country people have only £3000. If a man finds he has to pay move taxation for money on mortgage than he has to do by other ways, it is evident that one ortwothiriga will occuiT, the man with the mortgage will have to pay more. The Government says the rate of interest is not increasing, he could say it was, there was a difficulty in getting money. On another point, take the question of companies who lend money. They borrow on debentures and lend it at a net profit of one per cent, being 20b. The Government propose to tax these debentures. Say £100,0 .0 was borrowed in London and interest was at 4J per cent or £4500 per annum the government would tax them £225 or os per cent. The companies cannot deduct the tax as it had been agreed to pay 4£ par cent in London, ff they said the government gave them power, the lenders would say they did not recognise the government and would sue them and must gain the day. On lending this money tho lenders have to pay 8s 4d as well on the mortgages, so that out of the pound profit they had to make, they have to pay the government 18.3 4d. The result is that they cannot lend on these terms and will charge more or else go out of business. They hope the government will alter these terms this ntxt session and that is why they are still continuing business. As regarded this system in the cases of banks it is without doubt they are taxed lighter than they were under the Property Tax. They only pay on their income. They pay only Is to the companies 13s 4d and therefore must run the lending companies out of the field. Supposing a country sattler gets an overdraft at the bank he is not allowed to deduct this sum as he was under the Property tax, he was thus clearly placed at a disadvantage to the trader who only paid on hia profits. Broadly it (some* to this, thai if the rate of

interest was only raised one percent the settlers would have to find £300, | 000 extra. Suppose this tax brings I in 1 £300;G00 as it is hoped td do, tha people would have that to find, and by interest being increased, another £800,000. This would go to London and thus this sum would bs so much ( less money spent in the colony, and \ thus the new taxation would fall j heaviest on the working people There is a good deal in the Land policy of the government. Mr McKenzie is a Highlander and believed a deal of dummyism was feoitig on. If it is we ought to assist llini in putting it down: Previous Ministers have been rather slack in opening up land. The last Minister was especially so, but he was expected to exercise large economies, however he believed it would have been better economy to have spent more money in opening up the land as it could all have been Bold and settled. The depression would have been lightened by the employment to be had from the new settlers and those who purchase land going out of the labour market making room for others. He thought Mr Ballance deserved credit for the establishment of Special Settlements, but the government put a damper on at once by altering the regulations. Unfortunately the Ministers views were that no land should be sold for freehold but only as perpetual lease, without, as hitherto, the right to purchase. Many associations collapsed. He thought the principle should be settled at once, and that people should be enabled to get a freehold. Those who wished to see the country go ahead should assist these men to get their freeholds. Capitalists take land to make money, poor men take a piece of land to make a home for their old age. If he cannot get a freehold he cannot mortgage, the government say that this is just what they wish, but if the man cannot borrow how can he get his land cleared without money. For a poor man the right of freehold is essential. In the forty mile bush this has been made plain. Mr Smith has proposed instead of having a perpetual lease without a right of purchase, to have a- lease at a real ground rent for ever The present perpetual lease is a misnomer as no man could make certain of getting his property at end of first lease. He was in favour of freehold as against any other tenure. Some people think there is going to be a dissolution, he did not. The question of a dairy factory is of much interest to all small settlers. He understood that the representative of a large firm wae in the district prepared to establish creameries and butter factories, if a guarantee is given. One might be established in Eoxton, Gampbelltown, and other places. He suggested that the farmers should consider if they would care to see this gentleman ; he had communicated with him and asked him to come. There was no doubt it would be an advantage to the distriot to have such an establishment There had been an alteration in the constituency — it now excludes Palmerston, but takes in Pencarrow Head; He mentioned that it would adhere to this district. He expressed his willingness to answer any questions, (Applause). In answer to an elector Mr "Wilson said he had done all he could to advance the flax trade, and the Government have not shown that interest which they ought certainly to have for such an important industry. In reply to Mr J. E. McMillan, Mr Wilson said he would assist in getting the Manawatu flax shown at the Chicago exhibition. It would be the very best adveitisement we could get. He believed the government are prepared to pay the expenses from Wellington to Chicago In reply to Mr McMillan Mr Wilson said it was difficult to get exactly the difference that large companies paid under the present tax to what they paid under the Property Tax. Mr Mitchell proposed that a vote of thanks to and confidence in. Mr Wilson, Mr McMillan seconded. Mr Conway proposed as an amend ment a vote of thanks to Mr Wilson and a vote of confidence in the Government. After some delay Mr Murray seconded the amendment. On the amendment being put only five hands were held up in support of it and a forest againt it. On the motion being put it was carried without further opposition no hand being raised against it. Mr Wilson moved a vote of thanks to the chair.