Manawatu Herald. TUESDAY, JULY 5, 1892. The Financial Statement.

Manawatu Herald, 5 July 1892, Page 2

Manawatu Herald. TUESDAY, JULY 5, 1892. The Financial Statement.

j — — — » ■ ■■ - Men's minds are relieved, the Colonial Treasurer has spoken, and 161 there is a surplus. On our part we say, for this, much thanks, for the name of Joho. Ballahce has not been one to conjure money balances with in the past. Let credit be given where credit is due. The Colonial Treasurer and his government deserve credit for haying got a surplus-, they did not dissipate it, and to the late Sir Harry Atkinson's finance is the credit due for such surplus. It is to be regretted that all through the Financial Statement not a single admission, tor how much the present satisfactory state of the funds is due to the previous Treasurer, is made, yet not one proposed alteration of the system of taxation is as yet in force. It is so satisfactory to find that the present government have not spoilt the work of the late government, that we are inclined to praise them beyond their merits. Through the Statement there runs a note that some of the peculiar ideas mooted by the Government last year, will not be pursued to an end, but will be quietly dropped. As the Ministers find their position agreeing with them, they are not so ready to take up the absurdities of their Dick, Tom, or Harry supporters. The idea of forcing large landowners to put their property into the market, is one of these proposals madb last year which appears to have been dropped. We hear no more about " another turn of the screw " but just otherwise, as a bill is to be introduced to enable private land to be purchased, by voluntary agreement, and at such a price that the State is to make no profit, but is only expected to make a five per cent rent calculated on the fact that it is " beyond dispute that the cultivation of small areas enables a higher rent to be paid than the cultivation of large ones." This is a wonderful reversal of the policy of penal taxation, large holders are not to be squeezed, but bribed by the offer of the purchase money that will not yield the government five per cent until after it has been subdivided into small farms. Still as we believe persuasion is better than force, we approve of this course in preference to the previous one. We object most strongly to the proposal to carry on the Public Works out of revenue. We quite admit that it is wise not to go upon the English market for a time, we also object to the spare cash of the Colonists being diverted from private enterprises into government loans. What under these circumstances were the government to do ? Either stop all public works, which we hold they should if the object of executing them is merely to have money devoted " to provide employment for those who might otherwise be idle, thus keeping up the standard of wages," or to borrow this sum from somr of the accumulated funds of the Public Trust Office, or Insurauce Department, The sum proposed to be set apart, some £200,000 is not large, as a loan, but is an enormous sum to pay as interest upon one, and that practically is what the government are asking the taxpayers to do. Who are the people who are to be advantaged by this expenditure ? the taxpayer ? No ; it is only those who might be idle, and it is only proposed so as to keep up the standard of wages. The taxpayer will profit in a very small way by the oounty being opened up, but it will be a long way short of the £200,000, when work is carried out on the peculiar co-operative principle. The injustice of every taxpayer having to pay the equivalent to the interest on a four million pounds loan, and obtain the expenditure of* only £200,000 is so apparent that it will take all the capacity of the Colonial Treasurer to explain, for the taxpayer still has to find the interest on the millions already spent and from which a number have derived no benefit. Therefore the taxpayer of to-day has fair grounds for asking for a loan if he is asked to find money for public works. If this £200,000 was borrowed at five per cent the taxpayer would only have to find £10,000 a year, thus placing £190,000 at the disposal of the Treasurer to lighten the Customs duties, and this would give immediate relief to heads of large families who will never have the leact opportunity of benefitting in any way from the expenditure of this sum on co-operative labour contracts.