New Zealand Times. WEDNESDAY, JULY 22, 1874.

New Zealand Times, Volume XXIX, Issue 4161, 22 July 1874, Page 2

New Zealand Times. WEDNESDAY, JULY 22, 1874.

Difficulties beset the path of a Finance Minister. In time of adversity, he who is called upon to make the country aware of its true position, and to propose means by which the empty coffers can. once more bo filled, invariably finds himself associated in the popular mind with the poverty he reveals, and which by some perversion of thought ho is supposed to have produced. Let tho funds be overflowing, he is still exposed to the harassing faultfinding of every district. No matter how large an amount is proposed to be given, lent, or spent in one place, those interested are never slow to discover reasons why they should have been more liberally dealt with even at tho expense of others, who in turn seldom exhibit the slightest gratitude for being saved from ruin, but are too ready to protest they will reject tho timely aid, if more is not given, though tho weakness of human nature never suffers them to carry their throats iuto execution. They accept tho gift and grumble at the giver. In his time, Mr. Vogel has met with both fortunes, and to both ho has shown himself equal. Fivo years since, when he firsttookoffico, tho Colony wasinthelowest stage of depression. Native wars, added to a narrow and timid policy, had so lessened tho Colonial credit that he was deemed by many a rash enthusiast, when, in 1870, a year that will bo ever memorable in our history, ho startlod Parliament by proposing tho Immigration and Public Works Policy, To redeem our position

by incurring what were then considered vast liabilities) was denounced in no measured terms as the ready and certain road to bankruptcy, and his partial concession ±o the wailing of the weaker spirits was regarded by them as a triumph they had achieved in the cause of caution. Struggling against obstruction that would

have broken the energies of a less resolute leader, hampered by the self-will of some whose duty it was to have afforded hearty co-operation, the tide of immigration at last was turned to our shores, and as it flowed prosperity prevailed in every Province whose rulers had been sufficiently far-sighted to avail themselves of the only means by which progress could be ensured. The striking difference between those parts of the Colony where an increase of population was welcomed, and those where it was repelled by too cautious Governments, is manifest. Every ill boding prophecy as to the multitudes who would require to be provided for as paupers, and the sufferings of the working classes from a keen competition for employment, has been falsified by the event. It may safely be asserted that the number of persons seeking charitable aid is least where immigrants havo been most numerous, and in the same places wages are now highest and employment most plentiful. Each succeeding year has produced its crop of carping objectors, who in doleful tones, and with many apparently sagacious gestures, have no hesitation in fixing a time for the ruin of the Colony, with as much support from fact) as Dr. Gumming has received in his predictions of the end of the world. Last night tho Premier's statement of dry figures was a complete and unanswerable reply to his opponents. The precoding financial year was the first in which immigration had been even moderately successful, and the result has been an increase in revenue of £300,000, or nearly 30 per cent., a proportion that if paralleled at home would, as Mr. Vogel pointed out, add £20,000,000 to the income of the United Kingdom. After providing for all departments of Government, paying interest out of income legally payable out of loan, and reducing our floating debt, the substantial surplus of £207,000 remains to be added to the fund 3 available for expenditure in the current year. Tho security for railways proposed to be taken over the land of the Provinces was so distasteful to the twowealthyProvincesof the Middle Island that last year they consented rather to the 'purchase of a landed estate for the North Island. Rashness ought not to be the fault against the Premier, and mariywho were at one time disposed to set that down as his distinguishing characteristic are now prepared to reproach him with too much caution. So far has he been from being too sanguine in his hopes, so rigidly hns he kept his Estimates below probabilities, that the unexampled success of his policy enables him now to dispense with security, and to indicate his willingness under certain restrictions to relieve the Provinces from the interest on the Main Trunk railways, the principal - being provided for in the Conservation of Forests' Bill. This magnificent gift is to be made to the Provinces though every acre of land has been increased in value and tho income of a single Provinco from the sale of waste lands now exceeds that of the whole Colony but a short time back.

Caution pervades every part of the Statement, but it is the caution of courage. The increasing difficulty of floating large loans for the Colonies needed to. be demonstrated as a check to those Avho aro prepared now to hurry on the construction of railways regardless of cost, and also to tho advocates of largo loans for Provincial purposes. The altered state of monetary affairs now prevents the Government from extending the same support to the various projects for Provincial borrowing as it did last year. It would obviously be unwise to sanction the entrance of competitors into the money market, and Mr. Vogel is fortified in the course he takes by the knowledge that many who supported the loans last year did so with much reluctance, being far more disposed to leave these operations to the Government. It is now proposed no longer to aid the revenue at the expense of loans, but to aid loans at the expense of revenue. Acting on this principle, it is proposed to make advances to Provinces languishing for want of public works from the Consolidated Revenue, supplemented, if need be, by Treasury Bills. So many works havo been projected in the Provinces, which having waited till now, may well afford to wait longer, rather than risk deranging finance, or disturbing the labor market, that Mr. Vogel is to be commended for his limitation of advances during the present year, to which he distinctly stated he confined his proposals. Auckland is to have works carried out on the Thames goldfields to promote mining enterprise, and to have £40,000 advanced by instalments to carry on works of utility. Welling'ton will get £66,000. Nelson is to have £50,000 for useful works, in which it ib singularly wanting, and to enable it to approach in some measure the Provinces it has so lamentably fallen behind. Taranaki, Marlborough, and Westland will also be assisted : indeed, the whole tendency of tho proposals is to stimulate tho Bluggards, and induce them to actively contend in the ranks of those who are fighting for the advance of the Colony. This might be noted, that in all cases the works sanctioned aro to be such as will advance the settlement of immigrants, and will be under the control of the Public Works Department, and that in every instance tho Colony will be protected by special security being taken which will recoup all advances made. The special douceur to Auckland, Westland, and Nelson is perhaps essential to the continued existence of those Provinces, but can hardly bo flattering to their pride. With intelligent government they should all prosper, and possibly an exceptional liberality may spur them on to more vigorous efforts. Among the most gratifying features in tho Budget is tho proposal for dealing with the Defonco expenditure. It was clear that it would never do to continue borrowing for what is and must be to a largo extent a permanent chargo. The difficulty is now fairly met by half the charge being taken over for this year, so prolonging the period during which revenue will receive help from loan, though bearing part of the burden. The same remark applies to the Road Boards grant, which, useful as it has boon, was on tho border of doubtful tinanco when wholly provided for out of borrowed money. Viewing the Statoment as a wholo, it may bo considored, though porhaps tho shortest, yet ono of the most succossful Mr. Vogel has made. He lias deliberately avoided all trace of popularity hunting, and in proferenco to the choap and worthless cheers he would havo received had ho reducod taxation, though it is not oppressive, ho wisoly proposes to use present prosperity to produco still greater

prosperity in the future. Many troublesome questions demanded solution, and these we believe will be considered by the whole Colony to have been disposed of in a wise and statesmanlike manner.