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New Zealand Times, Volume XXX, Issue 4448, 22 June 1875, Page 2

Writing on the subject of Mr. Vogel’s correspondence with the Economist, in reference to New Zealand finance, the Southern Cross has the following remarks on the anomalies of our fiscal system, in the direction already pointed out by us ; —Still, for practical purposes, we may fairly admit Mr. Vogel’s statement, [that provincial laws are properly charged against the land fund,] as a correct one. It disposes of the Economist’a objection in one sense, although we imagine it will naturally give rise to a new objection on his part. It may be asked, and probably will be so, why, if the appropriation of the land fund in the bands of the provinces is so properly applicable to paying interest on loans for provincial public works, it is not also properly applicable to the same purpose in the hands of the polony. As a fact, the land fund of the colony is the natural security for a public works loan. If Mr. Vogel is right in his assertion that when a loan is contracted for purposes which will improve the value of the waste lands it is very proper to pay the interest and sinking fund of that loan out of land revenue, then, we fail to see the distinction between the provincial loans of the past and the colonial loans of the present. The loans contracted in times past by the provinces were, it may be admitted, largely for purposes of roads, bridges, and other works of a similar character, calculated to improve the value of the public estate. They were contracted also, at least in some provinces, for purposes of immigration, which, as much as even road works, tend to improve the value of the public lands, and although some of the purposes to which they were applied were not directly advantageous to the public estate, perhaps, bn the whole, they may be taken to have been so applied to an extent sufficient for all purposes of argument. But if we compare the expenditure of the provincial with that of the colonial loans, we shall fiud that what may be considered true of the former, is far more completely true of the latter. The public works and immigration policy proposed to expend all borrowed money on purposes tending to enhance the value of the public estate. It was to make railways ; and no one can question that these more than any other kind of road works will eventually enhance the value of the waste lands, as well as of those already settled. It was also to be used for immigration, and for road-making in certain districts, and both these are directly influential in improving our waste lauds, and giving the property of the Crown a value which it has not had, and cannot obtain on any other terms. And, finally, it was applicable to the purchase of native lands in the North Island, and this of the four purposes is perhaps the most directly advantageous of all to the land revenue of this colony. If Mr. Vogel’s argument is a good one so far as it relates to provincial loans, it is even a better one as respects the colonial loan. If the roads and other material works performed by the provinces out of borrowed money improved the public estate, much more mil the railroads, land purchases, and immigration now going on, improve the value of our waste lands, It follows that the land fund is very properly applicable to the payment of these loans. The lands, it assumed, are enhanced in value, the enhanced price should therefore go to recoup the loans and relieve the colony from the load of debt imposed upon it to benefit that estate. That Mr. Vogel sees this we cannot doubt. That, had his health permitted him to attend this session of Parliament, he might even have made practical proposals to give effect to it, is most probable. But although his absence may prevent this being done either as promptly or as wisely as it might have been with his assistance, it is not a matter to be lost sight of. The question of the land revenue must bo dealt with in connection with that of any changes in the Constitution, and there are many reasons why a fair adjustment of this matter from a colonial point of view should then be sought for. It is to the land fund, both north and south, that the Government should look as far as possible for the means of paying interest and sinking fund on loans. The expenditure of the loans ought to relieve, more or loss, each district from the need of other expenditure to open up the

country, and this once done, the process of repayment should begin. By devoting a large proportion of land revenue to purposes of interest, trade and commerce may be relieved from the burdens which now affect them. It is monstrous to burn the. candle at both ends by first capitalising estate in land and expending that capital, and then expecting to keep the income also, and throw fhe burden of supporting the establishments of provinces, as well as that of interest, upon Customs and other taxes, which have really no natural connection whatever with the lauds or their improvement in value.