New Zealand Times. (PUBLISHED DAILY.) SATURDAY, JULY 31.

New Zealand Times, Volume XXX, Issue 4482, 31 July 1875, Page 2

New Zealand Times. (PUBLISHED DAILY.) SATURDAY, JULY 31.

The proceedings in the House of Representatives yesterday possessed unusual interest. Indeed, we may safely say that on no occasion, since the granting of representative institutions to New Zealand, has there been one on which so many and so important questions were submitted for the consideration of the Legislature. In 1870, when the Colonial Treasurer —Sir Julius Vogel— fairly carried the House with him by the boldness of his policy, and the dazzling array of figures with which he illustrated its effects, more enthusiasm was manifested than last night when Major Atkinson proposed the complement to that policy, but there was not by any means more interest or attention shown on the part of members. Never.was there a Financial Statement listened to with greater attention than the one delivered last night. And we simply express our own, and the general opinion, when we remark that the Colonial Treasurer discharged his allotted task with great ability. It would be altogether out of place to criticise off hand a statement of finance and general policy, covering so many points on which differences of opinion are certain to arise. We publish in another column a summary of the Budget, and for the present shall content our- " Selves with a general reference to its more prominent features. " Owing to the admirable arrangement of the Financial Statement, this is not a difficult task. The fullest details are combined with simplicity of arrangement ; —points of great merit in such a speech. The Colonial Treasurer gave a succinct history of New Zealand loans from 1870, up to the negotiation of the four million loan by Sir Jouos "Vogel. Of this operation Major Atkinson said : " With all " the facts of the case before them, know- " ing the necessities of the colony and, " the uncertainties of the money market, " the Government are clearly and de- '' cidedly of opinion that the course pur1' sued was the right one, and that the " operation, considering the efforts made " to discredit our finance, was marvel- " lously good ; and further, that to I "Sir Julius Vogel is due the suc- " cessful termination of the nego- " tiation." This statement was received with cheers, and there can be no doubt the House heartily endorsed it. From 1870 till the 30th June, 1875, the expenditure and liabilities of the colony for public works required that provision should be made to the extent of £9,839,877. Of this sum, only £5,795,200 in all had been raised, (we quote from the Statement,) and it became necessary without delay to provide for the difference, amounting to £4,044,677. Hence

the decision to sell the entire loan ; but by the terms of the contract with Messrs. Rothschild, whether they had successfully negotiated the loan or not, the colony' would have obtained sufficient funds to continue its worts and immigration. In this aspect of the affair, therefore, the negotiation Avas eminently satisfactory. Of the Defence and other Purposes Loan, there was an available balance of £125,315. The five years for which the defence vote was taken expired on the 30th June last; and only £081,703 of the sum of £790,000 authorised had been expended on defence. The defence expenditure would in future be charged against revenue. There was a balance of £106,500 under the General Purposes Loan Act, 1853. These balances are to be submitted for appropriation to specific services by the House. The Treasurer explained the position between revenue and loan, and showed that the accusation against the colony of paying interest out of loan, was unjust. £2,384,942 lis. 6d. had been paid out of revenue as interest on loans, since 1870, whereas for the same period only £39,196 os. Bd. had been paid out of loan for interest.

On the Immigration and Public "Works Loans, 1870, 1873, and 1874, there remained a balance, at the end of the last financial year, of £429,314; there had been expended £6,474,694 10s. 10d., and the liabilities incurred represented £3,095,991 15s. Of the ten millions authorised under these Acts, £1,312,100 had yet to be raised, including £BOO,OOO covered by Imperial guarantee. The total debt of the colony, on June 30th, 1875, was £17,671,106; accrued sinking fund, £1,074,647 ss. Id.; annual charge for interest and sinking fund, £945,785 15s, When the balances of authorised loans were raised, the total indebtedness of New Zealand would be £19,380,906, involving an annual charge of £1,035,775. This, however, would not be until June, 1877, or two years from now. The accrued sinking fund Avould then stand at £1,400,000. Coming to revenue, the Colonial Treasurer had the pleasing duty of announcing a surplus of £184,785 over the previous year's income, and £108,402 in excess of estimate. There was no sign of falling-off in the revenue. Last year's Consolidated Revenue totaled £1,605,002 16s. sd. Of this sum, £1,223,614 3s. 2d. was collected by the Customs, and represents the tax upon consumers of dutiable goods. The expenditure for last year was £1,730,429, being slightly in excess of estimate. The Special Fund accounts do not require comment. The land revenue of the year amounted to £773,265 ;—and here it was that the Treasurer's statement began to excite the greatest attention. "The Govern- " ment,"hesaid, "are very anxious that the " public estate should be conserved, and '' the proceeds applied to legitimate pur- " poses, such as the debts secured upon " itfor local public works, the construction " of further local public works, the intro- " duction of immigrants, and if necessary, " in temporary aid of education. In the " opinion of the Government it has " become the duty of this House to " consider carefully this matter, and to '' insist that the public estate shall not be " sacrificed or dissipated, or the proceeds '' misapplied ;" —an announcement of policy which met with marked approbation.

The proposed expenditure for the year, as may be seen by our summary, makes rjrovision for "provincial services," i.e., for continuing the local administration of the provinces on their abolition, which is anticipated during the present session. We refer our readers to our report for details. Nor need, wo elaborate the details of the local government scheme which the Colonial Treasurer outlined, and which may be found at length in the Abolition of Provinces Bill and precis of the Local Government Bill, both of which were read a first time yesterday, and appear in to-day's issue. Suffice it to say that it is proposed to localise the land revenue, and to subsidise road boards and municipalities out of land fund, (in those "provincial districts" in which any such fund exists,) and out of Consolidated Revenue, to the extent of 20s. for every 20s. of rates up to Is. in the pound that may be collected. This is a debateable point, and we shall not further refer to it to-day. The proposal, however, is one which is certain to be acceptable to outlying districts, and centres of population, which it is proposed shall enjoy besides, the fees and licenses presently provincial revenue. The Treasurer did not anticipate any difficulty in finding the money. He estimated the revenue for 1875-7 G at £2,476,193, including £120,446 balance from last year. This total, however, includes the various sources of provincial revenue, not otherwise set apart for local use. Thus, Ministers have redeemed the promise of last session, by proposing the abolition of Provincial Government, and the endowment of local governing bodies with " substantial revenue."

The debate on the Financial Statement was adjourned till Tuesday, when it is to be resumed. Meanwhile the substance of the Budget and of the two Bills altering the form of government within provinces, will bo before the country, and an expression of opinion may soon be expected. The change proposed is a sweeping one. It is certain to provoke very long and earnest debate. With such measures before the House, not to speak of other Bills promised in the Governor's speech, it would be idle to anticipate a short session. Of course, something may occur to bring the session to a close suddenly, but that is a contingency one should scarcely speculate upon.