New Zealand Times. (PUBLISHED DAILY.) TUESDAY, JULY 11.

New Zealand Times, Volume XXXI, Issue 4774, 11 July 1876, Page 2

New Zealand Times. (PUBLISHED DAILY.) TUESDAY, JULY 11.

As a matter of course, one of the most important portions of the Financial Statement is that Avhich turns on the new arrangements that have to be made with regard to several subjects as a consequence of abolition. The Colonial Treasurer very clearly puts forward the circumstances of the colony that must govern these arrangements, and then points out that in making them three distinct objects have to be kept in view, those objects being plainly suggested by the previously mentioned circumstances. The interests of the towns must be kept from conflict with those of the country districts ; the interests of both towns and country districts (that is to say mere local interests) must be kept from conflict with what are purely general or colonial interests, and it will be absolutely necessary to keep the finance of all separate. One of the worst effects of provincialism, of late years, was undoubtedly that these three interests were in perpetual conflict, and that as a result the general interests of the colony sufered correspondingly. To prevent such in future there will be one Legislature, for, as Sir Julius Vogel says, "clearly the risks of conflict increase with the number of bodies empowered to make laws. The form of local government which it is proposed to establish in order to carry out the aims under notice, was pretty plainly indicated in Sir Julius Vogel's speech at Wanganui, and is very plainly summarised in the Financial Statement. The imaginary difficulties raised by the provincialists, that as a consequence of abolition Parliament would in future be found occupying itself with the merestlocaldetails, willbeavoided by the Government measures, and, as the Financial Statement puts it, the name of any particular road or bridge—of any work indeed but the buildings for the Government services and the main railways of the country—should in future be rarely heard in the House. There are no two opinions as to the advisability of the police and gaols being under General Government control. And here we may say at once that we have no faith in those Avonderful statistics which have annually appeared throughout the provinces, and which proved, on paper, that our gaols were self-supporting, whilst the annual cost of those gaols to the country proved the very reverse. The wisdom of avoiding a property and income tax will be at once apparent. Such taxes in the United Kingdom are those which excite the greatest possible discontent. We all know that according to book theorists, the most equitable form of taxation would be that which would levy upon all, from the highest to the lowest, according to their interest in the country : that is, according to the property they possessed in, or the income they derived from, the country. But practical statesmen, they who have to deal with men and measures in political life, know that the best form of taxation is that which is least felt by the people in their everyday lives—that which is least obnoxious to them. And in connection with the subject of an income and property tax in this colony comes the question of, under any circumstances, the present inadvisability of imposing an income or property tax in New Zealand. The result of such imposition would be to place us in most unfavorable contrast with other colonies, where every possible facility would be given for the investment of capital, while here the investment of capital would be handicapped with heavy penalties in the way of taxes. The proposal for abandoning all education rates throughout the colony runs on all fours with the practical good sense which avoids an income or property tax. In many provinces in which an education rate has hitherto prevailed that rate has been found most objectionable from the very reasons which operate against the above-mentioned taxes. The whole question of national education, with the exception of the one point under notice, must be deferred for future legislation, and in the meantime the Government may be congratulated upon having made, perhaps, the only step in the right direction which present circumstances would permit. That hospitals and charitable institutions should invite the aid of private charity, and be under the management of local committees, is most wise ; and that boroughs and road districts, which are to receive heavy subsidies from the Consolidated Revenue, should contribute towards the support of such institutions, is not unjust. Supplemented by such contributions, and by a pro rata grant-in-aid from the general revenues, wo may expect to see increased efficiency in the management of such institutions, with increased results so far as public benefit is concerned ; and we say this without any reflection on the efficiency or management of the past. Until the Government measures which are promised, in order to effect a change in the system of native land purchase, are before the country, Ave cannot deal with that portion of the Financial Statement which refers to them. But thus much may be said, that if those measures only fairly promise to carry out what is predicated concerning them, there is little likelihood that they Avill meet with much opposition. This will bo understood when we quote what the Colonial Treasurer said concerning them : " If our proposals have effect given to them, the most fertile cause of native expenditure will be removed ; the value of property in this island will be largely increased, and therefore its capacity to contribute to local works ; the condition of the natives will bo vastly improved, and the land revenue of the North Island much augmented, without the necessity of further loans and constant interestbearing expenditure. No longer will the natives be galled with the reflection that, instead of aiding them, and receiving a legitimate consideration in return, we are always trying to got the better of them in the bargains into which they and we enter ; no longer will the land revenue of the North Island bo a questionable

equivalent for the expenditure incurred; and no longer will the Government of the colon;' be forced into competition with private individuals." If reasonable hope of the predictions contained in the above be found in the Government measure when it is brought down, it is not too much to hope that the personal or political prejudices of some members of the Opposition will be laid aside, and they will give theii assistance towards passing- a Bill effecting a revolution in the system of native land purchase, which, in the language of the Budget speech, would be a worthy crown to the other great changes that will relieve New Zealand of the principal difficulties under which she labors, and qualify her for the pre-eminent position amongst the Australasian colonies to which her capabilities entitle her.