New Zealand Times (PUBLISHED DAILY.) THURSDAY, AUGUST 2, 1877.

New Zealand Times, Volume XXXII, Issue 5104, 2 August 1877, Page 2

New Zealand Times (PUBLISHED DAILY.) THURSDAY, AUGUST 2, 1877.

The Financial Statement, it is generallyadmitted, is a most satisfactory one. In the first place, the solid facts which it discloses are diametrically opposed to all the nonsense and gossip which a few Opposition hangers-on of journalism have disseminated during the past few months. In the next place, hardly the most captious critic can assert that there is anything mystifying about the simple tale of our national pecuniary position which the Hon. the Colonial Treasurer has told. This last fact is eminently satisfactory, for even if Major Atkinson had. had to relate that the colony had gone financially to the bad during the year just ended, and that the financial outlook for the year to come was not hopeful, it would still be better, and give more satisfaction, that he should say this plainly, without any attempt to mystify or confuse. As it happens, however, the Treasurer was not only in a position to speak confidently, of the past but to speak most hopefully of the-future. In the first place, as an actual fact, the estimated revenue for 1876-77 was within some three thousand pounds of the actual revenue received, so that even had there been no saving on the expenditure, the colony- would not, so far as income and expenditure go, have been in a bad position. But it will be remembered that the Government let members return to their homes at the close of last session with a promise, distinctly given, that the utmost economy should he used, not only in departmental, but in every other class of expenditure. That promise no one can say has not been redeemed. On the Public Works Account there was a saving of over five hundred and fifty thousand pounds, whilst in every instance of departmental expenditure the expenditure shows up much less than the appropriation. The windfall, to the extent of some £II,OOO, caused by the surplus from the year 1875-76 exceeding the estimate, whilst most gratifying, does not at all detract from the real substantial redemption of their promise as to economy given by the Government. And at the same time, it must be allowed that the main lines of railway have not been neglected as regards progress in construction, whilst reasonable provision has been made for immigration. In short, it may be safely said that .scarcely a. dissentient voice will be heard as regards the absolute administration of the colonial finances for the past twelve months. The only point upon which, in fact, criticism can be'at all evoked is as to the ways and means for the coming year; and it is not likely that criticism in this direction can impair the position taken up by the Colonial Treasurer. We have now as an element of our finance, one long knqwn in the Australian colonies of infinite advantage to each of them, and yet a factor in our calculations of a rather disturbing character. The revenue arising from the leasing and sale of Crown lands has been in Victoria and New South Wales (more especially in the latter) the real source of the perfectly plethoric condition of theirnational incomes as apparent from year to year. We have always pointed out that the ability of New Zealand to support itself without taking the land fund into the general . revenue, has shown that financially this colony occupies a far healthier position than either of its Australian sisters; and tho leading journals of these colonies, in comparing the position of New Zealand with theirs, have borne testimony to the truth of our remarks. Well, now the question has evidently pre-

sented itself to those who administer the government of this colony : shall we, in order to provide ways and means, increase ‘taxation, or shall we, without making the.land, fund colonial revenue, and without destroying the distinctive character of localisation which it has hitherto enjoyed, yet make that fund pay back a portion of the aid which through localisation it has received from the colonial revenue 1 It is almost needless to point out that the conclusion at which the Treasurer has arrived under these circumstances is not only proper and just, but is in reality most advantageous to those districts which the contribution of the land fund towards ways and means will most affect. The land fund of the provincial district of Canterbury is to be charged with a sum of £58,000, and that of Otago with a sum of £109,000. We have reason to believe that the hearty desire of Otago being to see genuine settlement on her waste lands promoted, and to fairly recognise her colonial liabilities, the proposals of the Treasurer will excite no discontent there so long as there is no interference with the principle of the people for the land and the land for the people. The present Government being too in favor, as they have practically shown, of the settlement of the land by means of a deferred payment system, gives the best guarantee that the wishes of Otago will be respected. Nor Is it likely that Canterbury will object to giving her moiety of the amount by which her land fund has been aided. But even if objections did arise in either of the quarters mentioned, a little reflection would show that tho course proposed by the Government is the most beneficial possible for either of these provincial districts. Suppose, for instance, that instead of this course, fresh taxation in the shape of a property tax.were.adopted,—where would it press heaviest? Why, in Otago and Canterbury. Again, look at the absolute relief the other financial proposals of the Government give to these districts. Their land fund it was that, in the years preceding abolition, paid for the education of their children and the maintenance of their charitable institutions. But under the new order of things the land fund will be practically relieved of these charges. What is the result ? Why, that the contribution or restoration that they are now called upon to make (and that for only a year) is fully compensated for by their positive gains in the direction we have indicated. There are other points in the Financial Statement which require notice, and one of them, to which but scant justice has been done hitherto by the i Opposition journals, is that of the temporary loans effected from the Banks of New South Wales and New Zealand. The full particulars of the terms on which those loans were obtained are given by Major Atkinson, and show that they are most favorable. The Treasurer has fairly left it to the House to decide whether a loan ;of £2,000,000 shall be obtained in the Home market. He has shown how the amount of this loan can be reduced to £1,200,000, but he has also shown how unadvisable it would be to dispose of our guaranteed debentures in order to effect this reduction. He has further pointed out that by reducing the proposed expenditure on public works by one half no appeal to the London money market need be made for the next eighteen months; but he very properly declines to advise the House to adopt this course. Consistent with due economy bur public works must be pushed ahead. It is necessary for our welfare, for the maintenance of our public credit, and it is best for the public creditor, that they should be pushed ahead. There need be no fear in going to the Home market for money. The city articles in The Times and in leading financial papers daily and weekly make records which show how sound is our national credit in London. To-day, for instance, they note an advance of \ or J per cent in New Zealand securities ; to-morrow, and for weeks after, they note these securities firm, until a further advance is mentioned. The surplus capital of England has been turned from the deceptions of South American, Turkish, Egyptian, and other foreign securities, and now seeks its outlet in a natural direction, namely, where the national probity and sound business sense of a British community, besides the resources of an almost undeveloped country, give the best security for payment of principal and interest. Despite what croakers have endeavored to do for us, our credit never stood higher at Home than it does now, and despite what croakers may assert, our national debt is but a trifle when compared with the security on which it has been lent.

We may say in conclusion that the Auckland separationists are very much disappointed at the proposals of the Government. They had calculated bn the discontent of Government supporters if the Treasurer had been unable to show a satisfactory balance-sheet, or had been obliged to resort to further taxation. But when it became apparent that by making legitimate charges upon the Southern land fund the existing arrangement could be maintained, all hope of seizing the Southern land fund and making it common property was at an end. They are now trying the game of persuading a section of the Southern members that they are badly treated, in hopes of inducing them to make common cause against the Government. _ It is rumored that some of the Otago irreconcileables are talking of joining the Auckland party in an endeavor to inake the land revenue common property, with a view of defeating the Government. Mr. Macandrew would go a long way to gratify his political feelings; but we doubt whether he dare face his Southern constituents to tell them that he had handed over the land fund in such a manner. There is no doubt that the Budget does notsuit the prospects of the separationists.