The Patea Mail. (Published Wednesdays and Saturdays ) SATURDAY, MAY 18, 1878.

Patea Mail, Volume IV, Issue 322, 18 May 1878, Page 2

The Patea Mail. (Published Wednesdays and Saturdays ) SATURDAY, MAY 18, 1878.

Amongst the various matters mentioned by the Hon Mr Ballance in the speech just delivered to his Rangitikei constituents, we consider by far the most important, is that relating to the incidence of taxation. Remarks on proposed new Native Lands Bill, if followed by something further than mere talk, has great meaning for this part of the coast, and especially if the very sanguine view taken by ( the hon. member for fiangitikei—as to the result of the present earth-hunger —should prove true. He said : 11 So great was the desire to accumulate land, that he believed in ten years time it would be difficult to obtain three or tour hundred acres.” Granting that it were possible to carry out the scheme for sale and ' taxation of land, detailed by Mr Ballance, it would mean that the whole Ot the available Crown Lands would have passed into the hands of working settlers, or of capitalists who could not afford to let their money lie idle, and who for that very reason, would be compelled to cultivate. Many large holders, unable to boar the strain, would have to burst up their estates, sub-divide, and so aid the Government in their expressed colonizing intentions. This is radicalism with a vengeance. Even the most advanced people’s advocates will not be disposed to. ask for more. ' If anything, the exemption from taxation, of so large an area as 320 acres, may be considered as too liberal. Small holders could very well afford to pay the low tax proposed, and if anyway aware of the duties, as well as the rights pertaining to property, would not object to do sq, Mr Ballance

appears to be as glib of tongue the Premier stumper Sir George Grey. We mast, however, give him credit for having something to say, and trust that he will not prove all talk. We reprint from the Herald's verbatim report, remarks made by Mr Ballance on the “ Incidence of Taxation.” He said : “This question was referred to last Session, and the Govermont were pledged to bring down a measure to distribute the burden of taxation more equally. The*taxation ot land had been referred to, as the tax that would have to be pul on, as the public services required extension. The question arose then, that if a new tax was required, how could it be put on so as to impose the least hardship ? The conclusion the House came to was, that the tax should not press upon improvement. His own opinion was that the present system of taxation now in force by County Councils and Highway Boards, did so press upon improvements) and would have to be reconsidered. Avoiding improvements, they came to the natural value of the land, divided into classes, so that every man should pay according to the” natural value of his laud, minus the improvements that his energy and capital had brought about. He found that there existed 14 million acres of land held by tenants of the Crown, also about the same quantity that was held by fee simple. If they divided land into three classes, and put one penny for the firstclass, two pence for the second class, and three pence for the third, a revenue would be received of about £150,000, a&d the tax would bring about what had never been done before, the large land owners would contribute more in proportion to their revenue. He considered there ought to be some exemption in the cases of men who already contributed their fair proportion to the revenue, and he would take as his basis, the exemption of the income tax of England. Small incomes were totally exempted, and the amount of the exemption also deducted from the larger. He would take the area laid down in the deferred payment clauses, and say that properties under 320 acres in extent should be totally exempt. Also that the exemption should be general, so that a man with 1,000 acres would only pay on that acreage loss the exemption of 320 acres. It might be said that such an exemption was unjust, and that the tax should go on all round, but the desire for a change in the incidence of taxation, arose from the wish to more equally distribute the burden. He would include in the schemes those large Companies who wore reaping very handsome profits in the Colony, and would gel at them by imposing say 2| per cent, on their net income. The amount could easily bo reckoned, as their accounts were published periodically. This plan of taxation was free from the serious objections that have been urged against the income tax, that it was too inquisitorial, and that it opened the way to dishonesty. If the land tax was found to pmss hard, it would only be upon the lands at present locked np, lands owned by absentees, and on lands neglected. So great was the desire to accumulate land, that he believed in ten years time it would be difficult to obtain three or four hundred acres. Even now 112 men in this I Colony either owned or occupied 7 millions of acres, and these men did not in any way contribute their fair share towards the revenue of the Colony. There was no desire on the part of the Government to put on an unjust tax, but to put on one that could easily be borne, and which would only be found burdensome as he stated upon large tracts of neglected country. The great principle the Government had in view, was the distribution of land. If the aggregation of great estates was allowed to go on, the prosperity of the Colony would soon cease. ' Had not past experience proved that ? In Prussia, during last session, so keenly was this question considered, that a Bill was passed preventing the nobles acquiring enormous estates by sweeping away small farmers. Mr Heron, an eminent writer on jurisprudence, had said that the sole reason of Prussia’s strength was in her peasant farmers, men capable of holding their own, independent and intelligent men. The Ministry desired to see such a class largely increased in the Colony, to see the laborer become the peasant farmer, and the peasant farmer the yeoman. These were the classes that formed the true strength of the Colony, A large land owner had told him that he desired to clear out the small farmers, they could not farm profitably and ought to sell and clear out. The desire was a very patriotic one, but what would be the result if carried into effect. Take Tarakina as an example of the result of this aggregation of estates, and see how prosperity and progress has been checked.”

The following are Mr Ballance’s remarks on proposed new, Native Lands Bill: ' “ Next session a new Native Land Bill would he brought forward, providing for settlement and colonization. An important feature would be introduced, that of individualising the titles of the Natives. The present system of memorials of title, was a specious plan by which large grants were obtained by speculators. There was a keen desire to obtain these blocks of land, and he believed at the present time there were perhaps a dozen native agents in Wanganui, all on the look-out. What chance had a small man, wanting perhaps 500 acres, against the influence and wealth of these agents,, coupled with the fact

that the memorials of ownership favored their operations ? He quite endorsed what had fallen from his friend, Mr Bryce, when addressing his constituents in Wanganui, that the title should be made clear, and then passed into the hands of a Native Board, who would have power to survey and make roads, and to dispose of the land to the best value. This handing over of titles to the Board should not be compulsory, but the natives would soon see that a much better price could thus be obtained, and they would have confidence in the Board. In all dealings with land one great principle should not be overlooked,and thatwas setting aside a portion to be disposed of on a system of deferred payments. The Government held this view strongly, and were determined to encourage settlement to the utmost of their power. He could mention that the survey was now goingon of the Momahaka block, near Wairoa, SQme 36,000 acres in extent, and a pei’tion of that block would be set aside for the purpose he had stated. Then again the famous Waimate Plains, said to bo the finest land in the Colony, would, he trusted, not be long, before deferred payment men could take up sections there.”