GOVERNMENT LOANS & PUBLIC WORKS.

Patea Mail, 7 August 1882, Page 3

GOVERNMENT LOANS & PUBLIC WORKS.

After Mr Montgomery’s statement on finance in the debate in the Assembly on Wednesday, Major Atkinson replied showing that New Zealand securities stood high in the London market—that the loan expenditure would cease in February next — aud the question was wether all public works were to stop or not. The Government had decided that it would be unwise to stop public works in a new country. With respect to the payment of the deficit of one and a-half millions out of the loan he said that was the wisest course for the Government to do in the interest of the Colony. The colony borrowed the money at 5 per cent., but if by a course of rigorous taxation this million and a-half had been taken out of the pockets of the people of the colony, the industries would have suffered to that extent by loss of capital ; but by allowing the money to be employed in trade the colony gained 10 per cent, and paid 5 per cent,, shewing a clear gain of 5 per cent, to the colony at large. He also refuted the arguments of Mr Montgomery that the stamp tax and other taxes of that character were placed on the industrial classes, for if the argument was worth anything no tax could be levied on any but the consumer, and therefore, all taxes must be levied directly on the consumer, which was an absurdity.