South Canterbury Times, WEDNESDAY, AUGUST 25, 1880.

South Canterbury Times, Issue 2321, 25 August 1880, Page 2

South Canterbury Times, WEDNESDAY, AUGUST 25, 1880.

Duhing the present session of Parliament, a great deal Las been said about the deplorable financial position of the colony. There has been a great deal of empty declamation, backed up by confusing arrays of figures, all tending to shew that New Zealand, with all its line natural advantages, is on the brink of insolvency, and that the legislature has no option between imposing additional taxation, however oppressive the process may be, and repudiation. Now, although past follies and extravagancies have tended to destroy—let us hope but temporarily —the charming'; pictures of limuicial prosperity which political prophets have hitherto been addicted to painting, a calm and comprehensive view of our revenue and expenditure, shews that there is not so much ground for despondency, as many imagine. It is true that the colony is heavily indebted, and that a large proportion of its income is absorbed in payments to foreign bondholders, but the resources of the colony are wonderfully clastic. Exclusive o land revenue, and the proposed beer and property taxes, the net income of the colony amounts, in round figures, lo £1,900,000. Out of this, £1,150,000 has to be paid for interest on loans and sinking fund, leaving a balance of £450,000 or nearly half a million of money to defray the expenses of the different departments. It is calculated that after making full provision for the cost of Government and without any reductions the surplus of revenue over expenditure will amount to £24,000. These figures tend to show that whatever may bo alleged to the contrary, the colony is financially sound. 1 Not only is the country perfectly

solvent, »but there is ample scope, Injudicious retrenchment, for increasing the surplus, while, on the other hand, there is very little excuse for resorting to fresh taxation. If subsidies to local bodies arc to be discontinued, and if charitable institutions are to be added to the direct burdens of the ratepayers additional taxation becomes unjustiliable. At the eleventh hour, if it thinks proper, the Government can very well afford to quietly drop the most offensive and pernicious feature in their policy the property tax. We believe that if the members of the Ministry spoke out plainly regarding this impost, they would say that they heartily detest it. The only reason urged for introducing the tax was the alleged deficiencies in the revenue. It lias been presented as an emergency tax, but in the towns, at all events, it is regarded as an avengeful blow aimed at property and industry by the owners of unimproved estates, in return for the land Jtax which it supersedes and obliterates. But it becomes a question whether the initiation of a fierce struggle between town and country, will answer the purposes of the promoters. The condition of society in New Zealand is not favorable to the success of matter in a battle against mind. If waste acres are brought into direct conflict with human effort and properly applied capital, it requires no prophetic power to foretell how it will end. The friends and advocates of the property tax are courting reprisals, and it is highly probable, if (hey proceed to extremes they will have cause to bitterly regret it.

From first to last this properly tax has been a most unfortunate proposal. It has been denounced by large audiences in every important centre of population, as one of the most repugnant and abhorrent burdens ever threatened by a legislature. Doubtless it is to be regretted that for its collection a costly stall of assessors has been created, but it would be better to pa}' for the machinery and throw it out of gear, than proceed further at the expense of the industrial interests. The property tax was a mad scheme from the commencement ; we have shown as plainly as tignrus can do that it is not justified by any linanciul pressure, and we trust the (Government will take the earliest opportunity of washing their hands of Major Atkinson’s foil}'.