The Southland Times. SATURDAY, AUGUST 20, 1864.

Southland Times, Volume I, Issue 35, 20 August 1864, Page 2

The Southland Times. SATURDAY, AUGUST 20, 1864.

If the last Session of the Provincial Council was void of results, as far as the adoption and maturing of any financial plan by which the Province could be at once relieved from its embarrassments, it was not owing to the absence of financial ability on the part of the members composing the House, but rather to the impossibility of entrusting the working out of the details of any scheme to persons irresponsible to the Council. Mr. Chalmers entered at considerable length into the details of a plan which was both intelligible and feasible, and even offered to undertake to carry it through the Council as a private member, should the Superintendent choose to entrust it to him. It was allowed to fall through, and although the basis of it has been disturbed by ih.3 decision of the General Government recently declared, that no further Provincial loans will be sanctioned by the Government, unless previously endorsed by the General Assembly, yet it gives so clear an exposition of our present financial position, our ability to meet past liabilities, and our condition to incur without any danger further ones, \that we have no hesitation in giving publicity to it, though, for the present, it has become impossible to practically test its merits. Mr. Chalmers proposed raisin'g^a loan for £150,000, terminable on ' the 30th of September, 1872, which; he calculated, would cover all our liabilities, and enable us to finish both railways. He then proceeded to demonstrate how we could pay interest and sinking fund on our present loans, and, at the same time,* clear off the proposed new one by. calling in £20,000 a-year. He. estimated our fennuai charge

for loans hitherto sanctioned under the head of " constants " as follows : — 6 per cent, interest, Province's share of ' New Zealand Company's debt £1,080 8 per cent, interest, and sinking fund, Bluff Harbor and Invercargill Eailway (loans, 1 and 2, £180,000),, "1.4,400 8 per cent, loans 1 and 2, Great ,-. ■ - Northern Railway,- £110,000 .-\:r.:^ - 8,800 — Total per annum i; .:;.| r ;,^£24,28p; Proposed new loan, terminable on 30th September, 18^2 :--:'.",' '"'T" 7"""' £ ; " £ £ 150,000 Interest to 30th Sept., 1865, at 6 'per cent. . . ; 9,000 20,000 Amounts called in for : ;>' , . 1864-5.....:..........:.' 20,000 7 . : . — - — 29,000 130,000 Interest to 30th Sept., 1866, at 6 per cent., on £130,000 ............... 7,800 20,000 Amount called in for 1865-6 20,000 — — 27,800 110,000 Interest to 30th Sept., 1867, at 6 per cent., on , £UO,OOO 6,600 20,000 Amount called in for ! 1866-7... 20,000 — 26,600 And so on until the 30th September, 1872, when the sum to be liquidated stands— £10,000 Interest to 30th Sept., 1872, at 6 per cent., on £10,000.......,.,;.. £600 Amount called in W.. . 10,000 = — £10,600 Thus, in eight years from the first of October next, the whole debt would be repaid ; and by calling in £20,000 a year regularly, at an actual cost for interest of £38,400, instead of £72,000, if paid off in a lump sum at the expiration of that period. The sums required annually to . meet these payments (including " con- i stants ") would therefore stand thus ; — ; October, 1865 £53,280 October, 1866 52,080 October, 1867 50,880 October, 1868 49,680 • October, 1869 48,480 October, 1870 47,280 October, 1871 „ 46,080 October, 1872 34,880 And after that the " constants " only, of £24,280. "" Mr. Ohalmees, in proceeding to provide a revenue to meet these demands, took as a basis* a less sum per quarter than that actually obtained during the one ending '30th June last (one of more than ordinary depression, viz. — £27,211), and assumed that the revenue derivable from all sources would for the next eight years remain at £25,000 per quarter, or £100,000 per annum. He struck an average of £47,830 per annum to meet all demands, leaving £52,170 per annum wherewith to carry on the Government of the Province. This Mr. Chalmers estimated under the following heads at — Police £10,000 Pilot Service 7,000 G-aol 3,000 Hospital 2,000 Other departments 12,000 £34,000 leaving £18,000 a-year for Roads and Public Works. To secure the absolute payment of the interest, sinking fund, etc., due annually, Mr. Chalmers proposed to hypothecate the whole of our revenues to the G-eneral Government, the Provincial Treasurer paying over to the Colonial Sub-Treasurer monthly, all sums accruing from Provincial sources. The Sub-Trea-surer, after deducting the interest and redemption fund, to hand over quarterly the balance to the Provincial Treasurer for current expenses. Such was Mr. Chalmees' proposition, and it bears on the face of it every element of success. It may be questioned whether a loan at a short date is as likely to be marketable as one for a longer period ; but it must be borne in mind that the object at the time of Mr. Chalmers' proposition was to disabuse the mind of the # General Government of any intention on our part to continue the reckless expenditure of the past. A proposed loan, terminable at a long period, would have failed of effecting this object, whereas Mr. Chalmers' plan speaks clearly enough of a determination to alter the course hitherto pursued, and practise a rigid economy. In the estimate of our revenue for the next eight years, we think Mr. Chalmers is under, not over the mark. The most despondent will believe that the revenue for the next eight years will be in excess of £100,000 a-year. As a rule, there is no such thing in the history of Colonies ' as standing still. If there is j not progression, there is retrogrossion, and the latter, with the position Southland has attained, we have no right to expect. Instead, therefore, of a balance .of only £18,000 a-year to expend on roads and ordinary public works, we might look for a much larger sum, which would enable us not only to redeem "mis-spent moments past," but, with experience gained, to carry on works of real public utility commensurate with the requirements of the Province, as it steadily progresses to its allotted destiny. Cautious in not over-estimating our probable revenue, Mr. Chalmers has been equally careful not to under-estimatej our expenditure and liabilities. His estimate for expenses of Government, £34,000, however warranted by the past, is considerably, over what, with rigid, economy, we have a right to expect they will amount to for the future. The item (£10,000) for Police, for instance, is too large according to the amended estimates passed at the last session of the Council. It was reduced to £5,932 4s. Bd., about £4,oooless than it was for the year 1863; and we have no doubt that, under the able management of the Commissioner, Mr. "Weldost, it can. be kept at that figure without the^ efficiency of* the force being impaired.' Mr. Chalmers has also over-estimated the Harbor Department or Pilot Service and Gaol. Theilatter, according to the last estimates, is!, placed at £2,566 per annum, and the former at £4,404, instead of £7,000. Even the estimates, as last passed, are capable of reduction in the other ;departmente, not ; in the salaries, which 'are -low enough;. but- by amalgamating the ioflices, and thus reducing-the -number- of

officials. Mr. Chalmers believes that the railway debentures will sell only at par, .and that the works themselves, for the, next eight years, will do no more thanpay the working expenses.- As regards the first, we have no doubt that, with the Colonial guarantee, the debentures will sell-at a premium of five-per cent.-^ Had thefirst loan of £140,000 been placed in the market when it ought'*to have been, we know it could have* been, floated .at from 6 to*^7 per cent, premium, without the guarantee. As regards the railways paying more than their working expenses, whatever .they may do for the first' year, or even two, we-are confident that after that they will add very considerably to our revenue. All experience tends to prove that even where-there is little or no traflic, a railway creates one ; and in no case that has come ta our knowledge has a cheaply constructed railway failed to pay handsomely, and the two Southland lines are amongst the cheapest in the world. On the whole, if Mr. Chalmers' has erred it is 1 on the safe side; for even supposing we only obtained a revenue of £100,000 a-year, we feel sure that after paying all charges of interest, Grovernment, etc., we should have a considerably larger balance for public works than the £18,000 Mr. Chalmers* anticipates. ,

SOTJTHWAED.

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NORTHWARD.