The Southland Times. FRIDAY, JANUARY 10, 1868.

Southland Times, Issue 879, 10 January 1868, Page 2

The Southland Times. FRIDAY, JANUARY 10, 1868.

[•The Act for the conversion and consoh- j dation of Provincial Loans into Colonial Stock— the " Pablic Debts Act, 1867,"— has tafcen- effect from the commencement of the year. It is by far the most important measure that has been adopted during the last session of the General Assembly. It roots up the vicious system of permitting provinces to contract loans and liabilities in excess of available means for their discharge ; it jjlace^each-ncovinceJiileauy^^^ 0^""---ship, and tends to gradually and surely bring about the destruction of the provincial system in favor of a strong central government. To this province possessing an available land fund, this measure relieves it of much of its burden by cancelling the Bond of poundage,. although it takes from j it the half-share of the Customs revenue; But on the other hand, such provinces that have no land fund, and are still in debt, will be compelled to accept a less expensive system. The amount of Southland's indebtedness is put down at £422,000, independent of a joint liability with Otago under the " Surplus Eevenue Adjustment Act, 1867," of £32,000 more. With between two and three millions of acres of land for sale, this province may under, the consolidation work off its liabilities without materially impeding progress. But in order to secure this the greatest economy is indispensible in the working of the govermental machinery. It must be kept in mind that the land revenue is but a doubtful source upon which to rely for the money to defray the cost of keeping up an expensive staff of unnecessary provincialofficials. Every thousandpounds hereafter paid in salaries will be so much of the capital spent, and even with the land fund at our command it is possible that from unforeseen circumstances the land sales may diminish and the province again slide into similar difficulties to. those from which it has fortunately emerged, not allow ourselves to oe nusnecL Dy the improved prospects that have opened,, but study well the question of adopting a system of government that while efficient shall be as inexpensive as possible. Erom the schedules- in this Act, we find that the following Provincial loans have been voted, which it is proposed to take up by an exchange for colonial debentures, bearing interest at six per cent, viz., Auckland, £500,000; Taranaki, £75,000 ;' "Wellington, £155,000; Hawke's Bay, £60,000 ; Nelson, £54,000 ; Canterbury, £830,000 ; Otego, £685,000 ; making a total of liabi'ities under Schedule Aof £2,359,000. Under the head Schedule B we have the provincial liabilities that have been contracted dU'ecily with the General Grovernaient, and for which this Province's land fund was impounded for a large amount. It provides for the liquidation of liabilities by the issue of short dated debentures, bearing interest at a rate not exceeding seven per cenb. per annum, viz., Southland under the Provincial Debt Acts, 1865 and 1866, £380,000 ; for liability to G-eneral Goveeoaient, £42,000; for liabilities of the Province of Otago and Southland under " Surplus Eeveaue Adjustment Act, 1567," £32,000; for the pu pose of telegraph extension, lightouses, colonial defences, the redemption of Taranaki debentures and ma>icie sucvey, £260,000 ; for taking up the total unraised and , unissued provincial debentures, £400*000,. making a total of £1,114,000. Taking the united Schedules A and B, and deducting the item in Schedule B of £400,000 for the purchase of unsold debentures enumerated in Schedule A, we find that the amount due for provincial debts amounts to the large sum of £3,073,000. In looking over the above items it will be seen that Southland appears as a heavy debtor, but if taken in connection with her assets and natural resources, she cannot be placed in the second rank among the provinces. The "Public Debts Act, 1867," is, we believe, calculated to prove of great benefit in the future. It creates from the chaotic complications a consolidated and workable financial system that will give stability to monetary transactions, confidence to bondholders, and stimulate progress. Viewed in conjunction with the " Public Revenues Act, 1867," it bears the stamp of statesmanship, being clear and distinct, equitable and just. It is one of the first specimens of New Zealand

legislation that can be favorably reviewed. With its adoption the axe was struck at the careless mode of legislation that has so long been a characteristic of New Zealand laws ;—it provides for one financial system under one head, and secures to the public the certainty that in every part of the colony a rigid watchfulness will be kept over the actions of the custodians of the public purse. The high interest that the provinces have been" compelled to. pay for necessary financial accommodation will be considerably diminished. Many of the provincial debentures now running bear eight or ten percent, interest, and even with this inducement, foreign capital has been withheld until they were offered at a ruinous discount. By the consolidation of. the loans this is avoided, the interest being fixed not to exceed 7 per cent. By this alone scores of thousands of pounds will be annually saved to the colony ; and, if the new order of things initiated is vigorously followed by others, a similar amount may be saved in the working of the governmental machinery. Retrenchment has become a positive necessity. The legislation of the last session is calculated -toacouroiV^cAcii under review being conspicuous as the forerunner of other great and radical reforms.