SPEECH BY THE PREMIER. He Discourages Large Borrowing.

Te Aroha News, Volume III, Issue 149, 10 April 1886, Page 6

SPEECH BY THE PREMIER. He Discourages Large Borrowing.

Invercargilii, Apail 3. In response to an invitation from the citizens, the Hon. Mr Robert Scout addressed a meeting to-night of citizens on the political situation. The theatre was crowded. The Mayor occupied the chair. The Premier said it was his duty and privilege to meet his fellow- colonists to discuss political questions, and he had never shirked such an invitation. He did not intend to repeat what had been said elsewhere, nor to criticise others, to whom he gave credit for as sincere a desire as his for the colony's progress, although they might differ as to the mode of action. Proceeding to speak of

The liana Laws, he said his views on the subject had not varied for a" great number of years, and were still the same as those he had enunciated in the Otago Provincial Council, and in his first session in Parliament. Ho recognised then that the land was not like other property, and he was glad to see that his views were not now considered subversive of society, but must be carried out for the general good of the community. They could not cease to legislate for land, and leave it to the great owners to make wastes of, and the State hadarightto controlits occupation and its cultivation. Here, where millions of acres were to be disposed of, the land laws should be framed so ap to be beneficial to the whole ' race. To do this, tney must assure the cultivator of his holdings. He had no sympathy with communism in land, which would destroy all individuality and character, and stop all progress. With the enormous area of Crown and native lands still available, it was folly to propose to buy up large estates. Those who talked of the quit rent system were, strange to say, those who opposed the Government in making the Land Act of last session more liberal than it is. He gave Sir George Grey credit for the best and most honourable intentions, but his quit rent was adapted to tho colony at the Cape. A quit rent of ten million acres was only £7,000, and it was not perpetual, as many could buy freehold at any time by paying twenty years' quit rent down. The fact that the average holding at tho Cape was 6,000 acres as against 500 in New Zealand, showed that the quit rent system did not tend to put people on the land. As a matter of fact the individual holdings at the Cape were larger than in Britain, for 16,000 people monopolised 53, 000,000 acres, and did not produce as much wool as Otago and Southland. Quit rent had nothing to do with the occupation of land, and was not perpetual tenure. The proposal to buy up private estates would never work, as farmers could not afford to pay five per cent, rent on the cost. It was strange that Sir George Grey voted against tho Go vernment's proposal to buy land for working men's settlement in the vicinity of towns, although he was now prepared to buy largo estates. In closing this section of his address, the Premier said they must agitate till it was recognised that the State should control the lands, and make the laws to govern it, and how it should be '.dealt with and cultivated. We have 33 million acres, and it will be time enough to buy huge estates when those are disposed of. Having spoken in defence of land as against a pro perty tax, Mr Stout went on to combat the idea that the Government should start a

State Bank and issue paper currency. Up to a certain point paper money was a3 good as gold, and the State might prohibit banks issuing notes,and do so themselves; but at the outside only one million would be available, as they could not go on increasing the currency year after year. The only advantage would, therefore, be a million loan, so to speak, without interest, by which great risks would be run, and expenses incurred in establishing the banks and appointing officers. An inflation of paper money might follow. It had done so in all other countries that had adopted the system, and was a source of grave danger. It was absurd to imagine that they could make the colony prosperous by means of a printing presa and a bale of paper. They might as well think of a merchant making himself wealthy by signing promissory notes, which were a species of paper money. Speaking of the policy of the Government, Mr Stout said

Depression Certainly Existed, but there had been a great deal worae times. In proof of which he stated that the property tax returns showed a great increase. It was true that price 3 of produce were lower than they had ever been before, and that farmers had gone too freely to the money-lenders ; but the case was not hope less, and he hoped we had got a lesson that we would remember for all time. The depression could not bo cured by any Government, although that had been the cry on which Major Atkinson's Government got into office in 1879. He showed that the less a Government did for the people, the better it was for them. Those who encouraged the people to lean on Acts of Parliament, or a vote of the House, advised them to lean on a broken reed. Thoy must be thrifty and diligent, and the depression would pass away. Referring to the

Public Works Policy of the Government, he said the Government had expended at the rate of one million and a half per annum, which was considerably less than the previous Government had expended ; and they would do better if the Government were rid of the responsibility for public buildings and roads and bridges, which were unfairly swallowing up the public works fund. There was a misapprehension as to the effect of Captain Russell's amendment. Reducing expenditure by half a million did not mean the cessation of work in the year just expired, but prevented the Government from going on witn contracts at this season. But for Captain Russell, the Government would now have been finding work for the unemployed on contracts instead of en the reliefs system now in vogue. Looking to the future, they must be careful not to borrow enormous sums. No matter what the depression might be, they should not go in for an extensive scheme ; in fact, he thought the time had nearly arrived when the colony must begin to edge off in borrowing. He contended that the cost of roada and bridges and public buildings should come out of the revenue, but it was difficult to get Parliment to see it, and until the electors say " We will not look to the Government for euch works" it would be impossible to reduce the public works expenditure. The Government had reduced the public expenditure more than any that went before, and would do more in that direction if the people would set the example by doing with less aid irom the General Government. Until the Government got rid of thatsystem of spoliation they would have no reform. Major Atkinson had said that the present Government got a surplus by taking the sinking fund. He (Mr Stout) would ask why he did not do it instead of giving bills for his deficits that had to be renewed ? Major Atkinson had predicted a large deficit this year, but it did not exist.

Deficits for two millions had been added to the public debt in 1879. This he held was most unfair to their successors, but there was no other way out of the difficulty. Speaking of retrenchment, he asked what district in Southland would be prepared to give up its members in order to Bave expense Not one. He was

Not an Advocate of Extreme Protection, but Customs duties were required for revenue, and in imposing these they should havo an eye to aiding native industries. Having touched on the Government's desire to give the education system a more practical turn by teaching drawing and scientific work, Mr Stout went on to speak of the native land queation, upholding the action of the Gonernment and Mr Ballance as the only way to settle the matter. It rested with the Middle Island representatives whether the Native Land Bill should paas, and he contended that tho righteousness which exalts nations should be applied to their dealings with the natives. In conclusion, he asked his hearers to sift all the schemes laid before them with an eye to the future generations. If they did so, they would have a puro Stato, and public morality, without which they could not expect purity in party or Government. Mr Stout answored a large number of questions, and at the close the thanks of the meeting were accorded to him for his prompt response to tho invitation, and it was further resolved that tho views he had expressed commended themselves to tho&e present, and were such as to entitle the Government of which ho is Premier to a continuance of public confidence. The motion was made by Mr Joyce, and carried almost unanimously. The meeting was very orderly and cordial.