The Daily News. THURSDAY, JULY 18. THE FINANCIAL STATEMENT.

Taranaki Daily News, Volume L, Issue 60, 18 July 1907, Page 2

The Daily News. THURSDAY, JULY 18. THE FINANCIAL STATEMENT.

• 'Jiie financial STauuneni delivered by the lluUinial treasurer on Tuesday evening iieu-a.s a eoiidilion of aliairs when luosl 'people H'.ll lie ready to acknowledge is 'highly satisfactory. The past year has !|iijon'aii uncommonly successful one for •the eoloiiv. Our alaiik- products have jioiu.mimh'.l unparellelcil prices, whi.st 'our exports constituted a record fur the 'colony, and per head of population a record 'for the world. -New Zealand truly has been bounteuuly favored and lias prospered amazinga'. In the circiim-

stances it was impossible for the (iovernmeiil in power to show other than a lieatlliy balance-sheet. As intimated by Sir Joseph Waul, ill-.- revenue increased by over .USIMUMtI, an increase of ten per cent over that of the previous year. Practically every department of Slate shows a marked increase'. Railways ( C252,!178), Customs ( .1:243,02!)) 'iiuii ' stamps (£11)4,41)4) provide the main increases. The expenditure has been 'correspondingly high, namely, .Ciw2,sßG imore than tiial of the previous year, a profit of ,1:103,383, however, being shown !on the actual expenditure for the year compared with the amount appropriated.

Sinking funds for the war and defence ; loans have absorbed £50,000 and £150,|OOU Treasury bills have been wiped oil'. The total public works expenditure reaehitiie big figure of £2,050,000. This injcluded the sum of .CTVj.uOO appropriated J from last year's surplus. The public debt lias mounted up. lu 1000 the gross debt was £02,101,040; now it is £Ol.000,000, an inyease of practically a couple of million for Hie 12 months. The various Departments arc paying their way, even the railways, which are far from complete, whilst settlers, local bodies and others who have used the State's money are not in default. The Treasurer intimates his intention of asking Parliament to sanction another million loan, which is to go towards the Public Works fund. We are pleased to hear that the money is to be raised in the colony, the interest being kept amongst mir own people. The Exhibition, it is stated, will have cost the coiony about £OO,OOO, as a set olf against which a portion of the railway revenue and customs returns has to be placed. Our contribution to the Navy might, when the Australian naval proposals assume concrete form, probably be increased from £40,000 to £IOO,OOO, a cheap price compared to what the people of tlie Old World have to pay for naval protection.

As usual we are promised a comprehensive local Covornmeut reform Bill and no doubt it wili still be "stcadiy in view'' when the next Statement is presented. The defects and anomalies in the Conciliation and Arbitration Act are to be remedied, and Bills to meet this and the trouble in regard to the observance of the factory half-holiday are to lie introduced. Infant life is 'to lie further protected, an<! different measures of preventing the immigration of Chinese arc to be adopted, a Jiigh educational tost being substituted for the payment of the present poll-tax, which, as the Premier rightly says, is easily got over, money being always found to pay the tax. This [is undoubtedly a move in'the right direction. The test proposed should have the effect of more successfully blocking the inflow of undesirable Celestials than anv payment of poll-tax. It is proposed to apply the superannuation principle to the Public Service of the eolonv as a whole -a proposal that will meet with the approval of (he public and be welcomed by (he civil servants .themselves. Last year's National Annuities Bill is to lie ajMin introduced and will contain provision for voluntarv contributions to « f "»'l f"f tl stablishincnt of annuities. Preference in tbe matter of loans is to be given 10 local bodies who lie'p themselves, the establishment of telephones to out vile.' localities is to be vigoroii>:.v pushed on with, inspection of dairies is to be put into operation, and the work of the Main Trunk railway lines is to lie proceeded with apace.

Impuri.iiil features ui' the .Maicu.cilt arc ilie reductions iu postage .aid telegram.;, rate ui interest i.j local bodies, tu.iiouis dimes, and Ihe abolition entirely ol ihe sheep la.V: In connection with postage and telegrams, iho.postage ou posl-earus is ti> In- reduced to '/ail, the registration ol iellers tee. from 3d lo 2d, whilst in regard to .otters, magazines, etc., the niles are also to be considerably reduced. Kales for commission ou money orders and postal notes will be substantially lightened. The Treasurer estimates tlnit these reductions will mean a concession to the public of about ,C2U0,000, but the increased business likely to follow the reductions is expected to almost compensate for the loss. The Treasurer proposes to reduce the rate of interest on existing and future local body loans by a half per cent., but not making it lower than ;\% j.er cent., the lowest rate at which the colony obtains its money for lending to local bodies. The remissions of Customs duties will amount to ,c:17.".,000. Tin; articles of common use, the necessaries of life, arc to be admitted free. Among the principal items are sugar, eiuranis, and raisins, figs, dates, unground spices, and all articles of infant diet, which are made free; cotton, piece goods, dress prints, and cotton tapestry, linseed, olive oil, and various oilier items are put on the free list; the duty on potatoes is altered from an ad valorem one to .11 a ton. 11 ia not proposed to do anything in regard to removing the duly on Hour, but if, upon the enquiries Sir Joseph Ward is making, he is satisfied the price of bread is due to any monopolistic ring or combination, he intimates he will not hesitate to bring iu legislation lo secure to consumers bread at a fair price. Incidentally, Iw urges Horn-millers to remove any cause that exists for the present position.

» the pad we have been taxed through the Customs to protect vision, ary nothings. We have had to pav the Heaviest taxation on absolute necessities, •i"'l the poorer the person the greater »s tax. Jiils anomalous and unsatisaclory state of things is to be radicallv altered.thanks to Sir. loscpU Ward, and I' five breakiust table should he son.etli"iX ot a reality. The remission of duty on luxuncs like ,„„,,„. „,rs. wl|lVll are to be scheduled n, duty free, seems to us. however, ipiiic imiie'ecssarv. The !'<•'■*•" who can afford such luxuries enn " l"'Vd lo pay the ,l„ry ; ls w ,1,. T;,.;,,, the remission of taxation are: Custom's £375,000; sheep tax, £20,000; rates of interest to local bodies. mw<\; post and telegraph rates. €20.000: fees inspection 'hiines. £8000; total, ,C42i>.000 : while lie increases are: Customs, £l2lOOll- - and income tax, £70.000; total' £11)1.000. ' ' '

I" remit a rpiarter of a million in die way ol taxational one yeai is an uimrocodcnlcd penorniance, bo far as this colony is concerned. To us it appears a cpieslioiuililc policy (o make such heavy remissions wliiUt we are developing the le-oimvs of the country, and have to f!<; ■lo the money-lenders for the wherewithal to enable us to undertake the deM'li.pment. AVe would rather have seen ouiy the duty on the uecessnries of life raimved. and the other taxation and charges remain as before (ill such time ii- the national undertakings to which

)«•" are committed are iinislied. Whilst '"' '"'"">■ i« in tlw stale it is. ,111,1 Ins '•.'»•" for 11,, ~,,4 few rears. H,o remis- <>■".«. "11.,..- than those „f „,c Customs "'""'•''l !"■ will l.anlly 1,0 Ml l,v (ho "a--. ~f (In- people. M-,. „„,. C( j s head „l population (~, the pawnbroker, ami jii.stoad of rcpayinj; liim we arc askiii.ir him fnr more money even- year. AY..

helii'vo in a pra.rii-.sivc policy of development, and Uial such is in"the i„. s( interests of the ra lony. ami also know ni,may is necessary to curry sncli a ■ipoli'-y. anil that (lie money' lias to !„• |f".iM,l. At Hie same time, however, if ,-ecnis to ,is v,-e sii-mM slum more self. , jrdianip ami provide a porlion of tl,c - u-apital ourselves Tin's, in view of the i .l.uovaet portion of (lie colour, if, ~„n Well rlii. ami. in our opininn. should ilo. j instead of leaving (lie whole of the f jannnally incrPasiivr capital account-, (o ; ;pn>ferily to slioul.lcr. Furtlicv discus- • sion of oilier points in dip Statement I ;and tile land proposals wc will have to I S j]"iive for another occasion, li,