The Temuka Leader THURSDAY, DECEMBER 4, 1879.

Temuka Leader, Issue 206, 4 December 1879, Page 2

The Temuka Leader THURSDAY, DECEMBER 4, 1879.

As we sometimes write a, little strong against the large land ownersyand capitalists,thisf’class will naturally/flunk vr’e are quite ignorant of or indifferent to their troubles. Only one of the most superficial observers of what is going on around -him jconld f write,' without sympathy o i such-a subjects When we see the extravagance that has.been going on in the public expenditure ever since the abolition of the Provinces Act was passed, we cannot but notice, at the same lime see the danger that any one is in who has brought capital to this colony. Any sound financier has only to look at two things to convince him of whet the and will be. to wit Our imports and exports. At the present moment our imports reach over eight millions •annually; our exports only five millions annually. Tins, to any sound financier, would be enough to satisfy him what the end will be. The present debt of the colony is, the public say, twentyeight millions ; private liabilities are over thirty-three millions. ' Some : people will say. Ibis is not a heavy burden ; England has nearly her eight hundreds of millions public indebtedness, and hundreds of thousands of private indebtedness; but here dies the difference —In England it is a case of one borrowing from another. Jn New Zealand it is not so ; this sixty mill ons, or ove", comes to ns from England, and instead of the interest gi'ing a living to the drawer here, the cash is all exported to England. This is the greatest danger that the New .Zealand capital st has to look to, and we sincerely pity the wealthy classes who may have their money locked up in New Zealand lands or shares. No country is in a healthy state who imports more than they , export. This is bad its England, France, or Germany, but it is ten times worse in New' Zealand. When we demand that large land owners iu New Zealand should pay.a fair share of taxation it is not with a view of punishing the rich with whom we have no qnarr 1 or cause of quarrel, but. it is because we wish to check outflow from the colony which allows others to live riotously in other lands, on the blood drawn from vitals of this colony. We feel sure many a land owner and many a capitalist, who has invested this, money in New Zealand must, at the present moment, have a fear, lest he should be begirared of every farthing. The}’ are in danger of this being the case. -The.only real remedy, in our opinion,.--is : the - curtailment of public expenditure, notin public works, but in Government management. : -'Hundreds of thousands will have to be reduced in this way if the colony is again to become prosperous. We are surprised at lire Hon. John Hall consenting to such an incongruous Property Tax. - Mr Rolleston knows no belter. His policy has ever been to stick to the money,and stop public works. This is a mistake. Major Atkinson has no idea of these heavy matters. Mr Whitaker probably does not look at it but from a legal point of view, but surely Mr Olliver hac been better (mined to deal with money: matters. Believing in John Stewart Mill’s doctrine, that business men make the best legislators, we expected belter tilings from Mr Olliver, Perhaps.the ;arge amounts overwhelm him. Be this as it mav. the present Government has not grappled with the subject ns they ought. By their taxing policy they will sink the colony deeper and deeper into distress, until their policy culminates in ruin of the wealthy, and the making of an upstart nation'of'adventurers. A L ind Tax is a necessity for many reasons—not the least is that it will check speculation in land by land sharks, as they are caked. Many other good and sound reasons could be grven, luxt are unnecessary to thinking men. It is astonishing how little resource even men of education have when effort is necessary to get over a difficulty, By-and-bye we may touch upon several fnfitful sources of revenue that could be put into operation, which have not yet even been hinted at, and possibly we may say;* never thought of. Meantime, we will only repeat that we do not wish to destroy the rich or to molest them in any way, but simply wish them to support measures and take such steps as will prevent their own and the country’s ruin.

THE PROPERTY TAX. TO THE EDITOR. Sir, —In common with the majority of the people of this part of the Colonj 7 , I take the liberty of thanking you for your opposition to the proposal of the present Government to foist Upon this British Colony a property tax after the American model, aud which cannot fail, if passed, to be regarded with derision by all other British communities. Suggestions have been tirade to the Government to raise the tax, which is a necessity, after the British fashion, namely, through the Customhouse. Again charge school fees, and reinipose the lea and sugar dqties. People in the Colony can well afford to pay for the education of their children, and would much prefer doing it. to having their offspring educated at the expense of the State. Any exceptional circumstances of inability to pay could easily he provided for. This matter, like the tea and sugar duties, strikes one with amazement that such taxes should be either abolished or reduced, when no request or agitation was made by persons in the Colony for such abolition. Well, S ; r, the suggestion is that these taxes should be reimposed, and then any deficiency should bo made np through additional' taxation on real property ; for holders of this class of property are the persons who have chiefly benefitted from the public expenditure, and they cannot with any show of reason object to contribute,proportionately to the revenue, and in the form suggested which is the most easily collectable, and does not require any additional staff. An income tax would be less inquisitorial in its character than this wretched proposal ef a general property tax, which not only includes stoed-in-trade, but every conceivable thing iu the shape of property, from a wig or a pair of earing?, through your household furniture to a boot-jack. Again, Sir, this property tax is so inequitable in its operation and clrarai ter. Take for instance, n merchant with a len-thousaml-pbnnd stock, five of which is in. bond. On that portion in store he pays, we will say, 15 per cent, net duly, thus raising his liability on this by £750, rnd 1 e is act ua y taxed again on this incre sed cost. Again, many of our business house -have branches iu Loudon : the consequence

willbc that in this Colony they will have nothing but liabilities, with all their assets elsewhere—thus handicapping the unfor-tunate-people who hare paid for the r stock, and wlio.se only place of business is in New Zealand. Again, large lots of goods are held herein consignment belonging to .people in other countries and which are sold merely on commission. These goods having no owner* in the Colony will also, I presume, get off scot fr - ee —tuns again placing (he local man, who has paid for his stock, and must contribute to this t 'X, at an immense disadvantage. Then, doubtless, this tax will be payable on a certain day annually, and about this particular time stocks will he found, wo may easily surmise, not unusually large : people affected will provide that their stocks shall arrive on a more auspicious occasion. Sir, all affinit that additional taxation is necessary, and this being so, we must be prepared to contribute, but let it be done in the usual British way. The Government doubtless found the .finances of the country in a deplorable condition, and this dreadfully undesirable slate of things was doubtless much aggravated by the extravagance' and incompetence of the Grey Government. 1 think, however, that it is unfair to saddle them with all the mischief, ns this (rouble has been the cumulative work of years of excessive expenditure. For a number of years we have been borrowing with terrific speed, and have empowered every little municipality, harbour board, drainage board, and all other legally-constituted bodies throughout the country, to borrow whereever they could get any response to their appeals, and now we have arrived at that si age that a sudden stoppage to our borrowing powers brings prompt disaster to the Colony. With our present population and large indebtedness, I contend that it is impossible that we can hold our own and pay more interest annuJly than is now withdrawn from the colony, and believe the present check to mrr borrowing powers will prove a useful lesson to ns all. Government expenditure is'the firsi important item which requires-enormous curtailment in all departments ; (his begun, private unnecessary expenditure would soon follow', and we should soon again see better limes. We have a grand country, with vast and unparalleled resources ; but if we go fooling away money recklessly, and, among other follies, make the StrathTaieri and other railways, which will not be required for the next 10 years, presumably to open up country no wanted, then we must expect to be held up to ridicule by people outside of our boundaries —I am &cv,

Thomas W. Kempthoene Dunedin, December Ist.