The Temuka Leader TUESDAY, MARCH 2, 1886. SIR GEORGE GREY’S SPEECH.

Temuka Leader, Issue 1474, 2 March 1886, Page 2

The Temuka Leader TUESDAY, MARCH 2, 1886. SIR GEORGE GREY’S SPEECH.

Sir George Gret has seldom made a more moderate speech than the one be dedivered last Friday evening at Auckland. As usual, he made an attack on large landowners, and resuscitated the old cry of a Sand tax, so as to burst them up, bnt otherwise he was moderate. In the present condition of landowners it appears to us the very acme ot folly to point to them as fit subjects for special taxation. In some instances, of course, landowners could, and ought to, contribute to the revenue more than they do, bnt in the great majority of cases to increase their burdens would amount to ruining them. Sir George Grey evidently takes his cue from the position of some North Islanders who got their lands for next to nothing, but whose properties have

b“pn increased immensely by the expenditure of public money. There are a good many landowners similarly situated in the South Island, and, without a ioubt, these people ought to contribute •o the revenu 0 more than they do ; but if. would be impossible to reach them without inflicting grievous wrong on <ther landowners, who bought their properties 100 dear, and have as much as they can do to make both ends meet. In the great majority of cases landowners are mortgaged to the uttermost farthing they can raise on their lands. In fact, although nominal owners, they are nothing more nor less than tenants, for the interest they pay on the capital they have borrowed is as much, and some times more, than the rent they would pay to a landlord. To put it plnin ! y, we will suppose that a farmer has £IOOO worth of land, and has a mortgage of £9OO on it. In reality £SOO worth of land belongs to the mortgagee, and only LIOO worth of it. to the farmer. Under a land tax that farmer would have to pay a tax on property which did not belong to him, but under a property tax the mortgagee has to pav it. Common sense must convince anyone that it would be a grievous wrong to compel farmers to pay taxation for property which does not belong to him, while the mortgagee, who is sucking his life-blood, .is allowed to escape “ scot free.” On the ground that it would inflict great wrong on much persons we have always opposed a land tax, believing that the property tax is the fairest and best that could be devised. The present Government made an attempt to relive industry from the burden of taxation last session, but were not able to carry their proposals. They proposed to exempt £3OOO worth of machinery, agricultural implements, farm improvements, etc., and, it that had been carried, there would have been very little to complain of as regards the property tax. Major Atkinson and bis following, however, out-voted them on this point, and consequently they failed to carry their measure. The aim of the Government was to relieve industry of taxation, and place it on the shoulders of owners af real properly, but the conservatism of the Atkinson party would not allow this, and henc* the reason that it was not carried. Sir George Grey blames the Government for not imposing a land tax. The accusation is childish. He, belter than the people, knows that to do so was im possible. In oilier respecta the speech was moderate. He expressed himself in favor of buying np large estates for the purpose of cutting them up and settling bonajide farmers on them. This could easily be done at present. The Banks, the money-lenders, the Companies, and other speculators who bold large areas of land are extremely anxious to sell out, and it would not at all he difficult to come to terms with them. This is a part of the policy of the present Government; in fact, in every respect, with the exception of a land lax, Sir George appears to agree with the Government proposals, and the question, therefore, must naturally arise, Why is he on all occasions harrassing them, and doing everything in his power to turn them out of office ? He knows he has not the least chance himself, and that the result of ousting the present Ministry will be that Major Atkinson will come in. But Sir George Grey can never agree with any party ; in fact, he probably has enough to do to agree with himself, and consequently it is hopeless to expect him to assist the present Government.

NATIONAL BANK. The National Bank proposal is still making he«dway. Sir George Grey has declared himself in favor of it, and several newspapers throughout the colony are giving it considerable attention. There appears to be a strong feeling in favor of it in Dunedin, Auckland, Napier, and other smaller places, but the centre in which the greatest amount of attention is paid to it is Christchurch. There a publication has been started entitled The Stockwhip, for the purpose of advocatn National Bank, Protection, etc. We have the first copy of The Stockwhip before us, and must commend it to the attention of our readers. It is well written, and contains some humorous sketches of mortgagees, bankers, and lawyers who ere opposed to the National Bank proposal. There is a letter in it which deserves to be published in full. It is as follows : Sir, —Lieutenant Farmer has thrown down the gauntlet and challenged Sir Julius Vogel to give a reason why a State Bank should not be established. Sir Julius Togel appears to be backward in accepting the challenge ; perhaps he finds it difficult to give a reason. But I think I can find a reason why the Government do not wish to see a State Bank established. It is taken from a letter which Sir George Grey some time ago wrote to the Chairman of the New Zealand St»te Bank League. Sir George Grey says “ The capitalist companies in fact return the majority of the House of Representatives, and the majority of that House appoints the Legislative Council.” Now, who are the large capitalists in the colony 1 Why, the banks : and that these Banks are benefited by the accumulation of the people’s money in the hands of the Government (which money would be lodged in the State Bank if it were established) I will now prove. Sir George refers to an act of Major Atkinson’s who, “ when he had the power of lending £225,000 belonging to the Government Life Insurance, in place of lending it to 1500 shareholders at a low rate of interest, lent it all to one Bank, on the security of that Bank’s receipt. The Banks at an advance lent it to capitalists, and the capitalists at a further advance lent it to the people, who, by rights, should have had it at first hand and

at first cost.” Now, whose money is it for which the people are made to pay this heavy interest ? I may again quot’ Sir George Grey, who says: —“It is the people’s own money, collected from the people, and kept for safe keeping io the hands of the Government." Yet the Government, simply on the security of a receipt, place it in the hands of a Bank that may fail. Will the electors of New Zealand allow their otvn money to be lent to foreign capitalists on no better security than a receipt, that these foreign capitalists may lend it again to the people on good freehold securities, and at a high ratq of interest, which interest (less that low rate paid by the Bank to Government) arising on the loan of the people’s own money, is being drained out of the country to enrich foreigners (ie,, English bank shareholders) and to impoverish ourselves ? Then Sir Julius Vogel’s answer to Lieutenant Farmer’s challenge may be given in his own words We must not do anything which those large companies will consider to be it. conflict with their inierests; for it is essential to remember that these large companies are very powerful, and that any measure they oppose is not likely to pass.” But will the people of New Zealand endorse this sentiment, and suffer these big companies of foreign money-lenders to grow rich on on the manipulation of fha people’s own money? —A. St, John White, Chairman N.Z. State Bank League,

In addition to this the editor challenges Sir Julius Vogel, the members of the House of Representatives, bankers, lawyers, etc,, to show cause why a National Bank should not be established* The Stockwhip also contains humorous pieces of poetry hitting very hard the editors of the Lyttelton Times and the Press for not having the courage of advocating a National Bank. In this respect our friend has fallen into an error. The editor of the Lyttelton Times is favorably disposed towards a National Bank. More than once ho has published articles advocating cheap money, and we have not the slightest donbt but that the same paper would lend its assistance to the National Bank if the Government declared in favor of it. The Lyttelton Times is a paper that is always led, it never originates a new idea, nor does it take one up until some leading politician adopts it. If our friend would take a hint, he would devote the space he has given to these papers to laying before his readers facte and figures, showing the absolute necessity for a Natnnial, Bank and the great boon it would be to the people of New Zealand. We sincerely trust The Stockwhip will be a great success.