THE Temuka Leader. THURSDAY, JULY 7, 1892. POLITICAL NOTES.

Temuka Leader, Issue 2379, 7 July 1892, Page 2

THE Temuka Leader. THURSDAY, JULY 7, 1892. POLITICAL NOTES.

In the course of his speech on the Address-in-Keply, Mr Scobie Mackenzie said the South Island was reduced to a state of stagnation by the new taxation of the Government, with the result that money was lying idle in the banks for which there was no employment. A few months ago the money was flying away from the country; now it is lying idle in the banks. AYho now can pay much attention to the twaddle of these people ? First of all, why should industry be crippled by taxation being taken off it? That is a question which is hard to answer. Again, why should the banks be paying o per cent, on fixed deposits if they cannot find any employment for the money? They would not do it. When trade is slack, andthe bank cannot find good invest ment for money they always reduce the rate of interest; but when everything is brisk, and money is in demand, the banks are in a position to pay a higher rate. This is the true barometer : banks will not pay higher interest on money to let it be idle. They are paying 5 per cent, now, and that shows a healthy condition.

Mr Rhodes created a bit of scare with his last speech in Temuka. lie tried to make it appear that the Government contemplated double taxing foreign capital,and wh the Premier informed the public that nothing of the kind was intended, Mr Rhodes and those who were in the swim with him, affected not to believe him. Nothing would suit money-lenders so well as that capital should leave the colony, because then the rate of interest would go up, and they would have their reward. The “ shriek of panic ” as Lord Onslow called it, did not succeed ; the rate of interest did not go up. Money is still plentiful, and Mr Rhodes now sees his mistake. If

he had been patriotic, and had the good of the people at heart, he would not have raised this cry, because he ought to know that it would do harm, lie is now trying to get out of it by asking questions of the Government. The other day in Parliament he asked the Premier, had the Government instructed the Agent-General to inform the British public that it was not intended to double tax debenture capital. The reply wasthattheGovernment had not done so. He also asked what the Government intended to do in the matter, and was informed that when the Land and Income Tax Bill came before the House he would be able to see for himself. Now all this is display. Mr Rhodes will come before his constituents hjn’-i'nil-hije, and tell them he saved the Colony by drawing attention to this matter. The fact however, remains that he was near doing a lot of mischief.

Mr Rhodes’s Interference in the Ternuka Police Station business too, is Jjkely to do more harm than good. The Minister told him that it would take £BOO to do ail t!fat was wanted, but that the matter would not be lost sight of. If Mr Rhodes had gone privately to the Minister and urged on him to do something to improve the place he would have succeeded, but Mr Rhodes wants to let his left hand know what his right hand is doing. Sir Robert Stout, who is now in Wellington, has informed the correspondent of the Christchurch Press, that he is astonished at the widespread feeling of approval which exists respecting the financial statement. The statement meets the approval of determined opponents of the (Jovernment. No one can help noticing that the statement has struck the Tory papers dumb. Every prediction of theirs has proved false. There is no galloping to a deficit; no galloping to a loan ; no attempt tP pamper up the working man with borrowed IPQ.ney. Nothing but a really sensible statement of facts, and true economy. The papers ham been struck dumb; not one of them has da/Td to find fault: the Christchurch Press ppntenting itself with saying that it is very glad the Corernmeut have adopted its views.

The annual report of tiie Railway Commissioners shows that the railways paid £2 15s !)d on their total cost over and above working expenses. The total cost has been £I4,GGG,G'JI, an increase of £.‘>78,100 since, last year. Not a single passenger has been killed through causes beyond his own control, but two were killed and nine injured through their own fault. Two railway servants were killed and seventy six injured from causes over which they had no control, and one killed and thirty two injured through their own carlessness. Three trespassers were killed and six injured. The rolling stock consisted of 2GO locomotives ; -WO passenger carriages, and 8257 waggons. The result of the year’s working is good.

The Legislative Council is still engrossing the attention of the Wellington newspaper correspondents. They hold that the appointments will result in a dissolution. From a private source, however, we learn that there is very little danger of a dissolution. Still such a thing is possible. The Ministry arc stronger than ever, and we believe that few of their supporters would even dare to desert them even if theh wished to do so.

According to the Wellington correspondent of the Lyttelton Times, the

Government intends to reduce the customs duties on the necessaries of life next year. This' is taken by the Opposition to mean that the subsidies to local bodies will be stopped.