MR VOGEL ON THE NEW ZEALAND BUDGET.

Thames Star, Volume VII, Issue 1998, 31 May 1875, Page 2

MR VOGEL ON THE NEW ZEALAND BUDGET.

The Cross publishes the following letter / fro 11 the London Economist of the 27th . March : —" Sir, —I ask you to allow me to j make a few remarks on your article in' last week's paper on the Budget of New ' Zealand. 1 desire to thank you for the very temperate and fair nature of your observations, though there are one or two points on which I tbink you will allow > me to suggest a correction or explanation.' The figures to which you refer are the annual statistics for 1573. I mention this not to take any exception to their correctness but to explain that the annual Budget dealt, with the returns from June to June in each year. If it were supposed you dealt with the last annual ladget there would appear to be a discrepancy between your figures and others which have been published. Without expressing an opinion as to whether the union of the General 1 Government and provincial accouuts leads to the most satisfactory way of Examining the finance of the Colony, I follow your own plan and figures. You find that joining the twp accounts, and' including (the- land revenue and expenditure, there is a deficiency of £137.C00, whilst the land revenue: shows' a Surplus 'of ■ £552,000, after allowing for an expenditure of £552,7 CD on public works, and £71,C00 on other purposes. Accepting tlies* figures, I desire to show you-that a considerable amount of the "expenditure charged against'l ordinary revenue ns> properly a charge on the land revenue. You could not from the statistics have gathered this, but the explanation wiil, I.think,, remove | your QBjectich.to the infringement on the. land revenue as shown by the figures you marshal. The.'jconsdlidated revenue is primarily liable for interest and sinking fundC on": the consolidated -provincial loan; but all provincial loans were made a first charge on the land revenue, and properly so, for their object was for; purposes to increase the value of the lands. In tho Colonial Government expenditure, which "you quote, there is included about £220,' 10 for interest and sinking fund on tho consolidated provincial loans; and in the provincial expenditure you quote, is included £42,7 CD for interest and sinking fund on provincial loans not consolidated. To gether these make £262,700, and if you place the amount, as by law and reason you arc entitled to dp, as a charge on the land revenue, you will, following out your own plan reduce, the surplus of the land rerenue, . and you will convert the deficiency of the other two accounts into a surplus of £89,7C3. Y»u will then entirely detach the land revenue and expenditure, a most desirable thing to do, though in few, if any of tho other colonies, could such a result be worked out, For here* the whole public debt is a charge on the land revenue. f.b is quite fair to consider that the construction of such large works, and the promotion of such a system of immigration a3 New Zealand is engaged, involve great responsibility. But is fair also to recollec6 the success which has even now attended our efforts, although btft a very small distance of the railways is yet open. Next year we will have from 600 to 800 miles finished. During 1873 there was a little over ICO miles open, and the figures you quote, show a return from this. distance of £43,000 over working expenses. When a comparison h instituted between the public debt of Is'ew Zealand and that of the mother country, it should not be forgotten that the Crown lands of Colony equal all its public debt, and that in order 1o compare fairly! that public debt with the National Debt of the:Dr,ited Kingdom, there should be added to the latter the cost of all the railways, main turnpike roads, bridges, canals, hospitals, harbor works, jetties, wharves, piers, docks, &c, &c, scattered throughout Great Britain and Ireland. Oircum•tances have robbed New Zealand of its youthand of its powerto be content with a slow growth. Wken, five years ago, the Imperial Government retired from! aiding tue Colony, aud left it with a debt o" about five millions expended on unproductive ffative purposes, with the heavy. 'annual burden of that debt, besides continuing charges for native purposes,, the necessity was absolute to increase the" resources of the country. The dol'ee far niente of rich youthful communities was denied to the small community so heavily weighted. Out of adversity proceeded strength, and the neighboring colonies' look with admiration, not to say envy, on New Zealand^ progress. You will sec by the enclqsedj; articles from the leading paper in all Australasia, the Melbourne Argus, what other colonies think o* 1 New Zealand. — Yours. Sec. Julius Vogel, March 24th, 1875." - '