The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. SATURDAY, AUGUST 19, 1882.

Thames Star, Volume XIII, Issue 4254, 19 August 1882, Page 2

The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. SATURDAY, AUGUST 19, 1882.

The Colonial Treasurer's speech during the No• con6denee debate was a deliverance of a not rery reassuring character, and furnishes ample food for meditation. When Sir Julius Vogel propounded his Public Works scheme in 1870 the plan was to borrow ten millions of pounds, the expenditure of which was to extend over ten years. The object to be kept steadily in view was the construction of the main trunk line of railway through both islands. Concurrently with this, immigration was to be assisted, so that as the lands were opened up they might be settled. Now, the last Financial Statement showedthat the public debt was, in round numbers, thirty millions, but of this only about eleven millions had been spent in railway construction. At the period of the initiation of the scheme the colonial indebtedness was some two or three millions. There was also a further liability incurred by the colony taking over the provincial liabilities when the provinces were abolished. We- have not yet looked into the details of the matter. However, deducting eleven from thirty, we have a balance of nineteen millions to be accounted for. Allowing the odd nine millions for the prior debt alluded to, and added provincial liabilities, there is still a a matter of ten millions to be explained. Where has this gone to ? To supply wants that were not contemplated by the original scheme ; in fact a great deal of it was frittered away. A round sum went to pay interest on loans. But what we more particularly want to point out is, that of the interest now being paid, but little more than a third is for money expended on railway construction. Probably of that thirty millions not more than half has been expended on reproductive works. Now of the proposed three million loan only £1,700,000 is to be expended on railways. Let us look at the way in which it is proposed to spend the balance, £1,300,000. One item is—Purchase of native lands, £200,000; that the colony is committed to. Public buildings swallow up £300,000. On this matter Major Atkinson said.—" That was to last them for three years They had been spending £100,000 upon school buildings, and it was well-known every Board was pressing for more than they got. Out of this

sum, £90,000 was engaged for lunat lc asylums, so that the members would see. that their districts would be proyided with'less than they required. In these circumstances he asked member to say if their schools and other buildings were not to be provided for." Now, in answer to ail this, we. have simply to say that if public buildings cannot be built without resorting to loans they should remain unbuilt. His arguments told against him, and showed that we are standing on dangerous ground. Again, immigration has not proved a great success in the past. However, £200,000 judiciously expended in nominated immigration may prove beneficial. Eoads, bridges, telegraph extension, goldfields, harbors, which take up £500,000 more, should all be provided for out of ordinary revenue. If the colony is sonnd financially, the yearly income will provide for these matters ; if not, the sooner the matter is thoroughly investigated, and a drastic remedy applied the better. The best plea that the Treasurer could put forth for borrowing was that if works were stopped some four thousand men would be thrown out of work. And so the colony is to borrow continuously to keep a number of men in employment. The gallant Major may depend upon this, that that difficulty will have to be faced some day. Nor will his argument hold water, because the works would take off gradually; the men would not all be thrown out of employment at once. It would possibly have been better, alter all, had Mr Montgomery's suggestion—to borrow only half a million to keep matters floating until next year, to leave opportunity for reviewing the past and placing the finances of the colony on a sounder footing—been adopted. Of the three milion loan, there is one third that it is proposed to expend on works that cannot [ truthfully be classified as of a reproductive character. We have in this article only glanced cursorily at the subject, but shall probably treat of it more fully in a future issue.