Wairarapa Age MORNING DAILY. THURSDAY, JANUARY 19, 1911. PROGRESSIVE LAND TAX.

Wairarapa Age, Volume XXXII, Issue 10141, 19 January 1911, Page 4

Wairarapa Age MORNING DAILY. THURSDAY, JANUARY 19, 1911. PROGRESSIVE LAND TAX.

In the course of an article dealing with the, allegation by Mr Hughes that the progressive land tax has not driven capital out of New Zealand, the Melbourne Argus says:— "Surely he must know that the results of the land taxation policy in New Zealand have been concealed by the tremendous borrowings of the Seddon and Ward Ministries. Not only has money been obtained for public works, but for closer settlement, and for advances to farmers. Without that borrowing the most convincing testimony Avoukl long since have been afforded of the., disastrous effects of the policy, which Mr Hughes is ever ready to champion. Moreover, New.ZeaJand would,, in the nature of things, be'less liable than Australia to suffer quickly from an excessive tax. New Zealand, unlike Australia, has an/assured rainfall, and the seasons are regular. They do not, as unhappily happens in Australia occasionally, 'cause acute financial stringency; the land-qw,ner in New Zealand is free from tfie terrors of drought. By the favour of his climate he "sin an immensely better position than the Australian to en-

dure ilio effects of heavy taxation. I But, even if this were not so, the land-owners of New Zealand were not treated so harshly as are those in Australia. When Mr Seddon made up his mind to dispossess owners of their land, he did not load his gun up to the muzzle right off. He began at a comparatively low rate of taxation, and increases were made gradually. Mr Hughes went to the full limit in one effort. His idea is to drive out the large lane!- i owners and the tax was fixed regard- , less of the loss that woulcl be inflicted on individuals, or of the injury that would be to the country by checking ine inflow of capital. In any case, what evidence does Mr J Hughes rely upon when he says that everything is rosy in New Zealand? . If he recalls the set-back that coun- ! try experienced three years ago, when it had to face a temporary fall-ing-off in primary products, combined with a low range of prices, he .mujst,. realise- that, even a highly favoured ijoay be brought intodifficulties by unwise taxation. The situation is,, indeed,, not nearly go . - i satisfactory, as it v should .be. Mr Beauchamp, generic, manager of the Bank of New Zealand, quite recently complained of the lack of enterprise noticeable ; : n the country. He knows more than-Mx :Hugh-&s."