FINANCIAL REFORM.

West Coast Times, Issue 697, 18 December 1867, Page 4

FINANCIAL REFORM.

TO THE EDITOK OF THE WEST COAST TIMES,

Sie — The resources of wealth in New Zealand are unlimited and inexhaustible, which is shown by the increasing productions exported ; and if the revenue derived from that source, combined with, the ether.«, were husbanded with economy and judgment, New Zealand would soon become the most prosperous colony in the souther nhemisphcrc ; assume the lead in commerce, as well as in production and in internal prosperity, unattainable in many other southern colonies. The cause why such is not the case can only be traced to the Constitution, the General Government and the Provincial encumbrances, which are deficient and undefined in detail and in the whole. The General Government possesses the power, but it has not awoke yet to the cmbition of raising a people to the highest position of nationality, leading them onward to prosperity and happiness.

Political economy requires to be studied by our administrators, and is, above all other attributes, necessary to govern New Zealand. This hitherto neglected science, necessary to attain wealth, riches, and general prosperity, has been entirely overlooked ; and the result is that the whole Colony is in a very precarious state financially. The enormous wealth brought to light year after year has been — and is— drained out of the country, leaving the same upon the eve of a serious embarrassment. The channels are numerous through which the country is impoverished daily. Private enterprise has cut off — undv-r the protection of the Government — the rills which ought to flow into the Government exchequer, to enable the administration to defray the chief expenses of the State, without resorting for that purpose to heavy taxation of the people.

Reformation in the expenditure is not so urgent as the augmentation of the supply, by developing the numerous resources at command of the Government. Under the present established system all specie sterling and unmanufactured is exported. The ouly currency retained consists of Banking Companies' notes, which being circulated by shave pouipanies, they acquire the sterling material for export, by which they realise large profifs — combined with other lucrative charges, which enable those companies to divide large dividends of from Lls to Ll7 sterling per cent, per annum to their respective shareholders. Continental States of Europe have their National Bauks, Savingsßanks, Mints, the issue of Treasury notes, and other remunemlive sources of returns to dimmish taxation, and of which the public receive the sole benefit-. Here in New Zealand the common public — which is the only stability and security of the country — to reap those essential benefits, are deprived of the same, through the false magnanimity accorded by our aristocratic Governments to wealthy private individuals, companies, and foreign capitalists, who levy profits from the poor people of which they themselves stand so much in need, to a home for fchemeelres in this overburdened country, and from whose coffers both General and Provincial Governments have in time past, and are still diverting large sums of public money. Taxation itself is unjustlj apportioned; banking, shipping, and merchants, do not pay adequate towards the maintenance of protection and other benefits they enjoy. In Westland no income tax is levied on anyone, except the hard-working miner, who pays at the rate of L 2 3s 6d to Government, and to the banks LI lls 3d for every hundred pounds worth of gold, besides duty, freight, and profits to dealers on all he consumes or requires, without roads to travel on, or any return for his handsome contribution. No charges are made for harbor, wharf, or other accommodation afforded for landing goods, &c, yet the public pay and maintain all these for the benefit of but few to facilitate commerce. The necessity to administer the public funds, bo as to make them reproductive to the public, is either | not understood or is ignored by those who dispose of the public money, Instances to affirm the above might be cited, one, however, will suffice. The consolidation of the provincial loans it an example of the extravagance, the like of wbioli never has been carried out by any government or in any known country. The admiration and approval by the public is due to Dr. Featherston, for the manly stand he made against what he justly called "a fraud and a gigantic swindle." In contemplating the present prospects of the colony, it appears that it is urgently necessary that some means should be devised to lighten the burdens of the people, and that legislation should be effected to increase the revenue from those sources which are undoubtedly legitimate ; and also that a more just apportionment Bhould be made of the taxes necessary to meet the deficiency in the Government exchequer. I am. Sir, Ac, Aom. Txou, Pec, 14, 1867.