The Wairarapa Daily. SATURDAY, FEBRUARY 28, 1880.

Wairarapa Daily Times, Volume 2, Issue 401, 28 February 1880, Page 2

The Wairarapa Daily. SATURDAY, FEBRUARY 28, 1880.

In the present state of our finances, some slight enquiry into the position of the Sinking Fund is necessary, Perhaps half a-dozen men in the Colony are alone acquainted with the true position of this fund, The outside public know of it by name only. What the fund really means, and to what uses it is applied, are questions answering which we should be glad if the Colonial Treasurer in his next statement would candidlyand briefly refer. Under its present enormous indebtedness, the Colony has some right to expect from its public men a statement as to what measures are being taken, if any, to meet its liabilities. There exists a belief that the Sinking Fund in some way will see us through with the public creditor. It will be comforting to know how far this belief is warranted by facts. Sinking Funds, among older nations, has generally been appropriated to relieve the urgent necessities of Government at particular times. It is to be hoped that the finances of New

Zealand are above resorting to such a monopoly, In the United States-the Government and the people have determined to pay off their National Debt, and the.debt is being rapidly reduced, America does not, therefore, intend- to resort to the ruinous expedient of fund- \ ing its debt in perpetuity—an expe-. ■ dient that cannot help ruining the nations who have adopted it. ,As yet New Zealand has only anticipated its resources by mortgaging .its- revenues for a period .of years, and prpviding; ; a sinking fund to pay off its debentures, It has not yet perpetually mortgaged the revenue, Do we intend drifting into a funded position, or are we simply to anticipate our resources, and look to the Sinking Fund as the means of extricating us from our difficulties'! If! the position of the Sinking Fund merits our attention, colonies, like individuals, must eventually pay twenty shillings in the pound, or declare themselves bankrupt, History assures us that many nations, of greater importance than the Australasian Colonies, have declared themselves bankrupt. We do' not say that New Zealand is ever likely to do so, but our present position is hardly the twenty shillings .in the pound one. The Sinking Fund may, however, save us, if we only knew how it stood, where it was, and whether it meant Treasury Bills or golden sovereigns in an iron sate in the Treasuryroom. If the Fund is really a thing in esse, it is well that the public should informed of it, If it has been hypothecated, it is as well that they should know. It is whispered, with what foundation of truth is doubtful, that the race of Under-Secretaries is dying out. Is not, also, the race of Colonial Treasurers. The past set of Treasurers have landed the various Colonies of Australasio into a position of the highest possible indebtedness! Do these gentlemen intend to allow the finances of the various Colonies to drift along with hopeless indebtedness, or, having fairly inaugurated the policy of public works, would it not be advisable to apply the brake, stop excessive borrowing, diminish expenditure, and endeavor to treat Australasia like the Americims are treating the United States—place it in a sound financial position? This can never be done while the present system of reckless borrowing for a possible, but very possible, productive expenditure is being earned on. The present generation has no more right to excessively mortgage the revenues of the coming one, than had a father to cripple the resources of his heir, under the old law of strict entail. No possible method could be devised for crippling our resources, and restricting our power of accumulating wealth, than this high debt policy. It takes annually from us a sum which, devoted to beneficial reproduction,,would send continent and happiness into many a settler's home, Let us hope that the position of Sinking Funds will be enquired into, and that our own will be found to be enviable.