The Westport Times. AND CHARLESTON ARGUS. In the cause of Truth and Justice we strive. THURSDAY, JULY 6, 1871.

Westport Times, Volume V, Issue 834, 6 July 1871, Page 2

The Westport Times. AND CHARLESTON ARGUS. In the cause of Truth and Justice we strive. THURSDAY, JULY 6, 1871.

The financial statement, presented on the 27th ult. to the Provincial Council of Otago, showed a deficit of nearly £65,000 upon the estimated revenue, and an actual deficiency for the year just ended of £54,228. A falling off was exhibited in every item, but the deficiency was chiefly dne to the decrease in revenue derived from Crown lands. The bank overdraft incurred in anticipation of revenue accruing amounted to £81,995. The ensuing year's revenue is estimated at £287,896, being £40,000 less than last year, and unless the revenue is largely added to in the future by the sale of lands there wll be a considerable deficiency annually. Such is the position of the flourishing Province of Otago. Turning to the Province of Wellington we find its financial difficulties wear a much more serious aspect. The total amount required for the current year, including all liabilities, is £72,-438, while the estimated revenue fromj all sources is only £34,256. Mr Fitzherbert proposes to meet this alarming deficiency by direct taxation for roads, bridges, education, and other purpose?, and by establishing an alteration in the financial relations between the Colonial Government and the Provinces. He contends that as the Colony has assumed the entire control of the customs revenue, the expense of collection should be entirely defrayed by the General Government. Mr Fitzherbert refers to the substitution of a fixed capitation allowance for the Provincial share of the consolidated revenue previously paid to the Provinces. It is very certain that under the new arrangement a larger share of the revenue is devoted to general purposes than previously, but no long as the Provinces are annually in receipt of moueys from the General Government for local disbursement, whether in the form of a capitation allowance, or as their share of the revenue collected in each province, we cannot but admit the justice of a fair share of the cost of collection being debited to the provinces. The immediate effect of any alteration in this system would be merely to transfer the entire expenses in connection with tae Customs Department, to be defrayed out of the

colonial revenue, and this could cnly be effected by increasing the already heavy colonial taxation. The inability of some of the provinces to continue the control of their own affairs has become so apparent that the only solution of the difficulty would appear to be to relinquish their management to the General Government. The continuation of Provincial institutions in the present condition of the colony is both costly and unnecessary, and has already in several instances resulted in disastrous failure. To maintain these absurdities additional taxation is proposed. Heavier burdens are to be imposed upon the more prosperous sections of the community in order that the Provincial farce may be maintained for a few years longer. The land fund in many of the Provinces having been for the most part absorbed, and in others vastly deteriorated as a means of revenue, railways are to be constructed with borrowed money that th« land may increase in value with their construction. No effort will be wanting on the part of those favouring the continuance of Provincialism to maintain the system in its integrity, and so many members of the Legislature are directly or indirectly interested in the perpetuation of a double form of government, that the removal of the evil must be attended with much difficulty. The time has arrived, however, that the question should be dealt with resolutely. Already Wellington seeks a renewal of its lease as a province by means of direct taxation and a loan of £ 100,000; Southland long since hopelessly insolvent has annexed itself to Otago, and, even this latter Province —in spite of its magnificent land fund and unparalleled mining and commercial prosperity—shows symptoms of financial embarrassments which are sought to be relieved by a colonial public works expenditure, and the transfer, to the Colonial G-overnment, of the expenses of administration hitherto charged proviucially.