THE PUBLIC, ACCOUNT.

Waikato Times, Volume XV, Issue 1291, 7 October 1880, Page 3

THE PUBLIC, ACCOUNT.

The statement of receipts and expenditure of the Public Account of New Zealand for the quarter ending 30th June last, shews under the heading "Consolidated Fund Account" receipts amounting to L 790,846 ss. 4d., and expenditure L 892,0 12 os. 5., leaving a debit balance for the quarter of L 101,155 15s. Id. But for the financial period. 187iJ-|9, en,ding 31st March last, there was a deficit carried forward of L 69,418 12s. Id., and of such. amount we; find in: the June account, under the heading " Liabilities of 31st March, 1880, since paid — permanent appropriations!? Various items amounting to L 37,679 3s. 6d., and also annual appropriations L 2 51,043, 2s. 2d., making a total of L 288,719 ss. Bd. Omitting these items and taking the actual net revenue and expenditure for the June quarter, the figures will, stand thus :— Receipts, 4,790,846 ss. 4d., "and" expenditure, X603,^92 14s. 9cL; credit balance, L 87,553 10s. 7d. So 1 • for the figufes are" satisfactory, as 1 , jjhowhij^that!, in cothuiercial parlance the 1 -financial year 1880:81 haa opened well! But it js doubtful Whether this improved , aspect Of affairs Will continue, seeing that the.,increasef .of revenue has been arrived fx by forced means, or from exceptional causes.. For instances tlfe'iriSVe'n'ue raided by; taxation dunng the quarter (customs, stamp r land tas, and beer tax}amounted to L 379, 805, and which, if maintained for the year, will give L 1,519,, 51 9, 220, as compared with L 1,087,546, 087,546 the amountaccruingfrora the same source during the financial period of nine months, eliding 31st March. But receipts for services rendered (railway, postal, telegraph, land transfer, etc.), represent for. the quarter L 288,441, or at the rate of L 1,153,764, 153,764 for the year, as compared with L 1,962,156 from the sanle source for the preceding nine months. Again, territorial revenue and miscellaneous recoveries give for the quarter LI 14,035, or at the rate of L 456,140 for the year ; and herein there is, apparently, a very marked improvement, as shown by the following comparative figures : — Financial period ending 31st March.— Land sales, L 98,608 17s 3d ; depasturing licenses, rents, etc., L 54,625 15s lOd; miscellaneous, L 1873 9s 4d; miscellaneous revenues, £16,493 10s 2d — total, L 171.601 18s sd. Quarter ending 31stMarch, 1880. —Land sales, L 48,579 14s 4d; depasturing licenses, rents, etc., L 64,346 16tf Id ; miscellaneous, Ll2lO 0s lOd— total, L 114,136 11s 3d. In the current and ensuing quarters of the year 1880-81, the item depasturing licenses', rents, *etc, will, presumably, stand at a comparatively insignificant t figure, the bulk of such revenue 'for the year being already collected, and the revenue frqm land sales is dependent, upon so many fluctuating causes that it would bs, unwise to calculate on the present satisfactory comparison being maintained. Admitting the bare possibility of gold revenue, licenses, and fees, added to local taxation, being' 'sufficient in some measure, to satisfy the requirements of local bodies, it is yet certain that present and prospective revenues show no reliable source of progressive relief from colonial indebtedness. It is true that, as a set-off to the public debt of the colony, a sinking fund slowly accrues, and which, as shown by the last Financial Statement, amounted on the 31st March, to L 1,805,498, 805,498 : but what is that compared to an indebtedness of L 27,422,611, and with the stern facts to face, that between the present date and December, 1882, debentures and Tresury bills to the amount of L 948,600 will have to be redeemed or further provided for, and the following amounts thereafter :— In 1883, L 20.900 ; in 1883, L 6200 ; in 1886, L 13,500 ; in 1889, L 5,000,000. It is very evident that the sinking fund has not increased in equal ratio with tlio public debt of the colony, nor can it possibly do so unless additional means arc devised and further security given that it will not be operated on, save for the specific purpose for which it is established. In connection with this subject it is worthy of note that Tasmania is making brave efforts to achieve financial regeneration. The population of that colony owe a public debt *>f about LI 5 17s 6d per head, a mere bagatelle compared to the New Zealand debt of L5l 13s 3d per head. The Tasmanian Colonial Treasurer recently had the satisfaction of showing a surplus of revenue over expenditure, and besides providing current ways and means he has shown how, under careful management, the deficiencies of former years ma^] be extinguished. According to latest advices, he proposes a plan for the redemption of the colony's debentures, thus taking time by the forelock and getting rid of both principle and interest of indebtedness. He proposes to do this, not by special taxation, but by the revenue yielded from the land itself. There is at command in the Tasmanian Treasury a reserve fund "of about L 46,000, which has accrued bidder the operation of , the Waste. Lands Act, and this is augmented year by year to the extent of L6OOO or L7OOO. This he proposes to make the basis of a sinking fund to be managed by three unpaid Com mis sioners, who will invest it in Government debentures, in other words buy up, bit by bit, the debt of the colony. He proposes to pro-

HlllJ^l I■ I ■I II ■ ■■W^-BT-lt 1.1 M — L. . r ■■-■Ty^jp-- rrnt I !^!'^^^ tect the fund by special legislation from being appropriated to any other purpose, and by appointing trustees bound to inrest it at interest for the one specific object aimed at. The plan presents every element of feasibility, and should be found capable of wider adaptation. For instance, here in New Zealand, unless some plan for augmenting the sinking fund is perfected and persevered in, uninfluenced by any pass- ■ ing financial emergencies, the public debt will never perceptibly decrease, fasmanians submit to a taxation of L 2 2s. 6d, per head per annum ; in New Zealand, it amounts to L 3 4s. i4,d., the [ preponderance being accounted for by the heavy amount of interest constantly accruing on the $ew Zealand loans. But, on the other side, official returns shew that the | value of trade per head of population [ is but L 23 per year in Tasmania, as compared with L3l 10s. in New 1 Zealand, and the whole area of land ' iff Tasmania is but 26,215 square miles, compared with 105,342 square miles in this colony. The greater i^moijnt of', trade should give a greater amount of average earnings atflong ~ilie community, and this, coupled with tne wider area of land open for purchase and settlement, ,^houlc( show' a proportionate increase of land revenue, out of which provision" may be found to gradually ease the crushing burden of public debt. With an annual liability of L 1,453,445, 453,445 sterling as interest and sinking fund on borrowed money, and a revenue which, for 1879, only amounted to 1.3,134,905, and an estimated eipnnditure for the current year of L 3,198,709,, 198,709, there is no chance of decreasing indebtedness except by specially devised measures many strides in> advance of present efforts. Either this or, some day repudiation.-—- '&. Z. Times.