MR M. J. S. MACKENZIE ON THE STATE OF THE COLONY.

Waikato Times, Volume XXVIII, Issue 2336, 30 June 1887, Page 3

MR M. J. S. MACKENZIE ON THE STATE OF THE COLONY.

There are times 'in which a fall in the revenue is nothing, and there aro countries in which a much larger deficiency than ours is nothing; but, in the present circumstances of New Zealand, to my mind, it is a most portentous indication of evil. When, as is the case now, taxation without this increase presses heavily on every source, and dams up, as it were,, the very springs of industry, this fall in the revenue is a most ominous sign.' The settlers of this country have been struggling for several, years : past under, the greatest difficulties, and even a small increase, of taxation is a very important thing when a large; proportion of them* depend for their very solvency upon, the! prospect of a recovery of inflated values —values so inflated that- we caanofc' possibly hope that they will be recovered ! for'years, if, indeed, they are ever recovered at' all. I do not believe thosd values ever inflated by entirely artificial circumstances—by circumstances which] followed the origination of the public ■ works policy. Then, in 187!, the priced of the produce of the colony rose • phenomenally, so that what, but for the • public works policy, would have been real prosperity, and was real prosperity,: in the other colonies, was here, through the'in flux of tremendous sums of borrowed money, converted from genuine pros-: perlty'lrito inflation ; and I feel certain such inflated- values never will be recovered. Then," the colony is laboring under a . crushing debt, the interest :of which,'with the permanent charges,' take nearly two . millions' worth of our produce every year—a crushing debt contracted largely fur the construction of " public works which are still not completed, and ' which require ; great sums for -'their completion. |That, debt -presses on us with the utmost 1 severity at when the produce of this colony is lower in value than it has been, for a long series of years. And all this comes at a time when, rightly or wrongly,;the colouy stands_ confessed.Jbefore the whole world as a spendthrift tcolony,./ in the clutches of a spendthrift apod extravagant man, or a spendthrift and extravagant Government.And,- fill this happens at a time when there is-ffor I maintain therpis a' profound distrust of. business securities in New. Zealand ; a! distrust here, 'ijnd a •distrust ,of thein in other countries, have had,o,ccasidn to • know within the lasjb few days. : 'And yet; . further, our revenue collapses at.'a time! -when a great number of the capitalists of this country'wouldi like to clear f out; if they couM/to'some other ; and when very many capitalists who would fain come frOm other.-.: gountries to this make a 'pjt-udent" resolve to-stay 'Where they are.. At such a ti'm'ea fall in"the revenue such •■aej am -indicating cannot iba otherwise, ""than ; a vast} eyjl to New Zealand. And, , hpw;,'dor the government; propose to curd the evil ? Why, the cure is,'.here,- iii, thd Customs Duties Billl The people of Newj Zealand are, depressed because they are poor! and' the Government propose tq cure the depression byi making; therrj • Roofer. "They" propose to" add new -vburdens to' the people of New Zealand; and to add' th<?m principally to the work* ing classes.—Hansard. "