The Waikato Times AND THAMES VALLEY GAZETTE. SATURDAY, MAY 26, 1888.

Waikato Times, Volume XXX, Issue 2477, 26 May 1888, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

SATURDAY, MAY 26, 1888.

Kqual and exact justice to al! men, Oi whatsoever state or persuasion, religious or political.

In the House of Representatives on Wednesday, Mr Monk, the member for Waitemata, put the following pertinent questions to the Premier :

1. Whether the Government do not consider that the diminished revenue, of our railways and the general shrinkage of our resources, arising from the lowered prices of produce aiul other causes, sufficiently indicate that the colony is unable to bear increased taxation for-the purpose of meeting interest upon the further unproductive expenditure of borrowed money ?

2. Whether it is not their opinion that prurience demands that all works specified in Loan Acts which are not now contracted for, should be suspended until the financial condition of the colony is more elastic than at present ?

o. Will the Government bring down a proposal that all borrowed monies, which can be freed from existing engagements, be invested for twelve months, and that next session the House be invited to consider whether such monies shall remain in further abeyance or not'!

In his reply, Sir 11. Atkinson evaded tho first :uid last questions, and was very ambiguous in his reference to tlio second one. The Premier said, curtly, that "theCovernment would abstain from unproductive. expenditure of borroweci money as far as possible." It would be interesting to learn whether the Premier is aware that his reply is a virtual admission that he is spending borrowed money in an unproductive manner, and that if lie cannot expend it productively all other borrowed money will continue to be be spent unproductive!}-. Mr Monk's questions possessed a measure of very great importance in them, and deserved far more notice than the Premier felt himself in a position, either by disinclination or by necessity, from according to them. But there is no doubt that in putting forward liis questions, the number for Waiteniiikt, v.-:is expressing the anxiety and views of a majority of the people of the colony. Public opinion is decisive in the belief that we have been going the pace far too long, and that it is absolutely necessary to put the break hard down. The excessive taxation is more severely felt than ever, not only through the, decrease of railway revenue and general shrinkage of our resources, as Mr Monk says, 'out also on account. of the diminution oc the taxpaying portion of our population who are deserting the colony. It is an open question whether there is a possibility of any portion of the meditated new loan of two and a-half millions being unappropriated. Judging by Sir P. Whituker's expressions in the Council, tho greater portion of the money has already been encroached upon by hypothecation for unproductive works. All the past bravery about retrenchment and economy will go for nought if the .House docs not out its foot down in an unmistable manner on every species of extravagance. 'Surely the turning point of our ability to bear increased burdens without collapsing has arrived ! The huge indebtedness of tho colony cannot keep on growing much longer, at the sumo time straining at our very vitals to obtain the heavy interest that is sent out of the country every year. A recent return of our assets and liabilities, laid before Parliament, shows that the colonial debt, tho indebtedness of corporate bodies, and the amount of mortgages, reach the enormous total of £89,1'J I. Of this the immense sum of -£02,518,000 bears

an annual charge for interest paid to out' foreign creditors, or, in other words, a.sum amounting to upward;-: of four millions of money is drawn out of the colony every year for interest alone. liii; is the weakest spot in our economic (liliioulties, and is the primary cause of the gener.il depression. Our debt has bewi compared with the English national debt in our favour, inasmuch as a large proportion of our indebtedness has been incurred in building railways, telegraphs, etc., which, in the Old Country, «n - c not owned by the State. It is, therefore, argued that with our boundless resources, the debt should actually sit lightly on our shoulders. But it is forgotten that the British people arc their

own creditors, not a penny of their revenue leaves tin* conn try to pay interest to foreign bondholders, and their debt, vast as it is, is in reality a source of wealth to them. Were we in the same position ; had wo no foreign creditors, inexorable in their demands for the regular payment of interest on the large s.uins they have lent us, we also might look more clieerf u lly at our own debt,trade would !:e elastic, mid the spirit of enterprise would not be crushed out of us by heavy and increasing taxation, ft is there wherein lies all the difference.