THE NEW EVANGEL.

Waikato Times, Volume XXXIII, Issue 2665, 10 August 1889, Page 6 (Supplement)

THE NEW EVANGEL.

VII-Taxation-(Part III.) After placing finance on a soundly economic basis, that is, after enacting those constitutional reforms which I have already in detail, indicated as indispensable and which, of course, include tho election of members superior to ignorance, self-in-terest, and the clam ours of clique - reforms which will necessarily ensuse finance being placed on a soundly economic basis —we may then hope—that the permanent and profitable settlement of our lauds, the development of our mines, and the establishing of manufactures will be main aims of the government—that population and capital will then flow in—that tho interests of wealth - producers will be preferred here to those of wealth consumers—and that tho country will bo fostered rather than the town. It will then follow that we do nothing which will impose avoidable burdens on land cultivators, mine workers, or wealth-producers. For ns regards land, taking the North for instance, I cannot understand how, under the most favouring circumstances, the Auckland Provincial Distriot is to progress except by very, very slow steps, and then only under far different administration from that now existing ; because the quantity of first-class land available for settlement in the hands of the Government is not at all large. And if it were, and confidence were restored, the current prices of labour, and the existing transit arrangements from most places, are, and will be, till rectified by immigration and necessity, simply prohibitory of profitable production. For wo must reineiiiberpopu - lation and capital regulate wages, inasmuch as the rates of wages depend on the relative amounts of population and capital available —on the proportion of the labouring population, and the capital, or other funds, devoted to the purchase of labour. How, therefore, we can be so insane as to persistently discourage immigration, and oppress and frigb'. en capital is beyond my unilerstiuidinir. Either we are demented, or political economy and history are delusion-''. h> sad evidence of it not now being profitable to cultivate laud here has been the ruinous

prices which have for a long time past ruled for country lands—wh;:», iinlccil, such hinds have been saleable at all. So in vo'-pu't of mining indii-tries, n'.«\ manufacture?, tin; bijb rates of waires. which have prevailed have oper:i(■'.<! mn>t disastrously not only cm the capitalist*, lirl on i'\r ivMi_'('"';inii'\" a!so. I* , .'" it i« h« Hi, mm • -)y t'l-i!, (■.■■ji-cijtlly I'erl.s !lio efl'vt (j! uiincues Hiiry or unjust taxation—whether it be property (a<, lairi t-ix, or othrr wipe— just a? it, is he that is ultimately umpired by cxartiiu; (■■ni;-.'iia: ily a hij;i)'.-r r;;tJ of wilt's than u;ipif\l can rifTorrl to pay. Thus, althouuh it i< to labour, and to labour only, tint mm owes c-verythiog jio -SHssed of exchangeable value, yet lab.'inr i.i port'crless without capital : so tiiat general prosperity durivcr-1 from the encouragement (;f population aad capital must, by rwison of continuous v.'orli, and reduced co<t of liviiif.', nlt.imalii'y prove to be far more lienelicial to the w«j<ecarning class than any temporary h;»h rate of wages. To think, as our If«i<>lators have evidently insanely thought, that capital will stand by and bear injustice without resfjitinj! if, is showinj.', indeed, ignorance of the theory and experience ; and it is this resentment we are now lar-

gely suffering from. The fallacy that, the exempted property classes—the largo mass of voters—are not interested in its repeal cannot be too strongly, or too often, exposed. It is quite the contrary Indeed, by reason of its disastrous effect on labour no class is more interested in the repeal of the property tax, or any tax which specially effects capital, than the working man. Legislation, therefore, and especially as itffectinir this district, requires the greatest caution ; and it is incredible that not only capital but labour have for so long complacently stood by with arms folded, and seen before their eyes tho values of properties destroyed, the employment of capital redored unprofitable, ami, there-

fore, tile engagement of labour made impossible. IE only a few gross criminal outrages liad been committed during tlio same time t.hsre would have boon a. cliviul fill huUaballoo, it being forgotten that. nothing is more disastrous to the moral fibre than poverty ; for poverty demoralises, and the chance of integrity aro thus frightfully diminished, and, therefore, nothing is so prolific of crime. The ignorance and selfishness of our public men prevent their recognising that it is much easier to prevent than to remedy ; whilst our iuertiic can only bo explained by reason than habit blunts perceptions.

Does the Premier require further proof? Docs he need to be reminded of how, by his property tax antics, the inflow of men and money has been stopped, and their

outflow rendered a. necessity—of how enterprise's have thus been extinguished and employment thereby destroyed—and, in consequence of the tax and its effects on capital and labour, how the market value of property has been practically annihilated, and beggary and emigration forced upon us ? If he docs require or need such further proofs or reminders, then I say to him— "Si inunumen tuiiiqicitrif, circuiuspift! ,.

HAXKKtr L'TOY—BESTITUTI ON—3IISERV — KXUW'S He may, indeed, truly lioast — " EXECiI MONUJtKSTIT.M M'-Uu I'KRENXI ITS." But a monument which will be a perennial testimony to political incompetenoo and folly. It sterns to me not only unnecessary but fraught witli folly to discuss a land tax and income tix in place of the property tax. For to discuss is to admit, a necessity to tux, which, of course, I deny. Therefore, whilst well knowing , that it has been said. " that there is no tux the principle of which has been more widely accepted and adopted thiin a land tax," I refrain from entering upon tbo many objections hero to eithet— -cuch up, for instance, the erravo effect which such imposts would inevitably have under present circumstances of immigration, capital, and labour. And in the ease of the income tax, the especial objection to it on the ground of its discouragement of the accumulation of capital, and its tendenoy, therefore, to dutor industry. The present ludicrous spectacle of the Opposition iuitiating—what is virtually— a strua-u'le for office, under the pleas of changing the incidence of taxation, and of checking the Government, is, I fear, only a practical ropotion of, and reliance on, tho wellworn platitude that mankind consists of rogues and fools — mostly fools. For such a change could ouly be the difference hetweou strangling and thiottliup. And the recent voto of tho Hon. Mr. Ballance —Leader of tho Opposition—Elected Censor of the Government —in favour of the J Dr. Macgregor £1200 salary agreement is, iudeed, a curious inauguration of puritan retrenchment duty.

An I have already pointed out, tho initiative fcuxc-ition reform just now needed, is reduction of current expenditure by at least £1,500,090. enabling the sweeping away of the property tax (£'J70.376 l'-N 10d—£20,000 —see recent Financial Statement), the last session duties (£103,006), and otber imposts to liie extent of at least £951,4:23 7-* 2d. This, as I havo shown in detal, is easily practicable for resolute lumeet men. ]!>it as I have also proved by my previuus articlesa aud cliuohingly by u specific reference in the 2nd part of this r.rticlo to tho recent Fnancial Statement, it is useless to expect anything substantially satisfactory from the present House.

The ranin cardinal principles which after a radical reduction of current expenditure, aud therefore existing taxation, should be applied to tho Colony whenever a Treasurer demands new taxation are — 1 Disbelieve him ; if he persists 2 llenwvc him ; and appoint a successor, on tho distinct condition that he is to rerotronch—not tax—and that taxation is to be abhorred, and only resorted to iu the last extremity. For to tax is to fotter.

3 If noltrithbtumlinri tho foregoing precautions, it be found that a certain measure of further taxation is unavoidable, then tax so that population and capital may not bo scared, and labour thereby injured ; which virtually means that a far greater proportion of indirect taxation —Customs and excise—should be resorted to meet the special circumstances of the Colon}- —than would otherwise be advisable. In other words, in view of the unsound condition to which bad legislation aud administration have brought us, taxation has latterly leaned too heavily against property rather thiui men. •I. In tiny event, fellow here tho canons of old country economists as minor, instead of main, guides ; and 5. Be must careful that there bo no friction iu assessment, or collection ; for an otherwise unobjectioual tax may thereby become obnoxious.

It has been amusing to notice from timo to time during , tho recent recess, the remarks of the Wellington correspondents of tho Auokiind press and tho articles in the New Zealand Times, all of which one cumot but shrewdly euspcut are inspired, —how there is an undoubted surplus of far more than even £50,000 —indeed it Ims mounted to even i'77,S2S—how the Treasurer's anticipations have been more than realised, and therefore what a wi<c prophet and able admistrator ho has proved to be —how "that no vast a reform .should have been effected ia a matter upon which the people of this colon} 7 may with reason congratulate themselves"—how even the property tax may, thofore, be possibly modified—and how tho Financial Statement is to bo most encouiv.-

gin.a , . This looks very like tho old, old foxy game looming , up again—humbug and surrender of principle (o retain ollice, For tho Financial .Statement shows that this £77,828, or rather £77, 769, is simply the amount unexpended, of the sums authorised to be expended, not a legitimate increase of rovenue ; iu other words, an amount which, I presume, has been iuningcd by the Piemiev should bo unexpeuded, perhaps only temporarily, in order to make the Financial Statement look better.

The mode of cnlcnTatiiirr savings indulged in iiy Kiehaicl Carstone in "Bleak House " nnturally suggests itself. So in tin; c-ihc of the prop, rty-ti.v, for if It has nil t'i" virtue, that the LYcinier so loudly vaunt.?, lie must, to Ijo consistent, consider lli.it grave injury would b<: inflicted on the Colony if hi! yicliit.'il u<'cn a limb of his [iet child to popular clamour. " The wiso ni.iii, however, waits not to I) 1 ., tiiu sport til niuii, or of measures, but anticipates the inevitable ; and he therefore, possibly, is commencing tofi'ar that the insistence of the property-lax will imult in his surviving his own wake, and overhearing the judgment of posterity, for it is notorious tint lie loves oHice ns a linipi't loves t!io rock ; and I fear that Cardinal Mazirin's exclamation, " lit il /'.ml ijmtltr /mil <-<:!«, . r, is ever present with him. It would be Jam afraid, in-dr.-.d idle to ivniihd him of what was said as relating to Sir Robert Peel —"The really essential thing is that be should have a deep and determined feelinu that possession of office is utterly worthless if it is purchased by concessions aud comparison?, which hie reason condemns, and that he should enter on the Government with an unalterable determination, and stand or fall by the principles he professes"; or that " the lirst thing is to be in the right, to do nothing unbecoming or unjust, but with right and propriety Oα your side be as /inn as a rock," But as he satisfied ho is right, ho should necessarily bo firm a3 a rock, notwithstanding that ho, removed from tbo suiinhino of olliw, may feel as u camel in the snows of Lapland, or a reindeer in tho ftiudri of Arabia. A truce, hmvovcr, to siiuh fooling : for to entertain the idea that the Premier will pursue any such consistent course would, I expect, indeed be fooling , . Wβ cannot, however, afford to tolerato longer men who somersault, or who may be capable of it. llcculer pour mieu.v tauter is a coup the Premier muvt reserve for oth<T hunting grounds. "It j s itlle, however, to ba angry with people of this sort. They do after their kind. One might as well blame a fly for buzziug. ,. All sops with which Sir Harry Atkinson may inspire the Press—oven if true —it were waste of tirna to comment on ; nor do I even hope, or wish, that the Premier will turn over what I have written "in I presume, ho is pleased to call his mind." For I am satisfied, not only that hi.s Premiership has eclipsed the gaiety of New Zealand, but tlint ho long , as he enjoys even tho shadow of power, so long will the colony never enjoy even the shadow of prosperity. Indeed, as I have already pointed out in Part 11. of this article, if further proofs were wanted, tho recent Financial Statement itself proves how hopeless it is to expect from tho preseut House, any material reduction in expenditure, and therefore any substantial alemioratioii of taxation, or any well-con sidored attempt by promoting , wealth-production and fair legislation to place the colony— after tho requisite financial reforms have been effected —on tho high road to permanent prosperity. Truly worse than hopeless; for the Otatro Central Railway reference therein is, I fear, clearly a district sop, in any event involving a huge unjustifiable outlay, and thus unmistakeably shadowin" forth a new loan and fresh taxes. Nothing, as I have shown, but a complete of men, and stern contitutional reforms can save us. It is only thus that the preseut ruinous epoch of incapacity, intrigues, and subterfuges can be ended. It is ouly thus that we may enjoy " the most precious gift of Heaven to nun—Hope " 11. Lai.sih.kv, LL,D., Ph.D., M.A, &c. Note.—Of this article I would say of it, as Pascal said of his 18th letter, "I would have made it shorter if I could have kept it longer."