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Waikato Times, Volume XXXV, Issue 2863, 18 November 1890, Page 2

TnE only matter which calls particularly for comment contained in the address recently given by Sir G. Grey is his proposal to charge an income tax on the bonds of the colony. Those who aro in the habit of calmly considering the affairs of the colony without being influenced by sentiment have long sinse ceased to attach much weight to the utterances of Sir George. His oratorical powers are unquestionably of a high order, and as a natural consequence he is often enabled to carry, politically speaking, tho uneducated and half educated within tho boundaries of impossibility. Ho appeals to their selfishness and holds before their ayes u. policy which shall benelit those who aro poor, utterly regardless of tho fact that wore that policy given effect to it could only bu by taking from others the advantages which they may havo acquired, uitlior by the investment of their capital or judicious application of their tiuenlN and industry. Ho pur.sistontly holds such men up to tho obloquy of those he drags at his chariot wheels by moans of specious statements given exprossioa to in choico language and wpll-turnrd fsentoneos. We advisedly usn tho torni statements for it is seldom indeed that ho condescends to particularize, or trace the probable effect of his proposals upon those who aro to be tho victims.

ISo long lms Sir Gt.'orgo )il:iycil on fhis one string of ihf j)lii.tfonu"fiiMlc, Mint", tho l.inio has beroiuo monotonous iind lmusiioiis lo Ilic sciisi'M of thu LliinTciiif? iiml i'.onsi:it:ii(ious. V\>v (Ilis rr'iison we should no(- liavn riotircd liis iveent utterances at all wx-rc it not

that he proposed to t:ix the holders of New Zealand bonds, and that such a proposal, if not commented upon, is calculated to bring discredit upon us as a people, and injure us materially by preventing the carrying out of future transactions on the London money market. Let us not be misunderstood ; we do not hint at the contraction of fresh loans, as there is no question that tho people of tho colony are determined that we shall henceforth livo wi'hin our moans. They would, we are confident, turn a deaf ear to the song of the most plausible Minister who might make the proposal, even were it made with all the tiloqueiiue of Sir George Gri'y himself, They would do more than remain passive, they would oust that Minister and his colleagues from office. We as a people have determined to " whip the cat " and so continue tho process until our finances arc once more in a sound position. The future transaction, wo allude to is tho completion of the conversion of the balance of our loans, )i process which has already saved the colony a large sum annually in consequence of tho reduction in the rate of interest.

Sir Ge*rgo stated thut to tax the bondholders would only be following in the footsteps of every other civilized people. This is an error, probably an unintentional one; in no instance so far as we have boon able to ascertain has this been done. It is true that Spain, some of the American states and Central American Eepublics have failed to moot their engagements in full, but in no instance has it been urged that the deficiency was a just or legal penalty on thoso who were unfortunate cnousch to hold their securities. Let us look the case fairly in the faco. We borrowud money and agreed to pay a given rate of interest, which variod according to the date at which the loans were contracted or the state of the money market at the different periods. We assert most emphatically that it has never been the custom of solvent and respectable states to treat their bondholders in tho manner Sir George Grey proposes. Those who lent us their money on the grounds that we were a respectable and honest people could not therefore possibly have contemplated any such action on our part.

We must not allow Sir George Grey or any other man to filch our good character away from us. That wo have expended much oi the loan money foolishly, and that much has vanished by submitting to unquestionable "jobs" cannot bo denied, but ours was tho fault, and wo only should be tho sufferers. To turn round, as Sir Georgo Groy has done, an-J argue that in consequence of these errors of ours we are justified in abrogating agreements entered into, with full knowledge of tho consequent liability, is neither logical nor honest, but is nevertheless very much in keeping with some of the othor proposals of the ex-Governor and unsuccessful politician.