The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, JAN. 28, 1892.

Waikato Times, Volume XXXVIII, Issue 3048, 28 January 1892, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, JAN. 28, 1892.

In a former issue we commented on the first portion of the statement of the Premier in vindication of his new taxation scheme. We now conclude our lemarks on this subject. Mr Ballauce claims that taxation will in future fall with the least weight on all moderate sized properties. This statement is another instance of the insincerity and want of candour for which Mr Ballance is noted. If it is the intention of the Government, as the Premier has declared it is, to make the land bear the whole burden of taxation as soon as it is possible to do so; how can it be claimed that taxation will fall more heavily on some portions of land than on others. Assuming that the graduated tax has the effect for which it was avowedly created, of bursting up the large estates, what is the position when this has been accomplished? The extent of land in this, as in every other country is limited, and is not capable of expansion at the caprice of a Government. If then the land is to bear the whole taxation of the colony, how can the Premier witn any colour of reason say that under his proposals taxation will fall with the least weight on all moderate sized properties ? On the question of capital for investment Mr Ballance is particularly entertaining. He tells us that so long as capital can obtain the amount of interest it seeks it is not particularly sensitive about anything else. This is startling intelligence certainly. We should have imagined that the first thing investors looked for was adequate security for the money lent and were usually contented with a moderate rate of interest, if there was a good margin of security for the amount invested. Unfortunately, this important factor of landed security on which money has been advanced is being so severely weighed with taxation that the element of value is exhausted out of it. Well may capitalists take alarm, when they see a vindictive tax placed on their securities, and are further promised that at no distant date the whole of the selling value will be taxed out of them. Under these circumstances, it is a grim joke to enquire why capital should be sensitive. We feel that if Mr Ballance, when he invests his money, looks only to the rate of interest, and pays no attention to the nature of the security on which ho lends, he will become a poorer and, we hope, a wiser man. The Premier next states that the welfare and prosperity of New Zealand depends upon the flourishing condition of her industries. This is perfectly true. In the face of this expression of opinion, however, Mr Ballance does not deem it inconsistent to attack the most important industry iu the colony, namely, that of agriculture, with a heavy impost of taxation, and, as wo have already remarked, with a promise of a single tax on land. The statement bristles with inconsistencies, and taken in connection : with the utterances of other members of the Cabinet, one is led to the conculsion that the Premier has ■ no intention of attempting to put into effect many of the proposed charges and throats that have been ; made. In speaking of the fluctuation of capital, the Premier cites fcho flax industry as an instance [ of the flow and ebb of money. Ho states that capital flowed into ' the flax industry for a time until ' the price foil and then tho mills wci'o shut down. So long as indus? tries were prosperous capital would follow them. We do not think Mr Ballance is very happy in his in- : stance of the flax mills. If the 1 same obtains in nil other industries "u.s ¥i' claims

'in' it dons, wo havo only t«> wait until by reason of taxation find (riivi'i'iunfiiit, competition in 11 to labour market, tlio agricultural industry 'lot's not pay and tlio farms will bo shut, down liko the flax mills. Tlio Premier concludes by saving) there lb no reason to distrust Uio futurn of New Zealand. _Wo ontirely concur with this opinion

uid feel that there is no good reason "or public despondency in regard :o tlio future of this line colony,

notwithstanding its mis-nifinago-mcnt. There are, however, many causes which militate against its more rapid progross, and chief amongst these is the class legislation introduced by the Government. To sot class against class is a fatal mistake in the government of any country. New Zealand has to thank naturo far more for her returning prosperity than any government. The colony could not have recovered so rapidly from the extreme depression into which it was cast by over borrowing and reckless speculation but for the great natural advantages of its fertile and well watered land, its mineral resources and its power of production. It would be by far wiser to learn nature's great lessons and allow the natural law of supply and demand to regulate the labour market, the manufactories and the land question rather than attempt to adjust these j matters by legislation of a dangerous and highly experimental character.