Thank you for correcting the text in this article. Your corrections improve Papers Past searches for everyone. See the latest corrections.

This article contains searchable text which was automatically generated and may contain errors. Join the community and correct any errors you spot to help us improve Papers Past.

Article image
Article image
Article image
Article image
Article image
Article image

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and excat Justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, JUNE 2, 1892.

Tuk report (if tho lute Hon. Mr Mo Arthur's address to iii« constituents is to hand, and as the late member had tho reputation of being' tho best authority on finance in Parliament his opinions are worthy of caretul consideration. Before proceeding, however, to consider Iti.s speech in that regard it is well to draw attention to what he said in reference to the boasted progress in land settlement for which all the inotnbors of the Ministry so persistently claim credit. Speaking of the Laud Associations, to which is due the great proportion of the apparent progress, ho said: " Noue of the lands has been surveyed it seems, and a mere land gamble has been introduced ; men pay 15s or £1 to join the association, and if the result of the draw is a good section, the lucky winner sells out, if a bad section he forfeits his trifle and goes out." It will be in the recollection of the public that we made this same statement some months back, and were contradicted by the Minister for Lands in the most unblushing manner in the couise of his speech at Te Aroha. Mr McArthur represented the district in which the association trick has been worked more than any other, and was speaking to an audience thoroughly informed on tho matter, so that his statement must bo accepted as accurate. If Mr McKenzie did not know of the abuse of the system he should have done, and if «knowing of it, lie denied it from the public platform his conduct has been such as should make him " ashamed of himself." It is hardly necessary, Mr McArthur being an authority on finance, to state that he demolished the—in a financial sense—childish statement of the Premier that as there was a large amount on doposit in the banks the country could afford to allow those who were withdrawing their capital to do so, as it would afford a chance for these spare millions to find investment. The most shallow-pated tyro knows perfectly well that a large bank balance in favour of the public, in a young country like this, is evidence of a want of enterprise, or want of confidence in the stability of affairs. The figures for the three Australian banks by the latest roturns were:—On depesit. £6,074,000; advances, £4.599,780, leaving a balance of .£1,474,220 of the New Zealand money to be used in the development of the other countries in which the banks transact business. As regards the incidence of the proposed taxation, Mr McArthur pointed out, as wo have frequently done, that the landowner is to be more heavily taxed than any other class. We quote his words, " The tax on incomes is Is in the £ while on a five per cent, basis a farmer would pay Is Sd in the £ on his income. An income of £300 a year is exempted altogether, on a five per cent, basis this represents £6000. A man with a capital of £0000 escaped altogether, whereas the farmer escaped with only £3000 of his capital." To illustrate the case he supposed that two men came to the colony with £8000 each. The one invested £600 of his capital on deposit which produced him five per cent, and with the other £2000 builds a hous3 and furnished it. He would escape all direct taxation and could at any moment withdraw his money and leave the permanent colonists to fight the battle. The othor man puts his £8000 in land. Buys a farm of the unimproved value of £3000, spends £3000 in improving it and with the other £2000 builds a house, furnishes it, and procures stock. He probably finds it necessary to borrow £1000 from the bank in the shape of an overdraft. What is his positior. 1 He has invested altogether £9000. He is not charged on the amount invested in stock, implements, etc., say £2000, and he allowed £3000 for improvement; but he is taxed on the £4000 balance, because his overdraft not being a registered mortgage cannot be deducted. In reference to the exemptions under the Land Tax the speaker said, " The exemptions for the whole of the colony were estimated by Mr Ballance at £60,000 ; of that £60,000 the cities for their improvements get about one half on a rough estimate, so that £30,000 was the total exemption given to the producing classes. Then again four-fifths of the personalty of the colonists exempted under the Act was in these cities, and the farmer got about one-fifth. Take again the proposed postage remission, estimated at about £60,000, quite fourfifths of this would be a remission to the mercantile classes, lie thought this would show that when Mr Ballance posed as the farmers' friend, it certainly was not in the matter of taxation that he showed his friendship. The main bulk of the exemptions were granted to other classes than farmers, who got off with £3000 of exemption of improvements alone. Even the small farmers who have mortgaged, and escaped the direct tax, were lifting called upon as their mortgages fell due to Day a higher rate of interest in consequencc of the ministerial policy. He asserted from a wide knowledge of the fact that capital was being withdrawn, and to a very large extent. From his own knowledge he asserted that interest had gone up between half and one per cent, and he would not guarantee that it was going to stop there. The floating money of different enterprises was being taken and injury in consequence was being inflicted o i the wage earners of the colony." This is little new matter in the. speech from which we have quoted so largely, in fact most of ihe arguments have been urged from time to \

tiiiK! in those i.-oluuins, but as .Mr .MeArthur from his position and well known ability was acknowledged on all hands to lie rut authority whose opinions were entitled to the greatest respect, it is well that the public should have tho wholesome l()s.-;'iii tifinin imparted to them in his own words.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/WT18920602.2.7

Bibliographic details
Ngā taipitopito pukapuka

Waikato Times, Volume XXXVIII, Issue 3102, 2 June 1892, Page 2

Word count
Tapeke kupu
1,039

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and excat Justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, JUNE 2, 1892. Waikato Times, Volume XXXVIII, Issue 3102, 2 June 1892, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and excat Justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, JUNE 2, 1892. Waikato Times, Volume XXXVIII, Issue 3102, 2 June 1892, Page 2

Help

Log in or create a Papers Past website account

Use your Papers Past website account to correct newspaper text.

By creating and using this account you agree to our terms of use.

Log in with RealMe®

If you’ve used a RealMe login somewhere else, you can use it here too. If you don’t already have a username and password, just click Log in and you can choose to create one.


Log in again to continue your work

Your session has expired.

Log in again with RealMe®


Alert