The Waikato Times AND THAMES VALLEY GAZETTE. TUESDAY, JUNE 21, 1892.

Waikato Times, Volume XXXVIII, Issue 3110, 21 June 1892, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

TUESDAY, JUNE 21, 1892.

Equal and eiact justice to all men, 01 whatsoever state or persuasion, religious or politic.il.

The Hon. Mr Seddon in the course of his speech at Te Aroha said: " He claimed, nay demanded as a matter of honour and justice that they (the Government) should be granted a fair trial, in order that their policy should have a fair test." His claim is a fair one and should be granted, for the reason in addition to those he has urged, that a change of policy at the present time would be injurious to the colony, and we believe that if detaile were amended in somo directions that that of the Government is calculated to bring about a stats of prosperity which under the Atkinson regime could not have been looked for. The replacing of the Property-tax by the Land and Income-taxes as a fiscal principle is unquestionably correct. There is no objection to the Land-tax except its exemptions and graduation and as we have pointed out lately the Income-tax does not impose an equal burden on capital invested in other ways than in land. What we complain of in the Land-tax is that it is not imposed upon all land, the assessment being on the value less improvements and to the graduated scale as being a breach of faith with those who purchased largely in the early days, and werf, then lojked upon as public benefactors for so doing. Capt. Ruasoll in speaking to his constituents the other day put the case as follows : —" Hβ held that all exemptions were wrong, so long as the great bulk of the people were heavily taxed through the Customs. It was no equality of scarifice to exempt one man with a comfortable income from property and impose grinding taxation upon those dependent on wages. Before there should be any lightening of the burden on property there should be enoracud reduction in the taxa-

tion through th« Customs on the tincfwsaries' of life. Hβ would like to see. direct taxation materially extended." We have put this argument forward frequently, and further have pointed out that a uniform Land-tax would compel the large holder to either fully utilize or sub-divide his property, and there would be no reason on his part to claim that ho was unjustly treated, as he has now under the graduation system. The tax should be of sufficient weight to allow for the material reduction of Custom duties on the necessaries of life. The small holder would then have recouped to him the tax upon his land, whereas the man with a largo estate, as his consumption of dutiable articles is little, if any, greater, would pay somewhat in proportion to the acres he held. It is to be sincerely regretted that Mr Ballance did not see his way to give full effect to the principle of a Land Tax. The present is only a half measure, and the taxation of improvements continues the worst feature of the Property-tax. The reduction of [ Customs duties would have obtained for him the votes of the wageearners and the small propertyholders. He would, at the same time, have secured those of the party who believe that the holding of large estates is detrimental to the country, if the position had been explained to them much ae we have put it above. Mr Seddon claimed for the Ministry that they should have a fair trial of their policy. Their policy was the substitution of Land and Income Taxes for the Property-tax, and in that we are thoroughly at one with them. It is to the mode of giving effect to it, or rather only half doing it, to which we object. As regards borrowing, Mr Seddon said " The present Government has proved that we can live without borrowing. There are many works which arc urgently necessary, and for which demands are being daily made on the Government, but they cannot be carried out, ae there is no money to spend on such works." These two sentences are somewhat contradictory, but wo sincerely <;rust that Mr Seddon meant that the works he alluded to must wait, rather than that the non-borrowing principle should be departed from. For many years to come interested parties will be able to point out works urgently required, but, in our opinion, to abstain from borrowing is more urgently necessary in the interests of the colony as a whole. As Mr Seddon pointed out, the colony has borrowed already about ninety-two millions, which means at 5 per cent, an interest of £4,600,000 per annum, or £12,600 per day. It is impossible, even if it were wise, to control the actions of individuals in the matter of borrowing, but, in the face of such a state of affaire, to borrow as a people would be little short of a crime against ourselves. As regards the imputed intention to intensify the protection policy, it is to bo hoped that rumour is once more untruthful, as we recently pointed out the duties levied already, for the purpose of giving effect to the theories on which it is based are detrimental to the colony, and that the theories themselves have been amply proved to be fallacious, in that they have no , ; added to the number of hands employed in the prosecution of the industries protected. It was only the other day that an engineer in another colony said that no tax on machinery Jess than 60 per cent was any use. He was one of a deputation which asked that this should be imposed. Wβ have only alluded to this fact to show the length to which those suffering from the fallacy are prepared to go. Sir Michael HicksBeach pointed out the other day that the McKinley tariff in America had only lessened the imports from Great Britain 2 J per cent., and that these were certain manufactures which they could produce cheaply, and the only effect of the high tariff was that the people paid more for the goods they used. We are in this respect in much the same position as America. Notwithstanding our disagreement with the details of the Government policy, we strongly lean to the opinion that they should be allowed an opportunity of showing the effects of their policy, and of modifying it as experience may dictate.