Financial Position of the Dominion.

"It matters not who may be [unclear: Pri] Minister for the time being, the [unclear: mem] of the New Zealand Ministry who [unclear: is] merely a mechanical Treasurer, [unclear: but] knowledge of the theory mid [unclear: practice] Finance, is in reality master of [unclear: the] ministry. "So said an old [unclear: statesman] years since, and the truth of this [unclear: is] obvious, when we are [unclear: considering] present administration. Sir [unclear: Jose] Ward cannot, I fear, be truly [unclear: called] great financier, though he has [unclear: had] deal with large sums and heavy [unclear: problem] but by years of occupancy of office [unclear: he] got a mastery of details and an [unclear: experience] of the maze that surrounds [unclear: the] ances of New Zealand, which [unclear: enables] to overawe competitors and hold [unclear: the] of the position. His Budget [unclear: rece] presented, though much Sneered [unclear: at] some men in and out of [unclear: Parliament] thing of "shreds and pateles," [unclear: contain] to my mind a more clear [unclear: exposition] the position of our finances [unclear: than] statement we have had for many [unclear: years] past. In saying this I am not by [unclear: the] means endorsing some of the he Budget contains, but I deem [unclear: it] more business statement of our [unclear: position] than we have been accustomed to. [unclear: The] population of the country may stated roughly as one million [unclear: sea] The total public debt of the Do mim after deducting sinking funds, [unclear: may] taken to be about 78 million [unclear: pound] Of thirt debt 48 millions, or 58 pnd of the whole, may be considered [unclear: as] terest earning, being no [unclear: presaut] to the State. The balance, [unclear: thought] of it may be said to earn [unclear: interest] page 11 rectly, may he treated as our net Public Debt, say thirty million pounds. This sum represents the expenditure since the finding of the Colony upon roads, immigration, war, harbours, and development generally, while the self supporting or interest-earning portion of our whole debt is represented by railways, loans to local bodies, telegraphs, advances to settlers, land settlement, and certain money, investment. All things considered, Cannot think our loans excessive, but the economical expenditure of future loans will be at all times a matter requiring careful watching by public men, and a disposition towards further large borrowing will need constant resistance. Because a man has big assets is no justification for his pawning nearly all of them, unless under stress—so with a State, Regarding our annual income by way of taxation, direct and indirect, we cannot feel so satisfied. The whole Receipts for the year ending March last amounted to £10,297,0l3—an increase upon the previous year of £1,293,853. Of this increase Customs duties gave. £356,708; stamps, £289,328; and railways £225,492; the three items reaching £871,528. The Expenditure for the y ear under all heads amounted to £9,343,106, making what the Treasurer terms "a saving" of £362,927 upon his appropriation at the beginning of the year l910. The gross surplus, including a balance brought down from previous year of £432t316 is stated to b £1,386,483 and, after passing over £800,000 in and of the. Public Works Fund, a net surplus of £407,235, Land tax. Income tax yielded £407,235, Land tax £628,723; while from Customs there was obtained £3,027,829—an increase of more than-third of o million upon the previous year. It cannot be considered as in accord with sound canons of political economy that these constantly recurring large "Surpluses" should be provided for, Estimates presented to Parliament by the Treasurer, as to the sums he requires for expenditure under all heads any year, should approximate much more closely to actual needs than do Budgets for many years past. A safety margin is, of course, desirable, but to create large surpluses by carrying forward big balances from previous years, estimating the probable revenue for the coming year, making "savings" in expenditure authorised for that year, and drawing taxation from the people in order to secure this result is not a financier which commends itself to my judgment. Each year should, as far as possible, provide for its own necessities, and votes granted by Parliament should, except under very exceptional circumstances, be spent during the year for which granted; but no taxation for any given year should much exceed the fairly estimated expenditure for the year. A breach of this rule is to take away from Parliament the proper" control of the country's finance, and results in squeezing taxation from the taxpayer before it is needed. An impartial examination of this year's Budget confirms me in the long held belief that indirect taxation in this country is too high, and has reached the full limit which should be submitted to by the people. I therefore wish it, to be plainly understood that, if returned to the House, I will absolutely oppose any increase in the total of our indirect taxation. Further, I think that in many directions that taxation should be decreased, as I am a firm believer in the axiom that the more direct our taxation is the less there will be required, and the more economic will be its expenditure.