The Gisborne Times PUBLISHED EVERY MORNING. FRIDAY, NOVEMBER 12, 1909. THE 1910 BUDGET.

Gisborne Times, Volume XXVII, Issue 2657, 12 November 1909, Page 4

The Gisborne Times PUBLISHED EVERY MORNING. FRIDAY, NOVEMBER 12, 1909. THE 1910 BUDGET.

Sir Joseph Ward lias created a record in the presentation of New Zealand Budgets, for Ave certainly have no recollection of having perused one that approaches the ip resent one for length. In' yesterday’s issue ve printed nine columns of the Financial Statement, yet this ivas not much more than half of the whole, which totalled over 20,000 words. Our resources are ample for ordinary requirements, but we confess to an inability to handle 20,000 words of intricate matter in one night, at the same time making reasonable provision for that large section of our readers who care not for Budgets. Therefore, we printed a careful selection of the most important part of Sir Joseph Ward’s announcement, and with the additions made to-day, believe our local political students will have missed little of reaT importance. As a rule we look upon a lengthy political statement to some extent as a waste of time and an admission of weakness on the part of the Minister making it, hut this generality does not apply in the present instance. The Premier spoko at length because he had some very momentous announcements to make, and a,s these contained important departures from former policy, it was Arise to explain fully the reasons actuating the Cabinet in promoting them. His summary of the present financial position is interesting to those avLo have a taste for masses of figures, hut Ave fear that the larger portion of the community Avill pass these statistics by. After all, it is an axiom that figures can be made to prove anything, and we are not sure that the average Avorker will derive much practical benefit from Sir Joseph’s assurance that the public and private Avealth of each individual in the State amounts to £76S. Moreover, the Premier’s reply to “carping critics” that for every £1 added to the public debt the wealth of the country has increased by £lO, may tickle the cars of his political supporters in this country, but avo doubt Avhether it will have any marked effect upon the London money lenders. The attitude of the.se hard-hearted gentlemen could he expressed thus: You’re already owing £71,00.0,000, Avliich is pretty stiff for a of a million, and if j’ou want any more you’ll have to pay for it.” And they will forthwith proceed to extract the very highest terms Avliich the necessities of the Dominion will

enable them to. command. Truth to toll, it seems.'to us that the Premier protested over much in the matter of the public debt, though bo probably deemed it wise to explain the position so fully that no one could doubt the financial stability of the Dominion. No sensible person doubts that the country is solvent, but at the same time a debt of £74,000,000 is too substantial to bo viewed wall equanimity. All the talking in the world will not reduce it one iota, and the interest for the full amount must be. paid year by year. >Sir Joseph’s contention that a large portion is' reproductive is quite legitimately made, but even this extenuating circumstance does not make our gross liability a penny the less. His summary in this connection of the result of Hcato trading is of interest, and he appears to he so sanguine that he looks forward to the time when the State’s operations as a huge coal dealer, as a money-lender, and so forth will be so lucrative as to enable some large profits to bo made over to the Public AVorks Fund. But then Sir Joseph was always sanguine, and, anyway, bis silence concerning the operations of the State Fire Insurance J)epartment is significant. Alter reading a couple of columns of solid matter explaining bow wealthy the Dominion really is, it comes as a bit of a shock to find that, despite the heavy retrenchments in the Civil Service, it i.s stlil necessary to raise the taxation on virtually every member of the community. Wo do not oppose this extra taxation in itself, but it i.s surely inconsistent with the “all is well” theory that has beau so persistently preached by the Premier and bis colleagues. Our own view is that it is much more desirable that Ihe country should submit to increased taxation than that it should perpetually be waiting cap in hand on the London money-lender. A certain amount of borrowing is inevitable, but the amount should be kept down as much as i.s possible, (particularly in regard to the construction of public works.

Coming on to policy measures that are included in the Budget, we find many subjects of far-reaching importance, each one of which could fittingly be made the subject of a separate article. In the aggregate they represent a mass of proposed legislation that will never be passed before Christmas, and one can only assume that if the Government is really in earnest over its programme a session early in the Now A’ear will bo inevitable. A notable iproncuncement has reference to the land question, and here it is noticeable that the Government has at last abandoned every pretence of sticking to the leasehold, and has gone unreservedly for the freehold. Thus dees the Opposition score its real triumphs and perform heroic work for the farmers of the country. As a kind of sop to the. leasehold element, Sir Joseph Ward proposes that the unearned increment principle, which is at present agitating the minds of British landlords, shall also be introduced into our legislation, but the degree of its application is not alarmingly great. It is suggested that Crown tenants who obtain the freehold shall .subsequently be called upon to pay a special charge amounting to onefiftli of the increase in the unimproved value of,their holdings. A good deal can be said for and against the principle thus introduced, but Sir Joseph has certainly exercised great plausibility in justifying the change.

The limitation of areas that may be held by Crown tenants i.s another plank from the Opposition platform. .For years those gentlemen avlio have fought the fight for the freehold urged {hat the leasehold bogey of land monopolists springing from the ranks of the freeholders could be settled by the simple expedient of limiting the area of holdings. The leaseholders declared this ’would not be effective, but now the Government has accepted it as a part of its official policy. An interesting phase of tlie land question is the pro\ r ision whereby a settler Avitli a family of young children gets specially favorable treatment. This is the first formal recognition of the wisdom of the State encouraging in a practical manner the policy of keeping the cradles full. The Native land proposals seem to bear out the promises made by the Native Minister during hi.s term as Acting-Premier, namely, that some drastic legislation would be introduced irt order to change the existing stato of affairs. Without going into details at this stage, we may say that the legislation now outlined represents a vast improvement upon the past and, provided it is administered with sincerity and vigor, the result should be a great increase in the settlement of Native lands. The Governmental pronouncement on the defence question is of great importance. We already knew the policy proposed in regard to naA r al matters,, but the attitude of the Government on the question of internal defence Avas uncertain. It now transpires that the Premier, who before he Avent to the Defence Conference Avas opposed to compulsory military training, has returned pledged to the adoption of that principle. .In this as in other matters it is impossible to form definite conclusion till full details are embodied in the various Government Bills, but in the meantime it seems to us that Sir Joseph Ward’s proposals do not go far enough to provide the Dominion with a citizen army Avithin a reasonable period. The methods devised of raising the aditional taxation required are siue to evoke spirited discussion in the House. The extra revenue is to be secured as follows:

Increase in death duties ... 150,000 Increase in railway rates ... 100,000 Increase in income tax _ ••• 80,000 Increase in Customs duties ... 50,000 Tax in racing clubs Jo,ooo Tax in banks ... 30,000 £448,000

It is useless for anyone to attempt to belittle this Budget. It is a great effort to meet a difficult situation in the history of the Dominion, and Sir Joseph Ward is to be heartily' congratulated upon the thoroughness with which ho has essayed his task. His proposals are naturally open to criticism, but if the Premier sticks to the programme s'et forth ho will certainly deserve credit for having had the courage to devise some hold and original legislation. And lie will have to airange for Parliament to sit alter the New Year.