ON THE FINANCIAL CONDITION OF NEW ZEALAND. BY CHARLES TERRY
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ON THE FINANCIAL CONDITION OF NEW ZEALAND.
BY CHARLES TERRY, ESQ., F. R. S., F. S. A.
INTRODUCTION.
I HAVE been favoured by Mr. Charles Terry, author of a very valuable account of New Zealand, 1 with the following important paper on the financial condition of the colony, as far as the estimates for the year 1841 have permitted him to pursue his investigations. This paper claims the reader's attention, as well on account of the calm and candid manner in which the subject is treated, as of its intrinsic importance, and I think the unavoidable conclusion to which the reader must come is, that the local government has conducted its expenditure with a degree of reckless extravagance which, if permitted to continue unchecked by the colonial department, must be productive of disastrous consequences to the colony at large, and especially to those parts not within the sphere of the New Zealand Company's operations.
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It will be observed that Mr. Terry's reasonings extend only to the year 1841. He shows conclusively, that the statement of probable revenue is not based on such facts as warrant so large an anticipation. Instead of probable revenue, it should more properly have been called improbable revenue. The customs scarcely yield the cost of collection, and mis-appropriation has destroyed the land fund, so that the revenue from all sources, will fall short of expenditure to no less an amount than £30,000 on the single year. For the year 1842 the deficiency will probably be £40,000; for, while the local government has increased its expenditure upwards of £6,000, scarcely an acre of land can be sold. The debt to the treasury of New South Wales, for 1840, is £33,064. 1s. 1d., so that in three years, the local government will manage to get the colony into debt upwards of £100,000, and as no check upon this unnecessary extravagance can be conveyed to the colony during the present year, it will probably reach £150,000 before a single step is taken to reduce it.
The first effect of this improvidence will be to destroy the government emigration fund. It seems to have been entirely overlooked both by Captain Hobson, and by the Right Honourable the Secretary for the Colonies, that purchasers only can be induced to pay a price for land for the purpose of obtaining a supply of labour. It has always been my own opinion, and, I may add, that of many who have made colonization the subject of their investigations, that even the principle of the recent Land Bill, by devoting only half the proceeds of the land sales to the formation of an emigration fund, would be likely to endanger the productiveness of such sales. Assuming one pound per acre to be the price, I think there is good reason to believe that had the Bill devoted 75 per cent, to emigration, and 25 per cent, to purposes of general revenue, instead of 50 per cent, to each, the amount of sales would have been so much greater, that
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the smaller proportion of 25 per cent, would have yielded a larger sum absolutely, and one more likely to be perpetually maintained than the larger proportion of 50 per cent. But if the prospect of an Act to amend the Act passed in the last session of Parliament is to hang in terrorem over the government emigration fund of New Zealand, who will resort to the government land sales? Indeed, the last accounts received from the colony show that the local government can no longer raise money from that source, for the very simple reason, that confidence in the faithful appropriation of the fund is destroyed.
It is true the colonization commissioners have taken up a ship, and are about to send about 200 emigrants to Auckland, but will Lord Stanley permit a second ship to be taken up, when his Excellency's drafts for the deficiencies of the past and present year are presented at the Treasury? It seems to me doubtful whether his Lordship will venture to ask Parliament for £100,000 to maintain a scale of expenditure which can be shown to be in a great measure unnecessary; and even if he should determine to appeal to the house, I can scarcely believe a vote could be easily obtained for a deficiency, part of which is made up of an expenditure of £520 for his Excellency's kitchen, and £1,535 for the colonial brig Victoria, the utility of which does not very clearly appear, with a host of other mere senseless pieces of extravagance, for which there is neither necessity nor excuse.
The settlements of the New Zealand Company are, comparatively, free from the evils with which the rest of New Zealand is threatened by a failure of the government emigration fund. The emigration fund now at the disposal of the company cannot be touched, and the land at their disposal (after deducting the lands of their existing settlements) not being within the operation of the recent Act, will yield an emigration fund in proportion to the amount of future sales. Indirectly, however, the settlements of the com-
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pany will suffer by an extravagant government expenditure, though to a much less extent than the government settlements. Population will spread itself where there is a demand for labour, and if emigration to Auckland is brought to an end by the annihilation of the fund, there may be a migration from the company's settlements. But this is an evil that will not last long, for, with the destruction of the emigration fund, capital will cease to flow into Auckland, and the demand for labour will not be a demand for the purpose of production, but will be confined to that which is created by the necessary expenditure of the government--a demand which can be speedily saturated, without being materially felt out of a population of 8,000 or 9,000-- the present aggregate population of the company's settlements.
There can be no doubt that the people of the northern Peninsula have somewhat encouraged his Excellency's extravagance. Censure, even of the most reasonable character, emanating from the people of Wellington has been set down to the account of "jealousy of Auckland"--whatever the settlers of the south deprecated, the settlers of the north thought it incumbent on them to support; but they have recently awakened to a sense of their own danger, and they are now unsaying all that they had previously said in favour of the measures of the local government. We sincerely hope it may not be too late; but whatever may be the consequences of an improvident system to themselves, they have placed it in his Excellency's power to refer to their addresses for an approval of his general policy. But if we may judge by the tone of the New Zealand newspapers, the jealousy which dictated this unwise policy is gradually wearing out, and as it subsides, the truth will be let in, that if the south be injured, the north cannot remain unscathed; and as far as the subject of Mr. Terry's paper is concerned, the brunt of the injury will fall on the former abettors of the
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extravagance. But let this pass into oblivion as an error of judgment, rather than be remembered as an act of hostility. Whatever may be the separate interests of the several settlements, all have a common interest in prosperity, and against whatever interferes therewith: hence it is the duty of every one who is connected with New Zealand to promote a thorough revision of a financial system which if it could possibly be maintained, would ruin the colony--unless, indeed, the imperial parliament is willing to make his Excellency a present of £40,000. a-year to support his state in all the splendour of petty vice-royalty. In such a case, though so large an expenditure would produce bad moral consequences, it would not endanger the very existence of the government settlements.
In proportion to the European population, the cost of governing New Zealand is the largest in the known world. In Trinidad, it is 17s. per head. In New South Wales, it is £l. 2s. per head. In Western Australia, it is £1. 10s. per head. In South Australia, under Captain Gray's improved management, it is £2. 3s. per head. In Great Britain and Ireland, it is £1. 17s. per head; whilst in New Zealand, it is no less than £4. 16s. 4d. per head!
How the present debt of the government of New Zealand is to be liquidated, its authors should be called upon to point out. The continuance of revenue depends upon prosperity, and prosperity being diminished, revenue must decline in proportion. It is utterly impossible that Captain Hobson can be permitted to go on incurring a debt of £30,000. or £40,000. a-year much longer, and without any extraordinary foresight, we may look forward to the time when his Excellency will be replaced by a more economical governor, charged as Captain Grey was to reduce expenditure within, or nearly within the means of the revenue of the colony. If the English fashion of funding his Exchequer bills could be resorted to by Captain Hobson, his three years' debt would
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be nearly £9. per head for the European population, or nearly one-third of the national debt of this country, which is the creature of several expensive wars, and not justifiable on any other ground.
Lord John Russell, from the very beginning, urged economy upon the governor of New Zealand, the very last despatch his Lordship transmitted to the colony reiterated the same recommendation; with great good sense Lord Stanley confirmed this wise policy, and we cannot but hope that he will prevent the enormous evils with which the colony is threatened, by a complete revision of the financial system exposed in the following pages.
With this brief introduction, I earnestly recommend Mr. Terry's paper to the reader's attention.
H. S. CHAPMAN.
Farrar's Buildings, Temple,
31st October, 1842.
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ON THE FINANCIAL CONDITION
OF
NEW ZEALAND.
To the Editor of the New Zealand Portfolio.
SIR,
Perceiving by the last Number of the Portfolio, that the succeeding will be devoted to a paper on the Financial State of New Zealand, I enclose a few observations made on investigating the Colonial Estimates, which are perfectly at your disposal.
I am. Sir,
Your obedient Servant,
CHARLES TERRY.
London, October 25th.
THE consideration and elucidation of the subject of finance is, even in the greatest kingdoms, deemed dry and uninteresting to general readers, and capable of being fully understood only by those who are conversant with figures, and initiated into the mysteries of official documents and statements. But as the New Zealand Portfolio is intended to embrace subjects most interesting and important to the colonist, it is made the topic of the present number, in order to prove that the proper management of the finances is indispensable to the present success, as well as future wealth and prosperity of the colony, more especially on its forma-
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tion and during its earliest years; and it is therefore a subject of deep importance to the actual settlers as well as to all proprietors of land in Zealand.
There is no analogy between civilized populous states with various sources of revenue and an infant colony just starting into existence: therefore, principles and measures of finance adapted to the former cannot be applied to the latter.
If the history of other colonies be searched and considered, there will be found some geographical feature--some commercial or statistical facts, --or some previous political relation that gives to such colony a peculiarity per se.
But of all colonies New Zealand is most peculiarly circumstanced, considering the events of its first establishment. In other instances. Great Britain has become possessed of colonies by conquest, or by gradual increase of territory and population from some primary and limited settlement. Those colonies by conquest, such as some of the West India Islands, Mauritius, Cape of Good Hope, &c. have possessed sources of taxation, duties, and consequent revenue, on account of the lengthened period of their existence under the government of Other states; while those which have been founded by the English themselves, have been commenced on a small scale, the expenditure necessary for their protection and government being, in the first instance, laid down with due regard to the population and trade, as to a revenue being derived therefrom to meet such expenditure.
In truth, it may be affirmed, that New Zealand is an unprecedented instance of colonization; for Great Britain has not founded any new colonies since the days of Penn, until the recent settlements within the last fifty years, in Australia:--and in those it will be seen, that in the first formation of each, the machinery of government has been only on one spot--few in number--small in expence, and increasing only with accession of numbers and extension of territory
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actually occupied, --as Sydney, Hobart Town, Launceston, Port Philip, Adelaide, and Perth.
Reflecting on the early history and statistics of other colonies, the estimates put forth by the local government of New Zealand for the first and second year of its becoming a British colony, cannot but excite the greatest surprise and interest, as well as induce the most serious consideration as to their necessity, propriety and consistency.
To all in any way connected with the colony, it is a subject of great importance, more particularly to the actual settlers and proprietors of land, for internal domestic taxation must ensue to a great amount, consequently very burthensome to comparatively a limited population, if the colony is to defray its own local government expenditure.
To investigate and elucidate this important subject is the purport of this number of the Portfolio; and, first, will be considered the expenditure; secondly, the revenue; both, with reference to other colonies as to population and commercial resources; and conclude with some observations on the form and principle upon which the estimates are prepared, and which profess to be correct accounts of the annual colonial expenditure.
First, as to the expenditure:
In the very first year of the colony--that is, the second of its becoming a dependency of the British Crown, but the first as an independent colony, (the accounts of the previous year having formed part of the accounts and finance of New South Wales, under which it was subject) in the year 1841-1842, the estimates put forth an expenditure of £50,992. 3s. 4d. with only an European population throughout all the three islands--in the year 1841 of about 8,000, and before any trade or commerce had been founded. For the second year, 1842-1843, the expenditure will be £56,597. 8s. 10d. being an increase of about £5,600. with a population increased to 12,000 European settlers.
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In some colonies, if the expenditure be excessive, it is occasioned by the internal state of its native population--or from some measures indispensable to protect its trade, or from being a geographical position necessary to be kept possession of:--but here is an infant colony, comparatively without European population, and whose aborigines are perfectly harmless and governable--a colony, as yet, without trade, or exports, or imports, with only in the first year two actual settlements--Auckland and Port Nicholson--and yet the enormous sum of £60,000 is expended to support the local government.
Before investigating the true cause of this great expence, it will not be uninteresting to refer to the history and statistics of other colonies, in order to show that New Zealand has become a British colony, under circumstances which are unprecedented in the annals of colonization, and which circumstances will render a large annual expenditure unavoidable, without reference either to the population or resources.
That expenditure is not necessarily a consequence in proportion to population, can be clearly proved. --For instance, the West India Islands.
Barbadoes, the area of which maybe computed about 300 square miles, with a population in 1835 of 100,242 souls: in the same year the government expenditure was £27,580, and the revenue £41,219. Trinidad, the area of which is 2,000 square miles; the population in 1835, was 43,678 souls; in the same year the government expenditure was £31,949, and the revenue was £42,430.
Of the British colonies, Prince Edward's Island may be said to approximate more to New Zealand on account of the climate, nature of the country, the capabilities and resources being like New Zealand, chiefly agricultural and pastoral, as well as its coasts and contiguity to the continent, rendering smuggling easy and customs' regulations difficult to enforce. It covers an area of about 3,000 square miles, and has, from
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its form, about 350 miles of coast. The population in 1836 was about 30,000 souls. The government expenditure in the same year £13,281, and the revenue £10,367.
But it may be considered that the finance and statistics of the colonies already quoted can have no reference or analogy to New Zealand, and that those of the other Australian settlements would elucidate the subject more clearly and correctly; however, it will be seen that the same anomalous disproportion of expenditure exists with New Zealand and the Other Australian colonies, as between the former and the British colonies in the Atlantic. --For example:--
New South Wales, in the year 1828, forty years after its becoming a British colony, before the sale of Crown lands took place, the European population was 36,598 persons; the government expenditure in the same year was £40,912, and the revenue was £94,862.
Van Diemen's Land, twenty-one years after the first settlement was established at Hobart Town, had, in the year 1825, an European population of 14,542 souls; the government expenditure in the same year was £42,781, and the revenue was £41,943.
In Western Australia, in the year 1836, the colony then having been established six years, the European population was 3,000, with a government expenditure of £4,466,
Referring to these financial and statistical facts in other colonies, the considerations that naturally arise are, what can be the causes or circumstances to account for, or to justify such an annual expenditure in the very first years of the colony of New Zealand?
These causes may be considered to be three:--
First, --The peculiar circumstances of the territorial rights and possessions of the natives, as well as of the European claimants, on the colony being annexed to the British Crown. Secondly, --The geographical formation of the island having occasioned the small European population to be dispersed
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and located, in many settlements, very distant from each other, instead of being concentrated, in the first instance, at and around one settlement, thereby rendering necessary a multiplication of the machinery of the local government:-- And, lastly.
The manner, system, and scale in which the local government have begun and, apparently, intend to manage the finances, or, in other words, establish the expenditure and revenue of the colony.
Over the two first causes the government could have no controul nor prevent; they existed at the period when the British Government deemed it necessary to take possession of the islands as a British colony. Their duty only, therefore, is to deal with these irremediable existing circumstances and facts with justice, firmness, and ability; for the colony at large, or the Home Government must bear and provide for the expenditure entailed by these events.
However, with respect to the third reason, it is matter for dispassionate consideration and discussion whether the local government has evinced sound judgment and discretion, or sufficiently considered the interests of the colony by putting forth in the first two years such a scale of expenditure.
Here it may be asked to what objects is the expenditure of a colony appropriated?
They may be classed under two heads:-- First, to provide for the administration of government in its branches--ecclesiastical, civil, and judicial. These several important departments are necessarily a direct charge on the colony, to provide for which, revenue or funds must be derived from other sources by additional expenditure, which comes under the second head, which is, the expenditure for the establishment of customs, excise, &c., the receipts from which it is presumed will so much exceed their expence as to provide in a great measure for the objects of the former class.
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These observations lead to the most important part of these estimates. No Chancellor of the Exchequer ever thinks of instituting a tax without some very good reason to presume that the receipts will very far exceed the expence of enforcing and collecting; nor would he continue an old tax or duty which was found to diminish in its products, and become only nearly equal to its expences. Besides, a tax or duty that does not produce a surplus revenue, is as injurious to the government as it is vexatious and impoverishing to the settlers, and only provides for a number of officials at the expence of comparatively few persons on whom the tax falls, without any benefit to the community at large. Further, it may be observed, that any tax or duty ought to be rigidly or efficiently enforced, or it is an injustice to those on whom it is levied, as well as evidence of the imbecility or powerless enactments of the government.
As has been observed, one of the chief reasons for these extraordinary estimates is the extent and nature of the coasts of the islands, which, from their irregular form, may be estimated at 4,000 miles, and likewise the numerous settlements which are daily springing up, not only on the north island, but on the coasts of the middle island. These are at present--Bay of Islands--Hokianga--Kaipara--Auckland--Manakao--Port Nicholson--Wanganui -- New Plymouth -- Nelson--and very shortly there will be two more, with considerable numbers of emigrants from Europe on the middle island.
These are all places in which not only law and justice require to be administered, but if the government also intend to establish and keep up an effective customs and excise, a very large and expensive machinery of officers, &c. will be indispensable.
Besides the places named, there are very many others at which Europeans are settled--as Tutukaka--Coromandel Harbour--Waiheki--Tauranga--Kawia--Cloudy Bay, and
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many other places in Cook's Strait--at all of which smuggling can and will be carried on very easily, and to a great extent. It is absurd to suppose and expect that a man at such places will go to a principal settlement and buy government whiskey, when a small coaster will supply him at one third of the price. High duties tend to encourage smuggling and adulteration--both equally pernicious to the health and morals of the community. The nature of the country--the shores being covered with high bush, fern, or flax to the water's edge, with numerous small creeks running up into some valley or ravine--will prevent a revenue from customs to any considerable amount.
At Auckland, the head quarters of the customs, very little duty is paid on spirits, &c., and that only by the publicans occasionally, as every night some contraband trade is carried on. What can revenue boats do on such coasts unless in force and numbers? The night is dark and blowing--say the change of the moon--high water at midnight--the shore shallow for a certain distance, at which place hogsheads and casks are pitched overboard, and men, up to their waists in water, quietly propel them with the flood tide up some little meandering creek, far from the haunts of men, and quite impervious to the prying search of any officer of customs. It is very clear, therefore, that the customs to be in the least degree effective throughout New Zealand, must be very numerous and proportionately expensive. Then follows the question--will its revenue pay even its own expences, much more yield surplus funds to counterbalance and provide for other items of expenditure? Of what advantage to the government will it be to have a large establishment of customs, the annual expences of which may be presumed to be 6 or £8,000., when its revenue does not produce £10,000?-- What would be the result of such figures?--merely that the colonists would be taxed to the amount of £10,000., with all the inconvenience and vexation of such imposts, and the
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government itself only benefit to the amount of £2,000. towards the defraying of other expenditure. The settlers must be taxed to pay for those indispensable establishments, which do not--and cannot--create revenue--such as those before mentioned; therefore it would be far wiser policy to raise funds, expressly for such purposes, by rates--than incur a further large scale of certain annual expenditure with great uncertainty of any or very little revenue.
To elucidate the foregoing observations, an analysis of the estimates for 1841-1842 is necessary under the heads of those expences which are indispensable, without revenue, and those which are incurred for the prospect of revenue. The anomalous and confused manner in which these estimates are issued, on which some subsequent remarks will be made, render some very different figures necessary, as to totals under revenue heads; as follows:--
Certain Expenditure, from the several Departments of which no Revenue can arise for the Payments of their Expenditure.
|
|
£. s. d.
|
| Governor and Judge
|
2,200 0 0
|
| Establishment of his Excellency.
|
1,187 7 6
|
| Executive and Legislative Councils
|
545 0 0
|
| Colonial Secretary's Department
|
1,560 0 0
|
| Audit Branch ditto
|
325 0 0
|
| Colonial Storekeeper ditto
|
450 15 0
|
| Harbour Masters ditto
|
1,076 0 0
|
| Colonial Brig "Victoria."
|
1,535 9 4
|
| Colonial Surgeon
|
364 12 6
|
| Public Works and Buildings
|
5,354 0 0
|
| Law Officers of the Crown
|
3,068 11 3
|
| Police and Gaols
|
7,957 9 3
|
| Ecclesiastical Establishment
|
450 0 0
|
| School ditto
|
140 0 0
|
| Miscellaneous
|
2,977 13 6
|
| Total
|
£29,191 18 4
|
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The expenditure for which returns may be expected, and which ought, consequently, to be quite distinct from the previous items, are of two descriptions--one arising from customs, the other from the sale of Crown lands. These are extracted from the estimates under distinct heads.
Expenditure estimated to be incurred on customs and excise:--
|
|
£. s. d.
|
| Colonial Treasurer's Department
|
1,125 0 0
|
| Customs ditto
|
3,130 0 0
|
| Post Office ditto
|
525 0 0
|
| Total
|
4,780 0 0
|
Expenditure which is chargeable on the sale of Crown lands:--
|
|
£. s. d.
|
| Commissioners of Claims
|
2,450 0 0
|
| Protectors of Aborigines
|
2,335 12 6
|
| Survey Department
|
6,164 12 6
|
| Purchases of Land from Natives
|
4,000 0 0
|
| Roads and bridges
|
2,000 0 0
|
| Total.....
|
£ 16,950 5 0
|
The estimates for 1841-1842 may be therefore considered thus:--
|
|
£. s. d.
|
| Certain Expenditure without Revenue
|
29,191 18 4
|
| Expenditure, Department of Customs and Excise
|
4,780 0 0
|
| Expenditure chargeable, and dependant on the sale of Crown Lands.
|
16,950 5 0
|
| Total.....
|
50,922 3 4
|
Having thus analysed the expenditure, the second number
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of the estimates, viz., "The probable amount of revenue for the service of the government of New Zealand," requires consideration.
In colonies, in which land, or the produce from the sales of it contribute--as Canada and Australia--the revenue is classed under two heads, viz., ordinary or fixed colonial revenue, which is the produce from customs and excise; and that from the sales of Crown lands, which is denominated extraordinary or incidental revenue.
In the estimates of New Zealand, both of these naturally were suppositious; and the colonial treasurer, who, in fact, is the Chancellor of the Exchequer for the colony, put forth the following figures as the probable revenue to meet the certain expenditure before detailed.
ORDINARY OR FIXED REVENUE:--
|
|
£. s. d.
|
£. s. d.
|
| Customs
|
13,000 0 0
|
|
| Post Office
|
500 0 0
|
|
| Publican and other Licences
|
2,400 0 0
|
|
| Auction Duties
|
1,000 0 0
|
|
| Fees and Fines of Public Offices
|
2,500 0 0
|
|
| Total of Ordinary Revenue
|
|
19,400 0 0
|
EXTRAORDINARY OR INCIDENTAL REVENUE:--
| Probable amount of Proceeds of Sales of Crown Lands, after Payment of Charges of Immigration, Survey Departments, and Land Purchases
|
18,917 13 9
|
| Total
|
38,317 13 9
|
Taking into consideration first the ordinary revenue, the largest item of this anticipated revenue is the customs, viz. £13,000. Referring to the "Table of Duties and Customs" passed by the local government of New Zealand to be en-
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forced on and after the 1st July, 1841--it will be found the only resources are as follows:--
|
|
£. s. d.
|
| Spirits--British, per gallon
|
0 4 0
|
| Ditto--Foreign, ditto
|
0 5 0
|
| Tobacco (after the 1st January, 1842)
|
|
| Snuff and Cigars, per lb
|
0 2 6
|
| Manufactured, ditto
|
0 1 0
|
| Unmanufactured, ditto
|
0 0 9
|
| Wine, for every £100. value
|
15 0 0
|
| Tea, Sugar, Flour, Meal, Wheat, Rice,
and other Grains and Pulse, every £100.
|
5 0 0
|
| All Foreign Goods, for every £100. value
|
10 0 0
|
| All British Produce and Manufactures,
as well as from New South Wales and Van Dieman's Land, (except Spirits)
|
Free.
|
From this Tariff, it is very evident that the customs is the principal source of revenue on which the colonial treasurer depends.
But, exclusive of the previous remarks as to the great expence that must necessarily be incurred to enforce and render productive such branch of revenue, it may be asked, on what grounds did the colonial treasurer anticipate the large sum of £13,000. on spirits, wine, and tobacco, in the first year of a colony with only a population not exceeding 8000 persons?
It maybe that he based his calculation on the results from the consumption of similar articles in New South Wales, but the European population in New Zealand is of a very different class to those of the former colony; and no data derived from a penal settlement can apply to one to which the persons who emigrate have to produce testimonials of character and respectability--of which description the mass of the present settlers in New Zealand are composed. As a parallel instance:--
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In Prince Edward's Island--which is likewise not a penal settlement--with a population of 30,000 souls, the revenue from wines, spirits, tobacco, &c. in 1836 was only--wines and spirits, £1681. Tea and tobacco, £3091. Total-- £4672.
It is very probable that, instead of the ordinary revenue producing the sum of £ 19, 400, it did not realize the amount of its expences, viz. £4,780, and the grounds for such conclusion are the acts of the executive council appropriating the fund for emigration to other than its legitimate express object.
The governor in council declared--"the exigencies of government"--in other words, the defalcation of the probable ordinary revenue--"has been such as to require every farthing that had been acquired from the sale of land, and that no money could yet be applied to immigration."
This deficiency of the estimates from fixed or ordinary revenue was not singular, for on the extraordinary or incidental revenue there was not realized the sums anticipated, viz., £18,917. 13s. 9d.
By the estimates, it was presumed the sales of crown land would, in the years 1841-1842, realize £60,000, which was thus appropriated in the estimates:--
|
|
£. s. d.
|
| Probable Proceeds of Crown Lands.
|
50,000 0 0
|
| EXPENDITURE.
|
|
| Survey Department, Lands from Aborigines, Roads and Bridges
|
12,164 12 6
|
|
|
37,835 7 6
|
| Fifty per Cent, for Immigration
|
18,917 13 9
|
| Amount available for the general purposes of the Colony
|
£ 18,917 13 9
|
But the actual proceeds from crown land were only £35,758. 11s. 11d: --fifteen thousand less than the probable
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estimated proceeds, and which, if appropriated as these estimates describe, would be thus, in figures:--
|
|
£ s d.
|
| Actual proceeds of Sales of Crown
|
35,758 11 11
|
| Expenditure for Survey, Lands, and Roads
|
12,164 12 6
|
|
|
23,593 19 5
|
| Fifty per Cent, for Immigration
|
11,796 19 8 1/2
|
| Amount available for the general purposes of the Colony
|
11,796 18 8 1/2
|
It is impossible to ascertain correctly the actual receipt of customs, &c., for there are no official documents published as in England; but it is very probable that but a very small portion of the presumed amount of £19,300 was realized. But, assuming it to be half, the following statement of figures will be very like the true result of the financial year of 1841-1842,
| REVENUE
|
|
| Ordinary
|
|
| £.
|
£. s. d.
|
| Customs.......5,000
|
|
| Post Office...... 300
|
|
| Public Licences.. 2,000
|
|
| Auction Duties.. 500
|
|
| Fees &c......1,500
|
|
| -----
|
9,300 0 0
|
| Extraordinary.
|
|
| Actual Amount of Proceeds of Sale from Crown Lands
|
11,796 19 8 1/2
|
|
|
21,096 19 8 1/2
|
| Deficiency or Excess of Expenditure over revenue
|
29,825 3 7 1/2
|
|
|
50,922 3 4
|
| EXPENDITURE
|
|
|
|
£. s. d.
|
| Certain Expenditure without Revenue
|
29,191 18 4
|
| Expenditure, Customs, and Excise
|
4,780 0 0
|
| Expenditure chargeable on Sale of Crown Lands..
|
16,950 5 0
|
|
|
50,922 3 4
|
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It is very evident, therefore, by the deficiency of the extraordinary, or land revenue, and likewise by the appropriation, of the portion intended for emigration, to defray the general expenditure, that the ordinary or fixed has not realized an amount at all approaching the probable estimates; and it may further be assumed, that the actual total deficiency of revenue is very near thirty thousand pounds, instead of what the official estimates put forth it would probably be--the small sum of £339. 17s. 0d.
Having thus analysed the expenditure and revenue for 1841-1842, the mode in which these estimates are officially prepared forcibly engages attention and interest. If it is thought that such a mass of anomalous figures, not actual facts, but merely nominal, in some cases repeated under different heads, and deducted from others--if it is conceived that such complicated estimates, made up to balance numerically the expenditure by revenue, will inspire confidence and prevent investigation, it is quite erroneous. To those not conversant with figures, the more unintelligible the financial statements, the greater will be the distrust; and to those competent to analyse them, the more complicated they are, the greater will be the stimulus for thorough investigation, which, although tedious and irksome, is not difficult.
The manner and system on which these colonial estimates are framed, is highly to be deprecated, both as regards expenditure as well as revenue.
In the expenditure, the great error is, not placing the different items under proper heads of the services on which they are chargeable. For example:-- By the instructions of the Home Government, the gross proceeds from the sale of Crown lands, or extraordinary and incidental revenue, are to be first chargeable with the expences of the survey department, -- purchase of land from the natives, and roads, bridges, &c., in order to make the land saleable, and then
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the net proceeds are to be appropriated in equal parts to emigration, and to the general purposes of the colony. Under such circumstances, it is but natural to expect, and common sense would suggest, that in the estimates there would be a distinct head or charge of expenditure denominated "Crown lands," under which these several items would be placed. But, no. In the statement. No. 3, showing the appropriation of revenue arising from the sale of Crown lands, is the sum of £12,164. 12s. 6d. deducted from the gross proceeds; and in wading through the estimates for the several items, the survey department is found under a distinct head, and the two other sums, viz., land £4,000 and roads and bridges £2,000, are mixed up with several other sums quite of a different nature, under the head "miscellaneous." The whole three sums having thus been charged on the general expenditure, have again to be deducted in the statement, No. 4, which is the balance sheet of the revenue and expenditure.
With respect to the revenue, how fallacious is it to assume enormous sums under the title of probable, without any facts to justify such nominal figures. It may be said that, in the first year of the budget of New Zealand, such a course was unavoidable. But the very same system is pursued in the second year, and with greater inconsistency. In the very face of all the facts and figures of deficiency to a large amount on the probable revenue of the first year, the estimates for the year 1842-1843 are made up by similar figures, which will only prove more fallacious and incorrect. The sum of £60,000 is again assumed as the proceeds of the sales of Crown lands, when last year they fell short fifteen thousand pounds of that sum.
What will be the actual result, taking into consideration the misappropriation of the land fund for emigration last year? The local government will not sell, comparatively, an acre of land, and the proceeds will not realize one-fifth
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of the probable estimates. Again, in 1841-1842, the ordinary revenue was estimated to produce £19,400, which, from the previous observations, is very clear was never realized; and yet, for the year 1842-1843, it is estimated to produce £23,520.
The present financial state of New Zealand may be considered to be as follows:--
There is a certain annual expenditure of above fifty-six thousand pounds, which in round numbers may be thus analysed:--
|
|
£.
|
| Expenditure for Judicial Court and Ecclesiastical Government, without revenue
|
35,000
|
| Expenditure to create Ordinary or Fixed Revenue
|
6,000
|
| Expenditure chargeable on the Sale of Crown Lands
|
15,000
|
|
|
56,000
|
On the other hand, there is an uncertain revenue dependent on the consumption of spirits, &c., and also on large sales of Crown lands. How far such expectations are likely to be realized, may be adduced from the preceding observations. If the revenue again is deficient, which, it may naturally be expected, to the amount below expenditure for 1842-1843, of above forty thousand pounds--then the question will arise, whether the Home Government will defray such colonial expenditure in New Zealand. It may, for the first years, advance to the colony sums to liquidate the expenditure, but that will be increasing the future burthens of taxation of the settlers. If the colony is at once to provide within itself a revenue to balance the expenditure, then to the present table of duties of customs many other imposts must be added, such as exist in other colonies, of internal taxation, such as taxes on houses and property, cattle and stock, &c.
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In conclusion, it is clearly evident, from the present inquiry, that the nature and extent of the coasts, and such numerous settlements having been simultaneously formed throughout the islands, render indispensable and unavoidable a large annual expenditure for a proportionate number and extension of government establishments, without reference to population, and far different to other colonies; while the very same causes and circumstances, in conjunction with the recent measures of the local government, will operate most powerfully on the revenue, and render it very questionable whether the receipts from the ordinary revenue and sales of Crown land will equal the expences of their several departments, much more produce excess available for the other general purposes of the colony.
CHARLES TERRY.
