24 /• E- Le Rossi gnol and W . D. Stewart 



is about two-thirds of the revenue from the stamp duties. There 

 has also been some extravagance in the public administration, due 

 chiefly to the prosperity that has prevailed during the past ten 

 years. Finally, there has been for some years a large surplus of 

 revenue over expenditure, most of which has been transferred to 

 the Public Works Fund, chiefly for public buildings, roads, and 

 bridges. 



It is possible, and even probable, that there will be reform in 

 public expenditure in the near future. The government has lately 

 announced its intention to try to make the railways pay at least 

 the interest on the capital cost. It is possible that the unproduct- 

 ive part of the public debt may some day be paid off and the enor- 

 mous burden of interest be thereby taken away. The government 

 has recently proposed a drastic system of economics in the civil 

 service, which, as Sir Joseph Ward said, "will effect a total sav- 

 ing exceeding a quarter of a million sterling ($1,200,000), and 

 this, so far as the portion affecting the public service is concerned, 

 without impairing its efficiency or inconveniencing the public in 

 any way." 1 



But it is not at all likely that these or other economies will bring 

 relief to the taxpayers. There may be a larger surplus to spend 

 on roads and bridges, or some of the public debt may be paid off, 

 or the amount expended on old-age pensions may be increased, 

 but it is not likely that taxes will be diminished, for the political 

 power has for the most part passed away from the wealthy class, 

 who pay most of the taxes, into the hands of a democracy of rela- 

 tively poor people who are now taking their turn at exploiting 

 the rich, and regard the capitalist as a cow to be milked or a goose 

 to be cherished for the sake of its golden eggs. 



B. LOCAL TAXATION 



The revenue of the cities, boroughs, counties, road boards, and 

 ©ther local governing bodies is derived only in part from taxa- 

 tion. In the year 1906-7 their total revenue was £2,812,440, of 

 which £192,932 was received from the general government, 



'Speech of Sir Joseph Ward at Upper Hutt, April 2, 1909. The Press, 

 Christchurch, April 3. 



272 



