Development and Taxation. 89 



the system of taxation in the colony was much too indirect in its nature. 

 No thinking individual in the community would sanction an increase 

 either of the ad valorem or the specific duties. The ad valorem duty, 

 it might be urged, fell equally on all classes, but all classes of the 

 community could not equally contribute to it ; and so far as the specific 

 schedules were concerned the experience of every political economist 

 taught them that the higher prices were advanced of the commodity the 

 more restricted the consumption became. In this respect if they 

 advanced the price of the cigar of the average citizen who belonged to 

 the better class he would restrict his consumption or probably cease 

 taking it altogether. So with regard to both schedules being put on an 

 equal basis he could see no hope of extending the important duties in 

 that way. Fresh fields had therefore to be sought out. 



Income Tax. 



He had in his humble way indicated a means by which that could 

 best be achieved — the imposition of an income tax, which did not 

 necessarily mean the reduction of one's income, but the arrest in a large 

 measure of those huge sums of money that find their way out of the 

 colony for the development of other places when they needed that money 

 themselves. He felt perfectly convinced that it would stop the export of 

 capital and place the colony in a better position to look after its own 

 affairs. For any practical scheme by which the colony would progress 

 it was imperative also that they should have a sturdier type of labour. 

 Further there must be the settlement of the people on the land ; and in 

 order to relieve any possible drain on the colony's reserve he suggested 

 the advisability of issuing currency votes, not necessarily bearing interest 

 but at any rate redeemable in a shore space of time. These notes should 

 be made legal currenc} 7 . It was the duty of every citizen to assist the 

 Government in the colony's development, and with these notes he 

 suggested the Government would always be in the position of having a 

 certain sum of money readily available for the development of the colony's 

 resources. Whether this development proceeded or not, if ever it became 

 necessary for properly controlling and extending the machinery of 

 Government, he hoped His Excellency would set his face against any 

 increase in the form of indirect taxation. He gathered that the Govern- 

 ment were at present considering some schemes having for their object 

 the development of the colony. That might be a very admirable project, 

 but if the present population was to bear the burden he hoped some 

 scheme such as he had indicated would be initiated, so as to relieve the 

 general mass of the inhabitants of any increased taxation. 



Possible Economies. 



Mr. G. Russell Garnett said that they required to know what was 

 meant by development, whether it was to be gradual or rapid, whether 

 development of the interior or de\ elopment of the coast lands of the 

 colony, or both, because a great deal depended on what they were going 

 to do. (His Excellency : Hear, hear.) If they were going to develop 



