The Evening Star. WITH WHICH ARE INCORPORATED The Evening News and the Morning News. TUESDAY, JULY 13, 1875.

Auckland Star, Volume VI, Issue 1685, 13 July 1875, Page 2

The Evening Star. WITH WHICH ARE INCORPORATED The Evening News and the Morning News.

TUESDAY, JULY 13, 1875.

For the cause that lncis assistance, For the wrong that needs resistaacOi "or the firture In the dietance, JLni tha nod that we can 6a.

We are surprised to find that our contemporary the Herald joins with thei Cross in denouncing the "rash statement" of Mr Rees, with respect to the Government Savings' Banfc deposits, that they had "gone into the whirlpool " of the public debt,, We can quite understand that the Government organs everywhere over the iand should denounce such a statement, as they are paid for doing so. And we can understand how our contemporary the Cross should take every opportunity of jumping on MrßeesIt is generally known that that gentleman is conducting an action for damages, laid against that journal for libel. On the rights and wrongs of this, we do not enter ; but it is this which gives the venom to the pen always pointed at Mr Rees. The quarrel is aipersonal one, and every one knows this_ But we are really surprised to find the Herald this morning calling in question this matter of the Savings' Bank and the "whirlpool." What has it to fear? What does it fear ? And why does it argue against what it knows to be true ? Par from ua be the intention of casting a reflection on the solvency of the Government Savings Bank, or saying a word to weaken the faith in the ultimate solvency of the Government in the matter of Life Assurances and Annuties. We believe these beneficent systems will make the name of Julius Vogel remembered with gratitude for many a long year to come, despite the confusion into which his policy may temporarily plunge the colony. But is there any one in New Zealand, unless the lowest Govern-1 ment hack, that will dare to say that these trust funds have not been dealt with in a questionable way. Why, the Government have simply taken them and used them on their own purposes, railways, immigration, &c, that is all. They have "invested them in Government securities," which of course is the same thing. In fact, they have taken these trust funds and lent

them to themselves without saying "by your leave." They have just done as any man would have done, in whose hands trust moneys had been left, and who, believing

that his own business was perfectly safe, invested the trust moneys in that business. Jn saying this we do not say that the security given in Government bonds is not solvent. It is as safe as any other of the colonies' bonds—safer we might add if we thought it possible for the colony to become ultimately bankrupt, for these trust funds are a first charge on the consolidated revenue. But the fact is still the same, and we see not the use of denying it, that these trust funds are "swallowed up in the whirlpool," if we so put it, or in other words, they are sunk in the -Mercer railway and in the Forfarshire immigrants. The special pleading in this morning's Herald on the subject is fun , but the queerest part of it is, why should the Herald do such special pleading ? It instances the fact that £50,000 deposits were recently paid by the Government as proof that all is square. If £500,000 had been drawn and paid out of the four million loan or those preceding it, we cannot see how it would affect the position. The fact is no one would doubt the solvency of the Savings' Bank Trust, or the Annuities and Life Assui'ance Trust, without doubting the solvency of the colony itself. But there are few who cannot suppose a possible case when no Treasury Bills could be floated to meet a sudden strain, and when the raising of a further loan would be a sheer impossibility. We have seen in asister colony aday whenthe Government Treasury notes of one pound were purohaseable at half-a-crown. How would it be in New Zealand if this was (has, and the people became clamorous suddenly to withdraw deposits ? Where would three quarters of a million be momentarily raised in time of monetary panic ? We don't believe in Mr flees,' doleful views of the solvency of the colony, but we believe far less in the flimsy veil that our contemporaries ■would draw over the skeleton in the closet. Neither Sir Julius Vogel nor any other man could sink such a colony as this in the depths of insolvency. It has too much buoyancy for that; and depositors may deposit with perfect faith that the moneys will not be lost. But it is, neverthelesss, true that the Government are taking these and all other moneys placed in their hands in trust, and simply investing them in the colony's speculations.