THE EXPECTED SMASH.

Bay of Plenty Times, Volume IV, Issue 361, 23 February 1876, Page 3

THE EXPECTED SMASH.

There are always prophets of evil, and if the world were guided, by tiHese gloomy souls, we- would never; emerge from the cimmerian; darkness- of barbarism. The daily papers have been greatly exercised by a letter addressed by Mr W. H. L. Banoebn to the Sydney Herald, on a threatening; financial crisis in New Zealand. That gentleman has formed his opinion on incorrect data* His- cal&ulaiioaas are based on the customs revenue^, and he makes out that we have- gone five millions to the bad ia. two years. Whilst he has given credffi for the certified amount of easports,. he has omitted to give the Colony credit for several important figures which must materially alter his results- We have only as yet the details* o£ one year published— l $74. In that year we find that the Government imported railway material, payable from Jotm, £711,756. To this must be added other items payable from loans, such as bridge materials, £53,000, timber, cement, iron, and other materials used by contractors, and altogether there will be at least a million of special imports chargeable against the Government that year. Then Mr Ranken has not been aware of the fact that the value of the imports is not the amount which has to be remitted to foreign countries. By the Customs Tariff Act, 1873, the real value of imports is declared to be the market value in the countries whence they were exported with ten per centum added. This per centage remains in the pockets of the- importers, and to determine the correct balance of trade, the colony must get credit for it. For 187.4, this is nearly three-quarters of a million.. It must not be forgotten that since our prosperity began to > flow,. a- large amount of cash has been received from Britain for investment, and that our immigrants rarely land pennniless. Ten pounds a head on 45,000 would give about half a million, and our other remittances

cannot be less. We know of one loan . which has imported for investment £120,000. Every banker knows that there is always a considerable influx of private capital into ther> colony. If then, we receive credit for the two andfth'ree-quarter millions just specified,, it will be found that there has been^no excess- of imports turning the tables against us. Indeed, if we take credit 1 for the amount' of loan spent on. labour in the colony, it will be found 'that, the account, is the other way;. Enough, has-been-stated to show Mr Eanken's ignorance on the subject, and the impropriety of taking the published report of exports and imports as an infallible guide.. The true baro*meter. of 'our -financial conditionds theBank Gazette returns. Mr Banker is right, on. one pomt — there has been over-irading.-. We pointed!, out' this more than two -months ago (Novemben 27.), . ihi an.; article ■ on, the crisis. . We also /pointed, oufe that: we were • not mi such, straits, . but' that* the- clip) then 1 coming, forward-would- db> more than ' put. us cm. the * right side. . We also . shewed. that. the contraction of importshad .commenced, .and that our- exports - were increasing.. Thie crisis is really passing, money is- sfearce,'. but witH: ordinary prudence on the" part, of the mercantile community, . and with rea--j sonable dealing, ob the- part ofr the • banks, it will i be successfully encountered for'-the present. . In a brief ■time the colony • will experience • the stimulating benefits- of our • Eublife • Works and , Immigration : policy, andij be more than able to /face any difik-j

oulty which may arise from a European, war or other unforeseen commercial embarrassment-— The Advertiser-.