LOANS AND GAMBLES.

Press, Volume L, Issue 14887, 29 January 1914, Page 6

LOANS AND GAMBLES.

In the current discussion upon tho relative merits of sound long-term borrowing and gambling in short-term loans, it has been said that a longterm loan is no less a gamble than a short-term loan. Wo disposed of this contention a couple of days ago, but we would say a word or two moro on the subject, because, in an otherwise sensible article, a contemporary which supports the Reform Party repeats the fallacy. Wo are afraid that although it has assimilated most of our case against short-term loans, it does not realise the special advantage to the country of a policy of abstention from gambling. " Whether," it says, "a loan be issued " for a short term or for a long term, "it is obvious that the borrower in " every case gambles upon the chance "that money may bo cheap at the cx- " piry of tho term." It is no* " obvious" at all. The champions of short-term loans do gamble on the chance of an easy market on the date of maturity—tho propriety of so gambling is their whole case. But when a Minister of Finance raises a long-term loan nothing is further from his thoughts than that it is so much to ono in favour of money being cheaper thirty years later. He prefers long-term borrowing, as Mr Allen does, because it avoids the risk of being caught in a storm on a leeshore, and the cost of double and triple flotation charges. He also considers that the long terra will afford opportunities both for the gradual extinction of the liability and for the making of arrangements for renewal at the most favourable time. He gives himself, that is to say, a valuable amount of elbowroom ; whereas the short-term gambler is entirely dependent—or, rather, he makes his country dependent—upon the chances of a situation which he cannot foresee, which he cannot influence, and which he can only await in helplessness, praying that the best may happen. We have given this additional space to the question because careful thinking upon it will help towards the finding of a solution for a problem which must be solved before many more years pass, namely, some comprehensive scheme of dealing with the national debt so as co place it on a more satisfactory basis.

What will strike most people as a curious kind, of logic appears in our report of yesterday's meeting of the North Canterbury Hospital Board. The Inspector-General had reported that the Christchurch Hospital "compares still less favourably with the other hospitals •of its class than last year as regards cost, especially in the items 'salaries and wages' and 'provisions.' " In particular he pointed out that the Christchurch Hospital expends on meat £4 per occupied bed more than (or more than twice as much as) any other hospital of its class. Tho committee appointed to enquire into the matter reports iii general terms that "the departmental officers exercise due economy in the administration of tho hospital." It then goes on to lay groat stress on the fact that although the cost per occupied bed is higher than in the other centres, "the net cost per head of the population is lower than that of either of the other largo hospitals." For the life of us we cannot see what this has to do with the case. Tho Board surely does not contend that the expenditure on patients insido the hospital is to be regulated in any way by the number of people who live in the district without ever availing themselves of that institution. Is it contended, for example, that the amount of meat used by the hc-pital— which is one point to which Dr. Valintino drew special attention —must be expected to increase, not "pari passu" with the number of patients, but in proportion to tho growth of the general population of North Canterbury? In one of our lending articles to-day we discuss some of tbe aspects of the recent strike of municipal employees in Leeds, but there is one point which may conveniently bo noted here. A feature of the strike was the reliance of tho strike leaders on falsehoods and bluff. .While tho citizens were getting the situation in hand, tho strike leaders wero "doing their vest to keep up tho courage of their men by telling them they are going to win." Their speeches were exceedingly flamboyant, but there wore many signs of impending defeat in the proceedings at the* strike meetings. These meetings, for example, carried many resolutions condemning the drafting-in _■ extra police, attacking the Press for its "misrepresentations," and 'so on. The resemblance between tho strike leaders'

methods and the methods of the Red Feds, was really very notable. "The men," one careful correspondent wrote, "know they are hopelessly beaten, but it appears to be their intention to go on bluffing to tho end. It has been a regular feature of this dispute for false and misleading information to be communicated to the Press. Each evening there has been issued an. inspired communication that tho men were unanimous in their resolve to stand firm." Mr Will Thorne, the chief of the strike loaders, chose the moment when the strike had most plainly collapsed to declare, for all the world like the Red Fed. or Social Democrat, that the strike was "only beginning." The obvious conclusion to be drawn from tho recurrence of these features in all direct strikes against the service of the community is that working men must buy their experience. But there is another point which requires to be emphasised. The readiness of the strike leaders to resort to grotesque lies and hopelessly foolish bluffing is proof that these fellows have taken the measure of the working man, and have deliberately set out to fatten upon his folly. They could hardly tell the public more plainly that they aro simply follyfarmers, recognising in the men whose interests they pretend to serve merely credulous dupes incapablo of recognising tho simplest facts. Thc marvel is that tho working men, seeing that their leaders consider them fit to swallow any foolish falsehood, do not ask themselves whether that is not the only reason why the agitator interests himself in them. If January 22nd, 1840, tho day on which tho first batch of emigrants landed at Port Nicholson, is the date of tho true foundation of New Zealand of to-day, from January 29th of tho same year dates the history of New Zealand as a portion of the British Empire. In June, 1839, the Colonial Office, moved by the pressure of the New Zealand Company and the menace of French interference, had directed Captain Hobson. R.N.. to go to New Zoaland and treat with the natives for the recognition of "Her Majesty's Sovereign authority over the whole or any parts of these islands which they may be .willing to place under Her Majesty's Dominion." Captain Hobson called at Sydney, where he took the oaths of office as Lieut.-Governor of New Zealand, and received his commission from Sir George Gipps, who issued a proclamation 'extending the botindari&s of New Sonth "Wales to New Zealand. Captain Hobson reached the Bay of Islands on January 29th, 1840, and landed at Kororareka, The following day he hoisted tho flag, and read the commission extending the boundaries of New Zealand, and his own commission as Lieut.-Governor over territory that might be acquired in sovereignty "Might be" is important. Proclamations of sovereignty over New Zealand were not issued until May; in the meantime the Treaty of Waitangi, by which tho natives ceded sovereign rights to Queen- Victoria, had been signed. There was no annexation by force; the Maoris were treated with a fairness and consideration perhaps without parallel in the relations between Great Britain and savage races. The other day we had some brief reference to' the appearance", in a British by-election (that for Wick), of the tactics with which tho "Liberal" Administration in this country made us so familiar. The Government candidate. Mr Munro, was tho sitting member, and he was recommended by Mr Gulland, a member of tho Government, as one who had "more power of worrying the Government to get things done for his constituency than any member for Scotland." The full story of the Government's tactics in connexion with the election is contained in the latest English papers to hand, and it is very instructive. As soon as Mr Munro, the sitting member, was mentioned as the probable successor of Mr Ure as Lord Advocate (a promotion necessitating a by-election), the Government arranged for an unsolicited inspection of the old ruined breakwater. The election was duly delayed in order .hat tho fishermen should return from tho South, and meanwhile the Liberal canvassers pleaded that the harbour should bo the deciding factor. Tho local Government newspaper encouraged tho idea -flat tha return of the Unionist candidate would be "a tragedy," as it would kill the Jooked-for harbour grant, and a United Free Church minister prayed from th© pulpit that votes might be cast with an eye, firstly, to "the prosperity of. tho town." Mr Gulland made his speech, a Government engineer came to Wick with plans for a now breakwater, and Mr Munro was elected. Barring the minister's sermon, it all might have happened in New Zealand in the good old "Liberal" days. The cable message that we published a day or two ago about the Eastern Bengal manoeuvres was tho most interesting bit of Indian news that has been received for some time. Dacca, the centre of the manoeuvres, used to be the capital of Bengal, and was famous for its textile trade. Tho Manchester industry, however, helped to kill that trade, and tho population fell from 200,000 in 1800 to 69,000 in 1872. Since then thero has been a revival in trade, but it might be said that the chief industry in Dacca of recent years has been sedition cf one kind and another. The town lies to tho north-east of Calcutta, far away from the great military stations, and prior to these manoeuvres the people of the Dacca district who had not travelled, could have had little or no idea of tho might of the ruling race. Tne disposition of the British and Indian forces in India is arranged primarily to deal with invasion, and i.ot witJi rebellion. The north is the point of danger, and tho armies are so .Tgnnised and posted that they can bo concentrated on the north-west frontier as quiclly as possible. It :s m the Vnnjaub, therefore, that one sees the power of Great Britain in India at its strongest, and people in Bengal may quito easily havo got an erroneous idea of the might of tho race against which so many of them are conspiring . Ono can easily imagine how deeply a native community that had 6een no British troops for over fifty years would be impressed by the flower of the British Army. The manoeuvres make an effective reply to the sedition-mongers who have been telling their deluded countrymen how easily the Briton could be driven out of India.