The Commercial Crisis.

Clutha Leader, Volume II, Issue 85, 24 February 1876, Page 6

The Commercial Crisis.

;.T'Jf,.af fecepjb.'jss.ii^ ;#e piibiislied^ppi qu s : E extracts from.^a '/letter which/ '^eiitl^ > appeared. iru a' Sydney pap^i^rbgHrdifiQr 1 ' 1 tufe' financial; qrif |s Ay Inch m"any''believr^ 1 ';.s>. he i^pendm^'oyer tliii 'j&Wny/^i *f"iie' letter ijas/ created " a a * se^ati6n J ;flirtiugh- i j -but j the*, Australian V Colqnl'eis^ 'ati l d L !!t(afe ' eveij taken .ij^aiiyV in.' J Jbi^'.(immtry l b^ ! ' surprise.; ] Waters in 'tiie leading j our -■ ,naW . jiaye ;, ze^lbVsJy ='■ endeavored 1 ; j ,'to" .prove. . t|j at' ■. !< jj h'irig's. dre £ ppt/ as * ' tttey 1 seem j"^.buVtibe, > 'l?g.ures.'an'd" reasoning ;of Mr :Ra»laii; ,s#£ alj* t^ir^imjJerifec-V -.tions,. ,are| sufficient ' 'to; '' .mafe.'tKe; ; riiost' .confident .ponder, ( ovei:'' ttie' reckless' : com^se we, haye begp pjirsuing in-, mat- , " t'efs! commerpi&l, and -take 1 steps to : mixi-\ :'gate, if not; to.ayer t, ' the; 'niinpus conse 1 -; quejices, which are.' threatened/. : "V^e : ' long .. agp, jpre'dict'ed' „ „ that''^he^recicle's^,' , sp,ena,thrjft, ..and . /gambling; jiropen ! sities ; of the !|^py.ernifrienty^oUl'd ! fi^yi; : a permcious/effepfA^ *$& •and tbie . public gen'erail j ; /and'. Mr; RanV lien's, exposition , goes far; td ! prove' the fulfilment of :th J es'e prediction's; ,'/' That a 1 few ; silLy,. ..sh'ort-siglited 1 , Enthusiasts" should^ayie be.eV leji away^by jtfie ''.riiag- 5 niifibe.nt pictures of tlie gldry'a'nd' riches pf» N^w'jZealandjrso^.^ thusiastically: depicted by,'. Sir' 'Jiiliu^i as certain • to ; be "the 1 necessary consequence "of. His being, allpwed" to spend 'en orniqujs; sums,' 'was; .only, to be, , expfictVd. .'-Tjiat' our'cobli' calculating^ niefchants .should^ iiaye allowed; themselves- 'to? be -so] far 'deceived' is. alrn qst, .. unaccquntable-r— and 'yet o such: : is- the fact. *,'.. jn the ' yea^r 1874'tne!;impdrts of soft;/ g-oods alone expeWed by' L 185 .982 .thpse -of ' the pre yidiis yearf ' ;Of :drink there was. an excess; imported, tq. the, .value. o^^lS^OS^V^The^tHtal 1 imports ..for the! V year .1873 "'.were ' | £Gi464587, •! while' ' 187^ ' : ; they amounted tp LB',l2^,Bl;2J':;The; r&tolt: ,is that the •stores, of are over' crowded; and , in. order, to. get b|lls_fbr ; 1 discount tp-i meet ( those granted f ' \6 ! the ! home, maiiufactur-er- pr'; merchant,' the: goods, have been ]3r§ssed npori, tilie^a'c-'' ce"ptance r; o^. retailers both ' in town' and', country, upon j liberal \ teraas/with prd- : mises : of repeated , renewals'^ of; accep't-^ ances if necessary. These retailers^ fpl- " low the example-— press sales ;^iye long - credit, , and readily ..' "accept ' suspicious' bills in payment. Meanwile the Banks' take the, alarm and .apply' the \ screw.' .They :will only, discount the most iap-" prpyed bills,; and will allow n p. renewal sl : Theresult, is, .easily to ; be seeri _ t>y t tiie most obtuse, and we belieye will yet Itii felt mos.t bitterly, by all ciasses. of ;s ; d-, ciety. , : The examination i whicn has beeii made of the commercial position of l tne . country does .not : cast, much] credit uponthe prudence and foresight of our mer-. pantile men, .arid is not unlikely to seriously damage their ; credit,- ipr, the, home market. ; ;JDj.d* thGy %j alpne suffer, the i verdictr; . would ; be ; ; ,th at ; it , . scry.cd. them right,,. but in this, case as in mast; other similar .cases- •.the,4nnpce.nt..rnus,t, unfortunately; suffer with the'-ffiultyy'."' . 1 nere is one circumstance, in..connection with: 3N ew. Zealand from :w : hjch ; Mr', .Ranken :draivsfm.uch encpiirag.em^ntT^' that is the.; great. increase^of agriculture,; ;''* ior"f,hef argues, : ff '.that ( |ihcr,easelis.,' a r sure- proaf: that it is profitable. .;. andr if, profitable :when woQlrgro t wing,i( mining* alndiso .many- industries^ ; are,. extremely., fldurishing, it is-the-,i)est;j..:ofj..giand-Jy(ps-'for baddimes;; .-It shows that. food <can. be raißed-cheaply^ jtp- allo,w ; ., the 'large profits ;curreiit : in, . : all ; industries ;,. Tand; ■ - cheap? food .means abundance ; , of ! : iabpr,' the/strength ! of [an country. . Jin-, such, aclimate.":,;.No. doubt> in.. consequence, of; ', the: opening, up :of the. country by;me\ansj of' railways'.and :otherwise,,iand .thrpiigjbthe bperatibniof the , system,; of, , selling - lands:; onv 'deferred paymen.ts^ja ;ver,y, : larg.e quantity of. land .will .be ,l?rpken tip fori cultivation. , ; JBu.t. ; that ■is; no'. 4 * sure .proof that; it :is "'profijteble.'V "Oh- the: contrary; we - think r it wjll gp , l n > .long way to prevent Agriculture iproying. profitable, ,by;\the-pvpduction, . exceeding; the consumption .>! :&tr .present- . st-, large-, i pdrtion of. agricultui-al ( prpduce: ii. fbel.QW,' a lrenumerative.figure^and there;, canr.be> ;;nb doubt that fi. considerable- ,of. : the ; deferred . paymen fc -land , will •! be ;sow.n, With bats,-, -and 'Af. sol the/production ; , will , in all iikelihpo.d fariexc/Qedthecpnsumptionrm this counti^-iiiheniiwherSais amarket to be found.? ., if'.JQunedin m^E-i .chantsi, :hadv.igiv,eni jsomo.'. attention; !;^ this; subject; and 'endeavpred, to open up,'a; trade with India lor .iOhina^ or-vspnie; pthei jcoiuntry,, ■ ;w ( here > the,- .deailnd i'therproduce ojf this cpuilt'ry/is.pja^ipaiiy, .^unlimited, they .woMl4?hayeJcbqf:err,ed ra* 'lasting"benefit:.onTiheii!jfeilp^.cDiojjisl§ r jand'gained^for ; themselves;/ an" -en viable' 1 „and ri hpnprkble t ;,r^putationV;^ ;parently,^ ho.wever,;rhaveVno.' l rjsb'ui/' for, : any thin^ ihig^her, than ' sbftfg^ds^ Mnby I Jand aQcommpdation Jills.; ;4,ttiffippr|t^r.'. 'tioii' of enterprising^ ; jbone'stjJqandt farsi 5 Seeing .^^injerbhan ts';f is 1 '^^aj^^b^t'^is 11 i pounjfcry at^presen't Jr4qu)^i^ ;; ii^plit>|s r ; : any tb.ing^; . ; 'In r tlie - meantime^^ ;aitnpugho ; weif ar^;;^6f ■•' a]iar.m^^^^^ a; f|J;th|B' r } fullest; cdnfidenceinr the.' ruiiiije/pEbgr'ess ! \ and = prp;sperity;> l 6;fj;the- I 'ilihab^ta;nts' lo;f- --: thisicpliony^we^ fver^roneritoir'studyutheiitid^ \ passing 'eVents 1 - ■&s& ■'■ and endeavor fttOh^laMllili^a^ir^in ! ; sueh 1 - a ; pp ( sitionias:tp be^the least^ffected'; by;lfl^:;p^^rf^^he^ ; (gisi^W!pr inay/arise^, ;^; ef^,{ !^vv>;;M;;;;;:^:;^;^^ » ■ -..-.-,.. f?-.^ i,u. „:,/>, ;,?„,■,„ ...'.. i „ ;.,.„• ■- ,'. .