THE FINANCIAL STATEMENT.

Clutha Leader, Volume II, Issue 108, 4 August 1876, Page 6

THE FINANCIAL STATEMENT.

The Financial Statement recently made by Sir Julius Yogel has proved an incentive to reflection and comment, and has already met with more than the ordinary share of criticism at the hands of the conductors of the Press. There is one paragraph, however, which appears to ud to have been overlooked. It is as follows : —

I desire to say a few words about the general position of New Zealand credit. There is no disguising that it has suffered, partly from detraction, which I hold to be altogether unmerited, and partly from the fact of tho Colouy having borrowed very largely. It is impossible to secure for the public debt of a Colony like New Zealond an accurate consideration of itstrue nature. People will not pause to analyse. A public debt means to them a public debt in its ordinary acceptation, and thoy compare New Zealand's public debt with national debts of old countries. The comparison is essentially faulty, for the New Zealand debt is mainly composed cf money expended on objects which have no place in ordinary national debts, but the value of which is fully re.ognised. If a person wished to show the extremes of good and ill which distinguish a country, he would bo apt to point to the small amount of mouey expended on the usual objects for which national loans were contracted, and to the vast expenditure on the purposes for which, mostly, the debt of New Zealand has been contracted. Do not let us say there is nothing in a name. If a largo proportion of our NewZealand debt had been in the shape of a loan to railway companies, nob to tho Colony, its amount would bo accepted as a proof of the Colony's progress, and judicious promotion of settlement. We have here neither more nor less than the old "enemy-whine" which used to be so prevalent ir Otago some years ago. It was used by a great Otago politician, and seemed both to edify his people and support his conscience. When a scheme fails through its own absurdity, and the stupidity of its proposer and worker, the latter is apt to be laughed at or questioned. He then defends himself. «■ My plan and I were all right ancl just on tho point of success, when a, man, my enemy, declared to all and sundry that we were both wrong, and with a' lot of cunning* and villany he got them to believe him. Faith fell. I have somewhat* failed this time, but won't the next. Ilate, then, my friends, your enemy and my enemy ; stick to your friend and irartyr, so torn and disfigured by misfortunes as scarcely to be recognised as one, etc. etc." Priests in the temple of humbug often discourse the enemy-whine. When Sir Julius left Otago somewhat abruptly a few years ago, it was not because of his own misbehaviour, but because of that of his enemies. The statement made above, in the Financial speech, is palpably untrue. When the article appeared in Fraser's Magazine at Home, written against New Zealand's finance, (ancl which, no doubt, is alluded to,) the Colonial funds clid not fall a sixpence, arid when it was answered by Yogel, the funds did not rise a sixpence. Had people been disposed to read magazines to learn the status of our public j credit, they had then an opportunity. ! If they took it, and relied on the information, it is strange that it did not show itself on their conduct.

These sentences, moreover, are altogether preposterous and absurd. The dealers in Colonial or other stocks do not need to go to Home magazines for information regarding the financial condition of almost any people in modern times. This, at any rate, is v free country. Its press is free. Every information can be had with the least possible amount of trouble by any one, not only as to the public income and expenditure, but as to all our resources. He may, further, publish the same all over the world, ancl none dare make him afraid. He can consult for himself the Blue Books annually published, and does not require any one to lead him to correct conclusions. The attack and defence have each their fair field and no favor. To gag the press of England is impossible, and the public servant who would be above criticism is impudent indeed. It is not to be denied that Zealand has been vulnerable for a long time on the side of its finance, but no writer of the required acumen has appeared on the field.

The causes are perfectly evident | which have led to the fall in" New Zealand's securities. Any man of common sense knows that taxation, where the people are not utterly enslaved, can only draw from a given number a given sum ; that this was nearly reached here even before the present borrowing began ; that the public lands, which are a sort of security, are being rapidly parted with, while the demand for more money grows chronic and eternal ; that the money which has not been utterly squandered has been spent on railways, nine-tenths of which are virtually unproductive, because made before we have full use or need for them, and thus demanding further taxation or a sacrifice of the 'waste lands-; that in a country so bare of capital, wages to the laborers who have been imported at great expense cannot be forthcoming, necessitating their departure to other lands not under a similar cloud ; and that the price of the chief colonial productions is falling, ancl likely to fall. These are the causes which have led to the difficulty New Zealand statesmen find in borrowing money. But this part of the Statement, we maintain, is a gross insult to the people of this Colony. Never, perhaps, since the day of civil government broke in rudest dawn, was the call of the magistrate responded to by any people as was lately seen in New Zealand. Yogel and his fellows sounded the trumpet of supposed progress, and a grander dis- i play of faith, alacrity, and determina- j tion was never witnessed. To a man

they put their shoulders to the whee 1 . ** If prosperity leaves us," they said, "it shall not leave sluggards-' We will make your scheme a success if we can." Of course, a croaker would now ancl then suggest that declamation and verbose lumber were scarcely convertible terms with learning and caution ; but then he was reminded that envy and calumny never forsook the good who were great.

Time has passed, and now effects somewhat unexpected begin to follow causes. The tramp of a coming change, ancl one not for the better, sounds clearly on the ear. Men ask of the man whom they have trusted, and he answers with an enemy- whine. He is not bold enough to confess to the blame and the blunder. But "an enemy hath done this," he replies. It is also, we think, a gross insult to the people of Britain, who are in effect told that they are being misled by their press in believing what is not true, ancl in ceasing to confide in the Colony without sufficient cause. Such reflections are very intolerable. It must be known to many that of all the colonies to which a warmth of friendship was felt by the old country, New Zealand held first place. Many causes conduced to this. It was the latest and youngest colony. Its insularity arid individuality and uniqueness,, its being the antipodes and a true Britain of the South, and a land of the mountain and flood, .all drew attention to it and hastened its colonisation. The prejudice in favor of the land has not been withheld from its people, and if there be signs of. wavering, we should not look too far away for reasons.

We may add that the remark made above, that, when a Government adds to its liabilities by guaranteeing a certain interest to a railway company, instead of borrowing the money directly, and doing ,the work itself, "its credit would not be affected thereby, is decidedly new. It is also a very great pity that Sir Julius Yogel did not find this out sooner. It is one of the most wonderful discoveries human genius ever compassed. When applied to private life, the case may be stated thus : — Man No. 1 has some money to lend. Man No. 2 borrows it, and agrees to pay five and a half per cent, for it, if he can. But if he cannot, here is man No. 8, who agrees to make good the deficiency, and who does so to the extent of three and a half per cent, per annum. In other and darker days, ifc was thought that No. S's credit ancl resources were damaged by such an operation as that, and that neither himself, wife, nor family would gain anything by it. These dreams are all dissipated now. The door of hope has opened with a vengeance. Be renown ancl the stars the reward of the finder I •