The Evening Star FRIDAY, JANUARY 22, 1875.

Evening Star, Issue 3718, 22 January 1875, Page 2

The Evening Star FRIDAY, JANUARY 22, 1875.

Ws are inclined to think that those misery-mongers who are looking forward to some grand collapse of our prosperity in New Zealand will find their forebodings long deferred, provided the world’s peace is not disturbed. There must inevitably be fluctuations in trade, as there are in the tides, and had we the same clue to the causes of the one as of the other, the times and seasons of their occurrence might be at least approximately predicted. But while the tides appear to depend on one constant agency, prosperity depends upon an endless variety of social and political movements, each in its way influencing the fortunes of mankind more or less remotely. It follows, therefore, that even the most well-founded deductions are liable to error through inability to apprehend all the forces acting in or adverse to a given direction, although ultimately plans adapted to a proposed beneficial result, if judiciously persevered in, may be expected to achieve it. It is not many months since the organisation of a Harbor Board, to whom is entrusted the •improvement and deepening of our harbor. On accepting office they found themselves beset with formidable and unexpected difficulties. They had scarcely even the support and sympathy of the Press. Their efforts were paralysed by outside distrust, cramped by political jealousy, and to some extent impeded by the evident disinclination of, at least one member, to make Dunedin the Port of Otago. When the necessary officers were appointed, our miserymongers predicted they were not needed, for the Board’s functions were a dead letter, and they would be paid for doing nothing, as nobody would contract with them. The next obstacle appeared to be the news of the advancing price of money at Home, which, said our misery-monger’s, will lead to the banks putting on the screw here; and then what will become of us 1 It may be fairly granted that the last is * weighty argument if there be sufficient reason in the nature of things for raising the rate of interest ; but no such reason can be fairly assigned at Home. So far as can be seen Europe is settling down to peace, notwithstanding that European misery-mongers are waiting for a Busso-German war j the harvest of England has been good, and trade, so far from causing any extraordinary demand for the use of floating capital, is most decidedly within the limits of safety. It is true we are investing largely in fixed capital in New Zealand ; but even yet we are far below the requirements of our increasing population. On as fair a review, therefore, of monetary prospects as from our present standpoint we are able to take, we see no reason for apprehension for our future, and point to the contract taken for the extension of our jetty room as an instance of the confidence men able to judge feel regarding the value of our securities. The Harbor Board and its actuary deserve credit for the manner in which they have grappled with and overcome their incipient .difficulties. The very fact of their having manifested prudence, seal, and commercial ability has done much to inspire confidence, and has tended as much to secure the favorable terms on which the contract has been made, as the undoubted value of the security itself. Had they been Tacillating, rash, oiylike the Auckland Harbor Trust, divided and incompetent, the result would have been like the projects there— delay and ultimate failure. The extension of wharfage room in Dunedin has long been needed, but has not been a&tended to by the Provincial Executive, who have also allowed the deepening of the Harbor to sleep for sixteen or eighteen years., The loss to the community may be estimated by the rates of lighterage and railway rates. It is expected, however, before many months are over, that large intercolonial steamers will discharge and load at Dunedin, and this renders wharf extension an absolute necessity. As there seems no serious physical to this instalment of increased harbor accommodation, the value of a Harbor Board may be said to be practically demonstrated, for jn all probability in a few months improvements will be effected that should have \ been made years ago. One or two further deductions cannot be overlooked in commenting on this beginning of improvement. It will be effected without additional taxation—most probably at a reduction of it-»and why ? Simply because the value of the harbor endowment enables the Board to give ample security. This fact illustrates the soundness of the principle submitted to and rejected by the General Assembly two sessions ago of effecting local public works through loans on local securities. We yet have journals who speak of the security of the public estate for national loans, in the fade of the weekly announcements of large areas of land alienated by our Waste Land Boards. Parting with our land at the present 1 rate, our available public securities.beenme less week by week, and through the construction of public works the vaiu& vi private property greats

hy day. "We are a liberal people, however, and scorn to raise the price of our public estate; in fact, it is very likely some may be generous enough to advocate Sir Francis D. Bell’s proposition to sell the squatters’ laud at ten shillings an acre. Yet, the contract made with the Harbor Board shows how, without parting with the fee simple of land, public works may be carried on. Sell the land, and the public must pay tor the cost of public works ; retain it and utilise it on lease, and it is a security constantly increasing in value, the rents of which would provide ample interest for money invested in improvements without taxing the community. Verhum sap.