The Feilding Star. THURSDAY, DECEMBER 3, 1891. Our Friend the Enemy

Feilding Star, Volume XIII, Issue 67, 3 December 1891, Page 2

The Feilding Star. THURSDAY, DECEMBER 3, 1891. Our Friend the Enemy

* Among financiers, whether in England or Australia, it is very much the fashion at present to rail against the value of New Zealand land as security, and one of the latest instances of this objectionable erase is given in the Napier Telegraph where correspondence between a firm of Napier merchants and too Victorian financial firms is quoted. The Napier firm wished to find purchasers in Australia for some New Zealand landed property, and were informed that " we have many New Zealand properties in our hands for sale here, and before the present Parliament took the reins of Government there was, consequent on the splendid improvement under the Atkinson administration, a growing enquiry here, which promised fair to carry considerable money over for investment in New . Zealand land. This is now, however, completely cheeked by the vagaries of the present New Zealand administration." Another correspondent wrote " I would be glad to assist you in finding buyers, but the outrageous legislation of Mr Ballance, and his Government, has effectually barred the gate of New Zealand aa a field for investment to all Australians. Several of my clients who are interested in New Zealand securities are now determined to realise, whatever the cost." Now, we believe both of these writers have spoken the truth according to the light that is in them, but from our standpoint of view their conclusions are not arrived at from correct prei mises. The true cause of the alarm of Australian capitalists lies nearer home. With mercantile firms ; old established banking institutions ; building societies ; land investment associations, and a host of other financial institutions, of one time recognised stability, tottering and falling on every side, entailing loss and ruin on thousands, it is only natural that financiers, who must necessarily have suffered in this universal wreck, should be chary of, if not actually unable, makiug, new investments in New Zealand ; while the sudden and imperative demands made on them for money should compel them to realise their securities in New Zealand, as well as elsewhere. It will thus be seen that the mere change of | the New Zealand Ministry is not, in this instance of Australia at least, the cause of the withdrawal of capital from over colony. We are opposed to the present Ministry, and their policy, but we do think it is quite preposterous to say that the administration of Mr Ballnnce is keeping Australian capital iiway from New Zealand, when the true cause is to be found in the financial crisis in the sister colonies. Mr Ballunce has made mistakes, which haye been -accentuated by his fearful and wonderful colleague the Minister for Lands, but that his advent to power caused money to be scarce in Australia, or anywhere else, we do not believe.