The Gisborne Times PUBLISHED EVERY MORNING. GISBORNE, SEPTEMBER 13, 1901. AN ADVERSE CRITIC.

Gisborne Times, Volume VI, Issue 212, 13 September 1901, Page 2

The Gisborne Times PUBLISHED EVERY MORNING. GISBORNE, SEPTEMBER 13, 1901. AN ADVERSE CRITIC.

Our old. friend Mr J. A. "Wilson is having another tilt at the finances of New Zealand. In a recent number of the Investors’ Review he writes that the prosperity of New Zealand is a subject of perpetual wonder and admiration to certain classes of minds who do not take the trouble to ex-

amine into tlie sources of it. “We let them,” he continues, “ hug their delusions in peace. Occasionally, though, a glimpse of the truth comes through, even by wire, worth noting, and in the end of last week the Times’ correspondent telographed from Wellington that during the last' six years the Government of tho colony had lent settlers £2,067,000, the sinking fund upon which had already reached I £70,000. Ho added that the Government intends to borrow another £2,000,000.” This information causes Mr Wilson, metaphorically speaking, to joyously crack his whip and then apply the lash with vigor. “Just so,” he writes; “it is always borrowing, and not for its landjobbing business alone, but for every conceivable purpose. Last financial

year, for example, triumphantly ended with a 1 surplus ’ as a matter of course, including the balance brought forward. The amount realised by loan, though, and expended in keeping up the property show within the year was £1,675,000, of which £900,000 went to public works, £219,000 to land settlement, £166,000 to feed the extravagant tendencies of local bodies, and £3So,oooas advances to settlers. At this rate 1 prosperity ’ is perennial as long as borrowing can be continued, but we fear that the

time is at hand when Mr Seddon and his brave colleagues will find the money market here untoward, and the harder up we get the more difficult will it be for the colonies themselves to fill the loans.” Then Mr Wilson hss something pointed to say about local borrowing, and this the lugubrious way in which he expresses his belief : —“ Some of these Australasian settlements have been pluming themselves greatly of late on tho power to subscribe now loans without coming to London, and up to a point they have no doubt sue needed in doing quite brilliantly, thanks to the absence of demand in other directions for the money of tho banks and insurance offices at more remunerative rates. Success of this sorq in other words, spells stagnation, so far as tho business of the country is concerned. New Zealand, however, cannot even fall back upon this temporary home assistance ; it must come to London, and it will have to pay considerably higher rates of interest for money it wauts tbau recent years havo accustomed it to. How will that affect the lau 1-jobbing business ? If Seddon and Company cannot borrow at 3 per coot, or 3.1 per cent., or perhaps even at 4 per cent,, how are thoy going to lend the farmers or settlers at a profit ? We shall shall see in a year or two, if not sooner.” Mr Wilson has over been a croaker in regard to the affairs of tho colonies, and so far ho fortunately has not proved a prophet that cau bo relied upon ; but there is no doubt that his warning voice has boeu of value in checking those who are all for borrowing without thought of the depression that must follow. Mr Wilson gets into a very surly mood over tho Manawatu railway, which there has boon a desire to get the colony to buy at tho company’s price. He writes: “This lino was built by private enterprise under tompting promises, and, as the Premier frankly admits, the original agroomont which gavo power to tho Government to buy up the line, conferred on the company the right to refer the price to arbitration in tho event of differences of view between buyer and seller. . . . Soddon does not see

his way to keep the bargain, prefers to build competing lines with borrowed money, to rush down fares and freights so as to force tho owners of the original line to soil at his price. Wo trust creditors of the colony rolisli tho object lesson here couveyed.” Why the colony should bo compelled to buy up the line at the company’s price, or even at arbitration, is not explained by Mr Wilson, who has eyes for only ono side of tho caso. Ilis expressions of opinion in regard to tho railway may bo dismissed as being altogether one-sided, but bis opinions on finance are worthy of caroful attention, not because of any anticipation that his prophesies may be fulfilled, but for tiio reason that there is ov ery need for the colony to act cautiously.