GENERAL ASSEMBLY.

Globe, Volume IV, Issue 347, 23 July 1875, Page 2

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL. [By Electric Telegraph.] (From a correspondent of the Press.) Wellington, July 22. PETITIONS. Hon Mr Menzies presented a petition signed by 431 settlers of Mataura, Otago, prayidg for an extension of the agricultural area to Bethroun, to be open for a year on deferred payments, and the enlargement of the individual area from 200 to 320 acres. COMMITTEES. Various sessional committees were appointed, but the Council by 12 to 4, refused to allow the waste lands committee to confer with a similar committee of the House of Representatives. REPLY TO ADDRESS.

In moving the address in reply, Hon G. R. Johnson, referring to the constitutional changes, said any measure in the direction of local self-government would have his warmest support. While there might be circumstances justifying the inhabitants of certain parts of the colony in wishing to remain under the present form of Government, his own opinion was it would be more convenient if the changes were carried out at one time throughout the colony. He congratulated the Government on being in a position to bring down such measures with a fair prospect of carrying them into effect. Hon Capt Baillie, who seconded the reply, in speaking on the abolition question, said his opinion was that the changes should have taken place four years ago, and if done then a strong central Government would now exist. At present self-interest and not the interests of the colony as a whole, guided member’s actions, He said so advisedly, because hs witnessed that for many years in the various Parliaments. He would give the Ministers every support in carrying their measures.

The Hon Mr Holmes congratulated Hon Dr Pollen on the assumption of premiership. He felt satisfied that the administration of the affairs of the colony would largely be benefited by his presence in the Cabinet, and the views of the Cabinet had been very much modified to the advantage of the colony by his presence. It had been said out of doors that Hon Dr Pollen was merely keeping his predecessor’s seat warm. He hoped such was not the case. He condemned the negotiation of the four million loan as unsatisfactory. He said during the past year the mortgages in Canterbury amounted to over a million, in Otago to £850,000, and if the other parts of the colony were taken in proportion, the mortgages of the year would amount to between three and four millions. The only good feature about the loan was the report that Messrs Rothschild exacted conditions that the colony should not borrow for two years. If the condition had been for seven years he would have been delighted. The interest on the loan represented 17£ per cent or 3s 6d in the £ on the total value of exports which was anything but satisfactory. Unless they stopped borrowing they would bring about a crisis which would have a serious effect upon the future of the colony. He was not an alarmist, but he could not placidly shut his eyes to the unsatisfactory state of the finances. He totally opposed the San Francisco service, and on the abolition question said he had always been in favor of simpliyfying the form of Government, If a better system than the present was to be adopted, he would give it his support, but until it was shown to be better, he would be sorry to commit himself. He would however assist in promoting the abolition of the provinces, or| in simplifying the form of Government by reducing the number of officials and lessening the expense of Government. He was only prepared to give an opinion on the woiking of provincialism in Otago and Canterbury, and he was free to state that the manner in which public business was conducted there, and the efficiency of the departments compared favorably with the General Government. The Provincial Governments of these provinces had performed work which would not have been performed except by a Government on the spot. He was afraid it was a matter of great difficulty to carry an Insolvency Bill in the Lower House, as it was now constituted. The present Bill required great amendment. He preferred seeing imprisonment for debt abolished, and the Insolvency Act completely swept ,off the Statute Book, leaving all as debts of honor, rather than that creditors should have no proper redress as now.

Hon Mr Chamberlain complained that the Onehunga railway was not paying. Hon Mr Williamson answered that he did not expect railways to pay immediately on being constructed ; they were bringing about great advantages already. For example, on the Mercer and Auckland line freights had been reduced. Hon Mr Menzies said the continued prosperity of the colony depended on the continuation of immigration. He was totally opposed to the Californian service, thinking the Suez sufficient for our purposes. He complained that the terms of the address re abolition, pledged the Council to concur in any measures which might be prepared. He suggested an alteration, to include that the Council would consider the measures and the whole question. Hon Dr Pollen remarked that some minds still doubted the results of the immigration and works policy. The Hon Mr Holmes’ statements, even were they accurate, should not be allowed to derogate from the general accuracy of the statement. It should be a source of congratulation that in the circum-

stances inside and outside the colony, the negotiations were completed at the time and in the manner they were. Great difficulty was experienced in England by those in charge of the negotiations from the depreciation of the credit and resources of the colony from a calumnious person who appeared to have no other purpose than the publication of scandalous statements respecting the colony. The public works development was not only a colonial but a financial success. In answering the Hon Mr Chamberlain, he said returns would shortly be laid on the table which would prove incontrovertably that line far from not paying was, Inking the circumstances of its construction into consideration, a remarkable financial success. In that respect it was not singular. He knew of no exception among the lines already completed. People who declared the policy would be an entire failure would find them themselves agreeably disappointed. As to the four million loan, there were men occupying responsible positions giving opinions on the future of the colony, which, though unconsciously, and perhaps unmeaningly done, tended to nearly complete the work of damaging the colony’s credit begun by others. Referring to the Hon Mr Holmes’s reference to the Premiership he said his position was owing to an accident which he greatly deplored, and he was disinclined to accept Hon Mr Holmes’s compliment at the expense of bis absent colleague. He again alluded to the loan in these terms:— “ I regret I should notice one particular observation the Hon Mr Holmes made in respect to the loan in which the hon gentleman said, speaking of the circumstances, he did not know the conditions under which the loan was negociated, except that Messrs Rothschilds stipulated that no more money should be borrowed for two years. I take this opportunity of at once stating that Messrs Rothschild (made no such condition. It is to be hoped, with prudence, economy, and moderation in oui expenditure, we shall not have the necessity imposed on us of going into the money market for another loan either this or next year. That will depend not so much on the Government as on the moderation and good sense of the people, who ought to be content to await the gradual and steady development of the policy in the future. It has been a natural desire to have a great many things done at once, the consequence being that the works have been carried on with much greater rapidity than was originally contemplated, and it has been found that the expenditure has been more rapidly increased than otherwise it would. With prudence in the future we certainly will be able to complete the works already authorised with the means already provided, and have no need, except for such new works as may be found necessary, to apply for further loans for two years. During the last thirty years he had been so accustomed to hear all bright prospects spoken of with alarm, that he declined to heed the Hon Mr Holmes’s warning on that head

Hon John Johnson considered that the Hon Dr Pollen’s remarks referring to persons in the colony were intended to apply to the Hon Mr Waterhouse and the Hon Mr Sewell, and were uncalled for. The real cause of the colony getting such a low price for the loan was the manner in which it was negotiated, and the frequency of the colony’s appeals to the money market. The alteration in the manner of negotiating it was most unfortunate for the colony. The address was then adopted and the Council adjourned. HOUSE OF REPRESENTATIVES. (Press Telegraph AgenovJ) Wellington, July 22, THE LOAN. Correspondence relative to the negotiation of the four million loan was laid on the table. FREE IMMIGRATION. Mr Murray asked for information as to the reported stoppage of free immigration. Major Atkinson replied that all the papers relative to the subject would be laid before the House shortly, but it might be stated for general information that free immigration had not been stopped. UNAUTHORISED EXPENDITURE. Major Atkinson introduced a Bill for indemnifying the Colonial Treasurer and all other persons for the expenditure of £4440 for the service of the financial year ending the 30th of June, 1875, and for charging the same o i the accounts of the said year. The House adjourned at 3.25.