THE GERMAN SOUTH SEA TRADING COMPANY.

Globe, Volume XXII, Issue 1905, 2 April 1880, Page 3

THE GERMAN SOUTH SEA TRADING COMPANY.

[By Telegbaph,

WELLINGTON, April 1

The following despatch has been received by the Premier from the Agent-General: — “7, Westminster Chambers, London, 8. W., 27th January, 1880. Sir, —I enclose to you a translation of the German prospectus for the establishment of a company likely to exercise great influence in future throughout the South Pacific. The primary object of the company is ;to take over the assets of the company formed by Messrs. Qoddefroy, but inasmuch as its capital is to be largely in excess of what is sufficient for that purpose, with an almost indefinite power of increase, its objects are presumably of a much more ambitious description than those of the company it supersedes. Its title is a very wide one, “The German Maritime Trading Company,” and its object is stated to be “ Transatlantic Trade, purchase of and working of factories, mills, and plantations, particularly in the South Sea Islands.” Prince Bismarck considers the company to have an importance of so high a national character that he has undertaken to .procure for it a guaranteed minimum rate of dividend to shareholders. It will be in your recollection that in 1874 I strongly urged the expediency of New Zealand encouraging by guarantee a similar company. I greatly regret that that proposal did not meet with sufficient encouragement to induce the Government to persevere with it. We had very much opposition at the time to contend with, and the opponents of the proposal freely stigmatised it as a revival of the South Sea Bubble. Now that I read the papers again I am more than ever convinced of the soundness of the proposal. The German Company is formed on similar linos, but with almost unlimited powers. If it can suit Germany, so averse as a rule to colonising operations, to attach to such a company a national importance, and to assign to it a guarantee, it need scarcely be argued that New Zealand has tenfold inducements to a similar course. The South Sea Islands are a remote incident of German commerce, but they are probably destined to be a leading exterior feature for the weal or woe of New Zealand’s future. She cannot afford to continue indifferent to the destiny of Polynesia, and the longer she reremains so the more onerous will be the task when she awakens to the consciousness that nations and dependencies of nations cannot escape the responsibilities entailed upon them by geographical and natural laws. New Zealand, from: its position is a country possessing a temperate climate, to which Polynesia should and must in future attach most importance. I trust these remarks will not be thought out of place from one who has taken so much interest in the subject. I venture to ask that immediate publicity be given to this despatch, because I think that the people of New Zealand should, without delay, ponder on what may be the effect of a large foreign trading company supported by national funds taking up its position in their immediate vicinity. Who shall say what may bo the limits to the ambition of the company and to what extent it may be able to drag its Government, reluctantly perhaps, into backing up its actions. In self defence it seems to me that New Zealand should proceed with the project commenced in 1874. State assistance would be of great importance to such an undertaking, because although in the long run the enterprise would meet with commercial success, it might for some time have to subordinate such success to the object of laying its foundation broad and deep. The trade it would bring to Now Zealand, and the industries in the shape of mills and factories that it would establish there must also be taken into account. It is worthy of notice that the extent of the risk of the German Government is only £151,000 for twenty years, although the guarantee is for 4«f per cent. The actual extent to which the gains of the Company are to be supplemented is limited to 3 per cent , or £15,000 a year, on half a million sterling. With this comparatively trifling encouragement the shares were subscribed for twice over, and a great national enterprise started. I have, &0., Julius Vogel Agent-General.