THE Grey River Argus. TUESDAY, MAY 12, 1868.

Grey River Argus, Volume V, Issue 363, 12 May 1868, Page 2

THE Grey River Argus. TUESDAY, MAY 12, 1868.

It does not need any great gift of foresight to predict that the coal fields of the Grey, if only properly develeped, will prove the most permanent and productive resources of this district. That they ha^e laid comparatively idle for so long a time as has elapsed since their first discovery, is a source of amazement to all who are aware of their extent and importance. Probably there is not another parallel instance of such a magnificent source of wealth existing under such favorable circumstances for working, The character of the coal is i establised beyond question at being inferior to none, whilst the extent of tie deposit is proved to be practically unlimited. The situation of the seam is most exceptionally favorable for mining operations. All the costly preliminaries of sinking deep shafts, and erecting expensive pumping and lifting machinery, are rendered needless, aa the coal can be mined from the face, and the workings drain themselves. Hitherto, bad management by companies of in. sufficient capital has had the effect of confining the coal trade of this port to petty accidental shipments and the supply of local steameas. No real effort at all calculated to develope the trade has been made, and the result has been that the Nelson Government has been compelled, so far as the mine on its territory, is concerned, to cancel the lease granted to the company last in occupation, and to throw the right of working the coal into the market for competition. The seam of coal on the Westland side of river is equally valuable and extensive as that on the other side, but in this instance also its development is a thing of the future. Some years ago the lease of the coal reserve on this side fell into the hands of a company formed in Christchurch, and although the original concession was not valid, the compauy managed to obtain the entire right of occupation just before the separation of Westland from Canterbury took place. It is of little use now complaining of the manner and terms of that lease, although a great deal could be said on the subject ; suffice it to say that unless the Company violate the conditions laid down, the lease cannot be disturbed. As matters with regard to both coal fields now stand the position is thus : —The Nelson mine is being temporarily worked by the Government, in order to supply local wants, until a company provided with sufficient capital can take up the mine* But praiseworthy as this course is, the Nelson Government are, we think, acting very uu wisely in fixing the high price they have done for the coal at the mouth of the mine. The effect of the present tariff must necessarily be to keep up the price of coal to such an amouut as will prevent anything but a purely local trade. Of course the coasting steamers must supply themselves at this port, but no craft can take coal as a return cargo at the prices now charged. We understand that the reason why the Nelson Government are charging so high for the coal is that the mine has been so extensively damaged by the late Company as to require a large outlay in protective works of masoury. This excuse on the face of it appears valid, but it does not need much argument to show that tha decision of the Government is calculated to inflict much greater injury on the coal trade of the port than could occur to the mine by deferring the works that are considered necessary. As it is, the temporary stoppage of the miue has almost entirely destroyed the trade, whilst the high price lately charged has quite prohibited steamers taking the coal except in cases of emergency. The first care of the Government should be to encourage the trade, even if tor a time that be done without any direct

profit whatever. We believe that the coal actually costs only about five shillings per ton delivered ai. the pit mouth, and yet the Government, which has no right to be a trading concern, charges twelve shillings ! The cost of bringing the coal down the river is not niuqh below'ten shillings per ton, so that after making allowance for risks of various kinds, the coal cannot be de ? livered to shipping at less than thirty shillings per ton or more, This price | is too high, and if maintained will make the work ©f reviving the trade at some future time' ; doubly difficult, We notice that the lease of the mine is open for competition, but the terms of the notice are exceedingly vague, What is meant by " sufficient" capital 1 The Government ought to stipulate the amount of capital they consider " sufficient," and whilst making the possession of the capital a necessary condition, make the lease as simple as possible, We arc given to understand that the terms of the lease have,, been made additionally stringent with regard to the method o* working the mine, so much ao as to be very likely to deter parties fyam tendering. If this is the case it is a mistake, The greatest security that the Government could have for the proper working of the mine would be the disposal of the lease to parties who wore possessed of the capital that might bs considered " sufficient," The late company had not the capital, aud therefore they simply "pottered" at the mine, a.nd cared only to get out as mil oh coal as possible at the leuat outlay of money. If the Government only go about the matter in a proper manner, and take care that the merits of the undertaking are sufficiently and authoritatively brought before the notice of capitalists, they will be able, we have no doubt, to induce some company to take up the mine, who will, far their own sakes, work the miue properly and develop its resources. We had iu tended to say a few words respecting the Christchurch Company, but we must defer them until our next,