THE Grey River Argus. PUBLISHED DAILY. WEDNESDAY, JUNE 21, 1871.

Grey River Argus, Volume XI, Issue 904, 21 June 1871, Page 2

THE Grey River Argus. PUBLISHED DAILY. WEDNESDAY, JUNE 21, 1871.

Yesterday we indicated what we believe to be the intentions of the General Government towards Westland iv the matter of main roads. The works proposed to be constructed for the purpose of connecting the chief centres of population will, no doubt, prove very valuable, and exercise a great influence on the permanent settlement of this part of the colony. But by far of more immediate importance to Westland, is the- question of providing means for working the extensive alluvial auriferous deposits of the County. There is no use blinking the fact that goldmining is, and must be for many years to come, the paramount interest on the West Coast. Upon it every other industrial pursuit depends. Without it agricultural settlement would be a profitless undertaking ; there would be no outlet for trade or commerce, and the population would soon drop down to a few wretched settlers vainly struggling to obtain a market for their produce, and with only the most distant hope of being able to eke out an existence. Whatever progress permanent settlement has made is entirely due to the existence of the gold fields. But for them the West Coast of the Middle Island would have remained, for an indefinite period, the desolate region it was only a few years ago. And it ia imperatively necessary for the progress and prosperity of the country, that the agency by which this outlying portion of the Colony has been peopled, should be encouraged and stimulated in every possible manner. The Gold Fields are not so prosperous as they were — that is to say, the easier-wrought ground has been exhausted, the population has largely decreased, and mining is rapidly assuming that phase in which capital and scientific appliances can alone make the industry a profitable one. There is no difficulty as to the existence of gold itself. The precious metal is so widely and generally distributed that the question is not so much where it is to be found as where it is not. But in order to extract it expensive machinery and combination of capital is now necessary, and it has been found that through the scarcity of surplus capital, the somewhat risky nature of gold mining works generally, and other causes, the aid of the State is necessary. The Government of the Colony and the Colonial Legislature have unanimously admitted this desideratum, and the result has been the vote of £300,000 granted last session. But the voting the money is the easiest part of the business — the great question is how should this money be expended? The Government in the first instance evidcnilv contemplated the construction on is own account of large water-races or ot'ier use-ms of supply, but no sooner was this view <if Hie matter closely approached than it wns found to present so many diffir.n'f'us ju to be insurmountable. This discovery has not been confined to the Government itself — it has presented itself to every person who has given the subject any serious attention. Wo have on several occasions expressed our strong dissent from any proposal that would

place the Government in tlie position of a competitor with private enterprise, or as the usurper of the functions and duties of the public themselves. We have pointed out the many reasons which have presented themselves in favor of the aid of the State taking the form of supplementing the efforts of the public either by direct advances of capital or by liberal guarantees of interest, and we find that our views are very generally | shared throughout the Colony. The Ofcago Mining Conference has endorsed them, and we find that Mr C. E. Haughton, the Commissioner appointed by the Otago Government to investigate the whole subject as applied to that Province, fully concurs. That gentleman has recently i furnished a very able and exhaustive report on the result of his inquiries, some extracts from which will be useful. Mr Haughton considers it quite impossible that the provisions of the Public Works Act , relating to Water Supply can be generally applied in Otago for the reason that they \ provide for the sitpply of water only, and leave out of consideration other contingencies equally necessary. He recommends that the Act should be so far modified as lo render the subsidy " available for the general encouragement of mining enterprise," and he instances localities where the supply of water is not so much the desideratum as works of communication. On the great question of Government aid to Water Supply for the Gold Fields, Mr Hanghton admits the universal opinion of the mining community to be in its favor, but as to the mode in which that aid should be accorded, there a great variety of views appears to exist. Mr Haughton says . — "It may be taken, then, as proven, that the policy of the measure is approved by the miners themselves. The inanuer in which the subsidy should be applied and made available, opens up as much more debatable ground, and, as might have been expected, contradictory opinions are expressed. The Act would appear to provide for actual purchase or construction of the works, with contingent liabilities for maintenance, or for the guarantee of interest at six per cent, to the contractor for the construction. In both these cases the question of management is left open, and it is one which presents very great difficulties in its practical solution. All the witnesses seem to feel this, and those who, without qualification, recommend that the works should be kept in the hand 3of the Government, fail to indicate any plan by which this could be reasonably corned out. It would necessarily entail the keeping up of a large and expensive staff, and could hardly prove satisfactory to the miners. Certainly it would prove a source of coiir slant embarrassment to the Government. The price of water being regulated by the supply, on the one hand there would be agitation to reduce the price to a minimum, on the other the cry of interference with private interests. Legal proceedings are almost insepaiable fro a the possession of water-race property, owing to the thousand and one causes well understood upon the Gold Fields. What, then, would be the position of Government, constantly in its own Courts for laches, wilful or otherwise, for its employes ? Again, there is the consideration of apportioning the supply equitably when demand is in excess of supply. Is it to be " h'rst come first served ?" How long is a grant to stand ? under what circumstances renewed ? Those whom I have alluded to as being in favor of works beiug retained iv the hands of the Government, have either not thought out these points, or have decliued the responsibility of entering into details. The matter bristles with difficulties, and although it does not lie within my special function as Commissioner to advise politically, I desire to warn the Government not to endorse without consideration the opinions of the majority of witnesses upon this point." After reviewing the various methods by which the aid of the Government could be applied, the Commissioner proceeds to say :— " The evidence points to two practical ways of dealing with the question, viz. , by guarantee and loan, and these resolve themselves into the carrying out of one principle —the encouragement of private enterprise. I may premise that in no case have details been in any way fully entered into, a mere sketching of the outline being all that has been attempted. Jfc is therefore difficult to form a very just conclusion from premises so incomplete. The system of guarantee meets with the approval of many of the most experienced and competent witnesses. It is suggested that companies should be formed, either for the purchase and amalgamation of existing lights and works, or the construction of new ones, interest being guaranteed to the shareholders at a rate proportionate to the nature of the security. Those in favor of assistance by way of loan propose that the money shoulil be advanced to individuals or companies upoii the security of the works at a moderate percentage, provision being made for the gradual extinction of the principal by means of a sinking fund. It appears to me that either or both those plans are practicable, and possess many advantages over that of construction and management of works by the Government ; and with regard to assistance by way of loan I would point to the admirable working of the Drainage Commission Act in England, which is based upon analagous principles. Great care would be necessary that advances should not be made unless all the circumstances were satisfactory. Iv the case of a company, its consVitution, in the case of individual borrowers, their character and positions, and the feasibility of . the particular scheme, would have to \ be taken into account in sucJi case. I j believe the existing Gold "Fields staff fully ] competent to perform the duty of supervision, advising the Government through the responsible head of their department. Although not borne out by any weight of evidence, two other schemes are proposed, both of which contemplate the separation of the management from the construction. The Government are to construct, and there their function is to end. Some witnesses propose that the works should be handed over to a local board ; others that the right to their use should be sold annually by public auction. I fail to see that these propositions are supported by any valid reasoning, while both are open to very grave objections, The efficiency of maintenance, and the security of the creditor, would be alike imperilled ; while equitable distribution of what should be a public benefit would be impossible. Before quitting this branch of my report, I would call attention to an argument used by one advocate of the guarantee or loan scheme as against Government construction and management — viz., that all interference with existing lights is avoided. This is a matter of no slight; importance, and universally upon the <<"ld Fields I found great anxiety expressed as to how far these rights were likely to be affected. I hardly see how they could be secured under a system of the supply of water at minimum rates from Government races ot reservoirs. Opinions, I may add, were also freely expressed that works con« ducted by the Government were certain to be unproductive of revenue ; and that it was just that the community should bo taxed for

the benefit of a necessarily limited, number of claimholders" The information obtained by Mr Haughton with regard to the special requirements of the various mining districts in Otago, conclusively prove that che aid of the Government must not be confined to Water Supply only, if anything like a general encouragement of the mining interest is desired. For instance, in the Wakatipu district any system of extensive waterworks is impracticable — the great necessity- is the opening of tracks into the outlying localities. The Dunstan dis'rict, on the other hand, invites the construcj tion of waterworks, but no particular work on a great scale is desirable —the necessity being in the direction of a number or' works of medium magnitude in various parts of the district. The Mount Ida district is a splendid sluicing country, but mobt of the available streams have been already taken up, and artificial dams, or reservoirs, in the ranges, seem to be the only probable means of secur ing the extra supply of water required, and the further difficulty exists of providing sludge channels, or other means of disposing of tailings and debris. The re2)orts on other mining districts betray the existence of a great variety of circumstances and conditions, which offer enormous difficulties in the way of a satisfactory measure, all which tends to show the advisability of the Government not undertaking the responsibility of the works, and the necessity of extending the aid of the Colony to other works than merely those for Water Supply.