ENGLISH NEWS.

Hawke's Bay Times, Volume IV, Issue 193, 23 September 1864, Page 1 (Supplement)

ENGLISH NEWS.

NEW ZEALAND AFFAIRS. (From the correspondent of the Canterbury Dress.) London, July 26, 1862. You will read with unusual interest the discus" sions in Parliament on Yew Zealand affairs. Tho repulse of the British troops at Tauranga has directed public attention more pointedly to the war now carried on in the Northern Island than Mr. Sewell’s letter to Lord Lyttelton, or Mr. Gorst’s “ Maori King.” When military operations are found to be unsuccessful as well as expensive, the English public is more readily persuaded that they are unrighteous also ; and it will not surprise you that the questions begin to be ashed with great earnestness —“Who is to pay in purse for all this slaughter?” “ Who is responsible for the policy which has led to it, and for the continuance of tho struggle P” It certainly seems an unreasonable to English tax-payers that they should bear the expenses of a war which it is confidently alleged—and their seems ground for the allegation—is prosecuted at the instance of Colonial Ministers, without the hearty approval of the Governor and the General in command. These objections are not only urged by the Saturday Review—in the sneering tone which reminds one of Lord Westbury's speeches, by the Daily JS'ewn, in its consistent advocacy of a policy which would set the colonies altogether free from connexion with the mother country by the Times, with its visual weathercock readiness to indicate the current of present feelings (less than sis months ago it was urging the prosecution of the war with all vigor), but by influential members of both Houses of Parliament. See especially General Peel’s speech in the debate on Mr. Cardwell's proposal for an Imperial guarantee to the extent of one million for a New Zealand Loan. You may readily conclude from the tone and temper of that debate, as well as from that in the House of Lords last night, that this is the last guarantee which New Zealand will ever persuade the Home Government to give. As it was, the proposal was carried only upon the assurance of Mr. Cardwell that the money would be advanced on conditions of the most stringent nature, to be assented to by the Colonial Government. Among others, that from the close of 1864, and the colony shall undertake to pay £lO or £ls per annum for every British soldier they require. You will, therefore, have an early opportunity of seeing whether the war will be carried on when a substantial portion of the expense of it will fall on the colony itself. Of the million to be thus raised on tho Imperial guarantee, £500,000 is at once to be repaid in discharge of outstanding claims of the Home Government on that ot New Zealand. Of the remaining half million, what residum will there be when the expenses incurred by tho colonists in this war have been defrayed ? it will not bo right to omit all mention of the temper, tact, and good feeling shown by Mr. Cardwell in conducting the debate. He seems to have thoroughly mastered the subject, and to have conciliated opponents whom a Duke of Newcastle would have made more sturdy. Still, had it not been for the compact, body of Government officials, and the influence of the Hog-days in turnning the House during the discussion, it is doubtful whether ho would have surmounted the opposition to the Bill. It seems strange that the agents for Crown colonics should have selected such a time to make a proposal to raise another million, unguaranteed, of the £3,000,000 loan authorised by the General Assembly last session. Everything was against the success of such a scheme. The rate of interest here still high (the Bank of England raised its rate of discount yesterday from 6 to 7 per cent) ; the uncertainty whether any Imperial guarantee would be given at all; the obvious inference that if tho Home Government gaveaguaranranteo for a part only, it might be because they doubted a security offered for the remainder ; the absence of any evidence that the sura to be "borrowed would bo expended in reproductive and remunerative works; tho known failure of Otago to raise £200,000; not least, in ray opinion, the distrust created in the city by the non-ratification on the part of the Colonial Government of the Panama contract, negotiated by their own Postmaster-General. All these considerations must, one would have thought, have prepared the Crown agent and the Colonial Treasurer for the failure of their proposal. Failure it was, most complete and humiliating. The amount tendered for was so insignificant as to be hardlv worth notice, and the amount accepted as above the minimum (£9O per cent.) was under £4,000. Four thousand pounds, instead of one million! It is hard to understand how it can still bo expected

apparently, that English capitalists will lend their money on this security at a rate equivalent to £5 He. 6d. per cent, when the 6 per cent. (£500,000) loan of the same New Zealand Government is quoted at 101. This quotation shows a fall in its value of 8 or 9 per cent, from its price last year, when it stood at 109 to 110, as high as similar Victorian securities. When J said just now that distrust existed in the city, at. proposals made on behalf of the New Zealand Government, in consequence of their having stated their inability to confirm the contract made by Crosbie Ward with the Panama, New Zealand, and Australian Hoyal Mail Company, 1 did not write unadvisedly. .You would havoßseen in the Money Market Article of the Times a letter from a “ Disappointed Subscriber” on this subject—and I cannot think it would have been well if Mr. Header Wood, instead of simply denying the repudiation imputed, and ottering to give private explanations to the “ Disappointed Subscriber,” had felt himself at liberty to make such statement of the facts (as he understands) as might have been satisfactory to the public. The credit of young communities especially is such a sensitive thing that it should bo tenderly guarded against the chilling of “ i-epudiation.” It is evident from the tone of the Australian press generally, and especially from the prompt action taken by Canterbury upon this matter, that you are all fully alive to the damaging effect upon New Zealand securities which the non-ratification ot the Panama contract, will entail, or I should rather say, would have entailed, had not Canterbury stepped forward gallantly t o undertake the responsibility of carrying out, at least, that part of the contract which relates to the conveyance between Wellington and Panama. It is reported in the city, that Mr. Selfe, the agent of the Canterbury Government, has communicated to the Panama Mail Company the offer of the Provincial Government—that the communication was favorably received, and that the Company will certainly go on with their preparations for carrying out the contract on their part. The details of the arrangements made have not transpired, and I am not in a position to state them, but I take it for granted they will be communicated by Mr. Selfe to the Provincial Government by the same mail which brings you this letter. One point will probably occur to you. If the General Government of New Zealand'is desirous of touching the money, for which the Imperial Government is to give its guarantee, the Assembly must be called together for the purpose of obtaining its concurrence in the conditions imposed by the Imperial Government, and thus an early opportunity will be afforded of ascertaining the public opinion of the colony, and bring it to bear upon the Colonial Ministry.