Manawatu Herald. TUESDAY, MAY 10, 1892. "No Servile Dependency."

Manawatu Herald, 10 May 1892, Page 2

Manawatu Herald. TUESDAY, MAY 10, 1892. " No Servile Dependency."

The Colonial Treasurer knows that at present it is not wise to suggest a loan on the London market, he therefore, there being only one other way of obtaining money, suggests, that " no servile dependence " should be placed on British capital, and that money should be obtained from the holders of it in the colony. Lately there has appeared an excess of money owned by colonists, as large sums, comparatively speaking, are lying at the banks at a low rate of interest, ov.&t no interest* The

Colonial Treasurer would endeavour to lead people io believe that this is a good sign, that under his reign these persons have become so passing rich that they know of no better way of using their cash except letting the banks have the loan of it ! We, on the contrary hold that every pound now lying in a bank at interest, owned by colonists, is the surest indication of the distrust the owners of the money have in the political views held by th& government, They dread to embark in any commercial undertaking fearing that in a few months some further pandering to the labour classes may cause such absurd restrictions to be placed on industry that the capital employed would be swamped. If our colonists have five millions of cash lying practically idle, can any other suggestion be offered for its being so ? Money is wanted every day, but even mortgages are not sought after, by those who are living in the land, for fear the penalties aimed at the land-owning class, by those who have no land, may by chance be carried into effect, and thus depreciate the security held. If there was no such fear how is it that the rate of interest on loans has increased and that this money still lies in the banks at lesser rates of interest- than that obtainable on i mortgages ? Money, in large sums have been withdrawn, and had the colonists that faith in the Premier that he would they should have, interest should not have risen, and a steady lessening oi these deposits should have equalled the sums withdrawn from the colony. The Premier apparently does not believe these sums in the banks Avill be enticed to the land or trade yet awhile, and he purposes to get hold of them by raising a local loan. Investors might be inclined to lend on the security of the Colony where they object to lend on anything taxable by the Government. And the Premier believes this is a state of affairs to rejoice at! A friend of the working man expresses joy that five millions should be "-tied up, employed for the purposes of usury, in place of giving honest employmeut to a large number of persons ! We hold very strong views about J this placing of money with the banks, instead of being used to forward the fortunes of the colony. Where would many of our most successful industries be this day, if the founders of them, instead of risking their savings in legitimate trade, had tied their money up as people have lately ? Under a less Socialistic rule these millions would have been used in clearing the land, opening our coal measures, and increasing our frozen meat business, but now holders of cash prefer a smaller in* come so that they may hold their belongings within call, to clear away at the time of danger. Yet the Go ■ vernment are proud of the position I The Colonial Treasurer is wonderfully puffed tip at this accumulation of five millions. As we have remarked, he trusts there will be " no servile dependency " on the London market ! Hear ye this ye people. We possess some five millions of cash and the London money-lenders can "go to Hong Kong." If the moneylenders were to withdraw the c apital they have invested in this colony and took it elsewhere, we wonder J what the Colonial Treasurer would j do for a living ? Running a newspaper would not be over profitable, and there would be no good " screw " attaching to be honourable billet he now holds. One little fact, without enquiring into the wonderful rammifications of English capital in the shipping industries, coal mines, frozen meat, and in commercial ventures, will show how little prepared are the colonists to follow the Premier and Treasurer in his bid to show "no servile dependency " on British capital. And the fact is this, that that the last property assessment return showed that there was a private indebtedness by mortgages alone, amounting to £80,502,231 — Nice independant people? This amount would be enough to steady most people from such a jubilant cry about five millions of cash, but for the Colonial Treasurer to do so with the fact before him that that the colonists owe other few trifles, such as the debt of the colony £35,080,143 debts of Local bodies £6,668,889 and other indebtedness exclusive of mortgages, amounting to £16,661," 466 or a little total of over eighty nine and a half millions, the dependency on the London market seems very little reduced hy the few pounds, saved together here. "No servile dependency " is a rich expression under the circumstances.