Sir Julius Vogel'M Address.

Manawatu Standard, Volume IV, Issue 142, 15 May 1884, Page 2

Sir Julius Vogel'M Address.

[By; Telegraph.] Gisborne, May 13. The following is the address of Sir Julius Yogel to the electors of the East Const district :— " Gentlemen, — In response to an intimation which I haS'e received to the effect that v would be agreeable to you that 1 should offer m vsclf as a candidate for the representation of your district iv the House ot Representatives, I have much pleasure m phiciug my services at your disposal. I did not como to the colony with the inrentinn of ve-enteving political life, nor of paying the colony more than a short visit. But since I have been here, what I have observed of the condition of the country leads me to think I may be of some use towards bringing about a more encouraging state of affairs, and to employ the few months at my disposal for that purpose. I will venture to hope that it is unnecessary I should viudicate my past career m New Zealand. The power which I exercised I owed solely to the confidence of my fellow-colonists, and it was their support which enabled me, with the assistance of my colleagues, to be the instalment ot raising the colony from the depths of overwhelming de-.-jiresHiun vi n. hrightrof prosperity that made the colony assume the position of one of the most prominent of the Australasian dependencies. Ouce more the colony is m the depths of depression, though it appears to me the causes are somewhat different from those which operated m the former case. The primary causes then, as I remember them, were : — (lst) The re-action consequent upon the cessation ot' inordinate expenditure with wars with the natives; (2nd) ivMifficiency of population ; (3rd) want of convenient means of communication between the producing district and the market for the sale, or the shipment of produce ; (4tli) generally a want of energy an enterprise, occasioned by the prevailing depression. Some of these causes more or less exist now, but they seem to me the consequence of one over-mastering cause, and that T will characterise as a general want of confidence. To make my meaning clear, I must apparently digress. In this colony, as indeed m all the colony tho process of the settlement of opening up the country and of establishing the social and commercial fabric has been carried on by the joint etforts of the j people within and without its limits. The colonists have supplied labor, skill, energy, and enterprise, and some amount of capital. The balance of the capital has been supplied by persons m Great Britain, who are cintent with the interest from four to ten per cent, according to the risks, the various investments seemed to involve. So to speak, the British investors have been sleeping partueis with the colonists, and they have done well because generally the colonist* have not, because it was m the nature of their investments that they should have a first grasp of the profits. If the colonists hud possessed the capital themselves, it would have been much better for them to have provided it than to divert portions of their profits to sleeping partners who were thousands of miles distant, but the colonists wimted railways and houses, and machinery and monetary institutions, and m short all the appliances common to a developed civilization. ! They have not the capital themselves, and they were glad to g.>t it provided for them. As they become wealthier they can enter into many of the undertakings for .which hitherto they have had to depend ori extraneous aid, for the change comes about gradually in.:ome of the older colonies \vh«r<? there is a great deal of i-eali-ed wealth. The colonial undertakings depending only on colonial capital exceed m influence and magnitude their Home rivals. The ordinary investment of foreign capital m a colony is trilling compared with the enormous amounts invested m and lent on real property on the face of it being a reliable asset . So much is this the case, that iv course of time the whole basis of commercial soundness- of a colony depends on the reliable value of its property. As bullion is tluv basis of security for the issue of bank notes, so is tho value of property the basis of probablj', at least, two-thirds iv value of tho commercial transactions of a colony. If lam so far correct, the deductions are dear, viz., that it im pairs the value and the ready realisation of property .so as to vitally injure the giMioral prosperity. Indeed, it is easy to >cv that followed (tut to its extreme limit, tho imp.iirnienfc of the value <»f properly might bring to ruin nine-tenths of the colonists- -all, m fact who do not carry tlii»ir means iv | a stocking or money-box. It is quite a mistake to suppose that only the wealthy would' suffer. The ramification of civilisation runs through every cluss, and it is quite impossible for one class to suffer, without affecting the others. A man owning ten acres suffers m degree from a want of conlidoiH.v. as much :is ouo owning 10,000 acres. I must now make plain the loason for this long digression. It appears to me that JN r e« r Zealand has everything m its favor just now, as I will presently relate, excepting that it is suf f«riiig from the want or' confidence m the value of property, engendered by I the operations of various causes during several years past. For obvious reasons, I do not wish to refer to par-, ticular Governments or particular Ministers, but I am not wrong m saying that one seoms to vie with the other as to who shall inspire the most dread iv the minds of the holders of property. If they wish to hold and improve their properties, they are Mtigmatised as monopolists who must be ' busted up,' whatever that means. If they wish to sell their lands, they are denounced with equal warmth ha speculators. It seems to be quite forgotten that these people bought their lands of the. Government, and paid for it what was required of them ufc tjie time. As far as I can aseeitain, about half the property m the colony can be purchased on easy terms, so frightened are its owneis. It is to be remembered that inyiduous influences of the kind may go on for years exerting a corroding effect, without that effect appearing on the surface. The frightened laudowner who longs to sell out and get away from the colony dares not say so. He

must wear a cheerful face to his equally nervous but apparently as cheery neighbor, and so the circle enlarges. Smiles wiihout, but bitterness within as property becomes less ' liquid.' To use a well-known pursue, the depression m business and the difficulties of iudividuala become more an<l more emphasised. 1 dislike the property tax as it diminishes the value of property by far more thau the amount it returns. As regards its influence on personal property it is a tax on culture, or refinement, on education, on the arts of production, on all, m fact, having a tendency to improve the colony. As legarcls its effect on real estate, it is open to the vital objection that it is not expended m the neighborhood where it is raked. It is, m my opinion, most essential that money raised by the direct taxation of real property should be spent by local boards for local purposes. I see no reason to doubt that the propeity tax, as far as it is needed, can be replaced by a less objectionable system of taxation. lam as great a friend to education as any one can be, as I have shown iv times past, but I must express the opinion that ihe present, expenditure on education out of the consolidated revenue is excessive. I believe that as good an article can be purchased lit :i loss cost. At any rato, it is impossible to justify the imprisonment oi'so large a portion of the consolidated revenue. Nothing; can, I think, be more ex tr:i vacant and unwise thau to slowly construct railways iv short leugthsjiustead of endeavoring as rapid ly as possible to put them to productive us.es. I attach as much importance to the indirect effect which a railway exerts m opening up the country and suiting the population as to its immediate money returns. Major A ikinson, m a speech recently made here, pointed out that low rates had been found to simulate the uso of railways, and that the effect of that use was that during the last few years passengers and goods were carried at- an expenditure of something like two millions less than the same Works have cost m former days Surely the benefits to the industrial arts of every kind that this saving confers should be taken into account. It is a false economy to limit the uses of the railways by the imposition of excessive tarriffs, and I observe that the Government think the railway should be made to yield 5 per cent. I think that for many years to come such a standard is too high, and is calculated to do more harm than good. .In my opinion the trunk lines should be completed without delay. Wellington and Auckland should be joined. Nelson and the West Coast should be united with the eastern trunk Hue, ami the Otugo central line should bo completed. Meanwhile settlement should be promoted, and districts like your own, which is well favored, ami one fitted as it is to become the home of thousands. of happy settlers, should be opened up. Lam of opinion that the time has passed for the separation of the two islands, politically -or financially. At some distant future it may be found practicable, but at present I doubt it being either practicable or desirable. The progress of either island is, and ought to be, beneficial- to both. I am not surprised, however, that the demand for separation Ims arisen, for there are grievances plainly apparent which abundantly account for the dissatisfaction existing, bat, I think, .some less severe remedy than amputation may be found for the so-called grievance. I am greatly concerned to think that the local government is neither thorough or efficient. Ministerial action seems to me to super-; sedo local government., and the latter enjoys neither the dignity nor the importance which should make it satisfactory and efficient. As at present informed, 1 greatly doubt the •advantage to New Zealand of the proposed federation with Australia. New Zealand ought undoubtedly to occupy :m important, position, with regard to the Pacific Islands. Had tho plan of si chartered company which E proposed been carried out, the colony would have had a commanding influence over the South Sea Islands. Later still, n brilliant op : portunity was lost. No. wards ran tlo justice to the folly of the quarrel with Sir Arthur Gordon as High Commissioner. Sir Arthur had the power of bringing the whole control of the Islands to "Now Zealand, and instead of quarreling with him for performing the duties pertaining to the office, had facilities been given him, there is little doubt that the High (Jonunissionership would have beau peruifineuLly planted m yewv ew Zealand., and with a; portion of tho fleet ai. d other advantages following m their wake. The trade of the Islands would, m short, have been conveyed to New Zealand, T have said that NTew Zvalaii'l has "everything m its favor now, and that I attribute its depression' to the want of continence engendered by the insidious attacks on the value of property.' I will briefly refer to the many advantages tho colony possesses. Its splendid climate is brought into strong relief by the deplorable losses which the droughts have recently oo■caeioned m Australia. Tf grain and wool are somewhat lower m price than formerly, the facilities afforded by the railways go far toward making up the difference. The direct steamers * promise to lie of incaleulable'advantage to the colony ; and, lastly, there is a new industry developed which open up a who'.o world of occupation to settlers, I allude to the supplying •of frozen meat, to the British markets; Even now it has been found to pay, anil as the costs and charges of transmission become less the profits will •become larger. An enormous quantity. ot land m the colony is- capable of being laid down m fattening grasses, and m sliorb a new industry ofauiosc encouraging kind is open, and hut for .the profound want of oonfidence evinced, I am convinced New Zealand would be as prosperous as it is now depressed. I am persuaded that the remedies I heve already suggested will alter the whole condition of thft colony. Briefly, these aie : The removal of the property tax, tho completion of important railways, the improvement of 'the local government system, the, promotion of useful immigration; and the development of settlement and of local industries IL is not for me now to go into -the particulars of how all these things may

be done —I ana not preparing a budget —but this, at least, I may say, it has never bsen found impj&sible to shape the finances m accordance with a welldefined policy for advancing the various interests of the colouy. Aa I cannot personally address you, I have exteuded my remarks to more than the usual length. Sh .uld you do me the honor of returning me, my faithful services will be at your disposal— I am, <fee, Julius Vogbl."