Manawatu Standard (Publisued Daily) The Oldest Daily Newspaper on the West Coast. FRIDAY, MAY 23, 1884. THE COMMERCIAL DEPRESSION.

Manawatu Standard, Volume IV, Issue 150, 23 May 1884, Page 2

Manawatu Standard (Publisued Daily) The Oldest Daily Newspaper on the West Coas t. FRIDAY, MAY 23, 1884. THE COMMERCIAL DEPRESSION.

In a recent letter to a Wellington paper, the Hon. G. M. Water. housk, m dealing with the present commercial depression, affirms that the recent political utterances have left unanswered,and even untouched, the question of so great interest to the colony, how is the existing depression to be remedied ? He goes on to say that an impression prevails that the most radical way of accomplishing it would be by furthering the settlement of the people upon the land. But the fact is, that the depression is most deeply felt by the people already settled upon the land and by none more than by the numerouspersons so proudly referred to by Mr Rolleston as settled upon the land under his auspices. It is a matter of notoriety that on the West Coast of this Island Mr Rolleston's settlers are m a hopeless state of insolvency, and doubtless curse him as the instrument of their ruin. With existing low prices of produce, land cannot be profitably occupied either on a large or small scale, except very favorably circumstanced as regards soil and position and unless very lightly burdened with debt. As regards this Northern Island, it may be confidently said that it will no longer pay to clear and cultivate unimproved land covered as it is with bush, fern, and ti-tree. even if the freehold could be obtained for nothing. Is, then, he asks,our condition a hopeless one?

And thus he makes reply : — " T have no hesitation m saying at once that with existing low prices for produce, and with existing public and private indebtedness to foreign creditors, it is — unless there is a radical change m our colonial policy. Hither to,withthe continued influx of foreign capital, we have not felt the pressure of our indebtnessas we must do when the Government cease to be extensive borrowers, and when capital ceases to flow m for investment. This is likely to be very shortly the case, for already capitalists are complaining that, while there are plenty of borrowers,there are few or no safe investments. When, as shortly must happen, we have nothing but our exports to depend upon for the payment of the interest upon our foreign indebtedness, what will be our position ? Half our exports will be absorbed m paying our interest, public and private, and the balance will be only available to pay for our tea, sugar, clothing, manufactures, and the conntless list of things entering into our daily consumption. At the present time the whole of our exports are required to pay for our imports, leaving interest unprovided for. When our exports come, as they shortly must, to be the only fund out of which to pay our interest and the cost of our needful requirements, they will prove, as a glance at our import list will show, utterly inadequate to the task. There is only oneway m which the two ends can be brought to mcct — that is, by ceasing to depend to so great an extent as we now do upon foreign sources for the supply of our wants; and this can only be done by an establishment of domestic manufactures. In other words, if m the not very remote future we are to pay our way, we must rely less upon the land and more upon the development of manufacturing industry ; and this can only be done m one way — viz., by the bold adoption of a policy of protective duties. Such a policy appears to me essential m the interest of the foreign creditor as well as of ourselvee, for otherwise, when the time arrives that our exports will no longer suffice to pay for both the interest upon our foreign indebtedness,and the purchase of absolute requirements, it requires no powers of prophecy to predict who will then be the sufferers. 1 " Though we think Mr Waterhouse rather exaggerates the gloomy picture he presents, still, it must be admitted that there is a great deal of truth and sound sense m his remarks, which we commend to the careful perusal and thoughtful consideration of our readers, to each and all of whom the question m all its varried aspects,is one that is of deep interest and importance both as regards the present and the future.