The Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. THURSDAY, MARCH 18, 1886. BORROWING AND DEPRESSION.

Manawatu Standard, Volume XI, Issue 1661, 18 March 1886, Page 2

Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. THURSDAY, MARCH 18, 1886. BORROWING AND DEPRESSION.

Those who really wish to see New Zealand advance steadily and gradually, instead of "by leaps and bounds," will be glad to learn that there is a growing hostility m the public mind against further lavisJL borrowing and reckless i elcpiemifture^ of borrowed money. The influential and leading journals are also as » rule expressing disapproval with any proposals involving a large outlay. It is stated on good authority that the Government, m next session, will, not ask for leave to borrow more than three millions, to be expended at the rate of a million a year, is very important. The New Zealand Herald affirms" that 1 this news is from a source which it believes to to be well infor'med,and it; has no doubt of its truth. Our ccjri -^ temporary,however;is of opinion that this' determination of the Premier is j somewhat inconsistant with the ex- / pectations held put by the Colonial Treasurer. It is true that Sir Julius Vogbl has not been very explicit m his statements, but he has always given it out that hemeans a " vigorous prosecution of public worksf m contra-distinction to the policy of the late iGoverriment. He has always put it forward that, above all things, the East and West Coast Railway must be commenced immediately. But if Mr Stout " puts his foot down"" and declines to ask authority to raise more than three millions, to be spent at the rate of a million a-year, the construction of the East and West Coast Railway must be postponed for a time. No doubt this-' would greatly enrage the Canterbury railway zealots, but it would content the rest of the country. The HerjcM further maintains, that" 1 there can be no doubt * tnat 'the he** pression has within the last few weeks increased * rather than been relieved, and it believes the main cause has been to fear that the colony was about to make 'another heavy plunge into indebtedness. This Government, according to Sir Julius Yogel, was to relieve the depression by the expenditure of borrowed money. They have spent within the last year over two millions, but have not succeeded m achieving anything m the way of making the colony prosperous. On the contrary, they have done much to bring on a state of panic, by talking about large borrowing and -in v crease of taxation. We entirely conicur m the opinion expressed by our . contemporary that nothing would so^ greatly tend to create confidence and re-establish prosperity as the definite announcement 'that it was the determination of the Government only to borrow cautiously, and not to throw away the borrowed money on gigantic undertakings that could not be completed for many years to come. If the Government would devote its energies to the" settlement of the land, and to cutting down the expenditure wherever economy was practicable, there would very soon be manifest a revival of confidence. But to keep talking with a light heart and tongue about the impera. tive necessity of a considerable increase of taxation, is sufficient to

cause fear and distrust. Crowded meetings may not • manifest any repugnance 'when big schemes bf bor-; rowing are spoken about, but those^ who have any means are frightened^ at the prospect, and contract their, dealings and speculations as much! as possible. The, best thing which the PremiejpsbuiicPdo>at present \m relieve the depression would be to. take a stand against reckless borrowing for works which cannot. De profitable to the colony. >" jpj; } 4 )