New Zealand Colonist. TUESDAY, JANUARY 31, 1843.

New Zealand Colonist and Port Nicholson Advertiser, Volume I, Issue 53, 31 January 1843, Page 2

New Zealand Colonist. TUESDAY, JANUARY 31, 1843.

We understand that his Excellency the Acting Governor proceeded last week up the valley of the Hutt, for the purpose of viewing the progress made by some of our settlers in that beau - tiful and fertile district, and that he was surprised and highly delighted with the general appearance of the crops, and with the quantity of land which had been brought into cultivation in the short period which had elapsed since the giving out of the sections. Although the absolute quantify of land cleared and in cultivation is not, comparatively Speakihg, of any great extent, yet we cannot but hail with satisfaction the progress which has already been made. ’irffe believe that, in the ensuing year*; at least thWe times the number of acres will be laid down for grain. Messrs. Howler and Smith, and others, are already burning and clearing, and we may reasonably anticipate that many others will follow their 'example. -

That there has, generally speaking, Been a disinclination to " face the bush,” on the par* of many holders of lanfd, we must admit, but we believe that that prejudice is fast dying away. The settlement of the land claims, which we have every reason to hope is not far distant, will tend materially to induce parties to devote their energies to clearing their land. The principal drawback to carrying on their operations . extensively and profitably is the want of requisite capital. The necessity for a Loan Fund becomes every day more apparent. Interested as the New Zealand Company must be in the success of this settlement, we would urge upon their Principal Agent here, the propriety of representing to the Company the necessity of their immediately establishing a Loan Fund, as they are empowered to do by their Charter. We would also recommend the landed proprietors holding a public meeting to address the Company, and to co-operate with Colonel Wakefield for the same purpose. In the New Zealand Portfolio we observe some very pertinent remarks by Mr. Chapman, upon the subject of a Loan Fund, and we shall make no apology for placing them before our readers : “ It may be thought that the formation of a bank would afford the readiest means of employing English capital, with every prospect of large advantage, without the trouble of superintendence, and with only moderate risk. I will not for a moment deny that the New Zealand settlements offer extraordinary advantages for the employment of banking capital. The Union Bank of Australia has a branch at Wellington, and I believe the directors intend to open one at Nelson. The Wellington branch has been profitable, and has been conducted without loss, but the amount of capital employed is utterly inadequate to the large and growing commerce of the commercial metropolis of New Zealand, which still presents an open field for the advantageous employment of banking capital, well worthy the attention of the English capitalist. But a bank does not perform the functions which a loan company fulfils. A loan company is to the land owner and agriculturist what a bank is to the merchant; and however beneficial to the latter class a bank may be, it does not meet the wants of the agricultural body. In trade the credit given is short. The retail dealer requires of the merchant only such a length of credit as will enable him to give a reasonable credit to his customers.” Again:— “ Suppose a colonist l.ns a property, partly improved, which is worth 1,000/. It is a rule of the Australian Trust Company, and it is a very wise rule, not to lend to a greater extent than half the value of the property, except under extraordinary circumstances. Updejj this rule, let us suppose that 500/. is borrowed, and is expended in a way to give additional value to land—in an extension of clearing and cultivation, for instance. The value of the security is thus raised in the loan company’s hands from 1,000/. to 1,500/. The borrower would now be in a condition to go to the office of the company, and say : “ My land is now worth 1,500/., and is therefore good security for 750/., instead of 500/. : let your surveyor go over it, and report upon it, and if you are satis-, fied, I am willing to take, because I can advantageously use, a further sum of 250/.” Thus, as each lot of capital is expended in clearing the waste portion of the borrower’s possessions, the company acquires the incalculable advantage of a regular body of customers, with whose punctuality and m’ode of managing their property they become well acquainted.”

After making some observations upon the existence of a fixed capital, constituting a demand for floating capital, he proceeds : “ A steam engine, to whatsoever purposes applied, affords a very striking illustration of the manner in which fixed capital constitutes a .demand for floating capital,—that is, for capital in the form in which a body of lenders would furnish it. In the company’s settlements there are now three—-and perhaps four—-steam saw mills ; one is now working by a joint stock company, and the others are in private hands. What would be the condition of these mills, if the spirited proprietors had not sufficient capital to purchase saw-logs, or send hands into the woods to bring them down, to employ the amount of labour necessary for the working of the mills, and to give some little accommodation to their custom's in the way of credit ? Why, their mill capital must be idl«, although the owners might be willing to pledge it for thfc n ecessary loan, and to pay what we should consider a veryLigli ra te of interest for the required accommodation.”

Afte:r these extracts, which carry conviction with , them, it wqi be needless to insist further upon the utility of c h a fund to this Colony.

o We insert a letter from Mr. Boulcott relative to the Cargo of the Brougham, and regret that we should have given circulation to a report that was prevalent at the time of the vessel’s sailing for Valparaiso, and which we find was without anv foundation.