New Zealand Times. MONDAY, AUGUST 10, 1874.

New Zealand Times, Volume XXIX, Issue 4177, 10 August 1874, Page 2

New Zealand Times. MONDAY, AUGUST 10, 1874.

It is scarcely possible to rise from the perusal of- the valuable series of papers submitted by the Premier respecting the trade and resources of the South Sea Islands, and then to glance through the Bill, already ‘in'print‘‘and distributed,' that he intends to bring into Parliament for the purpose of affording New Zealand a practical monopoly of this trade, without coming to the conclusion that his aim is to build an a Company that shall do for this Colony what the great East India Company did, for England. Most of us are familiar with the facts relating to the early and subsequent history of that Company—how it was formed in the sixteenth century with but a nominal capital of £30,000 in £IOO shares, and how it cleared during the first few years of its existence 200 per cent, on the capital invested. This was shortly afterwards increased to £420,000, then to £1,000,000, and last of all, in 1789, to £6,000,000. But by this time the Company had vastly outstripped any proportions its initiators . could have imagined for it. As early as 1611, four factories had been built on its account at Surat and three other towns ; and in 1624 it acquired liberty to punish its servants by either civil or martial law, and thus became a governing as well as a commercial power. In 1664, when Surat was attacked by the Mahrattas, they were driven back and dispersed by the forces of the Company. At that time it had a fleet of from twenty-five to thirty merchantmen, each manned with a crew of 100 men ; it had advanced money by loan to the Home Government in sums of one to two millions; and in 1789 it was governed by a Court of Proprietors, a Court of Directors, and a Board of Control. It was exporting British manufactures to a very large extent, and was bound by charter to find shipping accomodation for the goods of private merchants. Its imports were principally tea, pepper, spices, indigo, silk, opium, precious stones, and bullion. To its subsequent history it is scarcely necessary for us to allude. Everyone mipst see that the Pacific Island Trade Act, proposed by the Premier, has precisely the same aims that the directors of the great East India Company had. The trade to be done is of a similar character, only Mr Vogel proposes that the factories of the Company shall be in New Zealand in the first instance. And precisely as the Company, from being a commercial one, became of supreme power in the country to which it traded, so would the formation of a New Zealand and Polynesian Company lead to the acquisition by New Zealand of the sovereignty of the islands to which the company should trade. Of the commercial prospects of such a company we need not dilate at length. If, in the sixteenth century, in the face of the difficulties the merchants of those days had to encounter —protracted voyages, and perilous passages —they could clear 200 per cent, need we fear the result here, where the passages-would be made in smooth water, for the most part with favoring winds, and would scarcely exceed a week in duration ?

The terms which the Premier proposes are that New Zealand shall guarantee 5 per cent, to the Company on £250,000 for the first two years, or oh £500,000 during the two succeeding years, and if Parliament shall then decide to do so, upon one million sterling for a term not exceeding fifty years. It is not probable that this latter power will ever be applied for, as in four years time the bills of the Company, should all fgo on as may be anticipated, will bo as good as those of the Government. The contract to be concluded will contain provisions and stipulations relating to the business, trades, and manufactures to be engaged in by the Company, the places at which these shall be carried on, for making New Zealand the depot and principal place of business of the company, the employment of steam vessels, the manager, directors and auditors to bo appointed, and the inspection of the profits or losses made, If the management of the company be not satisfactory, power is reserved to the Governor in Council to suspend it and exercise its functions by aj Commissioner until such time as Parliament shall meet. Generally, Parliament; will have power-from time to time to legislate for the company, and this power, it may be anticipated, will bb frequently called into exercise. Many and various were’ the charters granted to the East India Company. ' Should the ' proposed Polynesian Company flourish ] as .may be : reasonably;, expected;<; numerous .private parties will want, to share in,any ; advan-: tages it may .possess. The aim of the. East India Company was to obtain a, monopoly of , the trade to the Eas,t. and, practically it liad one for many years. Here, it will scarcely.be fair for the Go- : vernmont, by guaranteeing interest, to! build up a : trade, and for other persons, to. ,’come t and share in or filch away this. The Company williprobably carry on the; business .of ; merchants, ,ship-owners,; planters, producers, , manufacturers,; .prohors, agents,, insurers,;, bankers gud; money lenders iri ) the islands) arid, by the- permission of the ’ Government, elsewhere, e ' If < it;. < should- 1 establish, factories,; as proposed, at; Otago,; Canter-’ bury, Wellington, and Auckland, it will; deserve to have immunities and privileges; for the purpose of rendering theae profit-, able. The Premier, we observe, proposed! that not less than six steam vessels should; be employed In the event; of/Parliament; guaranteeing interest upon a million of money.' And the Company, he thought, | should pay' a royalty of sevlen arid a half! per cent, upon all goods it exported to the! islands that should riot be of New Zealand! produce, or, manufacture.. Persons who are conversant with the! facts in both cases, will, as we have said, i see in the scheme of the Premier the ini-, tiationofa South Sea Company somewhat after the model of the East India Corn-! panyi Others) deplorably • ignorant, will: shako their heads, endeavor to look wise,: and mutter ominously a “ South Sea: Bubble.” ’ But there is not the remotest resemblance between the:Company whoso! claims we advocate and the Great South: Sea Company. This latter was formed by! some speculators who Had bought up tickets,’ issued by . tho Government to! soldiers arid sailors instead of coin, and; sold by theiri in their necessities'for fifty, per cent, discount, to the. value of! about nine millions sterling. They; then formed ' a Company, the, first: object of which was to trade in' tho South Seas , on the .American Coast, j to supply the Spanish West, Indies with; Negroes, and to do a little whaling;. By: stock jobbing artifices, the shares of the; company were forced up to 2000 per cent: premium, and then there came the crash,; and the Sorith Sea' bubble burst. The slave trade had been carried on at a loss,: there had been only one whaler sent out, j and it had been unsuccessful, arid almost

the only other-trade done had been that of elaborately furnishing the great South Sea house, building stately porticoes to it, imposing staircases, offices as rppmy as state apartments in palaces, courts, and committee rooms, cellarages to hold the dollars and pieces of eight,' providing massive silver inkstands, huge charts, maps, and office books, with all that should tend to make investors believe that the Company was a prosperous and money making one. Ignorance can scarcely go further than to liken the proposal of the present Government to bring a valuable trade-at our very doors, into this Colony, to the South Sea Bubble. Hon. members (who do this, pay themselves a very poor compliment. As we have seen, the operations of the Company will always be under the control of the Governor in Council, and to an extent of the Parliament. Surely they do not suppose that a Company under such supervision will end as did that which was formed primarily to supply the Spanish West Indies with Negroear Is it not more likely to develope into one after the similitude of the famous, rich, honorable, and powerful East India Company 1