Rangitikei Advocate. TUESDAY, JUNE 11, 1907. SECOND EDITION. EDITORIAL NOTES

Rangitikei Advocate and Manawatu Argus, Volume XXXII, Issue 8835, 11 June 1907, Page 2

Rangitikei Advocate. TUESDAY, JUNE 11, 1907. SECOND EDITION. EDITORIAL NOTES

MESSRS DEAEIN and Bent have not altogether an easy [task before them in their , attempt to reasssure British capitalists as to the absolute security of investments in Australia. Investors do not, we take it, fear the confiscation of their capital; they realise -that such a step would be impossible in a British colony, but they feel uncertain as to the effect that new socialistic-legislation may have on the dividends from mining or industrial undertakings. This feeling is to a large extent shared by local investors, who may be supposed to understand tho conditions better than men who arc unacquainted with the intricacies of Australian politics. We see exactly the same situation in this

bbuatry. How rhany capitalists at the present tinde would invest money in developing coal-mines with a feeling of confidence that in case of success they would reap the full benefit of their enterprise? There is a feeling that the action of the State is an incalculable factor Which reuders investment in certain directions a risky proceeding, and in addition there is the doubt as to what the cost of labour is likely to be, and Whether neW restrictions will be placed on employers, Mr Millar, in the course of a recent speech, casually mentioned that he proposed to raise the compensation payable to workmen ifl case of deatix from £4OO to £6OO. Such action would naturally increase the cost of insurance and place a heavier burden on employers. All these possibilities have to be considered, and investors either require greater profits to compensate them for -the additional risk or refuse to sink their money in industrial undertakings, and prefer mortgages on landed property, which hitherto have been more secure. Wo believe that a great deal of the present rise in the value of land is duo to the fact that industrial investments have an uncertain element about them which checks the flow of Capital which would naturally take 1 place in that direction. If these are the feelings of men who are well acquainted with affairs in New Zealand it is certain that in Britain, where people are comparatively ignorant of onr local politics, the fears of the capitalist will be magnified a hundredfold, and will lead to extreme caution in dealing with colonial investments.

IF we turn to the assurances offered by Messrs Deakin and Bent we do not find that they did much to reestablish confidence. Mr Deakin stated that the Labour Party in Australia had received a check both in the Federal Parliament and in the States, and that therefore there was little danger of future socialistic legislation. Mr Deakin failed to point out that in the process of bargaining, rendered necessary by his position, he might find it compulsory to support the measures advocated hy the Labour Party, and that though the Labour Party was not actually iii power it [held the balance between the other rival political factious. Nor were Mr Bent’s remarks any more likely to restore lost confidence. He remarked that most of the Labour loaders .had considerable vested interests in the State—we believe that one exFederal Minister has a lollie-shop — and that he was willing to pledge him Sell that future legislation would in no way interfere with legitimate investments. Such statements as these might have some .value if Mr Bent had a monopoly of office, but Jiis hearers must have been perfectly aware that a turn of the political wheel might put tire speaker out of office and return to power a Ministry pledged to almost revolutionary changes.

MR KEIR HARDIE, according to a recently cabled report, is shortly to visit Australia and, we presume, New Zealand, to study labour questions. We do not put too high a value on the knowledge that can be obtained during a visit lasting only a few weeks to the colonies, especially as the visitor is sure to be. captured by and associate chiefly With men who hold opinions similar to his own, hut there is no doubt that a mouth spent in Australia or Now Zealand must give anyone a mass of useful information on various subjects. The mere fact that Sydney, Melbourne, Auckland and Wellington are no longer mere names on a map, but cities that have been proved by personal experience to have a real existence, must add greatly to the interest taken in the affairs of the colonics. The British Labour Party lias already been represented hero by Mr McDonald, and seems to be the only section of the House of Commons which feels that actual visits to the colonies are far better than any amount of reading. Wo should be delighted to see other British politicians making a point of acquainting themselves with outlying portions of the Empire. Wo dp not for a moment imagine that our legislation is likely to provide any hints of value to people in a country where all the conditions are so different, but visitors who keep their eyes and oars open and their mouths at any rate partially closed, will return home the wiser for their trip. To suggest to the leaders of onr Labour Party that they could learn anything from a visit to England or elsewhere would be quite useless. They are ignorant, and their ignorance is so dense that they regard themselves as above the necessity of learning anything.