South Canterbury Times. TUESDAY, DECEMBER 21, 1880.

South Canterbury Times, Issue 2422, 21 December 1880, Page 2

South Canterbury Times. TUESDAY, DECEMBER 21, 1880.

It is not at all impossible that out of the stoppage of borrowing, although it may . projduce , some immediate inconvenience, good will eventually arise. As the result of New Zealand’s efforts to relieve the capitalists of Great Britain by offering them a splendid investment and safe securities, the colony has received a severe handling from the “Times” and other leading English journals. Had the money been expended on a useless war, such as the invasion of Afghanistan, the Abyssinian expedition, or African (illibustering, (he organs of (lie Jingo party would probably have looked graciously on and said nothing about it ; but because it has been devoted to national works and immigration they must needs set up a united howl against the credit of the colon}'. Their denunciations will lead to a beneficial result if they teach colonists the desirability of cultivating a spirit of national independence. Hitherto we have boon liberals in a very bad sense of the term. The colony lias been generous to a fault in dealing with the foreign bondholder.- Our loans have been floated at monstrous rates compared with the terms on which the loans of the adjacent Australian colonies have been negotiated. A little conservatism at this moment may teach the Mother Country and the detractors of our credit at.homo,a useful lesson,and it will do the colony no harm. If the colony is indebted peculiarly .to the frequenters of the London Stock Exchange she is under no debt of gratifudei For the favors wc have obtained the colony is yielding a very fair equivalent. If the monied... princes of Great Britain can sell their paper to greater advantage in any other part of. the world they are welcome to do so. The case is one 'of thank you for nothing, for we have relieved them of a plethora of wealth at a time when the British exchequer was .almost.bursting. Now that the. hurley usurer lias turned his hack on one of his best customers wc will probably he able to dispense with his favors. Necessity is said to be the mother of invention, aud seeing that the colony has been practically thrown upon its own resources, we may be able to amaze our rich relations by showing them that we can walk unaided

A policy of self reliance having been forced upon us how is it to be achieved? Fortunately the difficulty is not insuperable. If we only allow ourselves to be guided by the example.of some of our seniors we will soon find a track out of the morass. We have only to watch the system pursued in France, America, and quite recently in the colony of Victorian and a vista out of our difficulties will bo at once opened up. Instead of borrowing from abroad, why should we not borrow from ourselves ? Instead of following the example of enlightened and advanced communities, we have been cultivating the vicious and extravagant system which is pursued by Turkey, Persia, and other small states, which arc so financially rotten, that they are tumbling to pieces. America is rapidly recovering from the enormous cost of the war of emancipation, and why ? Because she borrowed from her own population, and the interest and capital never left the country. Victoria quite recently lloated a loan on most favorable terms without leaving Australian soil. In France nearly every man is a patriot and a politician, because he is a stakeholder in the country. ' The Government Bentes are held by the population generally, and to this is due the wonderful industrial growth of that young Republic. Prostrated but a few years ago by the Franco-Prussian war, it has. already all but retrieved its losses, and-it has exhibited signs of national development and elasticity worthy of the America of Europe. But without being so unfilial as to go direct to France and America, we have the example of England at this moment for our guidance. The drain of gold across the Atlantic, operating like a new spur on an old horse, is compelling the British paymaster to resort to stratagem. We are told that an experiment is being tried b} r the British Postmaster-General (Mr Fawcett) with the view of inducing the poorer'classes to imitate the example of the wealthy and become investor's in Government stocks. Our exchanges to hand by the mail thus describe the system : —“ It “ will now be possible to buy Consols “ and new and reduced three per cents “ in suras of £lO and upwards ; and the “ charge made for the purchase—as also “ for the sale—is to be so slight that “ the working classes generally ma}' be “ expected to take advantage of the “ opportunity. The system will be “ worked through the Savings Banks—- “ both the old Trustee Savings Banks “ and the more recently established “ Post Office ones. Any man having ■“ £lO may take it to the Post Office, “ and on payment of ninepence, get in “ exchange a certificate that he is the “ owner of so much Government stock, “ bought for him at the market price of “ the day. The same party must not ,f purchase more than £IOO worth in any “ single year through the Savings “ Bank, nor have more than £3OO “ in all in his name at any onetime.

“ The Savings Banks, while- thus facilitating the investment of small sums . “ in consols, will continue, of course, ‘ to “ to be hanks of deposit as before ; .and, “ and they will dovetail the two fune-J. “ tions of deposit and investment;; sb'j; “ that any depositor pf i-dO Or upwards, “ may have the deposit invested in “ Government stock any time on due “application. The success of the ex- “ periment is assured beforehand, and it “ is likely to prove both profitable to “ the State and advantageous to the “ provident among the poorer classes of “ the population.” Here we think we have something presented for our guidance far more reasonable than the Penny Savings Bank movement, or the pictorial postage card with which some of our political leaders threatened to ruin the lolly shops. Let Parliament and the- country pluck up courage and say —“ We have burrowed from abroad long enough ; if we cannot do without borrowing we will borrow from ourselves." The condition of the Banks of the colony should afford plenty of encouragement. Millions arc lying idle that might just as well be applied to State purposes. And as wc begin to feel our way, not onlj will the colony be able to dispense with the British pawnbroker, but she will be able to pay back the money borrowed, and to gradually close the stream of interest that is now impoverishing the country. By popularising a currenc}’ of Government bonds every man who chooses to be provident will have a stake in the country, and the colony will have more patriotism and fewer trading politicians. Such a system will bring with it national self-reliance, and impart a spirit of independence to the rising race of New Zealanders that will make them worthy of those sires of whom Campbell wrote :

Men of England who inherit Bights that cost you sires their blood I Men whose undegeneratc spirit, Has been proved on field and flood !| The colony has been trifling with the London Stock Exchange nettle long enough, and she bus been stung to tiie quick by her detractors. Let her grasp the weed firmly and tear it out by the roots. Where there is a will there is also a way. Our financial difficulties are great, but they arc not overwhelming. With wise legislation and a bold stroke such as we suggest, we believe that much may be done to retrieve the credit of the country, and once more to place it on a thoroughly sound and independent footing.