The Southland Times. FRIDAY, APRIL 24, 1868.

Southland Times, 24 April 1868, Page 2

The Southland Times. FRIDAY, APRIL 24, 1868.

In the correspondence recently published between His Honor the Superintendent of Southland and the Colonial Secretary, relative to the completion of the Northern Railway, it will be remembered that the plan proposed by His Honor, as the solution of the difficulty in tbe way of payment for the same in cash, was the capitalising the interest on the debt of Southland to the end of the present year. In other words, His Honor proposed the issue of debentures for the debt principal and interest to the end of 1868. Jn order to arrive at a conclusion as to the effect of this proposal, it is necessary to understand the position of New Zealand securities in the English share market, and thus to ascertain the probability of floating debentures at a price proportionate to their true value. Franklin's advice not to pay " too dear for the whistle" has not lost its force, and the advantage of present cash may be purchased too dearly. The latest reports of the London Stock Exchange indicate that such is not likely to be the case. With money in the London market at If or H per cent it is no matter of surprise that securities promising 5^ to 6 per cent should be sought after, and consequently advance in value. The report of February 24th shows that the market in Colonial Government securities has been well maintained during the previous month, and closing quotations give a uniform advance in price. The scarcity of investments, coupled with, the plentiful supply of money lead to the reasonable inference that ere long colonial securities must go yet higher. The advance during . the month on New Zealand stocks ranges from i to 1 per cent, and closing prices contrasted with those of six months back, ■'"' furnish" an advance of nearly 2 per cent. • Provincial securities during the same period give' an equally isati.- factory; result, : arid having attracted atteii ion will find 1 their way 1 into the daily list, and thus additional prominence r will lead jto an ncrease of busiiiess, and the disfaror' with which. this class of securities has

been looked upon, will gradually die out

In estimating the value of provincial securities, investera, as a matter of business, are influenced by the advanced position and prospects of the province needing the loan, and hence it is needless to argue on the presumption that the completion of twenty miles additional of railroad into the interior of the province will have its effect on the price of debentures. That by the construction of railroads, in the course of events, , the country will be opened up and resources developed, and thus directly and indirectly the material prosperity of the province be advanced, follows as a natural consequence ; and this is all that an invester insecurities regards in the matter. This 1 s in point of fact the practical view to betaken of it, and in a new country the desirability of the construction of a line of railway, must be regarded apart from the question as to whether or no it will yield a present return. The policy which condemns an enterprise whch fairly promises such important results as the completion of the Northern line may be expected to produce, because it will not immediately pay interest on capital and leave a profit, is, to say the least . of it, very short-sighted. Supposing it can be shown, as may be shown, in this instance, that the want of cheap and speedy transit to the capital and out ports has limited agricultural operations and prevented the bringiug into cultivation large portions of land — a.prima facie case has then been made out for the construction of a railroad. In the commencement of a new enterprise, many circumstances may arise which may seem for a time to render doubtful a success which careful reasoning on sound premises has predicted as certain. Present convenience has a right to be considered, but when in addition to this, the prospect of future good is reasonably clear, hesitation as to the course to be pursued ought not to be entertained, especially when the means of accomplishment are at command. The trade with the Lake belongs — distance and facility of communication by comparison between this Province and Otago, being taken into accounts— to Southland, and suchis the advantage of our position, that even with the bad roads, and the consequently high cartage, we have been able to secure a considerable portion of this trade, but with a completed railway we shall without doubt secure the whole. To reproduce the arguments which have been so ' frequently urged as to the necessity and advantages of this line is now needless and particularly,becausethe subject under discussion does not relate to the construction of a new line of railway but to the completion of one long since decided upon, and upon which the outlay now required to complete is but a small portion of the total cost and may further be regarded as an outlay required to prevent the absolute waste of the large sum already expended. As is frequently the the case in new countries we have undoubtdly made some mistakes and our experiments have been some of them costly. Ti is is an evil, however, not confined -to new countries, as is illustrated even in England, now overspread with a net- work of railways constructed in many instances at a cost, the bare mention of which is frightful. Yet from the difference of gauge existing, the country does not derive the full amount of benefit from the railway system which the enormous outlay seems sufficient to have secured. In the completion of the Northern line 1 the only matter to be considered now is to have tLe work done as cheaply as is consistent with doing it effectually. Engineering difficulties to trouble and perplex cannot now arise, for such as they were, they have been already overcome. In the present aspect of matters, to neglect or refuse to complete a work of which so much is done, would be sheer folly. The long delay since the construction of the line — although up to the present, disastrous — will now exercise a beneficial influence. Results achieved on the- various lines constructed through the world, by the aid of mechanical science, have been to cheapen the cost of permanent way, and more absolutely to ensure personal safety. The " true elements of railway success," and all bearing upon the subject of locomotion by railways, are now so perfectly understood and acted upon, as that the co&t of construction as well as the adaptation of plant to the successful working of the line, is reduced to a degree that by comparison with the cost of railways constructed and worked ten years since, may be regarded as small indeed. In the belief that every earnest well-wisher to the prosperity of the Province of Southland will rejoice at the speedy completion of the Northern . Line we hail the prospect of the introduction of the means by which that prosperity is to be achieved. • Tfse present is not a question of the relative advantages of railroads or cormn'on' roads, nor of the preference in the expenditure oi public money, which should be giTen to one or other of them.

The setting apart in the first instance of 60,000 acres of land, and the subrequent concession to capitalize the interest of our debt, have both been specially for the completion of the Northern line to Winton. To attempt to divert the funds set apart for this object would be such a breach of the recognized conditions with the General Government, as would imperil, if . not absolutely destroy, the prospect of our obtaining any assistance whatever. !