THE CREDIT AND RESOURCES OF NEW ZEALAND.

Southland Times, Issue 1019, 11 September 1868, Page 3

THE CREDIT AND RESOURCES OF NEW ZEALAND.

(From the ' Money Market Review.')

The public have lately been aroused to the real value of all colonial securities, and Australian as well as New Zealand 9 per cent, debentures have risen in value. The confidence of the public has now been rewarded by the consolidation of all the New Zealand Provincial securities into one G-eneral GJ-overnment stock, and by an absolnfce prohibition against raising any further Provincial loans, except by the authority of the G-eneral Legislature of New Zealand. The Hon. W. Eitzherbert has recently arrived in England for the purpose of carrying out this arrangement, which is one of no small importance, as will be evident from the following consideration;— Each of the nine provinces of the Colony of New Zealand has been hitherto charged with its own separate colonising operations. Either acting upon some peculiar principle, or having some distinct interest to develop and maintain, each province has hitherto possessed its own separate agency in G-reat Britain, and has worked, as it were, amongst its own connections — occupying itself solely with the development of its own interests and resources. Unlike the rest of the Australian colonies, each of which has only one principle city, at once the capital and almost sole port of entry. New Zealand has had nine separate capitals, each one, so far as regards its immediate interests, apparently antagonistic to the others, but in reality each working steadily to break down the natural barriers between them, and to render possible the formation of one powerful Government over the whole. The taking this important step could only involve a question of time and fitness, and it may be said that the colonists of New Zealand, as was to be expected, have been for some time past divided into two great parties, each maintaining its own view as to whether the age of Provincial Institutions has passed away and the time arrived for the establishment of one General G-overnment. The responsibility of settling this question cannot be any longer deferred ; and it is generally believed by practical men since the passing of the Consolidation of Loans Bill, accompanied as it has been with other measures, that the continued existence of the Provincial Government as.

legislative and colonising bodies is now ai an sncL It follows -as ft necessary consequence that th.§ General Government will hengeforth be charged with all colonising operations fb? the whole colony, and the introduction of capital to develop its resources— employ labor, fix the population, and enable the oolonistß to keep faith (as they are determined to do) with the public creditor—now repre* senting a total debt of seven million sterling, The measure of this responsibility may be judged when it ssr recollected that the total population of New Zealand amounts to only 200,000 Europeans and 50,000 natives, and that only 100,000 male adults (as the utmost) have to" bear the sole burden of £420,000, the amount of interest annually payable on their public debt, in addition to all the charges of developing the resources of the colony, making and maintaining roads and other public works, building gaols, asylums, churches, and schools, and providing a maintenance for the officers, clergy, and teachers. In this state of things it is not to be wondered at that economy in all Government departments should be the ot&er of the day, and Financial Eeform Associations should be springing up everywhere throughout the colony ; but this remedy cannot be applied beyond certain limits, and, as no further public loans will be for some time encouraged, it is necessary that the most should be made o' othei existing resources in order to attract further capital and population. It is chiefly, indeed, by large additions to the population that the incidence of taxation can be lightened ; and it must be clear to the holders of New Zealand Debentures that they have a large interest in assisting to produce this result. As New Zealand has an area not exceeding that of the colony of Victoria, and nearly equal to that of Great Britain, the field for development is enormous. If the existing population were doubled— as it certainly will be before long—^the present taxation would be almost inappreciable, | and the value of the colonial securities j would certainly equal if not exceed that of Victoria. Seeing that at the close of the year 1863 the nett excess of immigration to New Zealand over emigration for that year amounted, according to the Eegistrar- General's statistics, to 35,120 souls (more than. 30,000 actually arriving from the Australian colonies), it would take at this rate less than four years without an effort to raise the population to 400,000.