Effect of War on New Zealand

Te Aroha News, Volume II, Issue 100, 2 May 1885, Page 6

Effect of War on New Zealand

It may damp the ardour of those fire-eaters who thirst for gore to be made ac- I quainted with a clause which the Government have inserted in the conditions of contract for the construction of the North Island Trunk Railway. The claiu-o in question provides that, in the event of war breaking out between England and Russia, the contract may be instantly terminated. Naturally enough, the contruetordeclinedto acceptany such condition. Ik sides the cost of his woiking plant, he w ill, immediately upon acceptance of the fontract, have to send to Australia for Joout £1,000 worth of hardwood, and the sudden termination of his contract viou ld mean absolute ruin. Thecontract, therefore, ] has remained for some days unsigned, and there is a chance of the work, which was inaugurated with such a ilourish of ! trumpets, ending pretty well where it began, with the sods dug up j by Wahanui and wheeled to their resting placo by the Premier. However, we believe a compromise is likely, the condition being inserted with an addendum providing that the contractor shall be compensated tor any loss ho may incur 'J he matter is significant, abbhowingthat the Government foresee the probability ot the colony being unable to get f.ny more money, ex cept at a tremendous sacrifice, if large j issues of consols are to be made for Imperial war expenditure. In that caso, a stoppage of public works and great reductions in the Government departments must follow. We do not believe, however, that the English money market would be completely closed againstNewZeahnd, although thefall that has aheady taken place in the value of our securities warns us that we shall have to pay a much higher price for money than before, and the Government evidently harbour fears that they will not get so much as they desire or need. In the event of any shortcoming, the North is, we fully anticipate from the constitution of the Cabinet, the part of the colony in which savings will first be made. A hopeful sign to set against these iorebodings may be found in the fact that rates for money have as yet remained unchanged in the colony, not» ithfctanding the gloomy outlook abroad.