THE COMMERCIAL CRISIS IN VICTORIA.

Colonist, Issue 20, 29 December 1857, Page 3

THE COMMERCIAL CRISIS IN VICTORIA.

The Bendigo Advertiser gives rather a dreary account of tbewstate of commercial affairs in Sandhurst: --■•:>: The chief topic of conversation now in Sandhurst is the prevalent dulness in every branch of business. The depression is not a mere casual affair, nor is it conjured up by commercial hypocohdriaos, who are always grumbling about the bad times- People in business here are pretty sanguine, and are not usually given to looking at' the dark side of matters. They do not give in readily to the idea that busies? is really becoming very dull, but they hold out as long as possible, junder the impression that any unfavourable change is merely temporary— like that resulting from a rush to some goldfield at a considerable distance. But there is no resisting the innumerable proofs of extensive depression in business, and wherever one goes, he hears the same complaint made of the dulness of the times. It is a comfort to know that any disagreeable condition iin which we may be is shared by others in common 'with ourselves; we have that consolation at present. In Melbourne it- would seem that commercial depression is extensively and seriously experienced, and it is feared that it must result in the bankruptcy of many large firms. In various parts of the colony we observe similar complaints, and there can be little doubt that there is general depression in trade, a spirit of uneasiness among men of business, and a consequent want of mutual trustand confidence, without whicli commercial transactions cannot be successfully carried\on. Apprehensions appear Jo be entgrj^jnedr in : many quarters tfiat,;We.iShal].. witness a-period; of commercial convulsion and general insolvency, such as characterised the year 1854. We do not see any grounds for such fears, and cannot but regard it as absurd to anticipate a recurrence of such events, when the causes of them do not exist. The present depression is of course ascribed to a variety of causes. Every one has his clwn peculiar theory on the,subject, and not a few have confidently, predicted the present result. What could we expect, cries one, when we have such a defective Land Law ? This comes of the

It is a comfort to know that any disagreeable condition iin which we may be is shared by others in common 'with ourselves; we have that consolation at present. In Melbourne it- would seem that commercial depression is extensively and seriously experienced, and it is feared that it must result in the bankruptcy of many large firms. In various parts of the colony we observe similar complaints, and there can be little doubt that there is general depression in trade, a spirit of uneasiness among men of business, and a consequent want of mutual trustand confidence, without whicli commercial transactions cannot be successfully carried\on. Apprehensions appear Jo be entgrj^n'edrrn, many quarters tfiat,;We.iShal].. witness a-period; of commercial convulsion and general insolvency, such as characterised the year 1854. We do not see any grounds for such fears, and cannot but regard it as absurd to anticipate a recurrence of such events, when the causes of them do not exist.

The present depression is of course ascribed to a variety of causes. Every one has his bvm peculiar theory on the,subject, and not a few have confidently,predicted the present result. What could we expect, cries one, when we have such a defective Land Law? This comes of the proposition to'saddle the colony with a debt of i-8,000,000 for the construction of railways, says another. A third saddles the banks with all the blame, arguing that they give and withhold accommodation with a capriciousness that looks like ;a design, to throw people off their guard and then ruiu them. The severe losses which have been recently sustained in several staple articles of commerce have unquestionably been at least one of the chief causes of the present depression, though other circumstances may have contributed towards it. Situated as the colony is, with nearly all its mercantile men located in one seaport, and the whole of the colony dependent upon the merchants of that one maritime city, it is easy to understand how the slightest commercial derangement in Melbourne vibrates to every part of the colony. Melbourne traders over'specuiate and cannot meet their engagemeiits—therefore Victoria trembles, and is doJNcast., This is one very s serions and ? ob|ectsnable consequence of our entire dependence upon a single community of commercial men, and the sooner Victoria pos*

sessea numerous populous seaports along the seahoard, with merchants doing a large business with the interior the better. With but one commercial focus, the whole colony is constantly agitated by every trifling change > that takes place in'it.

We have said that \ve do not anticipate any extraordinary crisis in the commercial world. The present difficulties, so far as they "are the result'of over-trading, will soon disappear. The distrust that will be caused will now be one of the chief obstacles to business resuming its steady course, but this is a necessary evil to which we must submit. So far as we are locally concerned, we do not. see that we have much to apprehend. This business depression cannot be ascribed to general failure in mining enterprise on Bendigo—in faCt, it seems to have no connection with our industrial pursuits. So far as mining is concerned, we have seldom seen it,in a more healthy state. True it is , that men are not accumulating rapid fortunes, . but on-all sides the field of profitable mining enterpris^;:appearsto widen. The district^ has jbeen^|p'e:ntly visited with rainy weather, whicli |ias suppiiedvthepuddlers' dams with water. In ,quaj;tz ( alining .we notice steady progression, and the.dailyaccnmulation of proofs that all specur: latiofl'as^p the ■■extent/ the richness, or the per--' ! miiijfetffte'Lbf :tbe -innumcrable' Irrdeß of auriferous quartz wnicli exist in this, district, is premature and foolish. Even in our alluvial diggings, discovery has not..yet.been exhausted. Passing from ou^staple soured of wealth,.we have daily evidences of the opening up and the development of the new branches of industry. All such enterprises a3 these; we should sedulously encourage; for "they actually enrich the district. We-think upon the whole we have reason to look 'hopefully to the future, whatever the difficulties which for a time beset us. Not that we should indulge in extravagant anticipations, and continue a scale of extravagance suited to the^ palmy days of the gold-fields. Let us remember that every day things are coming more to a level, and that we should learn to accommodate ourselves- to the change. The community has no doubt squandered thousands of pounds upon laiid-—thrown away money upon barren ranges, in an absurd spirit of speculation, in an article of which there is an unlimited.supply in this'neighbourhood. Probably they now see thd folly of doing so, and in future the Government will not realises such handsome returns from thd sale of1 town lots, which are in the majority of cases absolutely.worth little mbr;e than the upset price. The public will now see that there is a better use to which to apply surplus capital than in unproductive land speculations, arid that a community suffers serious injury by the abstraction of its ready money to swell, the .Government coffers. The present period of depression will pass away, and jet us carefully treasure the lessons which the present bitter experience inay have taught us.