The Temuka Leader. WEDNESDAY, APRIL 23, 1879.

Temuka Leader, Volume 2, Issue 139, 23 April 1879, Page 2

The Temuka Leader. WEDNESDAY, APRIL 23, 1879.

A FEW months back in a leading article in this journal a warning was given that a great monetary crisis was about to overtake us. Some may not have believed it, as in a time of great prosperity men cannot fix their minds very much upon the future?) Often we have heard the gold-digger say that in the palmy days when gold was being gathered in ha .dfuls they thought it was going to go on for ever. Some seasons ago old and experienced agriculturists said New Zealand would never see wheat at 3s a bushel again. It was no use then saying what had been would be again, but looking to what was going on around us, it was our opinion that these were the palmy days of the Now Zealand grain growers. For several seasons everything that a farmer could produce commanded good prices, and possibly many of them may have thought these prices were to continue for ever. For ourselves, we could not help predicting a great reverse. A time of commercial depression always follows a time of great commercial prosperity. It is only cause and effect ; but although we gave it as our conviction that a season of great depression was about to overtake us, yet we did not think it was to come so suddenly, and with 'such, telling effect. It has come upon us, as some say, like a thunder clap. The difference between the present and the monetary crisis which happened ten years ago lies in that the present presses heaviest upon those who have hitherto been reputed not only comfortable, but in affluent circumstances. The causes in the present instance are not far to seek. Prosperity led to reckless speculation. Land rose in value far beyond its intrinsic value for agricultural purposes. A few men had been fortunate in leasing land for cropping, a a few had been fortunate in securing land cheap, and in some instances in one season paying the whole with the proceeds from one crop. The consequence can easily be imagined. The rush for land commenced, and within the short period of one year over a million of money was received for Crown Lands within the small province of Canterbury alone. It will at once be perceived that this land purchasing* was not legitimate trading. Speculators no sooner bought than they were able to sell again at a profit of often over a hundred per cent, the consequence of this being that a complete mania for land possessed almost everyone. Now, what we wish to point out is, that blame has to be laid at some door. To whose is the question. To the banks and money lenders we unhesitatingly say. Capital came pouring out from England pressing for investment, ready hands were open to receive it, and speculation in land became the order of the day— not by the class who were to plough and sow and reap and mow, but by those whose account stood well with the banks. The rush for land continued, money was forthcoming, prices kept up ; all this was but bolstering up a fictitious prosperity, which culminated in prices, or rather promises of payment for land which no ordinary course of farming warranted, the result being what has now come about. The land lies unimproved, interests on the loans are not paid, the coffers of the bank are empty, and money must be had ; indeed it has come to this that commercially it is money or your life. Grain is a drug ; the farmers are nearly ruined from paying exorbitant wages and their returns being nearly nil ; land (except in favored spots) is unsaleable ; the grain markets of the world are glutted ; not only so, but wool, the as yet principle staple of New Zealand, is very much depressed, this produce scarcely being worth taking off the sheeps backs. The wool growers are the class that suffer heaviest, and by their suffei ing the whole colony suffer. A shortcoming of over a million of money in the return for this season’s wool, after a low price for last season, tells heavily upon the finances of such a young country as New Zealand. Yet, in the face of this great change, there is nothing but taxation —heavy taxation—staring us in the face. A property tax, an income tax, a land tax, and a tax upon live stock of every description —horses, cattle, sheep, and dogs—must be resorted to in order to keep the wolf from the. door. There is only one way of getting over this, and that is by our Go-

vcrnment borrowing money. If the New Zealand Government would just now go into tne money market at Home and borrow some two or three millions, push on public works, increase immigration, open up the country by railways, within two or three years demand for land would again spring up, produce would be consumed to a great extent in our owu colony, small capitalists would settle in the country, the stimulus to every industry would speedily show good results, and New Zealand would still be able to keep her good name amongst the kingdoms of the world. This course we advocated some weeks ago, and we are glad to see that our leading journals, such as the * Otago Daily Times,’ now takes up the subject and approves. Never has there been a more favorable opportunity presented to us. Money at home is abundant and cheap ; no security could stand higher than New Zealand securities ; in no case has the public creditor had to doubt the honor, or honesty, or ability of New Zealand colonists to fulfill their every engagement. Australian bonds are well received in the English market. It only wants a little activitj' on the part of our New Zealand Government and the thing is done. Emigrants are plentiful, and clamerous for being brought to us, and by a modification of the rate of wages work would go on, the country would be settled by a bappy and prosperous community, to which want would be unknown. Our railways already are paying a fair interest for the outlay, with more feeders they would pay better ; the waste lands of the Crown would bo again sought after ; present holders of land, instead of being compelled to sell at a sacrifice, would be able to hold on till the true value of land was proved by the demand for it as an investment that would givo a good and permanent return for the outlay. When we said land in New Zealand sold at fictitious prices it was only comparatively speaking. Some ten or fifteen years hence the lands of this country will be more sought for, and at higher prices than they have ever yet reached, but unless the Government adopt a bold policy the original holders will not be able to hold on to reap the full benefit of their industry, We do hope, therefore, that the present Government will take steps without delay to authorise Sir Julius Vogel to place a new loan upon the market. This time it would do good to not only the small farmers and traders, but to the large capitalists, sheep farmers and other?, who deserve to be encouraged for sticking to their adopted country, instead of flying from it as some have done when they thought they had got all the good that could be obtained out of it. As the present crisis spreads the cry arises the banks are doing all the mischief. If it were only the banks this cry would soon cease. True it is principally the banks, yet the banks are not so very much the party that are to blame. Banks have to receive'* money as well as to loan money ; this is their legitimate business, and if all the money is withdrawn from the banks to buy land with, or to be used for other objects that do not receive a speedy return, the banks must run short. One bank in particular is very freely talked about, the gossippers forgetting that this bank is the institution with whom the Government chiefly does its business. By a shortcoming in the land fund the Government have been unable to deposit in the bank in proportion to the demands it has of necessity to make upon it. The result is that money must be supplied to the Government to enable it to keep its engagements, and by doing so it has to curtail the accommodation to its other and smaller customers. This is the whole secret. Of course other and smaller institutions are effected by the withdrawal from the various districts of this medium of industry. One thing the Bank of New Zealand may be blamed for, and that is its liberality in years back to land speculators. Tens and twenties of thousands were freely given to enable the rich to become more rich. Now, however, when these speculations are unprofitable, and the money called for, these feel the pressure more, or at least as much as the small traders. If then the Government would borrow more money and put the bank in a position to keep its customers going all would come right again. We, of course, are aware that any Ministry must have the sanction of Parliament, and we therefore think it advisable that the Assembly should be called together at once. Bank managers are often blamed for want of liberality, the truth being there is no money in the country to meet so many heavy calls.

was carrying on the business without having taken any precaution to disinfect the vessels used. The Mayor ordered new vessels to be purchased, and the cows to be removed from the vicinity of the house where Kapley died as medical men were of opinion the disease might be spread through the milk if proper precautions were not taken. Tice Governor.—llis Excellency is at present in the Lake Wakatipu District, Otago. Ho will afterwards visit Invercargill and Dunedin, arriving at Timaru, where he will stop, a night, on May 2nd. The next day, Saturday, he leaves for Christchurch by special train, passing Temuka but stopping at the Ashburton for a short time. After staying four days in Christchurch ho goes to Akaroa, stays a couple of hours there, and leaves the same afternoon for Wellington. The Weather. —The heavy rains of the past few days have had a very favorable and purifying effect on many parts of this town. In the country districts, too, where rain has been much needed for ploughing purposes, a good deal of work can now be gone on with, and we have no doubt also that the change will go a great way towards cheeking the spread of typhoid fever which is more or less prevalent in South Canterbury. A Shooting Excursion. —We are told that game every year seems to be getting scarcer, and consequently it is folly to expect good sport now-a-days in duck-shooting. Of course there are exceptions in the luck of parties who go in search of game, and as an instance we will mention what bad luck befel a party of five (all crack shots) which left the Caledonian Hotel, fully equipped, on Saturday last. Every preparation was made, and everything was got that could be thought of to make the excursion a success. Eive good guns were brought, any amount of powder, shot, etc., splendid dogs, and a spacious vehicle to carry them to their destination. They left in good spirits (Schiedam), and arrived at the Eangitata hotel on Saturday night, where it was agreed by the party to stop till daylight, and then commence the slaughter. A good deal of time was here spent in deciding which way to start when daylight did appear, everyone of the party having an idea that he knew where to “drop on them.” However, as an agreement could not bo come to between them, it was unanimously decided to act on the advice of the landlord, who had several times given them the “ straight tip,” and start in that direction. When the light of day came upon them a start was made, and after driving and walking many miles not a duck could be seen. Many reversea were met with on the journey, including the capsizing of the buggy, but we are glad to state that no accident of a serious nature took place. The party arrived in town the following day with one pigeon, and as the whole turn-out cost them some £3O, the speculation did not prove a very profitable one. This is the more to be regretted as many of the ducks were promised to buyers before the start. Town Sections.—Mr Job Brown, and also Mr Wilson, have, it will be seen by advertisement, a lot of sections for sale in some of the choicest parts of the Arowhenua township on very easy terms. Working men could not do better than go in for some of them. It is a very easy avay of acquiring a freehold on which to provide a home for themselves or their relations. It would also pay anyone who has the money to spare to build for the purpose of letting houses, as they arc very scarce.