The Temuka Leader. WEDNESDAY, JUNE 4, 1879.

Temuka Leader, Volume 2, Issue 151, 4 June 1879, Page 2

The Temuka Leader. WEDNESDAY, JUNE 4, 1879.

In our first article on the commercial condition of this colony, which appeared in this journal some time back, after a careful review of the past and an examination of the causes which brought about a state of depression unparalleled in Hie history of this country, we were forced to the conclusion that another loan was an absolute necessity. When this, as our opinion, was given to the world, onr most sanguine expectations were that the matter would only be discussed by public journals, and then shelved. This was the course taken by our contemporary the ‘Timaru Herald.’ Other papers—particularly the leading papers in the colony—took up the subject, and in more than one article expressed their approval of the suggestion. Onr object touching upon that point was to draw attention to it in a way that would lead to the matter being taken into consideration by the Government. Hot only do tire most of the press of the colony support our views on this subject, but some of them have gone to a very extravagant length in urging that a loan of nine or ten millions should be borrowed at once. Were such a proposal acted upon, and the Government be fortunate, or rather unfortunate, enough to make this loan a success, it would speedily lead to the same state of disorganisation and extravagance as followed the reckless procedure of the Yogol Government when it began to carry out lire public works policy agreed to by the Parliament of 1870. Some interpreted a statement made by us, that a loan would put the Banks in funds, to mean that we only cared to see money in the hands of the Banks to monopolise the business of the colony. This was not our meaning. The money derived from a loan, wc said, would enable the Government to proved with the projected interior railways, and by so doing lead to settlement on a large area of the lands at present belonging to the Crown. This would at once replenish the Government chest and go a long way in counteracting the effects of the present heavy drain upon the country. Pew seem to be aware of the amount of money requiring to be remitted to the home country by the Government just now. Most people are ready to blame land speculation for all the ills that the colony has at present to bear’, forgetting that while the Government Inis to remit very lu-avy for mil way materials, particularly iron—that was wisely purchased by onr

I Government at iho lowest point in the j ir-.n market - and that adimd to i-ms, conI siilcvnii'e re-miUanees are also made monthly to cover a portion. <>f previous too grout advances upon wool and other commodities, coupled also with consider- ! able amounts remitted for interest on j mortgiim-s, which tire now not im-onsidor--1 ablo,°as it is a no:able fact th-iUnany ■ talcing advantage of the low value of i money at homo have preferred borrowing j at four am! live per cent, to dealing with ! the Banks or loan societies hero at nine or ten nor cent. Taking those heavy remittances, in conjunction with the almost entire drying up of the land fund, it is not to be wondered at that toe Banks or the Government chest, arc nearly cleared out. There is also further to be noted the fact that notwithstanding the glut of money at home, scarcely any capitid has been received by the colony from the mother country for many months now, as we have no mint in this country, and our produce from the goldfields and grain crops have this year been less than usual, as also the.price of the latter and of our wools have been, it may bo said, unprecedentedly low, is it to be wondered at, wo repeat, that wc are in a state of great depression ami need ? There is, however, wo are glad to say, a silver lining to this dark cloud. The causes we have pointed out, it will be observed by our readers, are not of a chronic nature, and although, as stated in our first article, relief is not at the door yet, it will be easily seen that the causes of our present troubles will gradually pass away. The opening up of the country by tbe projected railways would induce many to come and buy the lands thus opened up, and which can be got at the standard value, this will of itself be one of the cures of the evil wo are at present suffering f rom. Belief, however, cannot be brought about without borrowed capital, lienee the necessity of a loam But this is not, all the good that a loan would do us. Those who have studied carefully the history and collapse of the Glasgow Bank will have observed features in it derogatory to the interests of Hew Zealand. It will be remembered that one of the. leading causes of the Bank’s failure was put down to the worthless over speculation in Hew Zealand lauded property. This feature was made the most of for a time, sufficiently long to cause alarm and make a bad impression upon the minds of capitalists as to the soundness of Hew Zealand securities generally, and although a little time showed the fallacy of the statement at first made, yet, ho it observed, sufficient care was not taken by our friends at home to disabuse the minds of capitalists of this erroneous impression, the consequence of this being that even now monied men who are not sufficiently acquainted with the histo<iy of this colony, rather prefer letting their money lie for a time without interest than lend upon seourities that, in their prejudiced minds (through the Glasgow Bank failure), may possibly turn out another Glasgow Bank affair. Wo are too ready to forgot that our little out-of-the-way Britain of the South is not so generally known to be one of tbs soundest of Her Majesty’s possessions, us we are apt to think. Another advantage of a loan will bn that it will help very largely to dispel these unfavorable notions from the minds of money-lenders in the London market. It can easily be seen what good effect a loan negotiated at the present moment would have. Suppose—as is the ease capitalists were watching the effect of a proposal to borrow say four or five millions, if that loan could be negotiated at par ; would not the dealers at the Stock Exchange muster heart of courage to say, “Well, if a loan of such magnitude can be so favorably raised at our very doors, it shows that those who know the colon;/ best are not afraid of it. Why should we not transport our capital to a place whore wc can receive a net percentage of at least six to eight per cent, upon it, well secured V’ By this .way of reasoning they are led to study more carefully the history of New Zealand loans, and it is one comfort to us to know that the more they are studied the better New Zealand will come out of it. It will be recollected by some of our readers that we sail it would be a fatal delusion to believe that immediate relief is at hand by money flowing into the colony so soon as money-lenders know that wc were prepared to give good interest for it. Our first instalment of relief will come through a loan, our second through confidence being re-established in the minds of capitalitts, our third by a revival in the demand for land, and our fourth by a revival in trade as a consequence. The only regret is the too large realisoment of our fears then pointed out, that those who have borne the heat and burden of the day are compelled to succumb to the force of circumstances before relief could be obtained. A loan to the extent named is the very utmost limit that should be attempted, while on the one hand it would only be a'tinkering of our financial policy to borrow say two millions. It would on the other be fatal to our financial prospects to attempt a loan of nine or even six million’s, rather for tiio sake of safety would we be inclined not to exceed four millions, except under the most favorable circumstances. The present state of monetary destitution must yet continue at least another six months before the cloud begins to pass away. Canterbury has been repeatedly pointed lo as the most povcrty-slt’ickeu depressed province in New Zealand, and why '? Because it depends more upon its crops of wool and grain than any of the other provinces. There is no part of the body, however, that can bo wounded without affecting the whole. Therefore as lime wears on oilier provinces will become to a greater extent the sullorcrs. One question wc may be allowed to ask, although it may seem but remotely connected with 'this subject. Arc wo doing all wc can to .alleviate the sufferings of our f'-iiow settlors.’ One class at least are not in our opinion doing so. Our Courts of Justice are being daily thronged with suitors in pursuit of payments of their just claims. This is a necessity of the times and need not bo grumbled at, but there is an evil which wc have seen under the sun connected with this state of (kings, and it is this. The oppression of the comparatively poor. When our Resident Magistrate's Courts w&re instituted it was with the view of lessoning) the expense to the debtor in small sums, and a jurisdiction up to £IOO was lately allowed to most of them in order to still further mitigate the evil ; yet we have letters from several Unfortunates before us asking if no Hunt can bo put to the charges forced upon them by groedy lawyers, who instead of

taking.summary proceedings in the Maglstnilu’s Court for sums of £2O to £3O or £4O, ah once on being applied to by a creditor for advice, advise that a' : writ should be issued, the smallest cost of which even for a sum of £2O brings £5 5s to toe lawyer’s pocket. It is not to be wondered at, therefore, that the lawyers should advise a writ instead of advising to incur an expense of a few shillings. Wc know of many instances where a poor unfortunate farmer, who has nearly paid away at! the value of his crops in harvesting and carting the same, has had in addition to bear this heavy cost as well. This horrid, shameful avariciousness on the part of the lawyers is most condemnable, and is doing great havoc amongst the small fanner and small trading class, helping very considerably to fill the Bankruptcy Court by many who would be able to weather the gale if a little sympathy and forbearance were shown where it is in the power of the plaintiff to do it. Lawyers are the only class who reap a good harvest in bad times, but those who thus act, regardless of the unnecessary sufferings of others, will find a day of retribution, for they may rest assured that an honest industrious man will only be put down for a time ; lie will rally again, and remember his friends who were his friends in need.