The Temuka Leader TUESDAY, MARCH 30, 1880.

Temuka Leader, Issue 248, 30 March 1880, Page 2

The Temuka Leader TUESDAY, MARCH 30, 1880.

The rapid recovery of Great Birttain from a severe state of depression, into which she had fallen two years ago, must be a pleasing surprise to all classes of men. Previous to the time of adversity, a time of unprecedented prosperity had prevailed for years, manufactures of all sorts could be easily disposed of, and wages as a datural concomitant, rose to au unprecedented height, and so universally was thi g the case, and so steady did the advance progress that many men set it down as a new order of things which was to prevai l forever; “cause and effect ” was never thought of, men earned and began to spend on a scale hitherto unknown to them. Any thought of lying by something tor a rainy day, never crossed their minds, like the Australian gold digger they settled it to their own satisfaction that these grand times were to last for ever. Indeed men of thought and calculd* tion, were carried away with this thought, Ss well os the illiterate mass around them, and the remark, the days of low wages had gene for ever, might be heard

evt-rywliere. This buoyant thought, unfortunately led a wasteful expenditure on the of many, which they f >und difficult to con (rol »hen a change for the worse came. Hence tlfe great cry of distress which wn§ Speedily heard when trade began to droop,

and wages began tu fall. So intolerant even did many become that strikes were frequently resorted to, even while-the promotors of these strikes were well aware that the employers of labor could not continue such a wage as they had been giving It mattered not to them ; they must have good wages, wherever it comes from. It is needless to state that this suicidal policy soon ruined the manufacturers, who had to sell their goods at reduced prices, so as to be able to Compete with American and other manufacturers. This very shortly led to a cl: sing of manufactories, which as a matter of course was followed by great distress amongst the working classes. Amongst the commodoties that became greatly depressed was the iron trade. Fire after fire had to b« put out, because the iron-masters could not sell at a profit; in" deed, the prices that speedily ruled com* pelled them to curtail their business or carry on at a serious loss. Other mufactories had to do the same, the consequence being, that thousands of men were thrown out of employment, and the high price that every commodity had hitherto reached soon made them feel pinched, so much so that distress became almost universal, in England, Scotland, and Ireland, This sadden reaction must have very much surprised those who had been living up to a scale of large incomes, The same course of prosperity was entered upon in the Australian colonies and with the same result. For a time labour was plentiful and wages high, money was abundant, and speculations of all sorts were entered upon in many cases regardless of the consequences. A mania for land took possession of the small farmers and the monied classes alike, the effect of which was that the land was run up to a price far beyond its intrinsic value. Calmer minds predicted what has now come about. Cause and eff.-ct, was with them an indispensible rule. Tiie cause as we have stated that money was abundant—so much so, that Loan Houses pressed it In some cases qpon fheir customers whose heads in consequence got fairly turned. If it was land, it mattered i.ot what it was like, or where it was. Purchases were made at the foot of the snowy mountains, and in the river shingle beds nearer the sea. The great temptation to this proce. dure was that men were often ready to pay, or to promise to pay, a higher price to the original purchaser, and thus he consoled himself with the assumed fact that he had done a good thing. Now, let us see what effect this has had upon the settlers of New Zealand. First, we find that many small farmers bad over-bought themselves. They had bad harvests, and low prices .following, .many were ruined. The capitalists also finds that it is-not all goldihat glitter* : they find that fheir customers have not been able to keep their griuiiscs, and that the great prices and -grind profits with which they soothed themselves to sleep have brought to them a sudden and unpleasant awakening some to find that their customers were ruined ; others to find that the land has again fallen Into fheir hands. So much so has this been the case, that sometimes they have had to farm it themselves, or allow it to lie idle. At present, land may be said to have come down in value all over not less than a third, and the end has no yet come. When markets for any article get depressed, it is difficulttofind out when things are at their lowest. In our opinion lower prices will, for a time, yet rule . land that two years ago was readily bought at L2O an acre, came down last year to Ll 5, and this year, we believe, it will come down to LlO an acre-—even at that figure it must be sold. At L2O, or even Ll 5, no common farming will pay interest. Now Zealand, as well as the other Australian colonies, has had its time of depression. In England it has spedily worn off; this better state of affairs was chiefly brought about by a rise In the iron market. An unaffected demand for this article by our American cousins set the fires agoing again ; prices went up, and now all is activity and bustle again in the Mother Country. But how is New Zealand to get over it 1 How is she to return to a state of prosperity ? Not by a section of public works; not by her adop.ing a Protective Policy ; not by an increase of taxation ; but by an increase of our exports. No country, we repeat, is in a healthy sla'e where imports exceed exports. This is very soon to be our con. ditiou, unless we arouse ourselves. What then is our remedy? Simply to set about increasing the manufacture or production of cerlaincommodities. In a future article we shall notice someof these commonodities, and how to deal with them. To-day’s space will not allow.