The Temuka Leader TUESDAY, SEPTEMBER 8, 1885. THE EAST AND WEST COAST RAILWAY.

Temuka Leader, Issue 1389, 8 September 1885, Page 2

The Temuka Leader TUESDAY, SEPTEMBER 8, 1885. THE EAST AND WEST COAST RAILWAY.

The proposed East and West Coast and Nelson railway is the great political problem of the day. Within the districts interested everyone is on the verge of insanity in favor of it ; outside these districts the whole colony is unanimous in its opposition to it. The North Canterbury people are troubled very much because they have so far failed in their efforts to secure the syropathv and co-operation of the people of South Canterbury. They uige that South Canterbury woo'd be benefited by the railway, and also that being a part of the Province it ought to back them up in thrir efforts to get the line made. As regards both these assertions we do not think thst they are sufficiently convincing to induce South Canterbury people to take any warm inteiest in the subject. The making of the railway would not do any good whatsoever to South Canterbury. Its effect on South Canterbury wou'd be to take away the working men from the place, and to increase taxation. As regards North Canterbury’s claims on the support and co-operation of South Canterbury, we have only to remind our northern friends of the opposition which a few years ago they tffered to the construction of the breakwater at limaru. South Canterbury people cannot forget the opposition of Christchurch and Dunedin to that great work, and the scandalous misrepresentations made by the newspapers in both these places concerning it. And why did Christchurch and Dunedin oppose our breakwater ? They were not asked to share in the liability. We prrposfcd to raise the money necessary to construct it on the security of the properties in South Canterbury ; we never asked any other district to be responsible in the slightest degree, and consequently their opposition could not have arisen from any dread ot having their taxes increased on account of it. Their opposition arose from mean and selfish motives ; they knew that while no harbor existed in Timaru the trade of the district must go through their own hands, and on account of ttiat they opposed the Timaru Breakwater. We all remember the scandalous mis representations made concerning the work, and bow these people used to gloat over every mishap that happens] in our hart or. Not only that, but it was currently reported at the time that pressure was brought to hear m Sir John Coode to condemn the work, and that other mean and underhand attempts were made t<> crush it. i he Christchurch people who bad a hand in this business now want our support and co-operation to secure the West Coast Railway. They would not, if they could have prevented it, have allowed ns to construct our breakwater, which did not and could not involve them in any responsibility whatever ; they ask us to assist them in getting a work done which must increase taxation. Have they deserved tt from us? Has North Canterbury treated South Canterbury in the past so well that we ought to “ gird up our loins,” now to do battle for her ? We think not. However, that is not the great point, but, will the proposed railway prove a reproductive work ; or, is the agitation prompted by Ui:.' desire for having public money expen-;:U in the district ? We have conversed with some Christchurch people on the subject, and even in their insanity they seem to realise that the prospects of the railway paying are not blight. They

all admit that there is no land along the proposed line that is in any way fit for settlement. “ But look at the minerals,” they say ; “No one knows what mineral wealth may b discovered,’ Hint is the question, “ No one knows!” and consequently persons not directlv interested will hesitate before entering into a scheme which is admittedly nothing better than a gambling transaction. If gold should be discovered in bucketfuls along the line, of course it will be a grand speculation ; if neither go'd nor silver nor coal in payable quantities can be found, it will be e fearful job—a veritable white elephant. It will cost about £4,000,000, the interest of which may ba set down at £200,000 a year. The amount of the property tax collected last year was £145,379 12s Id, so that to pay the interest on the amount necessary tor the West Coast Railway all our prop rty tax would be necessary. This is a bright lookout for us. If we sanction the construction of this line it will result probably in our property tax being doubled before long. The Dunedin people evidently realise this, and seem determined to resist the proposal. As a counterblast to the bouncing arrogant demonstration held in Christchurch, the Dunedin Chamber of Commerce met and passed a resolution to the effect that their representatives should resist tha East and West Coast proposal irrespective of the effect such resistance might have on any other work. The motion amounted to an instruction to Otago representatives that, even if they were to lose the money for the Otago Central line, xhey were to oppose the West Coast line. This is a chivalrous attitude to assume. The Otago people are ready to drop their own line sooner than sanction the East and West Coast Railway. This shows they are in earnest, but how long will they be so is another question. If on account of the West Coast Railway the Otago Central line is slopped, what will ire the result ? Simply that the Otago members will sanction the demands of the people of Christchurch next session in order to get their own line made. In rrnr opinion the East and West Coast Railway must bo made. After next election 25 members will be returned pledged to get this line ; these will link themselves together, and, by voting in a block, will strike such terror into other sections of the Douse that they will get what they want. They will be able to make and unmake Governments ; they will obstruct business ; they will form alliances with other sections who have other dirty jobs on hand, and do other things which will render government impossible, till at last the House will find it impossible to resist them. We are judging them by their conduct, and the conduct of their constituents, during he past twelve months ; they have shown themselves capable of anything, and they will resort to any artifice to secure their own ends. We therefore predict that they will eventually gain their point-, not because they are entitled to it—or that anyone will admit that it is either right, just, or honest—but because corruption will run rampart until they get it.

CHEAP MONEY,

The “cheap money” proposal has been advanced a stage through the instrumentality of Mr M»candrew. The Committee appointed (o consider the subject lias reported as follows :

“ That one of the chief drawbacks to the full and successful development, of the agricultural and pastoral resources of New Zealand by men of limi f ed means is the high rate of interest on mortgage, and the extent to which such interest is withdrawn from the colony by absentee mortgagees. From the statement appended here it will be seen that the number of mortgages in New Zealand for sums ranging from £ICO to £IOOO is 32,788, representing a total amount of £10,449.676. The number of mortgages o'er £IOOO and under £2OOO is 6634, the value of which the Committee wereunible to ascertain. A very large proportion of the mortgages are held on security of land, and probably it would notgo beyond • he mark to estimate the average rate of interest on such land (inclusive of costs) at not less than 8 per cent., and often much higher rates have to be paid. These figures will serve to indicate the large extent to which relief would be afforded if the rate of interest could be reduced to 4 or even 5 per cent. From the information before our Committee it is evident that great benefit has been derived in various countries from loans advanced by the State on the security of land ; notably in Prussia, where the system of making advances on land at a moderate rate of interest by means of State notes, which are a legal tender, was initiated about the commencement of the century. Loans on a similar principle have been provided for by stature in several of the North American states, among which may be mentioned New York, Pennsylvania, ami Massaciiussetts. Without further preface, your Committee is of opinion that the public credit of New Zealand might, with advantage, be applied towards enabling settlers on security of their land to acquire advances at a comparatively low rate of interest. Such advances might be made through the Land Transfer Department in sums not exceeding £2090 to any one individual for a period not exceeding ten years at per cent, per annum, the amount of such advance not to exceed one-half of the value as fixed under the Property Assessment Act, the mortgagor to be entitled to cancel the mortgage at any time on payment of the principal and interest to the time of cancellation. The sole instrument of mortgage should be the endorsalion thereof on the certificate of title sad :j ;s registration in tlm Land Transfer Office books. The amount advanced should be paid in New Z aland Government debentures of m [ h as than £IOO each, bearing interest at the rate of 4 per cent, per annum, with a currency of fifteen years, princip I and interest to

be payable either at Colonial Treasury or the Bank of England, That the session is now so far advanced that the House may probably be unable to consider or discuss the foregoing proposals at the present time, and even were it. otherwise the sub- 1 W:l >8 one of such vast importance in its he-nng upon the future prosperity of New Zealand that it may perhaps be well to afford pub'ic opinion throughout the colony an opportunity of expressing itself upon the question before any definite action is taken thereon. This report will serve so far to ventilate the proposal, and your Committee would express a hope that the Executive Government may, during the recess, prepare a Bill dealing with the question upon the lines embodied in the forgoing suggestions, such Bill to be submitted to Parliament at the commencement of its next session. —J. Macandrew, Chairman.”—Attached to the report is a return showing the mortgages outstanding on 31st March, 1885 Mortgages to £IOO and under £SOO, number 24,922, amount £5,421,793; £SOO and under £IOOO, number 7866, amount £5,027 883 ; £IOOO and under £2OOO, number 6634. In a recent issue we explained the difference between Mr Macandrew’s proposal and that which we have advocated, consequently we need not refer to it now. We may say, however, that Mr Macandrevr’s proposal comes nearer our own than any other, and consequently we shall be very glad if it is carried into effect.