The Temuka Leader TUESDAY, DECEMBER 14, 1886. CHANGE OF POLICY.

Temuka Leader, Issue 1525, 14 December 1886, Page 2

The Temuka Leader TUESDAY, DECEMBER 14, 1886. CHANGE OF POLICY.

When Sir Julius Vogel went strutting about tbis colony in 1884 telling tbe people that the depression was imaginary, that it was the result of “ want of confidence,” and that a vigorous policy would make the colony go ahead “by leaps and bounds,” his utterances were swallowed by the unthinking with an avidity that was surprising. The Lyttelton Times went off its head over it; the Press, for once in its career, agreed with its local contemporary ; tbe Otago Daily Times agreed to a nicety with the hero of the hour ; public men immediately came to the same conclusion, and next day tbe whole country from end to end was astonished that no one had ever thought of such a thing before. The oracle bad spoken : tbe people worshipped. We took the liberty then of pronouncing Sir Julius Vogel’s speech at Ashburton as " a vague, uncertain lot of rubbish and we now take credit to ourselves for having been able to foresee the utter failure of the policy he enunciated. Our criticism of Sir Julius Vogel’s speech was then pronounced in the elegant language of a certain commentator as “very cheeky,” and, of coarse, no notice was taken of anything said in opposition to the views of the oracle. “ Time brings its revenges.” Sir Julius, and bis countless admirers were all wrong, and he and they now admit that we were right. In his speech at Tuapeka Sir Julius intimated that the Government intended to stop borrowing, and we find now that this has been ratified at a recent meeting ot the Cabinet. The Wellington correspondent of the Press says : I understand that an important modification in the Ministerial policy has been virtually decided upon in consequence of a serious falling off in the revenue and the unfavorable status of the last loan. These two things have undoubtedly alarmed Ministers,and even Sir J. Vogel and MrLarnach,the chief apostles of a “programme” and heroic policy, are said to have become convinced now that it is impracticable for the present. It is understood, therefore, that Ministers will not only preach economy, but will make an extensive »how of practising it, that they will urge moderation ia expenditure, and will discountenance any further increase in tbe public debt for a time on the ground that tbe colony cannot stand increased taxation to meet interest on a fresh loan. I believe Ministers have at last become thoroughly awake to the fact that the colony as a whole dreads any large borrowing, and would prefer to see strict economy until the financial equilibrium ia restored. Thus it is evident that Sir Julius Vogel has given up tbe idea, of going ahead “ by leaps and bounds,” and has decided on trudging at slow-coach pace. We are not surprised at this when an Irish Brewery Company and the Municipality of Newcastle in New South Wales can borrow money more advantageously than this colony. Our last loan floated, certainly, but the terms were such that it would have been better had it altogether failed. We have lost about £50,000 of it—that is, instead of getting £1,567,800 we will get about £1,517,800. In addition to tbis £50,000 which we have lost we must reckon the cost of raising the loan. At present we have no information as to (bat, but it is possible to make «

shrewd guess at it. In 1883 the amount charged for expenses in raising a loan of £,1,000,000 amounted to £30,330, and in 1884 the charge was £13,275. 'lt therefore appears tons that if it coat £43,605 to praise £2,000,000 of one loan, it must have cost £BO,OOO at lease to raise our late loan. This we must add to the £50,000 lost through the debentures selling at a loss of £2 15s per cent, and thus is left £BO,OOO which we have never received. Now, we must pay interest for this £BO,OOO at the rate of 5 per cent just as well as if we bad received it, and thus in 20 Years we shall have paid away another £80,000 ! in interest on money we never received. There it? still compound interest to be added, which would probably bring it very close to £200,000, That is about what we shall have lost in 20 years, and yet the interest will go on and on unless we file and end it. Our Freetrade Iriends had better reflect on this. If vYe manufacture our own goods, export a great deal and import very little, we shall be receiving money from outside sources, instead of paying it away ; we shall be able to live within ourselves ; we shall thus become wealthy, and if our Government require a loan we shall be in a position to lend it ourselves. There is nothing that will save us except Protection and a National Bank. We are glad the present Government have come round to our views at last; if they would take lup the National Bank scheme we should be thoroughly in accord with them, and it is possible they may come round to that yet, They are doing all that it is possible to do in the way of settling people on the land, and they are heartily ;in favor of protecting local industries. The settlement of the land and the development of our industrial resources ; are the two most important things that any Ministry can do, for unless both are Intelligently and energetically attended tb the colony must become bankrupt. ■The Ministry have given up all ideas of further borrowing, and determined on retrenchment, and, therefore, no objection can any longer be raised to them. While they were going wrong we • opposed them vigorously ; now that they have come round to loolrat things in a sensible way we think it right to give them credit for it. It is our opinion that they are the best Government we could get ; they are certainly the ablest, and it is, we think, the duty 6f ail to support them.