The Temuka Leader THURSDAY, MARCH 24, 1887. OUR RESOURCES.

Temuka Leader, Issue 1560, 24 March 1887, Page 2

The Temuka Leader THURSDAY, MARCH 24, 1887. OUR RESOURCES.

Mb W, N. Blaib, the eminent engineer, has contributed to industrial literature two very Valuable and able lectures—one delivered a few years ago in Dunedin, and the other recently in Christchurch . The latter lecture was delivered to the Industrial Association at Christchurch, and now we have it before us in pamphlet form, Mr Blair deals with “ the past, the present, and the future of New Zealand industries ” in a very masterly manner, and winds up with wise and just conclusions arrived at after a, careful study of our industrial resources, He declines to discuss the subject from either a Freetrader’s or Protectionist’s point of yiew, but considers the salient points of the controversy as they would strike a stranger. He pursues the controversy in a sober, logical manner, giving each side fair play and bitting bard at the weak points in both Freetrade and Protection. But the reader is not at all left in doubt as to Which side has the best of it, Protection, according to Mr Blair, has the advantage over Freetrade. England, be points out, is a Freetrade country, while America and Belgium are highly protected countries, yet we have in this colony many American-built locomotives, and the ironwork now used in erecting the Waiau bridge came from Belgium, If the arguments of Freetraders were logical this Could pot have been so, for Freetrade England could have undersold protected America and Belgium, but such is not the case. The American locomotive and the Belgian iron are cheaper and better than could be got- in England, according to Mr Blair, and be is in a position that constitutes him a judge of such matters. But to us the most telling argument in favor of Protection is contained in the following

' Talua Imported. 1. Article* that could be produced in New Zealand by merely extending the industries already in existence £1,750,000 2. Articles that Could readily be produced by establishing new industries, tba conditions for which are favorable £2,000,000 3. Articles that could be produced when the resources of the colony are further or fully developed ... £1,750,000 4. Articles, the products of tropical countries and manufactures which there is no chance of super- ; seding by local supplies £2,000,000 Total ... ... £7,500,000 From this it can ha seen that we send out of the colony every year £5,500,000 for goods which the colony is capable of producing. Mere extension of present industries would secure to us nearly two millions, nod a little more energy four million pounds a year. It wonld do us all good to think out this problem, for no one can ever arrive at a just conclusion by simply saying : “ I am a Freetrader; I do not agree with any increase in the customs duties,” or ; “ I am a Protectionist, and to put, on customs duties is the only way to save the colony,” It is necessary to think and weigh these matters carefully before determining upon a course of action, i'he first point to be considered is : “ What is the cause of the depression ?” The answer is ; “ Want of money.” Then the core mast be to circulate more money, and the way to do this is to keep the money in the colony instead of sending it away to foreign countries. Let anyone ask himself what would be the effect of £4,000,000 a year being spent in this colony on giving employment find he will find that hs most

come to the conclusion that it would greatly add to our prosperity. It would increase our population, increase the spending power of the people, and thus increase the consumption of the products of the soil. In sympathy with the generally improred condition property would become saleable, people would be able to pay their debts, and everybody would be greatly benefited. The next point we wish to consider is the first item referred to by Mr Blair, namely, “articles that could be produced by merely extending the industries already in existence,” by which we could secure; : £175,000 sterling annually. Why do we not extend them? There are several reasons, of which the following are the principal ones Ist.—The price of money is so high that moneyed men prefer to lay out their money on interest, and consequently the necessary capital for extending the industries is not obtainable. The cure for this is to bring down the price of money. 2n3—Imported goods compete too keenly with the home-made articles, and thus by taking a targe number of the customers render greater extension of the industries impossible. The. cure is to keep ont the imported goods. It is therefore only by cheap money and protection that we can possibly jpake the colony prosperous, and the sddner we open our eyes to these facts the better. In.former articles we have shown that we lose £4,000,000 a year on our transactions with' foreign countries, and that we have no means of getting that money. We want about £12.000,000 a year to pay our way, and we haye only about £8,000,000, and in that way we go about £4,000,000 to the bad every year. It is evident that under such circumstances we must in time come to grief if we do not make provisions that will secure to us the annual sum that we require to make both ends meet, and this can only be done by shutting ont £4,000,000 worth of the goods we import by putting on Protective duties.