The Temuka Laeder SATURDAY, DECEMBER 29, 1888. IMPENDING DANGERS.

Temuka Leader, Issue 1834, 29 December 1888, Page 2

The Temuka Laeder SATURDAY, DECEMBER 29, 1888. IMPENDING DANGERS.

A cablegram in our issue of the 22nd instant intimated that Mr Giffen, at a meeting of the Eoyal Statist'cal Society of Great Britain, stated that he anticipated troublesome' times for the colonies, as their production of wealth was not equal to the payment of their indebtedness. Mr GifEen is one of the ablest, if not the ablest, statisticians in Great Britain, and the fact that he has said this before expert statisticians has given the matter an importance which • cannot be overlooked. In this colony now it has become a part of our religion to say nothing at all about the overindebtedness of the colony. When the late Government were in office it was the fashion to frighten us with impending bankruptcy; with, driving capital away, and with a variety of other things; but, though £2,000,000 have been borrowed since, we are being continually warned against saying anything at all about it, for fear of injuring the credit of the colony. It was right and proper to use every means to weaken the late administration, by throwing the blame for everything that had gone wrong on their shoulders; to say anything that would expose our position now is an unpardonable sin. However, when men of world-wide reputation like Mr Giffen commence o question our financial status from tin adverse point of view, any effort which colonists put forth to hide their weakness must be nullified. We may I be able to gloss over many dark spots so far as the general public is concerned, but when our real position is put to an analytical test by the keensighted < and critical statistician to dissemble is useless. Mr Giffen sees, as we have seen ourselves, that it is impossible for any country to carry on when it has to borrow money to pay its debts. It will be remembered that for the past five or six years we

have beea trying to impress this upon the public mind. We have frequently pointed out that New Zealand would require £4,000,000 a year over and above the value of her productions to pay her way, and this is exactly what is meant by Mr Giffen, only that he includes the whole of the colonies in the same category. There can be no doubt that he is right. All the other colonies have borrowed almost as madly as New Zealand, and must be proportionately weak, financially. New Zealand is, without doubt, more deeply in debt than the others, but her resources are proportionately greater. Her climate and her soil are so immensely superior to any of her sister colonies that she can afford it. We need not be afraid of our present debt; what we need fear is government by fools. That has been our bane and curse in the past, and it may yet land us in bankruptcy. We have j always held that our position was, serious, and now we find our assertion endorsed by one of the highest living , statistical authorities—a man who has a reputation to maintain, and who would not be likely to make rash statements. Wo have as frequently pointed out how the danger might be avoided, just as Mr Giffen has sajd, by greater production of wealth. This can only be done by living within ourselves, and by producing out of pur soil what we stand in need of as, far as possible. We must settle the land, and produce out of it as much as possible. We must protect, foster, and develope our industrial resources to the uppermost extent. We must export more and import less, and if we do this there is not the slightest danger of us. If, however, we neglect to do it, and we continue the muddling legislation of the past, it is absolutely certain that a day of reckoning will come when we shall find ourselves in circumstances more exciting than pleasing. We have for years urged this view of the case, and when now we find such a high authority as Mr Giffen supporting us in it, we have less hesitation in warning the public against continuing the game of playing into the hands of capitalists, importers, and monopolists.