The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. WEDNESDAY, DECEMBER 10, 1884.

Thames Star, Volume XV, Issue 4967, 10 December 1884, Page 2

The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. WEDNESDAY, DECEMBER 10, 1884.

On tbe subject of Colonial Borrowing the Saturday Review of October the 11th writes on the side of caution, and warns the various colonies against tbe evils likely to arise from going too heavily into debt. The journal mentioned remarks that— " Since the beginning of 1881—tbat is, just three years and three-quarters—the colonial loans raised in London have just reached sixty millions sterling. This is not far short of half the existing debts of the Governments tbat have applied to the London market during this time. In other words, sixteen Colonial Governments in three years and three quarters have raised sums equal to nearly one-half of the total of their existing debt." This ,may be perfectly true, and to those not versed in matters colonial, such a statement would appear perhaps alarming; but before making any sweeping asser* tions as to the direfully calamitous effect of more borrowing—bewailing tbe lack of caution in the colonial people or their representatives, or the want of forethought shown by them in plunging into debt—it might be as well for our censors to make themselves fully conversant with colonial possessions and resources, and investigate thoroughly tbe uses to which borrowed money is put. If they find that unworthy channels have been used, through which any of it has been allowed to pass, it will certainly be their duty to offer remonstrances. Since the termination of 1880, the date spoken of by the Review —during which time it complains that the colonies have borrowed nearly half the amount of their total debt, —it must be remembered that very large public works, principally of a reproductive character, have in nearly every colony been undertaken ; the land has been opened and its settlement largely promoted j immigration has been encouraged and aided; and rapid steam communication with the older countries established and fostered. All these things have not been done without cost, and in nearly every instance the outlay has been a first cost, which will be insignificant when compared with the resulting advantages and future return. For instance, without railways and roads our various countries cannot be opened up, and in each colony there are millions of acres only requiring the band of man to turn them into waving cornfields, or pasturages dotted with happy homesteads; tbe necessary adjuncts to agricultural or pastoral prosperity are wanting where difficulties arise in the jaatter o f conveying requisites for either pursuit to the scenes of intended operations, and tenfold is the difficulty if the produce of the laud cannot Hud easy

transit to market; this is partially provided for by the construction of roads and railways, and is completed by harbors and wharves, and facilities given for cheap shipping. These things cannot be supplied without the expenditure of large sums of money, and this means borrowing. While money is abundant in England, and can be obtained on good security at moderate rates of interest, it is not unwise to borrow, if the works upon which the colonies expend it can show a margin of profit over the interest they pay for it. Again, manufactures must be en* couraged, and this has been at times endeavored by Government expenditure in the way of bonuses and otherwise. It must be remembered that the mineral wealth of Australasia has been one of the most important factors of its greatness, and the further development of this great source of strength to it, requires a considerable outlay, which may certainly be looked upon as money well spent in reproductive work. The rapidly increasing population of the colonies has also to be taken into consideration, and a comparison of its numbers in 1880 with the present time will show a wonderful increase. TakiDg all these things into consideration, we see little cause for the alarm apparently existent in the mind of our London contemporary as to the solvency of Australasia. The article we refer to is very good-natured in its advice as to not rushing rashly into expenditure on public works, and concludes thus: — " Our remarks apply, of course, v?ith greater force to some colonies than to others. New South Wales, for instance, which has been borrowing this week, has sinned less than most others. Its territories are large ; its population is growing rapidly ; its prosperity is great; it has not up to the present abused the advantages it enjoys, and its credit, therefore, is well deserved. But even New South Wales is entering upon a policy of railway construction which is, to say the least, risky, and other colonies have been far less prudent than N.S. Wales. Some of them have been actually rash, and have borrowed more than they ought to have borrowed already; yet theEe coloniesNew Zealand, for example—are about to come to the London money market again as applicants for money." We have not the least doubt that notwithstanding these solemn notes of warning, our next loan, when put on the London market, will be carefully considered by those who are lenders, and that its success will not be less than that attending our previous application to Home capitalists.