The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, FEB. 4, 1892.

Waikato Times, Volume XXXVIII, Issue 3051, 4 February 1892, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, FEB. 4, 1892.

When Mr Ballance spoke in Auckland, the fact was clearly brought home to him that capital was leaving the colony. In. consequence he was compelled to give any reason,if possible, other than the true one. He told his audience that the cause was the unsatisfactory state of affairs in Australia, Melbourne in particular. This statement has been so often confuted from the platform, in our columns, and those of cur contemporaries, that it is needless to reiterate on the subject. The reaction from the somewhat lengthened financial debauch of our neighbour is now, however, being felt in this colony. There is unquestionably a turn in the tide of population in our favour. This, if it arose from natural causes, would be a matter for sincere congratulation, but an influx of labour without a corresponding amount of capital, and a feeling of security to lead to its active employment, is calculated to prove the reverse of a blessing. The fact of the matter is that there are thousands of the unemployed in the large cities of Sydney and Melbourne who are reduced to a state of desperation, and they must leave or starve. Mr Ballance has endorsed the principle that it is the duty of the State to find employment for all who are uuable to do so for themsolvos. No other responsible politician in any other portion of the globe has advanced as far in this direction of pure socialism; what more natural, therefore, than that the unemployed of Australia should hasten to place themselves under the paternal wings of Mr Ballance and kismajority. The working classes who support his party are the most strenuous opponents of any form of assisted or free immigration. It is for them to consider whether, the socialistic principle we have noted above, in conjunction with the results that are following, is not calculated to do more harm in the way of reducing the rate of wages, than any system as yet pursued to bring population to our shores. Sir Julius Vogel's scheme was in conjunction with the borrowing of large sums of money for the execution of public works. He imported the men and the money to find them in employment. Mr Ballance, on the contrary is attracting population by the promise of employment, and this in the face of the fact that his policy is leading to a serious diminution in capital and in confidence to employ that which still remains. The large balances in the hands of the banks are clear evidence of the latter statement. In a young country like this, peopled by an enterprising population, where the banks are in the aggregate indebted to their customers, clear evidence is afforded that there is something wrong somewhere. The something in this case is unquestionably the attack already made upon capital and in a greater degree to those which are promised. It may be true that the deposits in tho banks are in comparatively small amounts, and that small investments, except in the shape of sharos in a company, are not as yet exceptionally taxed, but as we pointed out in a former article there is no guarantee of finality in the form of taxation adopted, neither is it reasonable to suppose, if Mr Ballance and his party can work their will, that it will be reached till all freeholds are practically confiscated. The Premier has deliberately stated that he hoped there would not bo a freehold in tho country in twenty yoars. If he hopes this and is patriotic, he must only do so because he believes that tho country would beuolit by this end beiug arrived at, and on the same supposition ho should make everv effort to give effect to his opinion. He has shown the cloven foot and no matter how cunningly ho ha?, by implied repudiation of former statements, attempted to hide tho unshapely appendage, it is still visible to tlioso who would otherwise withdraw their money from the banks and either personally enter into occupation of lands, or lend their capital to those who would. In the latter case, freehold tenure, with a tolorable certainty that no attempt at confiscation will be wade, is absolutely necessary, othorwiaa the would-be farmer has I no security to offer, or the best only one of an unstable character. ! The lend nationalisation fad means J (jhal only jhe capital of the occupier

can bo employod in the develop-' mont of his holding. Wo may appear to liavc digressed from our subject—tho influx of labour. The question howover of probable employment, except that provided at the expense of property owners and of those working for their living, is intimately connected with the question. The facts are insurmountable, that capital is leaving the country and that a large number of unemployed are already on the hands of tho government, at this the busiest time of the year. What the position may be in the middle of winter is not pleasant contemplation, more particularly if the starved out of Australia flock over in large numbers. What the colony wants is a policy that will attract both population and capital. That of the present Government is repelling the latter, and attracting the former by the promise of employment on public works. The money capable of application in this direction is extremely limited, and if the policy is to be carried out of finding employment for all, in the face of withdrawal of private capital, a loan will be a necessity. There are unquestionally many works that might be undertaken with every prospect of future advantage. The country has, however, rightly decided that there shall be no more borrowing, there is therefore only one provable result from a large influx of penniless population. Those who have the management of the charitable aid system will have their hands more than full. Let us not be misunderstood. We believe that this country is capable of supporting ten timed the population at present within its borders, but it can only do so by sufficient capital being applied to the development of its resources. This can never be the case so long as the paramount party pursues the policy of discouraging its investment in the country, This policy is laid down by Mr Ballance's own expression: "New Zealand for the New Zealanders." Under existing circumstances the advent is to us the contrary of cheering. We can conceive no possible reasor; for congratulation at the fact, until the people awaken from their error and insist upon a reversal of the policy implied in "New Zealand for the New Zealanders."