The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. TUESDAY, AUG. 2, 1892.

Waikato Times, Volume XXXIX, Issue 3128, 2 August 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. TUESDAY, AUG. 2, 1892.

The results of a policy pursued by a country, whether good or bad, are a valuable object lesson to the statesmen of every other country existing under similar conditions. The budget of 'he Victorian Treasurer is pregnant with suggestions for the guidance of all the other colonies composing the Australasian group. It shows a deficit of £1,900,000 —a very serious state of affairs indeed for a country with little more than I a million of population ; and, what makes matters still worse, a considerable number of the working classes is gradually, but surely, leaving for other colonies more favorably situated. To our mind the maiu cause of the present state of affairs is the protection policy which has been pursued at the dictation of the working men. The effect has been to build marvellous Melbourne by the creation of an artificial rate of wages and thus attracting to the city an unduly large proportion of the population, which under natural conditions would have settled upon the land and become producers of wealth. So long as this false policy could be bolstered up by the expenditure of large suras of borrowed money, the danger ahead was disregarded, and it was futile for those who saw the error of the policy to protest and endeavour to stem the current of that treacherous river, democracy. It has flowed on with irresistible force, and has at last brought the country face to face with the evil of an enormous deficit, crippled resources with which to meet it, and fortunately for itself inability to borrow more millions, as confessed by the Treasurer. Another cause is, of course, the same as that which has brought all the self-governing colonies to a more or less unsatisfactory condition—the undertaking of political railways and political j public works. As regards Victoria, independent of the temporary political support Ministries have bid for by this means, they have been uniler the necessity, as an adjunct to the Protection policy, of endowing the people with abnormal purchasing power. Works of sufficient magnitude had to be undertaken to prevent a glut in the labour market,and a consequent fall of wages. In fact they have been largely what may be termed preventative relief works. This statement applies equally to this and other colonies as to Victoria, though only to a comparatively limited extent arising from the second cause. A cablegram informs us that Sir E. Hamilton, Governor of Tasmania, has, in an article in the Nineteenth Century, pointed out what would hare been, if not a cure at any rate a very effective check on this evil. He advises each colony to elect a Standing Committee without whose sanction no new railway shall be undertaken. Sir Julius Vogel saw this when he introduced his Public Works Policy, but unfortunately Parliament was too strong for him, and insisted upon retaining the power to spend the borrowed money. His giving way on this point will, with little doubt, be characterised by historians as the weakest act in his political carier, and it is the one which, more than any other, will be urged as evidence that he was prone to sacrifice country for office, its pgwer, and emoluments. Sir R. Hamilton's warning is very much after the old illustration of the tardy shutting of the stable door. The reasons we have given for Victoria's position are not likely to be disputed. It is interesting to note the means which the Treasurer proposes to apply in order to carry on the affairs of the country and gradually restore her to a state of comparative prosperity They are a mixture of good and evil. The good point is to live within their ineome, and the bad that he proposes to apply to finance the theory of the Homseopathists—like cures like. The policy of protection is to be intensified. He has, however, to deal with a state of affairs as he finds it, and not with one of his own creation or in accordance with his wishes. It cannot be disputed by the most ardent Protectionist that to levy Customs duties for a purpose beyond the raising of sufficient revenue is to bolster up, or create, as he would prefer to put it, industries which eventually will be able to cast aside the Customs crutches and march gaily along on sound less. In the meautime he ar&ues it is to the interest of the people to pay more than necessary for the goods protected. How lamentably often this prophecy has failed of fulfilment is well-known to the people of those countries which have suffered the scoui'ge. Victoria and New Zealand, to a les3 extent, are still looking forward to the promised day. As yet thers is hardly a perceptible , glimmer of light in the eastern sky. The Victorian Treasurer has to face two primary facts. He must have revenue. Large sums are invested 1 in plant for the manufacture of goods, and to reduce duties and raise revenue otherwise would consign the owners to the Bankruptcy Court, as the population would inevitably purchase goods at a reduction of from 25 to 35 per cent., which would be supplied to thera from alien markets. The farmer ; has insisted upon having his share of the protection stew. The consa- ; quence is that the cost of living is heavily increased all round. Theoretically, the manufacturing class is compelled by the local farmer only to consume his o«ts, cheese, and butter. On the other hand the farmer in return is compelled only to use locally-manufactured good& ! This is not absolutely the case, otherwise protective duties ' would cease to yield revenue. This system might work passably well werff the

country capable of producing all that it requires ; ljut this is not the case, and that which slip does not produce must he paid for either in •fold or some description of merchandise. To increase the cost of 1 producing this merchandise is thenl- - suicidal, and protective duties ( must have this effect. Victoria is • very much, as she is, owing to this j error, in fiscal policy, and we in i New Zealand should benefit by the ' lesson and oppose every attempt to | introduce it, lest we find ourselves ( in the same position with the alter- ' native before us of swallowing more ] of the pernicious medicine in doses, not homoeopathic, and thid only as a desperate resource, with little hope ( of an eventual cure.