15

H.—9.

statements and rumours, perhaps for the very purpose of getting rid of them in order that they might themselves acquire on easy terms the interests so abandoned. Mr. Bonar's proposal was that the 250 families intended to be placed on the land should be made up, after selecting fifty families from residents already on the West Coast, of persons obtained through Mr. Holloway from the British National Agricultural Labourers' Association, together with a few Shetlanders and Pomeranians ; and it appears that it was because these were not sent, and because the Immigration Department had a number of foreigners upon their hands, that he somewhat reluctantly accepted those who were sent. Upon the whole, we do not entertain any doubt that the unsuitable character of the settlers was one of the causes that have hindered the success of the scheme. Store. —The next of these causes which requires notice is the Government store. We find anion" the Conditions of Settlement one to the following effect: "Provisions will be supplied to settlers by Government during the said period at cost price ; the amount will be deducted from their earnings during the first two months." We infer from the words of the preceding clause that the period hero mentioned means " a period sufficient to enable them to get dwellings erected on their own sections " —that is, while they were residing in the Government cottages. It would appear, therefore, that the Government store was only intended as a temporary measure, and it was supposed that there would be no necessity for giving credit after the first two months. As a matter of fact, however, the store was not transferred to private hands until the Ist January, 1878, and credit was largely given to the settlers up to that time. We think it would be difficult to exaggerate the baneful influonco of this store in demoralizing the settlers, and in taking from them all inducements to that strict frugality which wo have already mentioned as an indispensable element in securing the success of tho settlement. The credit obtained at the Government store has undoubtedly been tho cause of much of the poverty and most of the discontent which have existed. An examination of the settlers' pass-books, of which we have seen a good many, confirms the suspicion that they readily, if not designedly, ran up debts at the Government store, probably under the impression that they would not bo pressed for the money. Tho system adopted was that of making deductions on the store account when the wages were paid. The deductions made were at first of such amount as might be arranged between the Eesident Agent and the settlers, due consideration being given to the size of their families, and their circumstances. The amounts collected were paid into an account at the bank called the " Store Account," and were again available for the purchase of stores. At length, when this bank account showed a considerable balance on the wrong side, instructions were given to the Eesident Agent to use every effort to collect the debts, and this seems to have been the origin of most of the grumbling against him. Another reason for pressing the collections was the approaching transfer of the store to a private owner, by which the recovery of the moneys would be made much more difficult, for no one would buy the store if a heavy debt due to the Government were made a first charge upon all the wages in the district. Accordingly most of the complaints made against the Eesident Agent about money matters refer to this period, aud there is no doubt he could not have complied with his instructions without provoking a good deal of dissatisfaction and ill-feeling. After the transfer of the store to Mr. Marks, an arrangement was made for the deduction from the settlers' wages of a moderate amount for the back debts, which was fixed at first at £1. per month, and afterwards at 20 per cent, upon what was coming to them. This, notwithstanding its apparent reasonableness, has been a fertile source of discontent; which confirms the notion that these debts were incurred, in man}'- cases, in the hope or expectation that payment would never be exacted at all. The result of the whole business is that about £3,800 are now due to the Government for storo debts, and that a large number of the persons owing this money have had their passages paid away from the settlement by the Government, and their debts—.we must suppose —virtually cancelled, leaving the industrious and persevering few with their debts still due, and the deductions from their wages still going on. It appears that tho Provincial Government entered on the storekeeping business with great reluctance, and only after attempts to induce private persons to take it up. In these circumstances it would probably have been bettor, as suggested by Mr. Mueller in his evidence, to have given a subsidy for a time rather than for the Government to keep the store itself. No one who has observed the way in which a store of some kind follows even a small rush of diggers, or a party of road men engaged on a work of any duration, will doubt that in a moderate time private enterprise would have supplied all the provisions required at Jackson's Bay. At all events the evil might have been diminished had positive instructions been given to the Agent to give no credit, except for flour and a few of the chief necessaries of life, and if present payment had been required for tins of jam aud bottles of Worcester sauce. If there is any point in which the discretion of the Eesident Agent may be called in question it is in this matter of allowing the settlers to incur such heavy debts. Upon this subject, his own remarks given in his evidence may be referred to, and we certainly think that he is entitled to a lenient judgment in this matter. Whatever want or suffering the settlers have had to undergo has been visited upon the head of the Eesident Agent, and, if ho had been strict in the supply of stores, we should probably have heard still more of the tyranny and oppression exercised by him. What we have now said, together with our previous remarks upon particular charges and complaints, will show what amount of truth is at tho bottom of the vague and pointless talk about " truck," " orders on a particular store," and the like. There was no attempt made, nor had any one connected with tho Government any interest in making an attempt, to compel settlers to take goods at any store whatever; but yet in truth, although not in the manner these people imagined or choso to assert, the Government store was at tho bottom of a large part of their grievances. No Industry established. —Tho next and, in our own opinion, the most important cause which has hindered the progress of the settlement is that no direct means have been taken to establish and foster any local industry. Tho available means have been used up in placing tho settlers on their land, in feeding them for a time, and in making means of communication from one part of the block to