The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-12
A business Lesson.


According to recent advices received at
| Vancouver. b. c., the financial and busl-
| ness situation IN Australia has become
exceedingly serious, II not positively
alarming. The recent bank failures have
made 1t impossible TO meet the payments
due for public works. and the discomfort
among the unemployed, especially In
Sydney ard Brisbane. threatens to as
sumo the form Of an open outbreak.
A correspondent of the New YORK Times
writing from Melbourne. Victoria, under
date Of May 9th. describes at some length
the causes which have produced the
present crisis In a country which Aus
tralians formerly boasted was the work
ingman's paradise.
The seven colonies Of New Zealand,
Tasmania, Queensland. New South Wales,
Victoria, South Australia, and West Aus
tralia, form what is known as Austria
lasia, the last five enumerated being
known as Australia. They are united,
however. in nothing but I'm name. Each
colony has its own Independent form or
government. each has erected Chinese
tariff wall against the other, and each
separate system OF railroads is so 1eal-
ously distinct from every other as 70 have
different gauges for its tracks. so that
a change OF cars Is necessary and re-
handling Of freight compulsory In cross
ing from any one colony into another.
The area Of the seven colonies Is al
most equal I'm extent 70 the United states,
stretching from latitude II degrees south
TO 50 degrees south. and yielding In pro-
fusion all the vegetable and annual
products Of the torrid and temperate
zones" It's mineral wealth Is mex
haustible. and IT'S vast and productive
territory is called upon 10 support
H. ~ tr0r
IN the midst Of natural abundance with
out limit, its financial institutions are
collspsing and It's labor plunged into des-
perate distress.
The explanation Of the situation is
fond In several causes. One OF the
principal Of these was the craze for
railroads and other public works, which
were often built without regard 70 neces-
sity or expense. As the governments
were 10 build operate and own the
roads. the politicians in the local Parlia-
ments determined TO make themselves
strong with their constituents by grab
bling their share Of what they regarded
as public plumber" Thus while many
essential roads were built between i'm
portant points thousands Of miles OF
railroads that are now either rusty and
rotting tracks, or maintained at a great
expense. were built out into the bush,
where no one lived, and these lines were
often seriously deyiated from the best.
because the cheapest. course TO accom-
modate some particularly influential con-
stituent."
The result OF all this IS seen in the
size Of the public debt. the larger part
of which was contracted 10 build the H.
$50 miles Of railroads I'm the colonies.
This debt I'm 1891 was 1862 S2G 635 and in
the same year the public expenditures
exceeded the receipts by 1892 40, which
had to be met by another loan. Nearly
all. II not ALL Of the principal Is held
I'm England. and the immense sums OF
interest that are yearly paid out 10 the
English holders of the bonded indebted
ness forms drain on Australasian
finances that is showing itself in the pres
ent condition Of things
This boom In public improvements also
had another result. II collected from all
quarters great numbers Of skilled and
unskilled workmen. who. during the flush
times Of railroad and dock construction.
and the erection Of public buildings, re-
ceived lavish wages. When II was found
that the boom was costing more than 1t
paid. and IL was necessary TO adopt
policy OF ratrenchment and economy,
thousands Of workingmen were thrown
out Of employment. and drifted TO the
cites, already unhdturdlIy cou5rHleu'
There, without work or means Of liveli-
hood. they have become desperate and
dangerous. and threaten the Governments,
which they have become accustomed 20
regard as pledged 10 their support. out
Of n population Of less than 100000.
three-ffths OF the Australasians are
concentrated in the cities and towns
"The cities are entirely abnormal In their
growth" the outcome Of the policy OF
forced material development.
Australasia's experience shows once
more that the boom method IS not a
healthy system Of development. and that
government paternalism may result not
only in embarrassment for itself and the
general public, but I'm pauperism for the
special objects Of it's care. just as a
parents Overindulgence may cause the
ruin of a chlld.-Balumore Sun.