The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1894-05-03
Interesting Experiments Being Made
In That Colony.
DUTIES OF THE PUBLIC TRUSTEE.
A Most Interesting Account of Recent
Experiments in the Social Problem
Innovations in Land Matrers-The
Public Works and immigration Pol
icy-Bureau of Industries, Etc.

The following article on social
experiments in New Zealand, by
A. G.. Fredenberg, is taken from a
recent number of the Outlook.
During it's brief history as an Eng
lish colony, New Zealand has, per-
haps, seen more interesting expert
ments i'm State activity than any other
country in the world. Some OF these
experiments are in the direction of
State Socialism; more of them can
not be said to be Socialistic in the
strict sense of the term, as they have
been undertaken in order to aid and
increase private enterprise. This
growth in State activity has been due
principally to the superior credit of
the Government over individuals or
companies. British capitalists were
slow to advance funds to distant COM
panies, but the credit of the Colonial
Government has been excellent. The
idea has also been prominent that the
Government should undertake certain
enterprises which could not promise
to be remunerative at the start, but
which were essential to the growth
and development of the Colony. 1t
has unquestionably been the preva-
lent OPT uion in New Zealand that the
State is more than an organization
for the purpose of government, and
that it can properly undertake many
enterprises which are commonly car
ried on by individuals. AS result,
most of those industries which are
included under the term natural
monopolies" are operated in New Zea-
land by the Colonial Government or by
the municipalities. The State has also
successfully been invoked to change
social conditions by various means, es-
pecially by taxation. This extension
of State activity is called by its oppon-
ents in England, and New Zealand,
Socialism,; its friends call it Liberal
ism," or tNew Liberalism" There
has been no thought in New Zealand
that they were really moving toward
Socialism,; much less has there
been any conscious effort in that di-
rection Mr.. Arthur Clyden, in a re-
cent lecture before the National Lib
eral Club in London, said of this
movement: 81 should describe it as
supreme attempt by old-world victims
of bad government to prevent recur-
renee of the evils in their'new homes
by boldly radical legislation.
No taunt of 'grandmotherly legisla-
tom for one moment deters them
from the resolute exploitation of the
strong arm of the law for their pro-
lection against every oppressive force,
whether of capital or class interest"
Sir Robert Stout leader in New Zea-
land politics, is of the opinion that
ssthe strong individuaIistic wave" has
spent itself, and that "the grand in
stitution of the State could be,
and ought to be, utilized for the up
lifting of the race;" and he adds: ''NO
one could stop the great wave of
what they called Socialism if they
liked" Even Lord Onslow, who OPP
poses this extension of State activity
and calls it State Socialism, says:
s'The example of New Zealand shows
us that the mere performance by the
State of undertakings hitherto per-
formed only by individuals, or assO-
Citations of individuals, need cause
neither private wrong nor public loss,
so long as sound commercial princi-
pies are observed and full compensa-
ton given for injury"
In the early days of the Colony
public works merely kept pace with
spread of settlement, but in 1870 came
the stpublic works and immigration
policy,n which provided for public
works in advance of settlement. Un-
der it about ten million pounds were
borrowed from English capitalists
and expended in the construction of
roads and railroads in all parts of the
Colony, the extension of Geographic
lines, the encouragement or immigra-
ton, the purchase of native lands,
and the supply of water to the gold
fields. The demand for railroads and
public works caused the original pro-
posals to be departed from, and far
greater sum was expended. Up to
March 81, 1898, total of G26, 1876, 974
had been expended under this act.
The expenditure on directly reproduc-
tive works has been e16,S13, S39.
These works were not undertaken so
much for the sake of gaining revenue
as for social purposes. The construc-
ton of railroads by the government
is interesting in this connection. Up
to 1872, when operations under the
public works policy were commenced,
there were but sixty-five miles of rail-
ways in operation. In 1898 the gov
eminent had in operation 1886 miles
of railway, constructed at a cost of
about e7Sl2 per mile. This includes
both the expenditure on lines built
by the government and the price paid
for purchased lines Many lines have
been constructed by the govern
menC lof the purpose or opening
up new territory, when it was certain |
that they must be operated at a loss |
for many years. Mr.. Pitcher, secre- |
tary of the Railway Commissioners,
says: "The advancement of settle
ment, the opening up of new country
and increase of its prOductiveness, the
provision for the employment of large
numbers, the cheapening of transit,
both for goods and passengers, and
many other items, must all be reck-
oned as value obtained for the expen-
diture, in addition to the mere none
tary returns; and if this is done, the
net gain to the colony, due to the
public works policy, must be generally
The railroads, too, have yielded
revenue. The gross earn
ngs for the year 1928 Were e1.1S0,-
%; the net earnings were e449, $50.