The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-03-03


ployed, interest on money has fallen
from SIX and seven per cent to four
and five per cent (this Of itself is suf-
fcient to prove that money is abund-
anti. Millions Of English capital are
flowing in for the development Of the
gold fields of the colony. and the
credit Of the country at no period Of
its history stood SO high on the Eng
lis h market as it does to-day.
l may also mention that, through
the genuine encouragement given by
the government to the Smallfarmer
| class, the waste lands Of the country
are rapidly taken up wherever land is
found suitable for farming or grazing
, purposes.
standing the admitted pros
perity of the colony and the fact that
the government has had substantial
surplus over expenditure now for a
number Of years, the national debt
continues to increase. But the in
creased Indebtedness is not OF the
usual character, for the reason that
the country has security for nearly all
the money borrowed in recent years.
Money had to be borrowed under gov
eminent guarantee to save the Bank
| og New Zealand from closing its doors.
IhiS was done to avert financial dis
aSter, and it the government mad not
come to the rescue at the critical mo-
mcnt it would have brought the
colony to its knees. The government
holds the principal assets of the bank
as security, and these are presumed to
be ample.
Money has been borrowed to pur-
chase large estates for the purposes Of
settlement. Those who take up land
under this system, as already stated,
pay an annual rental sufficient to COW
er the interest on the purchase money
| and the cost Of administration. The
land is always vested in the govern
ment and this must be regarded as a
sterling was borrowed last year in
England at three per cent per annum
This 81, 500,0 900 loan is called the "ad-
vances to settlers loan" This money
is lent out to farmers at four per cent
per annum. One per cent is consider
cd sufficient to cover the cost Of adj
miniStration. The government has
special valuerS, who are men of expert
ence IN their respective districts and
| who report upon all properties upon
which it is sought to obtain an adj
vance. These valuers submit their
| reports to a board known as the "ad-
vances to settlers loan board" who
either approve or reject the applica-
tiOn. This loan has been great boon
to struggling small farmers, who were
paying as high as eight per cent on
their mortgages.
Immediately this money became
available, interest came tumbling
| down to four per cent for good free
hold security, so that, taking the in
o6 p6o fo1 fc ho
mentioned, it can scarcely be called a
real increase in the national debt, be-
cause Of the class Of security availa BILE
| to meet the obliga tions thus incur
red.
or course, it must be admitted that
there is an element Of risk in all kinds
Of borrowing, but, in this instance,
every precautiOn seems to have been
taken to prevent any loss being made
| need scarcely add that the large
landhOlders, the mortgage companies,
and the money-lenders generally did
not favor this kind Of legislation,
particularly the cheap advances to
settlers, but their opposition was ut
terly futile. With the advent of the
one man-one-vote aud the extension
of the franchise to women, the power
of corporate wealth in this country
appears to have been irrevocably de-
stroyed. Whether this be for good or
evil, am not, Of course, in a position
to say. l can say, however, that no i'll
effects Of the change are apparent up
TO the present; on the contrary. the
country is more prosperous and at
least as honestly and economically ad-
ministered as it was under the old
regime.
The leveling process, which began
here about seven years ago, has now
reached point where prudence, good
taste, and due regard for the rights
Of others might fairly suggest res
pite, and that, too, without loss of
dignity or interest to any class. In
deed, for the Well-being of the nation
as whole, it would seem to be desir
able that for security and the unin-
terrupted maintenance Of public con-
tidence in the integrity and stability
OF government-such as it now enjoys
TO the fullest extent-wisdom should
suggest modification Of the pace.
People as rule, have no objection to
the process of evolution by easy
stages, but they have a pronounced
dislike to being BUSTED or unduly
hurried, and that is why believe dis
erection to be necessary in the legisla-
ton Of the immediate future in New
Zealand. JNO. d. Connolly,
Consul.
Auckland. Sept. 3, 1896
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