Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-06-18

Wool and gold were already then
the chief products Of New Zealand,
but the industrial possibilities dorm
ant in the colony had not been fully
developed because Of the political and
military conflicts raging for years at
the time. ..
A general depression was apparent
almost everywhere in New Zealand
even at a time when immigration was
about the tremendous natural treas
ures of the islands had been scattered
broadcast throughout the world.
The New Zealand pioneers lived in
small settlements all widely separat-
led; the Maori war and the subsequent
industrial and commercial difficulties
had made it necessary for the young
colony to make loans a~ggregating
IS million dollars, but in 1871 Sir
the proposal that the colony borrow
10 million pound sterling for the pur-
pose Of establishing roads and rail-
ways, buying land from the Maori and
encouraging Englishmen to settle in
New Zealand.
Careful Legislators.
The house Of representatives ap-
parently thought the proposal too
audacious and farfetched, for it could
not be persuaded to go further than
to authorize. a loan of four million
pounds to begin with.
AS luck would have 1t, the wool
market became extremely active at
about the same time, the result being
that Vogel's policy helped. to bring
about much prosperity, and for some
years the hitherto careful legislators
became so reckless-hat they sane
toned loan after loan. totalling alto
gether the amount Of fourteen million
pounds. -
This actually opened the way for
governmental paternalism in New
Zealand: Vogel established a state
life office on the basis of government
credit: on that same basis the
sanguine fnancier founded a public
trust office. Government loans be.
came quite the vogue and private citi.
zen7 followed the example from above
by borrowing money on a vast scale.
Under these artificial circumstances
perity and intense development-ail
on the basis Of borrowed sums.
Naturally, wealth became inflated,
and the inevitable crash, foreseen by
some arrived, plunging the colony
down IN the abyss of financial disas-
tiers from which it could not free It.
self for man. years to come.
AOOAbSueS PROVINCES.
Although New Zealand nominally
was ruled by a governor, Sir julius
! Vogel was the dominating figure in
the government. In spite Of the fact
that he met with enormous OPPOSE
ton, he succeeded in centralizine the
government by simply a%bolishinE the
provinces. The general government
was made supreme, with a large civil
service, a great annual expenditure
from loans and taxes, and an immense
indebtedness.
Sir Julius vogel, one Of the most
picturesque adventures in the history
of British colonization, anticipated
modern Socialism; there is nothing to
indicate that he himself advocated
Socialistic principles, but his accom-
plishments. clearly showed his nm
bounded faith in just that govern
ment pa%ternalism which has become
one of the hobbies Of avowed Social
lists.
Later events showed that the an
ancier had miscalculated. FHe him
self left the stage Of pubic. life. a
sore and disappointed mant-and the
treasury of New Zealand was left
empty. Fs
The story Of the period Of depresz
sion is an instructive one and win be
discussed in the following installment
.of the present series.