FOREIGN CAPITAL.

Auckland Star, Volume XIX, Issue 3960, 9 April 1883, Page 4

FOREIGN CAPITAL.

(To the Editor,) Sir,—l bave carefully read tho i A ■ ' Robinson Crusoe," andll l„,letter of that though so confident aa LTtJJv-^ ' superior judgment, I f or oVp mia *. «Wn ?| ZJ Plete y at a loss to understandL^T:**'■ aimple opinion, I hold tl,™. . lamv Whateverquarter recei£d fc^C in the eatablishiDß of wS" yedhe'e' facturies of a „ y _\_^ would l^' be a blessing to the citi _5 ' onlr land, but also to the who 7c £ '■*"& country,, and as f a *f , rn SU™a»di. g tilings lor the most C4n e d b> - I will couhoe myself to th,. «»„♦ ° '•%, , only two. There is Chipp! n f fc 11' * Oxfordshire; I have known it am^ 0" >'» 1828-a small town at th S^f^ population mostly all agricultural l,kTOh*!; working for 12s a-week. Thffl on,er^ the district had to send their '£?* ">' Oxford or other places at a dSfi? * Mr BUss brings capital and rtufai&i: «n«nufactory-it h not for m e ft whether tbe money was his own i'i I*' rowed from a foreign country V^w. inhabitants if theyV e % / 6k •**-■ they were before i MrI J Sf! 1 '?» th., meanest clodhopper would annS?,,.„ ft? V Oo to Dumfries, in Scotland »p til , °" tweed manufactory of Mr Scott »« out a capital of above _ni_rfv u, ki pounds ou the buildings and m&aild When he kindly showed me L„^the comfo. table houses he badSf d: " work-people, I was not so nide rt„;» is if he borrowed the cash from »& it No,lonlyfcltasaliyi oaA]° do a benefactor to hia country and; m ' *n: town, jy ear iy his whol !Zt" m» France. In both tbos C J?L2 '^ doubled and trebled compared J f M?« the work-people had befor C h*¥ wide field of political econoiy *tuX a large space, I therefore give S, f 8 vitatiou as I did before, He liliS* 1, favour by calliog on me.-i^.'Jc ? M 9 James CbaicPo^.. [We gave insertion to , ■«'».*■,;-;,--. Crusoe's " last letter in full sim ß i"?„T» how Undigested andfallacionS££S* was. He mshes full tilt at one 0 f a?mil2--difficult problems of the tg^nmm* adjustment between capibd and ff without even a i fe, ledge of his subject, Hto .mSS* to foreign capital is i most absurd f°jl . the colony were left wholly atE " ' localcapa(alist 9 ,agoodml;Va r .a( farmers would soon have to quit th?S ; try. Foreign capital has ch<«T 1 money market, and so enabled tbe lr what he had before to pay L - I twelve for. Then look wbaHheK- I capital invested in railways has done S I whole of thei settlers between KaipS Waikato. Men who were straggCfi for a> bare existence are now, thronH I opening of markets for their prodnceS ' . a position of comfort. If We m fi* j unglish capital at five per cent;, and mat, A it yield in agriculture or mainifactnrjs to •:'-'-i per.cent., the colony clearly tabs A. | Pounds a year on every hundred bwowe '_ I The theory, which " rtobinson Craw" Id i vances with so much confidence and dogma. M tiam that wages and interest alwayarisa.M^:: I fall together, is one of Henry George's falli, 11 ties. Inacouctrylike this.withgreatundew. I loped resources, cheap money means active '; I trade, abundant employment, and \k\: I wages; dear money : contracted buerafeg I discharged labourer.", and dill" trade* 1 Auckland has had some experience of Ikij | lately. An easy money market l~.'- : rapid building, the extension of'agriculture 1 and activity in commerce. When tha, 1 banks put on the screw, money rose 1 in value, but the demand for labour declined, No general rule can belaid -:.: 1 down, because local circumstances lare con. siderable influence on such matters, fr - England, where money is abundant, aw - I vival of industry, producing' a' de< ! mand for capital, naturally in. ; duces a higher rate of interest bylb || ordinary working of the laws of supply a«i demand—there industrial activity stimn. . Si lates the money market; here, cheap [ 1 money stimulates industry. There are a ? many cheap aud popular works on political j economy available now, that no one >i [ pardonable for wiiting on' lie ani" | jeet without fiist acquainting iiroell jII With the laws which, in the opidton ot I."" standard writers, govern .trade, Mt Jj.' George's book, "Progress and-Poscrty, 3 ate the latest and most novel contribulinn w R the study, may be- purchased At 111 sixpence, and everyone should rial it. fc At the same time his theories, ;ivMi4 .Eg have buen denounced as impractical!!, f dreams by such advanced thinkers tn Rf Herbert Spencer, aie apt to mislead EM §_ who aro not well-grounded in the study, aui I. who have not beard what can be said on Ik H other side.—Ed. E.S.] ¥Z.