POLITICAL ECONOMY.

Auckland Star, Volume XXXI, Issue 216, 11 September 1900, Page 2

POLITICAL ECONOMY.

(To the Editor.)

Sir,—Your correspondent Mr Laurence John-tone, In striving to flatten out his numesake, the "Student of Economy, remarks that if New i-ealuud, for the purpose of carrying on public works, was to levy taxes to raise the necessary million and ahalf annually, the country would be bankrupt in a year, and that in less than two years we should call all our gold upland that it would pass into the hands of all those who receive payments from the Government. • .. Now, even allowing a very considerable latitude for the palpable exaggeration in this remark, I fail to see where the exactness of his observation comes in. The way some writers argue about money sticking to a class would almost imply that certain persons retained the coins paid to them as curiosities to be preserved and if possible buried with their bones. Of course, it goes without saying that if an extravagant public works policy simply meant importing Cornish navvies, Sheffield rails, Middlesbro' Iron bridges, and British beer, then in such case doubtless a dearth of the yellow metril would soon locally be apparent. Even as things are, It seems to me that the Australian colonies are for ever shipping away specie, for not a 'Frisco mall boat leaves the colon# but she Is reported to have from 250,000 to 500,000 sterling on board of her. Mr L.J. informs "The Student" that Great Britain has since 1825 lost 500 millions of money through panics. Now, what does this gentleman mean by lost? Mind, he snys 500 millions sterling, which of course signifies standard coins of the realm. If, then, this magnificent accumulation has been lost to England, what has become of It? Has it been dropped in the ocean, swallowed by- an earthquake, absorbed by France, swabbed up by America, or grabbed by Russia? That during the great panic years Consols and all other securities may have for a time depreciated In value to an enormous extent, even to the tune of 500,000,000, Is possible; but that such a vast weight of coin 'has been lost to England during the last 75 years Is, to put It mildly, bosh. England has up, to the nr«sent been in the enviable position of lender, not borrower, and although she has lately placed 5,000.000 of her karki loan In America, let us hope that this digression will only be temporary-.—l am, etc., SPHINX.