The Press. SATURDAY, OCTOBER 5, 1867.

Press, Volume XII, Issue 1532, 5 October 1867, Page 2

The Press. SATURDAY, OCTOBER 5, 1867.

We pointed out yesterday that the plan for the consolidation of provincial loans now adopted by the Government, as contained in the two Bills we then published, differs essentially from that proposed earlier in the session, and which as part of the financial policy of the Government we have all along supported. The original plan was' to borrow upon the security of the consolidated, revenue of the colony, in such amounts and at such times as might be required, but not exceeding a maximum limit, a sum sufficient to buy up all the provincial loans, either by purchasing the debentures for cash or by exchanging them for j colonial debentures, as opportunity I offered and on the best terms that could be obtained. Instead of this, the Government now propose that the colony shall take over all provincial loans at once, making them a charge on the consolidated revenue; that anyunraised balance shall be allowed to be issued, and that a new loan of £7,000,000 shall be contracted by the colony, the proceeds of which shall be devoted to paying off all existing loans, General or Provincial. It is plain that under this arrangement whatever additional value provincial debentures gain through being endorsed by the colony is imparted to them gratuitously while they are still in the hands of the holders, and that every chance of purchasing or exchanging at favourable rates in consequence of the improved security oflered by the colony is thrown away. By the former scheme all the profit that might accrue from the conversion of pro7incial into colonial securities would be so much gain to the colony • it seems the object of the latter that the whole profit of the transaction should! be diverted from the colony into the pockets of the debenture holders. A more unintelligible piece of finance, or one more careless of the interests of the colony, could not well be conceived. Of course there ia a case to be made out on the other side, and we have no wish to ignore it. The point which we understand is urged most strongly by those who opposed the first scheme of the Government, is that the security of the provincial loans was altered by the repeal of the Surplus Bevenues . Act, and that the colony is therefore bound to take up the provincial loans. i But is this so ? "What was the f . security upon which the purchasers of 1 provincial debentures lent their

money? Krst there was the land, which the Assembly gave up and allowed to be pledged as security for the provincial debt, and could not fairly release from the mortgage. That will be admitted by all. Secondly, there were the surplus revenues. But these revenues were in» their very nature provisional and contingent. They were not a certain source of revenue at all; they were at best, as their name indicates, only a surplus after the Assembly had spent what it wanted. And they were liable to diminution or even to total disappearance at any moment from two causes; on the one hand, from tbe whole revenues being spent by the Assembly, on the other, by the Assembly choosing to diminish the taxation so as to leave no surplus. To call such a*revenue a security on which money could be borrowed or lent is simply nonsense. No man in his senses ever did or would advance on such security. Tlie real and only security for the provincial loans is yet to be mentioned. It lay in the character and honour of the provincial communities, in which was supposed to lie the will to pay the just demands of the public creditor, and in the legislative power of the Provincial Councils to tax the people for that purpose. That power remains unimpaired by anything which the Assembly has done. We do not say that the General Government has no responsibility in respect of provincial loans. "We do not forget that the Governor's assent has been given to the Bills by which they have been authorised, nor that that assent has been given by the advice of a Ministry responsible to the Assembly for its advice. Indirectly no doubt the Assembly, that is to say the colony at large, is made a party to these engagements, i But the duty of the Assembly in the matter cannot be interpreted into anything further than the duty to make the provinces meet their engage- j ments. It is not, and cannot be, the duty of the Assembly to pay moneys borrowed by one community and spent by one community, for its sole benefit and in its own manner, out of the pockets of another community which has had nothing to do with the whole concern. The provinces are bound to tax themselves in order to pay their debts. And the Assembly is bound, we think, most certainly not to pay such debts out of the revenue of the colony, but to force the provinces to pay their debts themselves by taxing each province if it won't tax itself. That is surely the utmost responsibility which the General Assembly can be said to have in the matter. To say that the Assembly could not repeal the Surplus Revenues Act without impairing the provincial security is an argument which, if worth anything, must be carried further. It might be argued with equal weight that the Assembly had no right to pass auy measures at all diminishing the surplus revenues payable at the time when a particular debt was incurred. ' Of course the probability of the current engagements being met depends on the actual money from time to time paid to the provinces; and if the power of the Assembly to dispose of the money it raises by taxation was supposed to be virtually curtailed by the fact of the Governor having allowed money to be borrowed on the security of the surplus revenues payable to the provinces, the colony should have thought of this before engaging in the war or pitching three millions into the sea. But this argument will not be seriously maintained. We are aware that there are some, who have always upheld that really and ultimately all provincial loans were colonial, and in the event of provincial'embarrassment iriusi be paid by the colony; and the conduct of the Assembly in the case of Southland seemed to favour that view. We however, and, we think, most of those who | have given any attention to the subject, would argue that the liability of the colony really extends not to paying the provincial debts, but to compelling the provinces to make provision for paying them. But the best proof that the lender did not consider the colony to be liable for these engagements ia the fact that the market price of provincial paper was less than that of colonial bonds. The price is a very good test of the estimation in which the security is held. High interest and bad security proverbially go together. The less certain the security the higher interest must be offered to induce capitalists to lend their money on it; or, which is precisely the same thing, the borrower must consent to receive in actual cash so much per cent, less than the nominal valu6 of his bonds. The very fact that the IJfew Zealand Six-per-cents have stood above par in the London market while provincial debentures have been unsaleable except at an enormous discount, proves viucingly that lenders looked upon the security of the one as something different from and inferior to that offered for the other. It" the security had in both instances "been the same—

I if, that is, the colony had been understood to b? liable for provincial engagements, there would have been no such difference in thoir respective prices. To get rid of this difference by making the security for every loan, whether colonial or provincial, the same—that is inrealitytodoawaywifchprovincial loans altogether by making them colonial — is the principal object of the proposed consolidation. "While writing the above we have received a telegram from Wellington, reporting that that part of the Public Debts Act which provides that provincial debentures shall be taken over by the colony at once, and which was denounced by Dr. Featherston in such strong : terms on the second reading of the Bill in the House of Kepresentatives, has been thrown out in the Legislative Council. In the second clause of the Bill, that the principal interest and fund of provincial debentures shall be charged upon the consolidated revenue of the colony " from and after the passing of this A.ct," an amendment has been carried striking out the words quoted and substituting the words, " from and after the conversion of any such provincial debentures into colonial debentures." The effect of this will of course be to leave the debentures to be bought up fcr whatever they are worth in the market, and if the Lower House will assent to the alteration the most objectionable feature in the Bill will be removed. PhODFCB Export Company. — A public meeting of this company will be held this evening, at the Kaikainui hotel, Kaiapoi, at seven o'clock. Canterbury Auxiliary Bible Society —The quarterly meeting of the above society will be held in the side room of the Towu Hall on Mouday, at three p.m. Canterbury Rowing Club. —The members of-the Canterbury Rowing Club are requested to meet at the boat-house this afternoon at two p.m., to join in the procession of boat?. Volunteers —A meeting of the officers and members of the Northern Battalion is to be held at Woodend on Saturday next for the purpose of arranging the preliminaries of a rifle match between the North and South Battalions. Accident.—One of the men employed by the contractors in carting earth for filling up the space reclaimed by the harbour works in Lyttelton met with rather a bad accident yesterday afternoon, sustaining a fracture of the leg below the knee, and other injuries. Kaiapoi Land, Building, and Investment Society.—At the meeting held at Kaiapoi on Wednesday evening last 141 shares were taken up. Several intending shareholders were unavoidably absent, but when they have taken their shares up over 200 will have been disposed of. The amount received on account of shares was £94. The Panama Mail. —We would remind our readers that the mail for England and the Northern ports will close this evening at six p.m. The Tararua is advertised to sail from port with the mail at three p.m. on Sunday. Had not Sunday intervened, of course several extra hours would have been allowed before the mail closed. Court op Appeal.—His Honour the Judge will be present at Chambers to-morrow to sign all documents requiring his signature before leaving for Wellington to attend the Court of Appeal. His Honour and sevensl of the members of the bar will leave by the Tararua to-morrow, but the business of the Court, as far as the argument of cases is concerned, will not commence until the 12th instant. Cricket.—The members of the U.C.C C. intend to meet on their ground this afternoon at two o'clock for the first general practice of the season, which has now fairly set in. Unfortunately it happens to be mail day, and those who are in business will probably be unable to attend until later in the afternoon We beg to remind members that subscriptions for the current season are now due, and those who have not paid may expect to be waited on shortly by the honorary treasurer. A match will probably be arranged for next Saturday afternoon, when an opportunity will be afforded of noticing the improvement or falling off in the play since the last season. Boating.—lt is scarcely necessary to remind our readers that the members of the Railway Rowing Club intend to open the season to-day by the launching and christening of their new boat. The ceremony will take place at the boat-house on the River Avon, at half-past two o'clock this afternoon. Extensive preparations have been made for the accommodation of the guests. Tents have been erected on the opposite side of the river, and boats will be in readiness to convey passengers backwards and forwards during the afternoon. A large number of tickets have been issued, and it is expected that a great many spectators will be present. Several boats will go down the river, and a pair-oared race is to take place after the christening. Serious Accident. —A very serious accident occurred on Wednesday last to Mr R. Swarm, who it appears was driving some cattle, just landed from tbe Rangatira, over the hill to Christchurch. When near the top of what is known as the Maori track one of the cattle turned suddenly round and charged the ; horse which Mr Swarm was leading, and gored it rather severely. The horse at once made off, and left Mr Swarm and the bullock face to face. The beast rushed at Mr Swarm, who at once fell flat on his face, in order to escape, but the animal tore his clothes to shreds, and inflicted an ugly wound behind the shoulder, and other serious injuries. Fortunately a Mr Steadman, who saw Mr Swarm, came to his assistance and succeeded in driving tlie beast off. Mr Swarm was at once taken to the Hospital, where every attention was shown to him by Dr. Powell. The sufferer was progressing very favourably last evening. Coker's Hotel.—The late residence of his Honour Mr Justice Gre?=on baa, under the hands of Mr Coker, undergone a complete metamorphosis. Not only has the house been thoroughly repaired and fitted in a very creditable style as a private hotel, but the extensive grounds have all been newly laid out, and accommodation for quoits, croquet, and many other sports is afforded. The stagnant pool of water which used to lie iv what vras once an old arm of the Avon has been completely tilled up, and in it-3 place a capital lawn has beenlaid down,on which rustic scuts are placed. The band, under tho leadership of Mr Button, will play on two evenings a week during the summer months. The grounds on these evenings will only be open to subscribers, and no doubt from their being in what may be called tbo centre of the town large attendances will be ensured. The gardens at present really present a very pretty appearance, and should the proprietor carry out his ideas in the manner he has stated to us, Coker's gardens will form one of the attractions of tbe forthcoming summer. Magisterial.— At the Resident Magistrate's Court, at Christchurch, yesterday, before C. C. Bowen, Esq., R.M., James Ballanger was' charged "with having been drunk and disorderly in High street on the previous evening. Sergeant Foster said he was on duty

in High street, when he heard some one shouting and creating a great disturbance. He proceeded to the spot, and found it was the prisoner. IWendant admitted tiie charge, and was finr i 10s.—John Brady was cha"g»*d witn a simihr oil once. Two previous convijtions had been recorded ng.iinst prisoner, who was fined 10s.—Samuel Dufty was eliar-ed with beating and iliu-ing his wife on the 2nd instant Plaintiff deposed that on the night of the 2nd instant her husband oaino home intoxicated, and began to abuse her. She told him Siie would not allow it. She had suffered his abuse and illtreatment for the last five years He then struck her. Witness had frequently suffered from his violence, and was in bodily fear of him. The defendant was bound over to keep the peace. Defendant said he could not find sureties. His Worship said that as defendant could not find sureties he would inflict a fine of £3, or in default the defendant would be imprisoned for fourteen days. The defendant was locked up. Hard Times.—The "Homo News," speaking of the prospects of an improvement in the state of things in this colony, says—One reason why New Zealand should be invited to expect a considerable and an early share in the anticipated commercial recovery is tho cheapness of money here, and the difficulty of finding employment for it. Its abundance is simply a reaction from the unnatural scarcity of this time last year. As there is now no faith in the principle of limited liability, which produced so many bubble schemes at tho expense of deluded shareholders, more attention is being given to the commercial principle in which there is faith. And as the field at home has been narrowed, men are casting about for new openings for commercial enterprise, and none ■ire found to bear comparison, in promise, with the Australian colonies, among the chief of which New Zealand is conspicuous. Money at 2 per cent, will force some of our now unemployed capital and our disengaged energies into that prolific field. In this state of transition we would urge the expediency of not showing eagerness, at present, to make new calls upon the home market, especially as a vast mass of securities of all sorts is not yet digested, or " placed," as it is called. By sending us more wool and more gold, and by taking from us more manufactures, the stability of New Zealand will for a long time be estimated. Improvements, and the money to make them, must follow an expanded trade. They cannot precede it, but the capital to execute them will never bo difficult to find if it is not wanted in too great haste. Akaroa and Wainui Road Boabd.— A meeting of the members of the Board was held on Monday last. Present—Messrs J. C. Waeckerle (chairman), Piper, Garwood, Scarborough, and the Engineer. The minutes of the last meeting were read and confirmed. Tenders were received for repairing the Beach road in the town of Akaroa. Win, Thomas offered to do the work for £8, and M. Carney for £7 12s 6d, tho Engineer's estimate being £7 19s. The tender of M. Cirney, to perform the work in six days for £7 12s 6d was accepted. The following tenders were received for clearing out and doing other work on the first portion of the Little River road= — Wm. Thomas,£4B ; Wm Castle (informal), £27 10s; Thomas Davis (informal), £29 ; Robert Stewart, £28 5 Thomas Julian (informal), £28 ; Engineer's estimate, £30 18s. It was decided that the tender of Robert Stewart, to do the work in four weeks from present date for the sum of £28, be accepted. It was proposed by Mr Garwood, and seconded by Mr Scarborough, that in future when tenders are called for it is to be stated in the notice piper that in case of the non-fulfilment of the work as regards time a penalty will be enfor -cd. Carried. A letter was received from Mr Turner, requesting the Board to take into consideration the impassible state of, the road from Wainui to Tekaus Bay. It was decided that the above letter be replied to, and Mr Turner be informed that as soon as the Board are in funds his request should receive due consideration. A letter was received from the Secretary for Public Works, stating that the sum of £150 would be paid to the Board for main roads on the receipt of the usual requisition. The Chairman was requested to reply to the above letter, enclosing a requisition for the sum specified. A letter was received from the Secretary for Public Works drawing the attention of the Board to the necessity of erecting a public pound in the town of Akaroa. A reply was directed to be sent to tiie Secretary, stating that the Board would be most happy to erect a pound if the Government would furnish them with funds to do so, and also to point out a site where they would wish it to be erected. The Engineer having furnished his report relative to clearing out slips and doing other work on the second portion of the Little River road, it was determined that tenders should be invited 1 for that work. The following accounts were ' ordered to be paid —W. Penlington, £25; John Woodoll, £32 ss; the Engineer, £43 15s. The meeting then adjourned until the 7th instant.