The Press. MONDAY, JANUARY 28. 1889.

Press, Volume XLVI, Issue 7266, 28 January 1889, Page 4

The Press. MONDAY, JANUARY 28. 1889.

The purchase by Mr* AitKBH, of Victoria, of the Windsor estate, near 1 Oamaru, is probably only one of many other similar transactions which will be recorded during the next few months. It is undoubtedly the case that the attention of Australian capitalists has been pointedly directed to New-Zealand of late,; aad ths terrible drought which has overtaken a great part of the island continent has increased the interest taken in this colony and its resources. Many causes hitherto have been In operation to discourage "the investment of capital here. It is nearly ten years since we suffered the first great cheok in our career of fictitious progress. In the first years of the pubiic works jpolieyv from 1870 to 1879* the colony was in a state of feverish activity consequent upon the lavish expenditure of borrowed money. "Values became* inflated to an enormous : extent. The . expenditure,; publicly and pri-? vatelyv was in the highest degree extravagant and wasteful. Half r the, population acted on the j that the golden shower was going to j

bas. for ever. Thar au&r of 187WJ0, however, suddenly __oug_*,us face to face with the ugly fact that we cordd not go on heaping up debts and liabilities without experiencing the disagreeable consequences. There were those amongst us vfhd hoped that the sharp lesson then taught the colony would have a sufficiently sobering effect to k_ep us ion the right path in the future. But they were mistaken. It took six long dreary years of bad times and depressed business to convince, tha majority that borrowing and progress are not synonymous terms. The general election of 1887, however, finally settled the question. It was then at last made perfectly clear that jthe great majority of the electors were strongly opposed to borrowing, on the ground that it did not pay. The fact that by that time the principal districts in the colony had had thei* wants supplied as regards public works, may have had something to do with this display of public spirit. Be that as it may, it can, we think, be regarded as tolerably certain that, at length the people of New Zealand have made up their minds to oppose borrowing in the future* and to insist upon prudent and economical administration in all departments of the publio service. The effect of the change of policy is, we are convinced, beginning to be felt, in the form of a revival of confidence in the country as a field for investment. No one haa ever ventured to dispute the great advantages which this colony affords to the capitalist settler in the shape of a rich soil and splendid climate. But in spite of these admitted attractions the place was shunned People came and looked at us, and then left again when they discovered that the government of the country was carried on,. in the, most reckless fashion, and because the electors were allowing themselves to be made the victims of nostrum-mongers and visionary theorists. In addition) there was always the danger of a large addition to ,the; public liabilities in the shape of fresh loans, and as a consequence fresh taxation.- Now, however, that there is every prospect of a more reliable policy prevailing in the future we may look forward; to a gradual influx of men with means who have come here to make the colony their home.. We do not expect to see much in the way of speculative investments in land, nor is it at all desirable that such should be the case. Land is only worth what it will produce over a fair average of years. Anything in the shape of a land boom would work infinite mischief. But there h plenty of rotfm for legitimate investment ■ and there is every prospect of a considerable influx of A_stralian capital into this colony if reasonable prices are demanded lor land. Rural land in New Zealand, for agricultural purposes, must on the average always be more valuable than similar country in Australia for the simple reason that its productive capacity is far greater. Be the price of produce high or low* an investor can obtain a Larger yield per acre. Ail th_se facta have long been recognized, and now that the political danger has We may look forward to many more investments similar to the iannother column.