The Press. FRIDAY, FEBRUARY 6,1891.

Press, Volume XLVIII, Issue 7780, 6 February 1891, Page 4

The Press. FRIDAY, FEBRUARY 6,1891.

T_B feeling to-day is very much worse than it was twelve months ago. Then things were looking brighter than had been the oase for many years past. People had confidence in tbe future, and were gradually aceuatoming themselves to the idea that the time had arrived when they could with safety extend their operations, and generally launch out in various kinds of industrial enterprise. The effect of such a condition of affairs would have been at once felt in a rapidly growing de* mand for labor. We should have e-perieneed the benefioial results of better times, more abuudant employment, and a general condition of happiness and contentment from one end of the colony to the other. Unfortunately during the past year we have passed through a period of political excitement and social unrest. There has been a general attack upon existing institutions and existing forms of taxation. Men's minds have been diverted from earnest attention to the ordinary work of colonisation and have i been directed to schemes, whioh their authors vaguely promise will bring about new and hitherto unhoped for results. The old-fashioned prosaic ' method of increasing the wealt_ and production of the country by indus- | try, economy, and thrift, have ' more or less overlooked. The outcome of all this is only too apparent. There is at the present time less buoyancy in the public mind, and less confidence in the future, than was the oase before these events occurred. People have less inclination to embark upon fresh operations, and are muoh more disposed to rest on their oars and await events than was the case at the commencement of 1890. In a new country like this, with its resources only half developed, a period of commercial and industrial suspense is a period of retrogression. If we are not going forward, we are going inevitably backward. The depression that is gradually becoming accentuated will, unless removed, inevitably oause great distress during the coming winter.

Is it possible to remove the prinoipal cause of the present state of things 1 We have shown that it is mainly political. All that is needed to restore confidence and give the country faith in the future is an assuranoe that no revolutionary schemes are in contemplation in the immediate or remote future. We are not of those who hold that Parliament is capable of rendering very much positive aid in the way of assisting enterprise. Its chief function is to remove obstaoles to the progress and prosperity of the country. If the people feel tbat they will receive a fair field and no favor, they can be truated to do the work themselves. And one of the chief functions of Government undoubtedly is to see that nothing is done to destroy confidence. But to be constantly wrangling over forms of taxation must have a most deterrent effect upon every form of enterprise. As long as changes are vaguely threatened, no one knows exactly what will happen. There are hundreds of ways in whioh the productive capioity of the country might be increased, and it is in the power of the Legislature greatly to encourage new industries and foster the expansion of existing ones, if it had only the courage to let people severely alone. Notwithstanding all the jobbery and corruption whioh prevail in many of the State Legislatures, it is the universal testimony of impartial observers from abroad that they are most careful to avoid measures calculated to destroy confidence. This is one lesson at least which might with the greatest advantage be learned from the United States. It is idle to pretend that a mere change in the incidence of taxation will of itself give prosperity. lb is equally certain, on the other hand, that threats of revolutionary changes, even if these are to be only partially given effect to in the first instance, must have a destructive effect upon industry and production. It is ne sufficient answer to say that changes such as have been indicated ought to produce no suoh results. We have but to appeal to undoubted facts in justification of what we now assert. It is only too well known that the fear of what is likely to happen is preventing shrewd, calculating business men from embarking upon undertakings which, if in operation, would not only increase the volume of our products, but very greatly enlarge the demand for labor of all kinds. Until the causes which have brought about this disinclination are removed, the field for employment will be far more restricted than it ought to be, and those who live by labor must as a i consequence suffer, and suffer most,

If the Hon, W. Ooplby desires to make himself thoroughly acquainted with the village settlement scheme, he •will not be content with visiting a few of those settlements which, owing to peculiar circumstances, have turned ont better than the rest, The present Premier, when he was in office with the Stout-Vogel Government, was responsible for the introduction of the village homestead special Battlements, which have since turned out such a disastrous failure. These spoon-fed settlements were regarded by their author as a pronounced saccess, and were pointed to as brilliant examples of how it was possible to solve the unemployed dif&solty and create a happy and contented rural population. As long as the money doled out by the Government lasted, and while the roads to these villages were being constructed ont of Government funds, the settlements had the appearance of being a success. But the moment the meu were left to their own resources a very different result was seen. In the year 1387 Mr. Balxancb placed some 900 of these State-aided settlers on the land, but two years afterwards only 56 per cent, remained. The rest had left their places in disgust. This was specially the case north of Auckland. In that locality a great display of settlement was made in 1887, but before long there were cases where 68 'jjer cent, of the men had. left, the

general result being, as we said, that only 56 per cent remaS in the middle of 1889. IfMr?S desires to have a correot the results of Mr. Bal-_ho4w2 ment he B hould not be satisfied '.«_£ anything short of an authorised retiS of the holdings taken up thS still in occupation.