BANK DEPOSITS.

Press, Volume L, Issue 8487, 19 May 1893, Page 4

BANK DEPOSITS.

On more than one occasion, in those columns, we have shown that the accumulation of deposits in the hands of the Banks waa no evidence of prosperity. The truth of our contention has now received a startling endorsement by the events which have taken place in Australia. The political unrest which has manifested itself more or less all over the world, but more especially in Australia, during the last three years produced the natural result. Capital was scared from productive channels by the revolutionary threats held out, and was forced in large quantities into the hands of the Banks. Once there some use had to be made of it, and bankers who had net the resolution to look calmly ahead, invested the money entrusted to them in securities which were not negotiable, and could not be converted into cash when the owners demanded their deposits. Had there been no threats of political revolutions, no menaces of social convulsions, capital would have flowed into its natural courses. It woald have been directly invested in the cultivation and improvement of the land, and in the development of the manufacturing and natural industries of the colonies. No panics could have been created, because confidence would have been universal, and the whole population would have had their energies employed upon the legitimate production of wealth. The case of New Zealand is an illustration of what we mean. When the political campaign of 1890 was being waged, and when some of our public men, with a most reckless disregard for the safety of the colony, were making use of language which was discreditable alike to their patriotism and their common sense, New Zealand had jusc emerged from a period of depression of the mosc severe character. Her people had discovered by painful experience that the only way to secure prosperity was to devote their energies to the laborious development of the colony's resources. Our frozen meat trade and other natural industries were swelling our export returns in a quite astonishing manner. The alarm caused by the politicians whioh drove capital from manufacturing and similar enterprises, did not prevent our farmers from more vigorously than ever endeavouring to make the most out of the great natural industries of the country. Improvements were no doubt retarded, and the wage workers suffered in consequence. But our farmers and graziers felt that they had to live. New Zealand has, in fact, escaped the consequences which might have overtaken her under different circumstances. We have to thank, not the blatant demagogues whose ignorant vapourings were calculated to produce mischief, but our hard working, industrious and plucky settlers for the condition of prosperity and safety which now prevails.