The Press. THURSDAY. DECEMBER 8, 1910. WHERE CAPITAL IS WELCOME.

Press, Volume LXVI, Issue 13910, 8 December 1910, Page 6

The Press. THURSDAY. DECEMBER 8, 1910. WHERE CAPITAL IS WELCOME.

Tho opinions of the Karl of Harroivby, who is now paying a visit to this part of tlio world, will no doubt be <_isroimted in the minds of sonic people hy thc fact that he is a peer, and a Conservative. Yet to people who are net suffering from incurable political bias- there is eoraething very interesting, and even significant, in his re-

marks to <i Sydney* interviewer regarding the manner in which capital k> treated in Canada, where he has lately been touring. For good and sufficient reason, capital in England is at present decidedly restless. The Chancellor of the Exchequer should be a fcound economist, hut ~Slr Llyod

George's idea of economics seems to he that the proper way to deal with capital is to tax it co heavily n.s to make it unprofitable. Like eclonial iwliticiaiii- of his eehool, ho quite fails to understand -or his prejudice assainfit ]»ersons owning capital is f-.o bitter that he refuses to l-eoognise—that the more capital is available for invest-

ment, the greater is the demand for labour. The theory that the workers' miilonium is to be brought about by toxins capital out of existence, or out of the country, only needs to be acted upon for a sufficient length of time to be proved a disastrous fallacy. English capital, however, is naturally unwilling to provide the "corpus vile" for experiments in taxation, which shall prove how utterly mistaken are tho experimenters' grotesque economic theories, and in casting about for a more congenial place of investment it appears to have found what it wants in Canada, whither millions of British money are being sent. And Canada, instead of treating this capital as an undesirable immigrant, who cannot bo turned away, but can at least be mado as uncomfortable as possible, is welcoming the golden stream. 'T&ke n concrete example/ said Lord Harrowby, in commenting on this question. "Sup"poso that I am personally desirous of "investing a sum of money in Canada. '"I find myself received with open arms. "Every facility is afforded mc. Any"thing that can be dono to make tho "way easy for mc, and to assure rro> "of beneficial result, is dono not "merely readily, but with enthusiasm. "It is made perfectly clear to mc -that "capital is needed, that Canada wants "capital, and is prepared to offer favourable conditions in exchange for it. "Moreover, the risk of its being penalised because it is capital is clearly and "emphatically shown to be non-exist-"ent." It is to this rational attitude that Canada's wonderful expansion is, in a largo measure, due, expansion' of which those of us in Now Zealand who have not seen the process at work can form no adequato idea. One of Lord Harrowby's reasons for visiting Australasia is to see how capital is treated out hero. We aro afraid ho will be disappointed. Canada, as he says, should not be the only oversea country engaged in rapid development of itself, but if he stays any time in Australia and uses his eyes he will find in the Commonwealth no parallel to what he noticed in Canada. He will find that out here capital is regarded with suspicion, and treated with hostility. He will learn of increasingly heavy taxation being imposed, in times of prosperity, of the discouragement of private enterprise, and of the accumulation of idle money, because of the lack of confidence and the fear of penal legislation. In a word, he will find "Lloyd Georgeism" at work at this end of the world as at the other, and developing in directions that, as yet, have not been exploited at Home.