ON THE PERMANENT SETTLEMENT OF A MINING POPULATION. (Continued.) EXCESS OF EXPORTS OVER IMPORTS.

Daily Southern Cross, Volume XXV, Issue 3716, 16 June 1869, Page 4

ON THE PERMANENT SETTLEMENT OF A MINING POPULATION. (Continued.) EXCESS OF EXPORTS OVER IMPORTS.

There appears to me to be a alight incorrectness, or at all events a tendency to mislead, in the second clause of our heading. It is required to find "the means whereby that capital may be fixed in the colony ■which is annually being drained away from the goldflelds, as shown in the great excess of exports ever imports at the ports of the exclusively gold-mining districts." Now, we know that an excess of exports over imports does not necessarily show an export of capital ; the question therefore wises— where is the point at which the disproportion becomes bo great as to be in itself sufficient evidence that capital is being «ent abroad ? (7) " The value in any county of a foreiga commodity depends upon the quantity of home produce which must be given to the foreign country in exchange for it." It might be possible that a dozen of beor in Hokitika was worth more than an ounce of gold, and consequently that the importation of a small quantity of beer would only be paid for by the exportation of a large quantity of gold j yet capital would not in this instance be exported but consumed — unproductively it is true — in Hokitika. The statement should therefore have been " the excess in value of exports over imports as shown in the Customs returns, &c," since it ia clear that .whatever goods are exported over and above what are required to pay for the imports constitute surplus capital, which is seeking * mployment elsewhare, and which can only be detuned in the place whencelit is sent by a further development of industry, and consequently of trade. How great this excess is will be seen by the following table, compiled from the Government Gazettes for last year, and showing the exports and imports for the first three quarters of the years 1867 and 1868 respectively, from the portt of Hokitika and Greymouth :—: —

The inaccuracy 1 have noticed is, however, comparatively small considered beside another element of fallacy which is contaiued in the statement of our sul jecfc. It seems clear that <i considerable export of capital is taking place from the mining ports of New Zealand, and Mr. Pott, assuming, it appears to me, that this capital leaves New Zealand, is anxious to get the means pointed out for fixing it in the colony. For, if the honourable gentleman was clear that the capital was already naturally '"fixing" itself, there could be no need of inquiring how to fix it more securely. I conclude that such fixtuie only is sought as would render the fund iv question pn fitable to New Zealand, and that use iv our foreign trade would not be considered a disadvantageous mode of investment. Now, it will be found by a very brief glance at the commerce of New Zealand that the above ia precisely th« manner in which the capital referred to is employed, and that the exportation is merely apparent. There is no doubt that the gold which, constitutes the only important article of export from the gold districts is sent abroad — in fact, unless wo had a mint in New Zealand, it would be no use here ; but it is equally ceitain that, before being senb away, it has bten bought up by the various banks and pad for in money, or the equivalents of money. The question tlun is — What becomes of the surplus of the purchase-money after tho imports have been paid for ? First of all, it may be stated that the Customs Returns deal only with the wholesale prices of articles imported ; if the retail prices were men tioned, that iv,i v , the price at which the producer of gold obtains his imports, the disproportion noticed between exports and imports would be very considerably decreased. In a gold district, too, the profits which storekeepers expect are usually considerably higher than in districts where more settled industries are followed. We have, therefore, as one item, the fund of profits to tradesmen. Again, the Customs Returns only take account of imports by sea, whereas » very considerable portion of the supplies for the diggers are sent by land. 1 hese supplies beiug paid for, the money passes into the hands of tbe farmers and graziers. Thirdly, some of thb diggers are persons who have permanently adopted New Zealand as their country, and whatever fuude they realise are invested here even now, either in gold mining or other industries. It appears to me extremely improbable that persons who bad a permanent stake in the welfare of the country would seek to invest their money out of the colony. I come therefore to the conclusion that the only funds really sent abroad are the savings of those persons, diggers or others, who are leaving the colony, and the profits of the foreign banks and merchants, Ihe last items are evidently unavoidable, though they may, perhaps, be considerably reduced in time, as New Zealand home produce gradually increases and improves in quality; I and as the people become more able to support banks of their own. As to the exodug of tbe diggers, I have already said that I can see but little likelihood of finding a remedy. Ido not, however, think that it is the wealthiest who leave, on the contrary I think we may conclude that it is mainly those who have not met with much success who are the most ready to go. This matter may, perhaps, be put in a still plainer light by looking at it f torn another side. A reference to the Customs Returns will show that at all other ports of entry save those of the gold-mining distrkta the value of the imports is considerably in excess of that of the exports. Consequently, if Mr. Pott's hypothesis is correct, there is no escape from the conclusion that the non-gold-bearing portions of the colony are gaining capital to a very large extent. When, however we come to look at the amount of specie transported to or from the colony, we find it comparatively insignificant. The conclusion, therefore, is, that the foreign trade of one part of New Zealand is made to equalise that of another. If, then, the exports from the goldfielda were reduoed, either the expoiti? from the remainder of the colony must be increased, oc its imports reduced. The origin of the mistake appears to me to be in the assumption that the trade of one part of New Zealand is disconnected with that of another. It is true that there are a number of small trading centres in this colony, bnt it by no means follows that they »re absolutely distinct. The constant intercommunication which is maintained between the different port ■* virtually binds our foreign tradeinto one, and in speaking of the capital of the colony, and considering whether New Zealand is gaining or losing capital, we must regard its commerce as indivisible. The reason of thislies simply in the factthatthecostof transporting money from provinoe to province is less than tho co3t of transporting it between the different parts of this colony and those couutties with which we trade. 3f, however, we come to speak of the capital of different districts, then I admit that the case is entirely altered. The interprovinoial trade ii the medium which adjusts and consolidates our foreign trade. If New Zealand ha J a metropolis of commerce this would be plain enough, as tho rate of exobang3 there would deoide the rate for the rest of the colony, and the other parts would in turn each act through this same channel. This, however, is not so : there is no one place through which the commercial pulse of the whole colony can be felt, and it is consequently often assumed that no such pulse exists. The constant changes and counter-changes in the interprovincial trade seem at the first glance to betoken a fluctuating and insecure state, whereas In reality they^ constitute the only steadying influence which exists. Precisely the same thing oscurs on a larger scale between the whole group of Australian colonies, and the foreign countries with whioh they trade. To look at the whole matter broadly, we can only •ay that the colony is paying away oapital when the demand for its exports is falling, or when, on the other hand, its power of supplying foreign markets is so contracted as to raise the price at which it could profitably export its goods to that at which the foreign country could obtain its supplies from another source ; in other words, when it happens that other countries are enabled to reduce their prices, or that we hare to raise ours, then the profits of our trade will be falling, and capital will not reproduce itself at the same rate aa before. Daring the last year, it is an unfortunate coincidence that tbis colony suffered from both the causes named. The quantity of gold produced decreased, and simultaneously tbe price of wool has fallen in the English market. The result is that the purchasing power of New Zealand wool has been seriously affected, and, although the actual money value of bmr gold is the game, yet the decrease in quantity of course diminishes the sum realisable (7) Stuart Mill's Element Of Political Economy, P»go . {£eople'» Edition.)

from it, either la mouey or imports. Consequently we find that during the year 186S there wa<> a considerable diminutiou in the {jnsa imports of the colony. fcuifficicnt haa now been said to show that as far as fcha colony is concerned there ia no need to look for such a means of fixing capital as is sought for by Mr. Pott. Tho means are evidently identical with those for developing and settling the colony generally, and may safely be left to the private enterprise of the colonists aud settlers, unassisted by the honorable gentleman in question. Government deadlifta are at all times must dangetous tools to handle, and if any notion of applying such was entertained, it is to be hoped that it will be cast aside; the negative method of reducing taxation is the only one universally salutary, and there is small hope or possibility of that being employed at present, A a regards the Middle Island goldfield?, there is no question that they are losing capital as well as population, and 1 have already shown that tho invebttnent of oapital is necessary to secure * permanent population. I have now, then, to discuss the means for scouring, or at all events enoouraging this investment.

ESTABLISHMENT 01 aOLDWELTDH, When we consider with what a small amount of trouble, comparatively speaking, the immense sums realised from the diggings of New Zealand have been obtained, it becomes a matter of surprise that bo few of those who were thus enriched should have turned their attention to the further and irore systematic prosocution of an industry so remunerative. There is no doubt that this neglect must bo attributed to the hubits of mind of the diggers, of whom, as has before been remarked, the large majority prefer to squander their earnings at once, and then remove to some other surface diggings, rather than save their money for the purpose of perpetuating the field on tihioh they are placed by the investment of capital and the employment of skilled labour. Sufficient has already been said to show that such investments for capital — to an almost unlimited extent— are to be found in Otago, and in all probability upon the West Coast. It remains to consider what will be the best means for the people of New Zealand to adopt either through their Government or by|piivate enterprise in order to achieve the end in view.

INFLUENCE 01? GftVEIINMENT.— (COLONIAL | GOVERNMENT.) The firafc requisite towai ds the attainment of our object is evidently the diffusion of reliable information amongst those who are likely to undertake, or assist in the ta^k of opening up, a new industry. The second is the sufficient protection from all unnecessary interferonc3, of any who actually engage themselves in the work. IJere it appears to me the legitimate Junctions of the Coloni«l Government ("hould end — the reat should be entrusted to private enterprise, and the local governments, With respect to the first duty which I have assigned to the General Government namely, the diffusion of information, 1 do not think ifc should extend beyond, the instruction of the local governmeuts in any matters likely to be of a useful character. (B.J "Power," says Stuart Mill, "may be localised, bub knowledge to be moat useful, must be centralized : There must be somewhere a focua »t which all its scattered rays are collected, that the broken and coloured lights which exist elsewhere may find what is neceesary to .complete and purify them." The Geological Survey Department is the only makeshift which New Zealand possesses for an instructor of the whole colony in mining matter*. However, without grumbling at our tools, we may ask wbat has become of the different reports on the goldfields of New Zealand which have issued from this department 1 Have they been re-printed by the local bodits, and widely diffused amongst the public ? Have all items of local intormation, which would be in any way useful, been appended to these reports ? And, iv fact, everything been done which could make them of somewhat more beuefa't to the public than niere official records ? In some cases I believe a little has been attempted iv the home circulation of any dati obtaiued, but usually these Government reports seem to looked upon as purely official documents, are sent the round cf the newspapers (who usually suppress them; sometimes from shortsighted jealousy, oftener from waut of room), are printed iv the appendix to the Journals or otherwise ; and having been read by any Government clerk who happens to be of an enquiring turn of nund, are duly filed and forgotten. In Otago there appears to bs a thoroughly-organised mining survey staff, and the information derived fiom this source is stated by Mr. Pike to be most useful to the miners. Why then should the outside public be excluded? The n-turns from the goldfielda are falling off. "Why has this valuable information n^ver been employed for the purpose of attracting hither labour and oapital ? Ballarat, in Victoria, has just sent, oriß about to send an agent to England, furnished with the fullest information concerning the district, in the expectation of inducing monied men to embark in the gold uiiniug enterprises of that colony. Why do not the several mining districts of New Zealand follow this example ? To call the attention of local Govfinments to these and a huudred other subjects appears to me parb of the duty of the General Government, Nevertheless, as far as I can learn, as soon as the delegation of the Governor's powers under the Goldfiolds Act to the Superintendent of a province has been mnde, the Colonial Government thinkß its task is dove. Pamphlets from the Geological Survey Department are occasionally forwarded to the districts, but practical advice and information as to what has been done in other mining districts abroad, or in New Zealand, iB seldom or never transmitted. Beyond this point I do not think the colonial ndministration could in justice to the agricultural districts of the colony be expected to incur a special expenditure from the general revenue. To make a money grant of any kind, either in this or any similar case, would be an exceedingly unwise precedent to establish, for it may be easily foreseen that the custom onoe initiated the different districts would each demand a like grant, and thus in all probability a considerable expense would be incurred. Even the expense however would be a small matter compare 1 to the injury done to the colonists themselves. The custom of Government granting money in aid of industry has at all times a very strong tendency to cramp the self-helpfulness of the people. There is already in my opinion too little interest in the development o£ the country shown by the public of New Zealand : too great an inclination to lay everything that haa to be done upon the Government, and to grumble at it, alike for everything that is left undone, and for raising money by taxes to m«et the expense of everything it attempts to do. The people of New Zealand occupy a very similar position to that of the wagoner in the fable, who preferred calling upon Hercules to putting his own shoulder to the wheel : the only difference ia that our Herouleß is more ill-advised than the mythic one, and does sometimes attempt to help in his blundering manner, and is then grumbled at by colonial wagoners, because he demands payment. It seems then that as far as direct interference is concerned it would be injudicious of the Colonial Government to take any active measures towards the development of new industries in the colony. Indirectly, however, and through the medium of local institutions, the Government may exert an influence of the very utmost importance. It will be necessary before proceeding to the discussion of this part of the subject that I should shortly touch upon the management of local affaiis in New Zealand, and in order to prevent confusion it will be desirable at the same time to consider what the proper functions of these inferior organisations are with respect to the development of the country, and more especially in reference to the subject of the pretent essay, how far they can assist in the permanent sebtlerrent of » mining population in New Zealand. These points being disposed of, I will return to that above mentioned, namely, the indirect influence of the Colonial Government towards the same end. (To be continued.) (8) Representatire Institution*, (Peopla's Edition), page 118.

Mr. P. S Gilmore, band-leaderof Boston, U.S., ia deep in the preparation of a monster vocal and instru" cd entail concert; that shall eclipse all the former effort') of the world in a musical way. It is to take place on Boston-common, in June, and will consist of an orchestra of 1,000 instruments, the choruses to be given by 10,000 selected vocalists from all parta of the country. The choruses are to ba supported by the basso of artillery, discharged by electricity. Mr. Gilmore has already secured 1,500 subscribers at 100 dollars each, and is busy in securing members of the orchestra and chorus. A housemaid, the other evening, Blipped from a chair on which she was temporarily standing, and fell h6»d foremost into a barrel of flour. To show the effect of mental agony, we will state that " her hair became white in a single night." The French paperß attribute a mot to Lamartine, for which, had lie been still alive, they would scarcely, we should think, have liked to make him responsible. Some one »iked the poet whether he was not spending too much money in advertising his publications. "No," he is reported to have answered, " advertisements are absolutely necessary. Even Dirine worship " (in the original, le bon Dieu) " needß advertising. Otherwise what is the meanng of church bells $''

Quarter 81st ij ending 'arch. Quarter 30th ending June. Quarter I 30th i ending Sept. •n o I o I o ST i— < 5 o M 5 O 1307. Ilokitiua Uieymoutb 18CS Ilokitika Oreymouth Totdl expoitb Total impoits.. Excess .—. — 252 738 139,401 109,192 73.CU0 228, 251 110.927 154,015 50,300 233, SOS 124,915 170071 40490 1G3,89G 59.518 147,102 I 64,112 ! 103 S3l 97,790 105 307 21,165 155 090 97,95° 01557 45142 075,553 000,829 1611,403 i 454,156 | 221,397 384,387 272,442 329200 282203 Total cxci ■ss, 776,012.