The Daily Telegraph. TUESDAY, JULY 30, 1901. OUR PROGRESS.

Daily Telegraph (Napier), Issue 9300, 30 July 1901, Page 4

The Daily Telegraph. TUESDAY, JULY 30, 1901. OUR PROGRESS.

On the whole Sir Joseph Ward's speech at the banquet tendered to him last night struck the right note. In dwelling upon the progress made by the colony, and emphasising what must be admitted to be a more favorable outlook than could be boasted of a few years ago, the speaker was administering a needed rebuke to that morbid pessimism which is continually asking us to bewajl our misfortunes. But, that being conceded, it does not follow that Sir Joseph Ward

was right in his deductions generally. Especially is this the case with regard to the political basis of his address. Doubtless it would be stupid as well as inaccurate to say that politics cannot make a country prosperous or unprosperous, for much depends upon whether laws are good or bad, but it is questionable whether any man is entitled to hold that the measure of prosperity we enjoy now is the result of action in the House of Representatives. In a sense it may be urged that legislative encouragement to settlement increases the productiveness of thecolony. On the other hand, especially in a new country like this, progress must take place as the population increases, arid for this progress no political party can rightly take credit.

It may be further pointed out that in regard to some of the points adduced as evidences of prosperity, they are capable of being read the other way. Sir Joseph Ward, for example, assumes confidently that a plethora of money in the banks is a satisfactory social symptom, even if that money is not bearing interest. To our mind it indicates something very different— something inimical to the welfare of the community. Let us take the figures used by the speaker and analyse them. He says, accurately enough, that whereas there was in 1891 only thirteen million pounds in the banks of tbe colony, there is now twenty-two millions. But, as t?ir Joseph Ward himself points out, of that increase of eight million pounds the sum of six millions is deposited merely for safe keeping, apparently, as it bears no interest. The situation presents us with but a modern form jof the long stocking, and suggests capital unwillingly idle. Indeed, the word " suggests" barely fits the case. The sura mentioned is capital idle, and compulsorily idle, for speaking in general terms no person except under compulsion of some kind allows his money to remain in the custody of another without exacting interest for it. Even much of the money that is bearing interest represents a state of things not altogether desirable. The friendly societies have money in the banks at a low rate of interest which formerly they were able to lend at from six to seven per cent. The Government have pledged the credit of the taxpayers generally to set up as 5 money-lenders; and the result is that various institutions, chiefly of a I co-operative nature, do not find the profitable outlet for the results of their thrift which formerly existed. This aspect of the subject might be discussed with profit at greater length, but enough has been said for cur purpose, which is to show that there are two sides to the question of accumulating money. Then, again, the speaker was trenching upon debatable ground when referring to the increase in the exports of the colony. Undoubtedly there has been improvement in this respect. There/has been a considerable increase in the area of land occupied, and hence the volume of the country's productiveness has been swelled. But, as we have already remarked, how much of this improvement is due to political effort is a very moot point, and in any case it mast not be exaggerated if we wish to form . reliable conclusions. For example, the exports for the year ending last month were less, both in quantity and value, than those for the corresponding preceding year. We do not say politics has brought about this decrease. The causes which control markets are as a rule too deep-seated to be affected by Acts of Parliament. But. if this has to be acknowledged when a decrease is recorded, it must apply to increases also. Bearing these things in mind, it is yet just to say that Sir Joseph Ward's speech will do a great deal of good. It comes a 6 a pleasant relief to those melancholy jeremiads which picture the colony as on the high road to ruin. We agree with Sir Joseph Ward in holding that it is doubtful if there was ever a brighter horizon before New Zealand. We consider that this applies to the coloDy is spite of legislative mistakes which have tended to the unprofitable hoarding of capital, and that as time goes on we shall hear less and less about money placed in the banks without interest being demanded or paid. It is beginning to be seen that our labor legislation will not injure industrial pursuit in the end, although there may be a little disorganisation while • matters are settling down. When this is fully recognised we shall not have the spectacle of a Treasurer able to refer to six millions of money in the banks not bearing interest.