THE Evening Star. WEDNESDAY, OCTOBER 6, 1869.

Evening Star, Volume VII, Issue 2003, 6 October 1869, Page 2

THE Evening Star. WEDNESDAY, OCTOBER 6, 1869.

It is somewhat singular that there are men who systematically endeavor to thwart every project that is set on foot to benefit the community in which they dwell. Many of them are intelligent in other matters, and some of them have held important positions in the early days of the settlement, Just now one of the most interesting subjects that can engage public attention is the construction of the Port Chalmers Railway. If there is one thing in which the Provincial Council has displayed its appreciation of the necessities of the day more than another, it is in the adoption of measures for inducing this work to be constructed. They have shewn themselves alive to the advantages to be derived from it, and to the means by which they may be secured. They have evinced how far they are in advance of most of the members of the House of Representatives, who, instead of aiding in the formation of works calculated to develop industry and enrich the Province, have systematically thrown cold water upon every proposition that has been made to benefit Otago. It would be well if the spirit of the Provincial Council were shared by the people of the Province. Editors of newspapers are not always made acquainted- with the un-der-currents of Society, but occasionally they are manifested to them. Not many days ago*we heard a gentleman, who ought to have been better acquainted with the subject, very authoritatively condemn all Government guarantees, because he had no faith in them. What he wanted to see was—how the line would pay. Perhaps we might give reasons for this loudlyexpressed condemnation of the Government guarantee on his part, that would convince those who heard him that the anathema sprang from a rankling sore—a conscious or unconscious grudge against the Government, and that on this ground his dictum must be received cum grano salis. To men of sound business habits of thought, at any rate, it is manifestly one of those prejudices that will not bear the touchstone of reason or experience. The fact is that the Port Chalmers Railway will be entered upon with full knowledge of what to do and what to avoid. The experience of Europe, America, Asia, and Australia lies at the feet of the civil engineer; he can easily attain a knowledge of what has been done under vastly more difficult circumstances; and with that complete definition of what is required for the goods and passenger ti’affic of the Province, he can suit his means to the end. Every proposition made for carrying out the railway has been tried, and found to answer. So simple is the problem of Government guarantee, that one is almost ashamed to think that there are men who make such moderate use of the intelligence with which they are gifted, as to render any discussion on that point necessary. Yet, to do those wrong-headed objectors justice, it ought to be said they had their counterparts in the old world ; although for the latter it may fairly be said in excuse, they had no experience in the matter. When first a railway system was projected for India, precisely the same prejudices had to be overcome. The projects had to run the gauntlet of the Ogurt of Directors of the India House, of the House of Commons, and the Stock Exchange. The prospects of traffic, the prejudices of the Natives, and every possible impediment were freely and fully canvassed, and years passed away before the scheme assumed a workable shape. The Quarterly Review for July, 1868, says:—“ Neither “ -were English capitalists prepared to “ risk their funds upon a doubtful “ enterprise at the distance of half the “ globe, over which they could exercise “ little control, and which was too “ likely to fall a victim to local jobbery “ and peculation. It soon became evi- “ dent that without a direct guarantee “ from the State, the establishment “ of railroads in India was -altogether “ hopeless.” Once alive to the real advantages of railroad communication, the Court of Directors proposed not only to grant the land necessary, but to guarantee “Jour per cent, on “ five millions.” “ This,” says the Review, “ was the commencement of “ that system of guaraneees which is “ one of the most important events in “ the history of the British Empire in “ the East. The era of material pro- “ gress in India dates from the period “ when this principle of contracting “ remunerative public works from “ capital raised under a State guarantee “ was adopted by the Court of Direc- “ tors.” A little further on the writer says, “ This system of guarantees has “ been condemned as not being in ac- “ cordanee with the dogmas of political “ economy ; but it is a sufficient answer “ to the objection that without the i “ guarantee there could have been no

1 ‘ railways in India at all.” Substitute the word “ Otago ” for “ India ” and the affirmation will apply equally to the one as the other. Heavy blunders were made in a variety of ways in the construction of the Indian lines. Instead of some six or seven thousand pounds hj mile, for which recent experience proves that lines can be constructed, where there are no heavy engineering difficulties, sometimes LIO,OOO a mile was spent, sometimes L 20,000, Occasionally the works were made too massive j sometimes so slight that the reconstruction cost more than the original outlay : but in every case, the auguries of the seers of evil were exploded. The lines were made, the country profited, the Natives used them, most of the railways pay dividends, and the shareholders are satisfied. Fifteen years’ guarantee at eight per cent, is offered on the Port Chalmers line. It is better interest, and equally safe as a deposit in a Saving’s Bank. No line in the world can be constructed at less expense, if the best plan is adopted; and if properly worked, perhaps none will pay better. But if any hesitate to invest savings, let them remember that interest dates from the moment that their money goes into the Treasury. It is not a speculation, but a better security than a mortgage, with none of its drawbacks. o O '