SIR JULIUS VOGEL’S CANDIDATURE.

Lyttelton Times, Volume LXI, Issue 7246, 21 May 1884, Page 2

SIR JULIUS VOGEL’S CANDIDATURE.

The following address, issued by Sir Julius Yogel to the East Coast constituency, has been published:— In response to an intimation which I have received that it would be agreeable to you that I should offer myself as a candidate for the representation of your district in the House of Eepresentatives, I have pleasure in placing my services at your disposal. I did not come to the Colony with the intention of re-entering political life, nor of paying it more than a short visit; but, since I have been here, what 1 have observed of the condition of the Colony leads me to think that I may be of some use towards bringing about a more encouraging state of affairs, and to wish to employ the few months at my disposal for that purpose. I will venture to hope that it is unecessary that I should vindicate my past career in New Zealand. The power which I exercised I owed solely to the confidence of my fellow colonists, and it was their support which enabled me, with the assistance of my colleagues, to be the instrument of raising the Colony from the depths of overwhelming depression to a height of prosperity that made it assume the position of one of the most prominent of the Australasian Colonies. Once more the Colony is in the depths of depression, though, it appears to me, the causes are somewhat different from those which operated in the former case. The primary causes then, as I remember them, were—--Ist. The reaction consequent upon the cessation of inordinate expenditure on wars with the Natives. 2nd. Insufficiency of the population. 3rd. Want of convenient means of communication between the producing districts and the markets for the sale or shipment of the produce. 4th. Generally a want of energy and enterprise, occasioned by the prevailing depression.

Some of these causes more or less exist now; but they seem to me to be the consequence of one over-mastering cause, and that I shall characterise as a general want of confidence. To make my meaning clear, I must apparently digress. In this Colony, as indeed in all the Colonies, the process of settlement, of opening up the country, and of establishing the social and commercial fabric, has been carried on by the joint efforts of people within and without its limits. The Colonists have supplied labour, skill, energy, and enterprise, and some amount of capital. The balance of the capital has been supplied by persons in Great Britain, content with interest from 4 to 10 per cent, according to the risks the various investments seemed to involve. So to speak, the British investors have been sleeping partners with the Colonists, and they have done well, because generally the Colonists have done well; and, in many cases, they have done well where the Colonists have not, because it was in the nature of their investments that they should have a first grasp of the profits. If the Colonists had possessed the capital themselves it would have been much better for them to have provided it than divert portions of their properties to the sleeping partners thousands of miles distant. But the Colonists wanted railways, and houses, and machinery, and moneyed institutions —in short, all the appliances common to a developed civilisation. They had not the capital themselves, and they were glad to get it provided for them. As they become wealthier they can enter into many of the undertakings for which hitherto they have had to depend on extraneous aid. The change comes about gradually. In some of the older Colonies, where there is a great deal of realised wealth, the Colonial undertakings depending only on Colonial capital exceed in influence and magnitude their Home rivals. The ordinary investments of foreign capital in a Colony are trifling compared with the enormous amounts invested in and lent on real property. Millions of money are lent on real property, on the faith of its being a realisable asset. So much is this the case that in the course of time the whole basis of the commercial soundness of a Colony depends on the, realisable value of its property. As bullion is the basis of the security for the issue of Bank notes, so is the value of property the basis of the security of probably at least two-thirds in value of the commercial transactions of a Colony. If lam so far correct, the deduction is clear that to impair the value and the ready realisation of property is to vitally injure the general prosperity. Indeed, it is easy to see that, followed out to its extreme limit, the impairment of the value of property might bring to ruin nine-tenths of the Colonists; all, in fact, who do not carry their means in a stocking or a money-box. It is quite a mistake to suppose that only the-wealthy would suffer. The ramifications of civilisation run through every class, and it is utterly impossible for one class to suffer without affecting the others. A man owning a few acres, suffers, in degree, from a want of confidence as much as one owning 10,000 acres.

I must now make plain the reason for this long digression. It appears to me that New Zealand has everything in its favour just now, as I shall presently relate, except that it is suffering from the want of confidence in the value of property—a want of confidence engendered by the operations of various causes during several years past. For obvious reasons I do not wish to refer to particular Governments and particular Ministers ; but am I wrong in saying that one seems to vie with the other, who shall say the harshest things, and inspire the most dread in the minds of

holders of property ? If they wish to hold and improve their properties, they are stigmatised as monopolists, who must he " busted up,” whatever that means, if they wish to sell their lands, they are de nounced with equal warmth as speculators' It seems to he quite forgotten that these people bought their land of the Government, and paid for it what was required of them at the time. As far as I can ascertain, about half the property in the Colony can be purchased on easy terms, so frightened are its owners. It is to be remembered that insidious influences of the kind may go on for years, exerting a corroding effect, without that effect ap. pearing obviously on the surface. The frightened laud-owner who longs to sell out and get away from the Colony dares not say so. He must wear a cheerful f ace to his equally nervous but apparently as cheery neighbour, and so the circle enlarges —smiles without, bitterness within. As property becomes less " liquid,” to use a well-known phrase, the depression in business and the difficulties of individuals become more and more emphasised. I dislike the Property tax. It diminishes the value of property far more than the amount it returns. As regards its influl enceon personal property, it is a tax on culture, on refinement, on education, on the arts of production, on all in fact having a tendency to improve the Colony. As re! gards its effect on real estate, it is open to the vital objection that it is not expended in the neighbourhood of where it "is raised. It i», in my opinion, most essential that money raised by direct taxation of real property should be spent by local Boards for local purposes. I see no rea-on to doubt that the Property tax, as far as it is needed, can be replaced by less objectionable taxation.

I am as great a fnend to education as anyone can be, as I have shown in times past, but I must express the opinion that the present expenditure on education out of the Consolidated Revenue is excessive. I believe as good an article can be furnished at a less cost. At any rate it is impossible to justify the impoundment of so large a portion of the Consolidated Revenue. Nothing can, I think, be more extravagant or unwise than to slowly construct railways in short lengths, instead of endeavouring, as rapidly as possible, to put them to productive uses. I attach as much importance to the indirect effect which a railway exerts in opening np country and settling population as to its immediate money return. Major Atkinson, in a speech he recently made here, pointed out that low rates had been found to stimulate the use of railways, and that the effect of that use was that, during the last year,, passengers and goods were earned at an expenditure of something like £2,000,000 less than the same work would have c»st in former days. Surely the benefits to industrial arts of every kind that this saving confers should be taken into account. It is a false economy to limit the uses of the railways by the imposition of excessive tariffs. I observe that the Government think the railways should be made to yield five per cent. I think that for many years to come such a standard is too high, and calculated to do more harm than good.

In my opinion the trunk lines should he completed without delay. Wellington and Auckland should be joined. Nelson and the West Coast should be united with the Eastern trunk line, and the Otago Central line be completed. Meanwhile settlement should be promoted, and districts like your own well-favoured one, fitted as it is to become the home of thousands of happy settlers, should he opened up. I am of opinion that the time has passed for a separation of the two islands, politically or financially. At some distant future it may be found practicable, but at present I doubt its being either practical or desirable. The progress of either island is, and ought to be, beneficial to both. I am not surprised, however, that the demand for separation has arisen, for there are grievances plainly apparent which abundantly account for the dissatisfaction existing. But I think that some less severe remedy than amputation may be found for these grievances. I am greatly concerned to think that the local government system is neither thorough nor efficient. Ministers and Ministerial action seem to me to supersede local government, and the latter enjoys neither the dignity nor importance which would make it satisfactory or efficient.

As at present informed, I greatly doubt the advantage to New Zealand of, the proposed federation with Australia. New Zealand ought undoubtedly to occupy an important position with regard to the Pacific Islands. Had the plan of a chartered company which I proposed been carried out, the Colony would have had a commanding influence over the South SeaIslands. Later still a brilliant opportunity was lost. No words can do justice to the folly of the quarrel with Sir Arthur Gordon. As High Commissioner, Sir Arthur had the power of bringing the whole control of the Islands to New Zealand, and if, instead of quarrelling with him for performing those duties, facilities had been given to him, there is little doubt the High Commissionership would have been permanently planted in New Zealand, with a portion of the fleet and other advantages. The trade of the islands would, in short, have converged to New Zealand.

I have said New Zealand has everything in its favour now, and that I attribute its depression to the want of confidence engendered by insidious attacks on the value of property. I shall briefly refer to the many advantages the Colony possesses. Its splendid climate is brought into strong relief by the deplorable losses which the droughts have recently occasioned in Australia. If grain and wool are somewhat lower in price than formerly, the facilities afforded by ihe railways go far toward? making up the difference. The direct steamers promise to be of incalculable advantage to the Colony. Lastly , there is a new industry developed which opens a whole world of occupation to settlers. I allude to supplying frozen moat to the British markets. Even now it has been found to pay, and as the costs and charges of transmission become less, the profits will become larger. An enormous quantity of laud in the Colony is capable of being laid down in fattening grasses, and. in short, a new industry of a most encouraging kind is open. But for the profound want of confidence. I am convinced that New Zealand would be as prosperous as it is now depressed. I am persuaded that the remedies I have already suggested will aker the whole condition of the Colony. Briefly, these are —the removal of the Property tax, the completion of unfinished railways, the improvement of the local government system, the promotion of useful immigration, and the development of settlement. It is no., for me now to go into the particulars of how all these things may be done. lam not preparing a budget; but this at least I may say, it has never been found impossible to shape the finances in accordance with a well-defined policy of advancing the various interests of the Colony.