COLONIAL INSTITUTE.

Lyttelton Times, Volume LXXVII, Issue 9724, 13 May 1892, Page 5

COLONIAL INSTITUTE.

MB PEECEVAL’S ADDRESS. [Special to Press Association.! LONDON, May 11. Mr Brodie Hoare, during a discussion on Mr Perceval’s address to the Colonial Institute, said he believed that New Zealand would outstrip Australia, provided “ faddists ” were not allowed to govern it. Sir J. Vogel spoke in terms of high approval of paring down waste, and predicted a steady flow of emigrants to New Zealand, which was the brightest spot in the south seas. Mr Busby (?) attacked the policy of the Government towards the New Plymouth Harbour Board bondholders. Sir W. Jervois, the Chairman, said that the labour members were new to the work, and would soon change their policy. Mr Perceval, in reply, defended the action of the Government in the matter of the New Plymouth bonds, and challenged an appeal to the Law Courts.

THE PREMIER IN EXPLANATION. I Yesterday afternoon a representative of this paper waited upon tho Hon the Premier, whom he asked what he thought of the account of the Colonial Institute meeting, which had appeared in the morning newspapers. Mr Ballance at once said: What at first sight strikes me as peculiar in the report is that no mention is made of Mr Perceval’s reply. It is to be presumed that i£ Mr Perceval delivered an address which was afterwards discussed, he would have the right of replying, and would exercise his right. I feel sure that he did so, and it does seem strange that, his reply should have been, omitted. What the nature of his reply was should certainly be made known here, at any rate. Aa to the mere expression of opinion oa the part of the London financiers with regard to our financial nraangemenfcs, it does not, to my mind, go for very much. Thera is hardly a doubt that the credit of a Colony is measured by the rate of its securities. Now the Now Zealand securities are going up. This shows that those who deal in money have full faith in our stability, (Does not the proposed change in the system of taxation affect the influx of capital ? | As to the taxation proposals of the { Government, it is a matter entirely for the consideration of the Companies themselves how far they should interfere with tho influx of money for any legitimate industrial enterprise. What is meant by industrial enterprise si This may be looked at from various points of view. We are not aware that any of the staple industries of the Colony have been in the slightest degree impaired by our finance. If it can i be pointed out, and esn be proved that any one of our staple industries has been injured, then no doubt our policy is mistaken to that extent, and is condemned. But the very contrary is the case. The production in everyone of our staples is limited by the consumption and by the price in the markets. Take them one by one, and you will see that this is clear. Wool, frozen meat, dairy produce, fruit, timber, in fact all our industries, depend for their development entirely upon their consumption, which must determine their price and the profit to be made by them. Is there any evidence that the production of these staples is not likely to decrease ? I can only say that as fast as we throw open land in the North Island, where alone it is available at present, it is immediately taken up. There never was such an eager demand for land, and the conditions imposed for clearing it and preparing it for corn and other produce are being honestly complied with. Mt Brodie Hoare seams to have aa opinion very hostile to the recent financial legislation of your Government. As to Mr Brodie Hoare’s opinion, I am inclined to think that ho knows very little about tho industrial enterprise of the Colony. My only acquaintance with him was in ISBS or 1886, when I came down from Wellington to put before him and the local Board connected with the Midland Railway a stipulation oa the parr, of tho Government that 60,000 acres should ha set aside in alternate blacks along the line of the railway. It was arranged between us that this should be done. The terms were arranged by which the Government would have the right to set aside these alternate blocks for the purpose of putting small saltiers upon them. In tome unaccountable way this condition was afterwards abandoned, as I I think, greatly to the injury of the promoters of the railway. My own opinion is that if Mr Hoare had had any foresight at all he would have preserved a condition which would have enormously strengthened that enterprise in the.opinion of tho people living on the West Coast, and iu other places, who are now protesting against the locking up of so large an aroa of land as has been reserved for the Midland Railway. Bir Julius Vogel seems to doubt the wisdom of your measures. 1 take it that Sir Julius Vogel’s remarks wore made ia a fiisadly spirit. So far aa we see. Sir Julius Vogel h&s always advocated the interest of the Colony. Sir 'William Jervois speaks very disparagingly of your policy. I must confess that I am not a little surprised at tho remarks made by Sir William Jervois, who, as ho was Chairman, seem? to have gone out of his way to make an attack upon soma of tho policy of tho Colony, and probably of the Government, whom he appears to have described as demagogues loading the Labour Party. Now any intelligent man who reads the accounts of our proceedings ia Parliament would know that the Labour members in the House number no more than six, and that these Labour members have not exercised an undue or injurious influence upon our legislation. Oa the contrary, in tho opinion of very competent judges, they I have exercised a. most favourable influence. 1 need cite no other evidence in this behalf than that of tho late Governor, Lord Onslow, whoso testimony on this point ia most conclusive. I am still more surprised at the remarks made by Sir William Jervois, in speaking so disparagingly of a Government whom lie was willing to servo in tho capacity of Agent-General, and after he had sought the appointment by au express request to tho members of that GovcrnI ment. I can hardly suppose that he would | have been ready to place his services 3 at the disposal of demagogues. He j was also quite willing, iu tho capacity | of Governor, to be advised by these | same demagogues; for no sooner was the

announcement of Lord Onslow’s resignation. made than he waited upon the AgentGeneral, Mr Perceval, who had then just arrived in London, and requested him to telegraph at once to the Premier, asking him to use his influence with the Colonial Office to have him (Sir William) reappointed Governor of the Colony. Perhaps, however, the fact that representations slightly adverse to his re-appointment were made to the Colonial Office may have had something to do with his change of opinion. I venture to say that no man occupying the position of Chairman of the meeting, and who was an ex-Qovernor of the Colony, has ever gone so far out of hia way to make so gross an attack upon suoh an occasion. As to the general question of the unwisdom of the present policy of the Colony, we have debated that fully in the House and on the platform, and it is unnecessary for me to say any more on that point at present. You are reported to have expressed indifference as to the withdrawal of capital.

I have said that it is necessary, in my opinion, to wean Hew Zealand from a servile dependence on the London money market.' This expression, if we are to believe the cable messages, seems to have irritated the city financiers. Why they should be irritated by it it is impossible for me to say, unless they desire that New Zealand should continue in its servile dependence. Ido nob say that for a long time to come New Zealand will not in some respects, and from financial considerations, have to be dependent upon the London money market. What I emphasise, and what I repeat, is that it will be the fault of New Zealand statesmen and of Now Zealand statesmanship if a servile dependence is any longer maintained. The Colonial Institute is following the lead of the Opposition writers, who are certainly very severe in criticising your Government.

I may say, generally, I do not object to criticism, bub I say that the criticism I have noticed comes with very bad grace from an ex-Governor of the Colony, more especially in the coarse terms in which that criticism has been couched. I look forward, however, with perfect confidence to a very different opinion being expressed by our late Governor, Lord Onslow, when he arrives in London. I sea that Mr Moore, member for Kaiapoi, said that our debentures had been much depreciated through the distrust caused on the London money market by your taxation scheme.

With regard to our securities, the fact that our 3i per cent debentures have advanced to 05 is very gratifying, especially when we consider that it is well known that there are in the hands of our agents 3$ per cent debentures to the amount of about £300,000 not disposed of in connection with the recent loan conversion. We have been keeping tbis amount back, and not forcing it upon the market until the prices of our securities rise to high-water mark, when there will not be any loss. And no doubt the position of our finances during the past year haa had a good deal to do with it. No doubt there is a general rise in securities, but it does appear to me that those of New Zealand have advanced more rapidly than others. This may have been due to the Agent-General having been able, on the very day after the half year’s interest had been paid, to redeem the whole of the guaranteed debentures in London—to the amount of £476,000. This operation following immediately after the payment of the half year’s interest is very exceptional, and is at the same time an indication of the strong financial position of the Colony in London. The AgentGeneral has, moreover, been able to arrange with the Bank of England that money may be on receipt there in payment of interest two days before it becomes due. This is another evidence of the bank’s confidence in the Colony, and also shows that we are able to make the best of terms. It just occurs to mo to refer to Mr Dibbs’ visit to England. The London Times seems to consider that there is some mystery surrounding Mr Dibbs’ mission to London. It is impossible for me to ssy whether or not Mr Dibbs has any other object in view than to arrange that securities generally may come within the operation of the Trusts Act. I' may, however, say that Mr Dibbs applied to the Now Zealand Government for permission to represent it in connection with the Trust Act without derogating from the authority of our AgentGeneral; and the Government, considering the friendly relations that exist between New South Wales and New Zealand, acceded to Mr Dibbs’ request, and has allowed him to specially represent the interests of this Colony, along with the other Colonies, in this matter, and he will accordingly represent New Zealand as well as the other Australasian Colonies.

[FSOH OTJB OWN CORRESPONDENT.] WELLINGTON, May 12. There never was anything like the outburst of Opposition triumph over the address of Mr Duthie, who, after he had delivered it, got a vote of confidence from a few human beings and many empty benches. The evening papers write as if the doom of the Government were sealed ; -—The members of the Continuous Ministry were to return the day after to-morrow, and one of them, in anticipation,'proclaims that then will be the time for a loan. Mr Brodie Hoare and Sir W. Jervois having talked nonsense concerning the Colony about the time Mr Dutbie was talking platitudes of a mutually contradictory order in Wellington, the finger of Providence has been impounded by the Opposition in the most edifying manner. Sir Julius Vogel, it is pointed out on the other side, was the only speaker at the Institute meeting who made a good point, disposing of the whole business, in fact, when he said that, (I) Mr Wilson, of the Investors’ licvievj, had made the strongest of all. the attacks on the Colonies; and (2) That Colonial stocks have all gone up since. By the way, this Mr Wilson is the same gentleman who, some ten years ago, wrote a handy little book on English taxation, called the “ National Budget.” How he has come to know anything at all about Colonial taxation does not appear. That, however, matters but little, seeing that bis witticisms, according to Sir Julius Vogel, were not ignorant, and have fallen more than flat.