"NEW ZEALAND AS IT IS."

Marlborough Express, Volume XLIV, Issue 74, 4 April 1910, Page 3

"NEW ZEALAND AS IT IS."

'ARTICLE BY SIR JOSEPH WARD

In, the North American Review foi ITebruary there appear two articles *n New Zealand-one by Sir Robert Stout and the other by Sir Joseph Ward Sir Robert Stout's ar^V* -of a general character; that sipedI by ?£b Prime Minister is political. The Prime Minister's article is here reproduced in, full, the only «J«™*» n. foeing that cents and dollars are translated into terms of English money:— "In a world where, for social and -political reasons, false issues are conSually being presented to the Pubhc for acceptance, it may be well at times to eive authoritative statements, even of a" general character, to those who wish to have some solid ground on which to base their opinions. This is .particularly the case in regard to/New 'Zealand. Its isolated position in a geographical sense, and its almost unique position in regard to social ■economics, make it desirable that strangers should be able to select from the cloudy mass of assertion and •counter-assertion statement;' bearing the signet of those who are in a position to be responsible for their utterances. , , , ~, -~ "New Zealand has lately felt distress from two distinct forces bearing upon her from long distances. fohe has been affected financially (though in comparatively slight degree) by the depression-waves which the Wall Street panic sent outward in wide circles far beyond the United States. She has also been disturbed by the vao-ue but serious unrest which agitates the ranks of the workers m all civilised countries, and which is felt even where the lot of the workers has been ameliorated in a hundred considerate and sympathetic ways. In spite, however, of these temporary vibrations (having their origin beyond seas), the Dominion of New Zealand was never in a more prosperous condition than now, and never gave more solid ground for the certain hope in her future which those who love her cherish. ■ , "It is said by enemies within and without our island boundaries that we borrow too largely and that our national debt is increasing. They are careful, however, to conceai the fact that a very large proportion of our ' loan money is accepted for reproductive purposes—that is to say, for purposes which benefit both the lender and the borrower. Since the 'Progressive Ministry' came into power until recently, from 1891 to 1908, we have borrowed £27,600,000. Out of that sum, however, £18,200 : 00O is invested in interest-bearing securities, or interest-bearing activities, the cost of which does not fall upon the general taxpayer. Therefore it is idle to talk of this amount as if through it the ordinary citizen is bending under a burden of taxation ;•■- the loan moneys when expended have been disbursed in such directions that the citizen of New Zealand walks cheerfully and alertly, knowing that his light load is like some.farmer carrying the small. sack of corn that will enable him and his children to reap ■ the harvest of the future. Four million one .hundred thousand pounds have been paid to provide struggling settlers and farmers with # cheap money, money raised at low interest on the national security, and loaned to farmers to allow them to throw off strangling mortgages and to improve their properties. They pay their small interest very gladly, and no part falls .on the general taxpayer. So too, under the Lands for Settlement, big private estates have been bought by the Government out of money expressly loaned for this purpose, and on the security of such lands themselves. The interest of these loans is paid from the lease rents of small farmers now settled on what were once the princely properties of single individuals. Five million nine hundred thousand pounds have been thus expended. Not only does the whole country benefit indirectly by the settlement and growth of thousands of such families, but no part of the interest is paid by the general citizen. I could extend this statement in detail till the whole of the £18,200,000 spoken of is accounted for; but it must be acknowledged that, when New Zealand is called a borrowing country, sufficient credit is not generally given to the fact that much of the interest is self-supporting, and will in a short time automatically disappear by means of sinking funds. "In the years during which our Progressive Ministry has held power, the evports rose from £9 400,094 in 1891 to £17,810,346' in 1906, the imports from £6,503,849 in ' 1891 to '£15,211,403 in 1906. That fact alone would show the great energy and prosperity of a people that only in 1907. for the first time, raised its number to a million inhabitants. The general welfare of the people cannot be thoroughly gauged by anj shpw of

figures, because much of it arises from indirect influences guided by State impulses. Thus, as soon as the railways and other State-governed properties pay above a certain interest on their construction, instead of such gains being handed over to private f)ersoris as dividends, the general pubic benefits by greatly reduced fares and freights. Thus the railway journey (second-class) of 250 miles, which in 1900 cost 255, in 1908 cost only 14s 6d. A bale of wool was carried 100 miles in 1890 for 7s sd, but in 1908 for 5s Bd, and there are special concessions* as to the transport of artificial manures, etc., for farmers. Such is the case, also, with the post office, telegraphs, telephones, and !' other means of communication. A i letter weighing half an ounce sent from New Zealand to Great Britain in 1890 cost 6d; in 1908 a full ounce letter could be sent to any English- ■ speaking country for Id. Yet, although this colony was the first to try the daring experiment of a penny postage all over the world, our post offices handed over £130,914 last year to the Treasury, and during the last ten years yielded £773,000 of profits. "We have bank deposits as follows:— In the banks— 1897. 1902. 1907. £5.520,080 £7,876,877 £12,825,063 In the savings banks— 1897. 1902. 1907. £14,290,512 £17,231,767 £23,517,111 1897. 1902. 1907. Total— £19,810,792 £25,108,644 £36,342,174 "I am aware that much of the interest taken in regard to New Zealand by our cousins in the. United States centres round our advanced labor laws, and particularly round the principle known as 'compulsory arbitration.' The past session of Parliament has had probably the most severe task in endeavouring to lift the law of industrial arbitration to a higher level than it had previously occupied. We found that it was with great difficulty that legislative pronouncement could fix with lasting effect any system applying fairly to so flexible and liquid a subject as ! modern industry. The Act passed in 1894 had for about twelve years a strong influence for good. It, so modified the conditions of employer and worker that great benefits were received by both parties. As time went on it was found that there was too great rigidity in the-legal process. Dissatisfaction was widely expressed, and the long-banished strike began to rear its unwholesome head once more. Too much stress had gradually been laid on the compulsory portion of the Act, and too little attention given to conciliation. The new statute endeavours to 'get back to conciliation.' For this purpose official conciliators are being appointed to settle trade disputes in their earliest stages if possible, or with the aid of a Council of Conciliation appointed by the contending parties. This Council has no judicial powers; it is purely conciliatory, and only on its failure does the case proceed to the Arbitration Court. Strikes and lock-outs involving industrial unions registered under the Act are made punishable by fine and by attachment of part of wages, but strikes of, persons not working under award of industrial agreement are without penalty. We trust that by means of these amendments of the Act, the primal intention of its promoters may be restored, viz.: to make compulsion a last resource and one only to be invoked under rare and extreme circumstances.

"The progress of many of our Stategoverned institutions has been remarkable. Government railways, telegraphs, telephones, coal nines, life insurance, accident insurance; fire insurance, public trusteeship, old age pensions, savings banks, State pensions for all Government employees, etc., have all been successful and

flourishing ventures no.t only from the ) financial point of view, but from their effect on the comfort and happiness | of the people. "We hope still to find j many ways of perfecting these, and of j finding out new paths of usefulness, j feeling as untrammelled in the adop- i tion of the best ideas of other countries as we are ready to try new lines of action of our own if they appear to lead in the direction of the star we , steer by." ' i