Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. WEDNESDAY, AUGUST 13, 1884.

Manawatu Standard, Volume IV, Issue 220, 13 August 1884, Page 2

Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. WEDNESDAY, AUGUST 13, 1884.

There is a "something" prevalent at the present time, which, through a series and course of workings, produces the depression and stagnation that exist m most parts of the colony. True, of late there has been a very slight tendency towards improvement, but there is nothing to show that really " good times " are coming, or that they will last for any great period, if they, do come. That "something" has been looked for,but very few have been able to trace its origin. Perhaps we are mistaken m our theory on the subject, but, all things considered, we are inclined to believe not. Every country, to remain m a solvent position, must have a source of production continually m occupation, m order to meet the current contingencies to which it is liable. That is to say, wealth must be created annually to an extent sufficient to form such an income as wjill pay the annual expenses. It is an easy thing and unfortunately a common one, for politicians to rely upon taxes, direct or indirect, to cover State liabilities. The Customs is the most usual and convenient «eape-goatj when this principle is maintained ; but it is a sadly misguided method of meeting the difficulty/ and one that may end m ruin. To cover the cost of protecting property and of keeping necessary departments working, Customs tariffs are perhaps rightly levied ; but to meet the interest on borrowed State capital with an income so raised, seems to be entirely unwise and impolitic. Interest on money should be raised directly from the productions which the investment of the principal caused or created ; and if all State monies were rightly and judiciously invested, they would annually produce a sufficient sum to pay the interest on that capital and something besides. Thus, it is obviously wrong for a country to raise money, spend it on railways, and then gather the interest from the Customs duties. Surely the railways on which the money was spent should pay the interest' on their cost, and if they fail to do this, the capital was evidently unwisely spent, when appropriated for their construction. Again , there is a direction m which public funds might with much profit be ' That is m the encouragement or even the establishment of industries.^ Industries create wealth. Customs duties do not, but merely gather it together. Were there more industries m the colony, we feel sure that the increase of traffic which they would cause, would make a substantial difference m the receipts of the railways, and employ many hundreds more human beings permanently, and afford an outlet for capital, which, better than all, would create a source of wealth, which would have so entirely different an effect on our commercial welfare that the question of what caused hard timers would soon be happily solved. "- ' '"