COLONIAL POLICY.

Nelson Examiner and New Zealand Chronicle, Volume XVI, Issue 15, 20 May 1857, Page 4

COLONIAL POLICY.

[From the Sydiiey Morning Herald, April 15.] The Australian colonies are under a strong temptation to sacrifice their prospective welfare to momentary convenience and popular outcry. The power they possess becomes alarming when it is remembered that a few individuals really decide the policy of the day, and that their personal ambition, and even still more sordid passions, may induce them to sacrifice the future. Live while you live is the mixim alike of the political and the sensual prodigal. To have lived with luxury and eclat for a time, hoAvever brief, would satisfy many that at least they had not ruined their country in vain. There are two methods by which this career may be run. By reckless borrowing on the security of an estate, and by improvidently dissipating it. It is a method so obvious and so vulgar, that it is comprehended by the dullest understanding, and has brought multitudes to a morsel of bread. It is the subject of a thousand proverbs in all tongues. Those who have seen least of the world know thus much of its folly and its misery. There is great danger that our statesmen should tread in the steps of the prodigal, and for the sake of a short easy tenure of office — for a full purse for present use or for the sake of avoiding the unpopularity of a tax, give up the hopes of the future, and leave their successors to debt and poverty. It is true that, when the colonies shall wake, and find their best lands gone, and their treasury empty ; when their credit is shaken, aud, except at extravagant discount, nobody will buy their scrip; when nothing can be undertaken by way of improvement; when none but gamblers will enter Upon contracts which may be abandoned at a moment ; when the mercantile interest participates in the State embarrassment ; when all this shall come to pass, the people may be loud in their execrations, but of what avail? the mischief will be done. The great danger of this political development is apparent everywhere. There is no objection anywhere to borrow. It seems so natural and so pleasant. It is agreeable to the colony because the spending of the money descends on all interests, with a soft and dewy influence. Charity is said to be twice blest ; but money borrowed has a wider operation, it is thrice blest — blest to the man who lends, for he expects his interest ; to the man who spends it, for it makes him welcome and even popular ; and again it is blest in the many who receive it. There is a reverse to the medal, but who cares to see it ? It is said that a gentleman, more eminent as a politician than a financier, was accustomed to say when he delivered bis promissory note, " thank heaven that's settled." To issue debentures payable some years hence, and to get in exchange many thousand pounds, is too great a temptation for human nature. On one side what do we gain ? — a piece of parchment marked with a few letters aud numerals ; but observe the effects which follow from a loan — duns disappear, offers of service are eager and universal ; everything puts on the air of opulence — small change becomes a nuisance. It is useless to address men with warning who have credit, and who are only expected to give post obits, especially when these are payable after their own political demise — not during their possession. The point of view from which a true statesman would survey this subject is just the opposite to the stand-point of the charlatan. The question with the true friend of the country is not — Can we borrow ? but Can we pay ? not Will people lend their money 1 but Will its outlay produce a return ? There is no royal road in finance. Public credit is just like private credit : what would be reckless and dishonest in one instance is so equally in another ; the reckless merchant defrauds his creditors ; the reckless statesman either bankrupts the state or peels the people. The time must come when the stern laws of finance will make themselves felt, and the day of payment hastens on with calm and inflexible progression ; the payment can only be made, when borrowing is no longer possible, by the sacrifice of the securities — the ruin of the estate. In two colonies at present they seem to have brought things to this pass. In New Zealand, Governor Grey, anxious, as it was said, to induce immigration, reduced the upset price of land to ss. and 10s. It was thought by some that the people of the adjacent colonies would rush there, and efforts were made to facilitate their transport. Others were wiser in their generation. And now what is the result 1 It is confessed that at this minimum price all the best land is already bought by the flockmasters ; that they have so arranged the purchases as to secure the remainder, which they have not purchased ; the land fund has gone down to a mere trifle ; the money paid for this vast sacrifice of the future is spent ; and now another scheme of reduction is about to close up " their land question." It is proposed to reduce the price and to give credit to purchasers ; to force the

owners of the runs to buy what is said to be useless, generally, to all but themselves. And this is taking care of the small capitalist — the poor man ; facilitating coldfiization ! Were the same course to be taken here it would be followed by the same result. Like the same class in New Zealand, our own wealthy men would buy at a small upset price " rich belts " and river frontages ; they would leave the poor man's friend to take possession of the sugar-loaf hills. A few months would, probably, be sufficient to spend the proceeds of these forced land sales ; and if one in a thousand of the colonists benefited by the extravagance, except of the class of capitalists, we should be very much astonished. Were we disposed to play into the hands of certain eminent squatters, we should certainly advise the imitation of this popular policy ; but we are not "retained" on that side. An attempt is making by the Ministry of Tasmania to force a large quantity of land into the market to pay off the debts of the colony. The land policy of that territory up to the stoppage of transportation was framed with a view to promote it. Thus, during the government of Sir W. Denison, land was offered at one pound an acre in large L locks, payment beiug deferred for an annual rental meantime of about o per cent. The effect was very remarkable. All sorts of people sought out blocks, described them, and took possession. To some this was a fortune, and instances are known of a large sum being made by perfecting the purchase from the Crown, and then bringing the land into the market. On the whole, however, the effect was bad. Many persons paid an annual rental for what they had no use for, and land was depreciated on the whole. To force a large quantity, in addition, into the market now, as the Ministers of that colony propose, is, of course, to increase the depression. While, on the one side, a colony is retarded by an inadequate supply of land for sale, it is absolutely arrested by the alienation of public land upon various and conflicting principles — driving men to buy what they cannot occupy, and stimulating a fitful reveuue upon which no calculations can be based. The people of these colonies have duties to learn which perhaps painful experience only can teach, namely, to take care of the sources of revenue, and to guard against the fatal facility of borrowing.