FINANCIAL STATE OF THE COLONY.

New Zealander, Volume 1, Issue 26, 29 November 1845, Page 2

FINANCIAL STATE OF THE COLONY.

"Oh! my prophetic soul!" — Shakspeare. At the latter part of the month of July, we laid before our readers the financial state of the Colony, as regarded the amount of Debentures, then in circulation. Notwithstanding the confusion, inaccuracy, and unintelligibility of what few official documents that are accessible to public scrutiny and examination, we had, in our own opinion, sufficient data to arrive at an approximation of the truth ; and we consider we very clearly proved, although it was impossible for us to be fractionally correct, our assertion :—": — " that notwithstanding the Debenture Ordinance expressly provides, that, at any one time, the issue shall never exceed the sum of fifteen thousand pounds, that there must be in circulation, at the present time, more than thrice that amount of Government Debentures." Our statement was declared to be exaggerated and erroneous ; but we were unanswered by any official publication of the true figures — which might, partly, arise from complete ignorance in any department of the Government of the correct number of debentures in circulation, and partly from dread of the effect of the truth being made public, on the value of the Government currency. It will be, also, remembered, that in a subsequent article, confirmatory of our previous calculations, we concluded our observations : " As to the amount of debentures in circulation, we are still convinced that our calculations, if not perfectly accurate, is not far from the truth : and ere long, when the decision of Lord Stanley on the Debenture Ordinance is received, the amount must and will be ascertained." On Saturday morning last, the whole town of Auckland was thrown into the greatest excitement, .confusion, and dismay, by the publication of a "Government Gazette, declaring that Her Majesty had disallowed the Debenture Ordinance. The public document, put forth by His Excellency Lieut-Governor Grey, contained the assurance fiat he will loso no time in making the best arrangements that the means at his disposal will admit of, for obviating the difficulties and inconvenience which, in the present state of the circulating medium of the colony, may result from the disallowance of the ordinance. But this declaration gave but faint hope of any immediate relief from this sudden convulsion in the monetary affairs of Auckland, totally unexpected as it was to the majoiity of the population — although anticipated by our selves, and some few others, who never con sidered that the Home Government — more especially a Peel administration — would sanction a system — so directly contrary to all acknowledged sound principles of finance and circulating medium, as that of an inconvertible paper currency. But the perplexing, fearful effect of the annulling of the Debenture Ordinance was considerably heightened by the statement published with it, signed by the Colonial Treasurer, denominated "Debenture Account." Our readers will perceive by this Treasury document, that there has been more than thrice the amount, allowed by the Ordinance, of fifteen thousand pounds, issued — for the total amount is .£46,591, 4s; 4d!!! — and at this very time the amountin circulation is £36,814 195. 4d ! ! I If the issue had been limited to the amount, which the public contemplated it would have been, in consequence of the Ordinance — or not much exceeded, — the great mischief and distress now occasioned, if not altogether averted, would have been very inconsiderable: for Governor Grey would have been enabled to have withdrawn the whole amount, either altogether with specie, or , by combined issues of specie and the large debentures of fifty pounds, bearing eight per cent, interest. But it is the, hitherto, purposely concealed, enormous amount of issue of this inconvertible paper — which must have struck such a financier as Captain Grey with the greatest surprise and alarm, while it completely frustrates his anxious wishes, and previous intentions of immediate withdrawal — that has brought this financial crisis on the colony In consequence of a meeting of some of the wealthy merchants and others, during Saturday, an interview was sought and obtained with His Excellency Governor Grey, on the same afternoon, previous to his departure for the Bay of Islands. The deputation was politely received, when they stated to His Excellency, that the publication of the Gazette

had entirely taken from the Government debentures all current value, and that unless some notification was publicly made, of his intentions respecting them, so as to give some value to them, that numbers of the population would be unable to obtain the immediate necessaries of life. His Excellency then replied, that the despatch from Lord Stanley had only been in his possession twenty-four hours ; that he was quite sensible of, and most deeply lamented the evils attendant on the disallowance of the Debenture Ordinance : but it was a state of affairs not brought about by himself; — that he would rather defer declaring any immediate steps concerning the debentures, in order to enquire more into the whole matter, so that he might better frame some measure that would be more serviceable and effective than hasty conclusions ; — that the issue of small debentures — and as legal tender — had occasioned great dissatisfaction by th,e Home Government, and their withdrawal from circulation was his peremptory instructions ; — that the debentures would not be repudiated, although not wholly immediately withdrawn, but would remain a debt due by the Local Government until redeemed ; — that the means at his disposal, considering the very large amount that had been issued, was very small, at present : but he should immediately communicate to the Home Government the whole particulars — for it was a case to be dealt with, and disposed of, by Parliament; — and the interest of eight per cent would be paid, regularly, every half year, on the large debentures. Such, we believe, was the substance of the observations of His Excellency Governor Grey. On Monday morning last another G. >- vernment Gazette appeared, with two additional notices from the office of the Colonial Secretary. The first announced, that peisons tendering the debentures, in amount not less than seventy pounds, at the Colonial Treasury, will receive one-fourth of the amount in specie, and a new debenture for the remainder, in addition to any interest that may be due on the small debentures. — The new debenture to bear interest at eight per cent per annum ; and to be redeemable by, and at the option of, the Local Government, at any time, after three months' notice in the Government Gazette. The restriction that the amount shall not be less than seventy pounds, is obviously intended to bring the new debentures within Lord Stanley's instructions, that they shall not be of less amount than fifty pounds each ; but it afforda very little direct relief to those most requiring it — the poorer classes, holding small amounts, and it also leaves them at the mercy of avaricious capitalists. The other notice was, that tenders for the purchase of drafts, in sums not less than fifty pounds each, drawn upon the Lords of the Treasury, at thirty days sight, by His Excellency the Lieut-Governor of New Zealand, will be received at the office of the Colonial Secretary, until the 4th December. It was stated by Governor Grey, that this despatch of Lord Stanley had been in his possession only twenty-four hours : but it must have been in the Colony some time. It bears date, we believe, the 3d of April last. Why was not the crisis brought about immediately the despatch was received in this Colony, so that all parties — both the Government and the public — should stand on equal terms ?— But, to the shame and disgrace of the Government, more especially of the Colonial Treasury, every mean, contemptible advantage has been taken of the secret information they possessed. It must have been well known, at the Colonial Treasury, that such measure was in progress ; therefore, to call upon people, at such period, to come and to receive their just claims, to which there had been every obstruction and delay previously, — and then to pay them notes — that could not, at the time, be refusedbeing legal tender — and which, twenty-four hours after, would be almost useless, is a proceeding to which we can give no term sufficiently expressive of our astonishment, disgust, and indignation. The paltry subterfuge — that all accounts were directed to be immediately paid, in order that the books should be made up, — will not avail ; for honour and integrity would have dictated payment in specie under the circumstances, of which there is large quantity in the ' Treasury — instead of thus, wilfully, depriving poor labouring men of considerable portion of their hard-earned pittance. But to return to our more immediate subject. —'! he question naturally arises — What will be the sequel of the present state of affairs— and how are greater disasters to be avoided ? The measure of Governor Grey will pay the sum of £9,000, in specie, and leave in circulation—taking into account the interest, Wi ich may be calculated at about £1,500, due on the small debentures, wiiich is to be added to the new issue — large debentures, to an amount in round numbers, of about £30,000,' to bear interest at 8 per cent per annum. Here, we would observe, that it is perfectly useless and hopeless, in our opinion, for the settlers to anticipate that the Home Government, or Parliament, will liquidate the new debentures, and discharge the Colony from the debt altogether. If they should, on fie representation of Governor Grey, suppty him

with further funds to dimmish the amount in. circulation, the Home Government will charge them against the Colony. Therefore, we would sincerely advise, that all classes should meet the crisis with firmness and with forbearance to each other — under difficulties, which their most cautious prudence, their most consistent frugality, and their strictest honesty could not prevent. The best remedy for this severe trial, is to look well to the future. Let the settlers address His Excellency Captain Grey to reform, and to remodel the whole machinery of Government, so that the expenditure be reduced within a proper limit ; for, it must be remembered that the interest of the new debentures will be about £2,400 per annum, which will be a charge on the Colonial Revenue. The only chance of extrication from the present financial difficulties of the Colony, is, the most rigid system of economy by the Local Government. By rigid economy we mean— not only of money— but of place and patronage. Every department should be revised; and the individual heads should be made to understand that they are to do their duty, fully and efficiently, by working themselves, The Augian stable must be cleansed. Length of tenure of office should be no plea for continuauce. Ability and industry should be the only claims. Taking the Depaitments in their order — that of the Colonial Secretary is the first for remark. As the present h-ad of this department is about to leave for England, with the lite Governor, we shall merely observe that, in our opinion, tne qualifications for an efficient Colonial Secretary are quite the reverse of the practice of phlebotomy and surgery, or a knowledge of entomology. If the successor to Dr. Sinclair is qualified for his office, the whole business of this department might be fully performed by a Colonial Secretary, with one clerk of ability, accustomed to epistolary duties. Whjje the Land Claims were in progress of settlement, we are quite aware, there was much correspondence, and otherbusiness, connected with them, to perform; but now they are finally settled, the ordinary labor of the office must be comparatively trifling. * In like manner the Colonial Treasury might be reduced : more especially, as the manufacture of inconvertible currency has wholly ceased. The Colonial Treasurer, if truly an accountant, with a good arithmetician for an assistant, might very easily perform and record the few cash transactions that take place in the Treasury. The Customs must have nearly as much business, and as many transactions, in the calculat on and receipt of duties, now that the commerce of yVuckland is in creasing, as the Colonial Treasury; yet, how different the charge and number of the establishment. In the conduct .and management of this branch of the public service, there are united the necessary qualifications of ability and practical experience ; and in the execution of its fiscal duties is evinced the most zealous, indefatigable industry, which, in our opinion, is yery inadequately remunera cd. The Audit establishment should be abolished altogether. Jt is perfectly useless and unnecessary— -and only a source of annoyance, trouble, and confusion to every other department. The head of each department should audif.and be responsible for, the accounts and vouchers of his office, and deposit them with the Colonial Secretary, to be forwarded to the * Commissioners of Audit in London. These commissioners have issued certain instructions for the an angement of accounts, which are quite intelligible; and if each department was in possession of them, there would not be the least di fficulty or trouble in rendering all the accounts of the Colony in ihe forms required. The Protectorate, which is at present an annual expense of jf 1,900, should likewise be superseded; and, in substitution, two or three excellent linguists in Maori appointed, as interpreters, who woujjl be quite sufficient for all the intercourse and purposes of the Government'with the Natives. In making these observations, let it not be conceived, that we would be niggardly in the payment for valuable efficient services; ,for quite the reverse are our disposition and wish. We would remunerate, — and «care. quite certain, that the whole community will coincide with us, — we would amply compensate, persons wh'» were ful v competent to, — and who properly fulfilled, the duties of their respective situations. But, we also, on the other hand, decidedly protest against the baneful system, hitherto so palpably pursued in this colony, of appointing persons with large salaries, that are not at all qualified to fulfil the duties of their office ; — of placing, an unnecessaiy number of incapable persons, in departments, in which the duty might be efficiently and fully performed by a It-ss number of ability and experience. We object, also, to large salaries to person's, who devote but a small portion of the day to their office, and are to be seen perambulating, gossiping, and smoking about the town during all hours. We disapprove likewise, of boys, — who cannot by any consequence be competent — being placed in situations, with salaries, nearly equal to that, at present paid to the oldest officer under the local government.; and which salaries would secure the services of efficient practical men. Lei the appointment throughout all grades.

judiciously made. Pay the officers well and justly; but have the duties fully performed, by strict attendance during the hours prescribed for business. The expenditure of the colony, under its present financial position and circumstances, munt be brought within the narrowest possible limit. If it were so, on the principles we have now suggested, we doubt not, that the effects of the present crisis will soon pass away. The Revenue of the Colony is steadily on the increase, and we anticipate, that this current year> it will exceed the amount,— more especially as regards the Customs throughout all the settlements,— put forth in the "Estimate of the probable amount of Revenue for the financial year 1845,-1846," — which is, as follows j—

Taking into consideration, the usual parliamentary grant of £7,565, whi(h perhaps, may be increased ; we think there is very fair prospect, with vigilant economy, that the revenue will exceed the expenditure. If 80, let the surplus be immediately applied to the redemption of the large debentures ; thus reducing, as quickly as possible, boih principal and inteiest. Such acts will inspire confidence throughout the colony, as well as give current and full value to the debentures. We seriously consider, that there is no cause for alarm for the future, in consequence of the present unfortunate state of the circulating medium. We allow, that so suddenly, to render unavail ible three fourths ot' the active capital of the colony is a most serious evil, and tending to derange, great ly, commercial transactions. But 4 the debentures, bearing interest at eight per cent payable hall yearly, will induce thobe, with dormant capital, to invest in them, and we should think, that the Banks at. Sydney, would advance on them, after the dei bration of Governor Grey. Therefore, we .sincerely trust, that this crisis, however distressing, will tend to the luture good financial government, as well as commercial prosperity of the colony.

The Natives.— Some short time since, a Tobbery was committed by some natives at the house of Mr. George May, under Mount Hobson, in the most glaring manner As s<>on as the late Governor was apprized of it, M- . Meurant was despatched into the interior, by the Waikato and Waipa, to discover the aggressors, and to obtain compensation. Mr. Meurant returned yesterday, and has ret laimed the greater portion of the property, and obtained ample compensation for that which has been consumed and destroyed. "We understand that the native chiefs and tribes to the southward of the Waitemata, are quite quiescent— perfectly indifferent as to the disturbance in the northern districts, but hoping the rebels may be punished, and that peace may be speedily established, so that they may derive all the advantages of intercourse and trade with the Waitemata district. It has been very clearly ascertained, that there has been much robbery in Auckland, from the storekeepers, by Maoris ; but Te WheroWhero, and most of the other chiefs, declare, that if they are committed bv any of their tribes, they will instantly surrender them to the authorities.

Customs Ltntl Titles and Crown Grants Regisl ry of Deeds Fees of Judicial and Police Com ts Auction Licenses Publican's Licenses .... lucideutal Receipts . , . . . £. s. d. 11,500 0 0 2,500 0 0 200 0 0 ; 1,000 0 0 500 0 0 2,300 0 0 500 0 9 Parliamentary Grant 18,500 0 0 7,500 0 0 Total amount £26,000 0 0