THE New Zealand Herald. AND DAILY SOUTHERN CROSS. MONDAY, JUNE 2, 1879.

New Zealand Herald, Volume XVI, Issue 5473, 2 June 1879, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. MONDAY, JUNE 2, 1879.

The policy and the success of the Government- must hinge in next session upon the scheme of public works which they have to submit to the country, and the manner in which they propose to deal with its finance and Indebtedness. All things are subordinate to these, and even the native question, involving as it does the opening up of large tracts of country hitherto shut up, roust be looked at in relation to the public works system by which the lands now lying waste are to be utilised for the public benefit. Too much public money has already been spent in New Zealand for the advantage of large landholders, and it has become imperatively necessary that the principle should be laid down, that public money should be spent for the public advantage alone. But to leave that point in the meantime. . It will be incumbent on the Colonial Treasurer, before he goes, to the English money market to borrow money for the continuance of our public works system, to shew that the railways now made havs been a success. If he cannot do this, then he ought not to attempt to borrow any more, and indeed, unless he were able to do this, he would not be able to obtain further loans. Happily, the success of the railways has been abundantly shewn ; even during tha last year of dull trade and restricted commerce, railway business has steadily increased. The Colonial Treasurer will be able to shew that a large amount of the money spent on our railways is productive, so that the cost of their construction is no longer a burden upon the colony. Looking at the railway returns, and the certainty that they will increase, the railway revenue i 3 sufficient security for a considerable portion of our indebtedness, and the colony may safely assume responsibilities for further railway construction. The precise position of the matter will be set forth in the Financial Statement, but we believe it will be shewn that the colony is not by any means overburdened. The speculation has been successful, and may rightly be continued.

Kail way construction must, however, be continued on somewhat of a different system from that which lias prevailed in the past. The line 3 have been constructed between the different centres of settlement, in almost every case through lands owned by private parties, who, and not the colony generally, have had the advantage of the enhanced value. In the lines to be constructed, it can hardly be expected that the traffic willbe so groat fur some years to come as 011 those which have been made, so that it will be imperative that the colony should gain in the sale 3 of waste land, and that districts now thinly peopled should be opened up for genuine settlement. If possible, means of communication should be given to a district before the waste land in it is sold. If disposed of before that, in all probability, large tracts will become the property of speculators, who will reap all the benefits of public expenditure. If not sold till means of communication are furnished, it is quite certain that the land will be bought by bona fide settlers, who will pay a good price to the colony for it, and who, by immediately settling upon it and bringing it into cultivation, will render the railways at once profitable. That there is abundant room for extension of the railway system can be seen by a glance at the map of the South Island, where the main line of railway runs close to the sea-coast almost the whole distance, and where the lands of the interior, which have no water carriage, have as yet almost no railway accommodation. Several lines are now proposed to open up railway communication in the South. Island. One runs from Westland across the Island, joining with the Canterbury lines at Amberley ; one from Oxford to Temuka, takes part of the interior of Canterbury. One from Albert-town, between Lakes Wanaka and Hawea, to Dunedin, will open up a largo district in Central Otago ; while two short linos are projected in the Southland district. In all, 57Gi miles wore proposed by Mr. Macandrew for the South Island last session, to cost £3,505,000, and we believe that the programme will in the main be adhered to. On the Otago Central Lino 39G,000 acres of Crown land have been reserved from sale, with the view of devoting the proceeds, when tho land is sold, to the construction. This is therefore a definite asset to the credit of tho railway. From tho Clyde to Lake Wan?ka, a distance of GO miles, the line runs through a level district, still in the hands of the Crown. On most of the other railways proposed to be made in tho South Island, thero are largo tracts of Crown lands, which will be greatly enhanced in value by the construction of railways, and which tlie Government will do well to keep in their hands till the railways are made. Nearly the whole cost of the railway expenditure will be paid from this enhancod value, and tlie colony will have secured the enormous advantage of the land being placed in the hands of bona fide settlers at once. In the North Island tho course is not so clear. For the main line, opening up the interior, and connecting Auckland with the Southern system, we must wait upon the ever-present spectre of the North, tho " native difficulty." We believe that arrangements will be concluded, but as to when a commencement can be made, we should not like to hazard any positive statement. However, there is one thing which we beliave the Government are alive to, and in which they will receive the unanimous support of tho country. The land on the line ought not to be allowed to fall into the hands of speculators. No doubt the interests of the native owners will be well looked

after, "and no one will grudge tliem.' very considerable advantages from the construction of the railway. But the Government will be expected to see that the public derive benefits from the increased value given to the land. There would be a howl of rage throughout the colony if, when we were at liberty to extend the railway from Te Awamutu, it were found that the land through which it was to pass wa3 in the hands of speculators, who had unfairly made use of opportunities, and who proposed to hold on till they could get exorbitant prices. It depends very much upon the arrangements made with the natives what aid can be given directly to the construction of the line proposed from Te Awamutu to Taranaki, but probably iix this case also there will be large direct assistance. On the proposed Wel-lington-IToxton line there are large blocks under negotiation, and which have been duly proclaimed. Probably, in next session, several new lines ' will be scheduled. An accurate survey ought to be made of the country to the north of Auckland to ascertain the cost of a railway to connect the settlements, and which would open up large blocks of land which have been acquired by the Government, or are under negotiation. Deposits have also been paid on the tract of forest country between Cambridge and Rotorua, and if arrangements could be made to complete the purchase within a reasonable time, a line might be made to' connect Rotorua with the Waikato lines. Between the Upper Thames and Katikati also, wliere a railway has been spoken of, there is a large tract of land in the hands of the Government. On the whole, we think the North Island will do its fair share in affording assistance, by the enhanced price of land, toward the railway system. By prudent and careful management, tie railways to be constructed may be completed without any burden to the colony. It would be impolitic to force land into the market at present, when money is scarce, and before the railways are commenced, but in a. short time the demand will have revived, and the Government, with their scheme of railway construction, will then be able to devote the land fund to its proper purpose—not the enrichment of speculators, but the affording convenience to actual settlers.