New Zealand Mail. PUBLISHED WEEKLY. SATURDAY, APRIL 26, 1879.

New Zealand Mail, Issue 376, 26 April 1879, Page 14

New Zealand Mail. PUBLISHED WEEKLY. SATURDAY, APRIL 26, 1879.

The next best thing to a plentiful supply of the current coin of the realm is plenty of good credit based on an untarnished reputation for veracity and ability on the part of those to whom the direction of alfairs is committed. We at the present time, like most if not all the other Australian colonies, are suffering from a general scarcity of money. Unfortunately this tightness is not confined to the small fry of the colony, but extends to our largest monetary institutions, which are suffering from the evil effects of over-trading. That the present depression is but temporary is beyond all doubt, as tho general assets are of a far greater \ r alue than the liabilities. The extent and severity of the financial crisis through which wo are now passing will depend very materially on the action of our Legislature, and the discretion exercised by the directors of our monetary institutions. As a colony we have ample assets not only to cover existing liabilities but to perfectly secure our creditors for a much larger amount than ive at present owe. But in increasing our indebtedness the greatest care, in the interest of the future of the colony, should be taken that the money so borrowed should be invested in reproductive works only :

that those who go into the money market for the purpose, and have the direction of the spending of it when borrowed, should possess the fullest confidence of the people of this coloii3 r , as well as the confidence of tho lendors, whoever they may be. That a new public works loan will be proposed next session there can be but little doubt, and that it will be most politic to do so will not be denied by those who are really in favor of the general progress of the colony, and are anxious to soften or tone down tho asperity of tho present monetary difficulty. We know not as yet to whose hands its negotiation and the direction of its expenditure will be confided. It is scarcely likely that the present Administration will be tho persons to whom oitlier the one or the other will be entrusted, as they undoubtedly have lost the confidence of a very large majority of the people of this colony. A change of Govermnent there undoubtedly must soon be ; whether such change is to be effected by the present House or by a new Parliament will depend very materially on the Governor and our present Premier. We see no special reason for a dissolution, as from the various meetings held by members during the recess it is evident that almost all of them retain tho confidence of their constituents. In returning to the question of another loan, and the effect it would have on the present commercial depression, tjie floating of a new loan would not only inspire general confidence, but would also be the means of assisting our local financial institutions by bringing foreign capital into the country, some of which would find its way direct to our local banks, and thereby enable them to extend increased accommodation to their customers, and thus give a fresh impetus to trade. As the present tightness of the money market is attributable to a very great extent to over-trading, it is to be hoped that all parties concerned will for the future learn prudence by ivliat they are now suffering, and so keep their operations for the future within safe bounds.