New Zealand Times. (PUBLISHED DAILY.) WEDNESDAY, SEPTEMBER 15.

New Zealand Times, Volume XXX, Issue 4520, 15 September 1875, Page 2

New Zealand Times. (PUBLISHED DAILY.) WEDNESDA Y, SEPTEMBER 15.

We have to congratulate the Government and the Opposition alike on their good sense and moderation, as displayed in the compromise which has been made on the Abolition of Provinces Bill. Last night, after the adjournment of the House, the leaders of parties met to continue the negotiations that had been suspended for some hours during the day, and, after an interchange of ideas, it was resolved that the Act should come into operation one day after the first session of the new Parliament. By this compromise two things are accomplished. First, provincial abolition will be settled by this Parliament; and second, an opportunity will be given to the people to review the policy of abolition before the Act comes into operation. All factious opposition will be withdrawn ; and the Bill will be

considered in committee on its merits. The way has thus been cleared for legislative action, and both sides of the House may be said to have gained their point without any sacrifice of principle. A short narrative of events, in continuation of what appeared in yesterday’s issue, is alone necessary to complete the history of this important crisis in the political life of New Zealand. We stated in brief yesterday the ultimate proposals of the Government and Opposition, and intimated that caucuses would be held during the day with a view to a final settlement. At eleven o’clock, the Government supporters met, when the Premier stated what had been done since Saturday’s meeting. He had informed Sir George Grey, in accordance with the resolution of the Ministerial supporters, that the proposals of the Opposition could not be accepted. Subsequently he received the following letter from Sir George ; 13th September, 1875, Mr dear Sir, —On Saturday I received your letter of the same date, when I was about to communicate to you the result of the meeting of the Opposition which had taken place that day. The feeling of that meeting was such as to satisfy me a_ settlement of the question was practicable on the basis of the proposals submitted. I regret to find yonr supporters have been unable to agree to those proposals. In reference to the latter part of the resolution enclosed by you, I have only to say that we are desirous to forward the business of the country, and shall ho willing to assent to any proposals for again discussing the question with that view.—Yours truly, George Grey. Hon. Dr. Pollen, &c. A long conference took place on the 13tli. The Opposition was represented, as formerly, by Sir George Grey, Messrs. Fitzherbert, Macandrbw, and Rolleston, who made the following proposal : That the Act should not come into operation, except upon a proclamation of the Governor, issued subsequent to the close of the first session of the new Parliament. This proposition was one which the Government could not entertain. They submitted the following proposals which, if made to them, Ministers would recommend for adoption by their friends : 1. Abolition of Provinces BUI to come into operation on the 40th day after the opening of the first session of the new Parliament. 2. That point being conceded, the details of the Bill now before the House shaU be fairly considered in committee, and settled In the usual course, without unreasonable opposition. 3. That Provincial Councils shall not meet again; that departmental appropriations shall be provided for by Act of the Assembly at the rales now voted until the close of the next session, the administration as already established being carried on. 4. That from the present date no contracts for works, upon which any public money may become payable, shall be entered into by any Provincial Government, without the consent of the Governor. By the terms of the resolution adopted at Saturday’s meeting, the Government were bound to submit any new proposal to their supporters, and on the other , hand, the foregoing terms were of such a character that the Opposition delegates did not feel warranted in accepting them without reference to their party. Wherefore, meetings were convened, as we have said, for yesterday. There were forty'eight of the Government party present, and four absent. The Opposition caucus was fully attended. After the Premier’a statement, a short discussion took place, during which the action taken by Ministers was approved of ; and a resolution was passed, to the effect that the Government might agree to the Act coming into operation at the close of the first session of the new Parliament, without proclamation, if such concession were necessary. On the motion of Mr. Stafford, the following resolution was also adopted :

That t-M* meeting having learned the result of the interviews between the Government and the Opposition, and the opinions of the Government thereon, is satisfied to leave the final decision in the hands of the Government upon the basis of the proposals submitted to the meeting.

The Opposition caucus was protracted to an advanced hour, but it ultimatelyresulted in empowering the gentlemen who had acted for the party throughout, to conclude an arrangement with the Government on such terms as they might consider best for the interests of the country. This resolution having been intimated to Ministers, the order of the day for further considering the Abolition Bill in committee was postponed, and the House adjourned at half-past-five to allow the negotiations to be continued. We have already stated the result. It is the best possible arrangement that could be come-to under the circumstances, and one which we think the country will approve.

There is just one point in the foregoing conditions requiring a word of explanation. We refer to paragraph 4of the Government proposals. This is simply intended to check anything like a surprise on the part of any Provincial Government, who might otherwise enter into large contracts for works, thus anticipating the provincial revenue for several years to come, and practically defeating one of the main objects of the Abolition of Provinces Bill, which is intended to ensure safety in colonial finance. ‘ The remaining conditions need no explanation, and it is to be regretted that the one in question was deemed essential to the public safety.

At last the Assembly is settling down to work, and in a comparatively short sitting yesterday the House of Representatives got through a great deal of really important business. The Abolition of Provinces Bill was got rid of for the day by the simple expedient of postponement, and a resolution was taken in Committee of Supply, , granting £250,000 by way of imprest advance, in addition to the sum already voted. No opposition was offered to this proposal, it being understood by

both sides that pending the conclusion of the negotiations regarding the Abolition Bill, no obstacle should be thrown in the way of granting supplies. This vote is rendered necessary by the circumstance that several large contracts are nearly complete, and that it will be necessary to be prepared to make advances from revenue pending specific appropriations out of loan. This, however, does not in any way intercept the debate on the financial statement, which is certain to come on at an early date, and to which we attach a great deal more importance than to the abolition debate. The necessity for a general stock-taking is most pressing ; whereas the provincial system has come to an end by the simple process of absorption, and there is no more to be said on the subject. Colonial finance and provincial finance cannot possibly continue to exist side by side in New Zealand. The country could not bear them, and the only thing to be done, therefore, is to make the transfer of the provincial departments to the control of the General Government as easy and effectual as possible. But the exact state of our finances will hear a great deal closer scrutiny than has yet been applied to them. Hence, we say, it is well to get rid of the constitutional question, for the purpose of applying undivided attention to the far more urgently pressing one of finance. Let the dead past of Superintendentalism bury its dead during the coming recess, and prepare for the new and better order of things that is to succeed to the provincial inheritance.

Westgaeth’s Circular, to hand by the last English mail, contains its usual report on Australian and New Zealand Government securities. In its general reference to transactions in Australasian stock, from June 11th to July 9th, we find the following remark; —“ The old “ Government issues remain compara- “ tively steady, but the newer and com- “ paratively unplaced stocks, as Queens- “ land and New Zealand 4 per cents., “ remain depressed. Bank shares con- “ tinue specially firm.” The circular, however, proceeds to point out disturbing elements in the Home market, which have had much to do with the restricted transactions in Colonial Government securities. These were occasioned by the failures in South Wales, and houses connected with the India and China trade. The City and Manchester felt the pinch, but “the continued ease of the “ money market,” writes Mr. Westgarth, “seemed to indicate that there was no “ great depth or generality to this state “of things ; and yesterday the Bank “ rate, from 31 per cent, which was un- “ changed for some months, went down “to 3 per cent. Colonial Government “ securities, which have been depressed “during all the past first half of the “ year by the unusual amount of the “ late issues, have begun now a decided “ recovery. In nearly every case there “has been an advance since our last “ four-weekly circular ; and in the New “ Zealand securities, after the great de- “ pression that succeeded the last issue of “ March of the £4,000,000 4i per cents., “ the recovery has been as much as from “2to 3 per cent. This has been most “ conspicuous in the case of the New “Zealand Consolidated 5 per cents., ‘ ‘ which, after having been largely sold “ by the market at about 102, have sud- “ denly sprung up to 105, and upwards. “ As the 4J per cents, are only at 94-5, “ these fives, with their disadvantage of “ drawings, are relatively about 4 per “ cent, too high, and it is only from the “ fact of their being comparatively better “ placed among investors that they don’t “ come in faster for sale, upon so tempt- “ ing a price.” This extract, while it is satisfactory in one respect, is by no: means so in all respects. It plainly, shows the strain which the floating of the four million loan put upon our colonial credit, and read by the light of subsequent events,’we cannot! but admire the splendid audacity of that, operation. But it is quite clear that it could not be attempted with any hope of success a second time. A financial surprise of the kind is possible only once. Fortunately, we do not require to try it again at present; but we ought not therefore to despise the lesson which it teaches. When we,find Consolidated 5 per cents.; which are so “ well placed among invea- “ tors,’’suddenly tumbling down to 102, at which figure “they were largelysold by the “market,” and nowonly makingarecovery of from 2 to 3 per cent., which is relatively 4 per cent, higher than the new issue of 41 per cents., our financiers would dp well to take heed. No great harm has boon done ; but prudence is required,— economy at home and prudence abroad, — if the country is to round up its great colonising policy without any hitch dr drawback.

Referring to the course of prices, Mr. Westgarth writes :—“ln New South “ Wales 5 per cents, the advance averages “1 per cent. . . . In Victoria the “ advance has been chiefly in the 6 per “cents., due 1883-5, which, at 112, “ are 3 per cent, higher, after an unusual “ depression caused by some heavy sales “ two or three months back. - The new 4 “ per cents, at 91-2 xc., have advanced 1 “per cent. Queensland old sixes are “ each I per cent.' higher, but the 4 per “ cents, stand as before, at about 89i pjcr “cent, to 90 xc. In South Australian “ there is no change, excepting %. per “ cent, advance in the 4 per cents., at “ 00% xc. Tasmanian remain as before. “ In New Zealand, the old fives, at 105, “are 2 per cent., and the Consolidated “ Fives at 105 per cent, also, are 3 Jr per “ cent, higher; while the New Loan scrip, “ at about % per cent, discount, is 2 per “ cent, higher. In other debentures, the “ Dunedin 6 per cents, are % higher,-and “ the Tasmanian Main Line 5 per cents., “ are about 4 per cent better.” It iyill thus bo seen, that Now Zealand securities’ are improving. i Speaking of now colonial loans, with the exception of a portion of the £IOO,OOO West Australian loan, no further colonial loan is expected during the present season to be placed in London ; but as “ several “ of the colonies have already prbpoSod “ further considerable loans, a very Ijii-go “ amount and variety may bo expected “ next year.” The Auckland Harbor 0 per cents, “ which wore offered at the “ mininum of 98, were all taken up ! at “ £9B 2s. Cd. upwards, which furtjior “ illustrates the great demand now sotting “ in for this class of municipal security, “when at a price relatively so much “ cheaper than the Government stocks. “The price is now about £100.” ‘The Otago Harbor 6 per cents, is next alluded to. £IOO,OOO, of an authorised issue of £250,000, was; being privately offered at par, buyer paying also accrued ini crest. Ballarat is also in the London niarkcfc fir a £50,000 0 per cent, municipal loan. Mr. Westgarth thinks this class of securities will bocomo favorites in London. | There is one feature in Westoautii’h circular , which wo trust to see changed, before long, as it is unfair to New Zealand. We refer to the table showing ; tho' population, trade, revenue, and, public debt of the Australian colonies in 1873.

To begin with, this is rather out of date in a financial report for July, 1875. The objection is, that whereas it gives the total debt of the colony at £16,509,549, which was correct at the time, it only gives a portion of the roTotms. The Consolidated Revenue, £1,420,216, is quoted, and a foot-note informs the reader that this amount is “ ex-pro- “ vincial.” Now, on the face of the tables, New Zealand appears to a great disadvantage compared with the other Australian colonies. For example, it has about half the population of Victoria, one-third its foreign trade, rather more than a third part of its revenue, while its public debt was one-fourth greater. A comparison with New South Wales, Queensland, and South Australia for the same year, 1873, would bo even more to the disadvantage of New Zealand on some points* We do not stop to inquire why the latest and fullest information has not been communicated to Mr. Westgarth, whose connection with the colonies is well known, but of one thing we are certain, that this table, printed under the caption of “Australian and “ New Zealand Government Secui'ities,” is not calculated to beget confidence in New Zealand Government stock.