New Zealand Provinces.

Otago Witness, Issue 490, 20 April 1861, Page 9

New Zealand Provinces.

The arrival of the " Airedale," on Tuesday, from the other Provinces, has placed us in possession of our files of papers, from which we subjoin the chief items of interest. : — CANTERBURY. From the Lyttelton Times we learn that affairs in our neighbouring Province are in a very satisfactory state. That journal, commenting on the gratifying improvement which has taken place in the commercial and monetary affairs of the Province, says :—": — " The Government is no longer in debt. The Treasurer breathes freely, and can look his fellow men fairly in the face again. The Union Bank of Australia, we suppose, is divided between the feeling of gratification at getting its money back again and regret at losing so profitable an investment as the Government debt. In another month the balance in hand, swelled by the pasturage rents, will be something like £15,000, an amount below which we trust never to see it again reduced. The prospect of an increase in our income is good. The ordinary revenue shows a steady increase, while that arising from the land sales bids fair to yield a very large amount in excess of the estimates. Having emerged from a long period of debt, it is only reasonable to presume that for some time at least the lesson will be remembeied by our authorities, and the dictates of prudence reign supreme in the management of our finance.

If we turn to the state of trade within the province we find an equally satisfactory state of things. The two main producing classes are flourishing. The spirits of the pastoral interest are supported by full rates for wool at home and high prices for stock in the colony, and thus its members are enabled to bear cheerfully the public grievances under which some at least of them are supposed to suffer. The fanners are thriving ; though of course, if one believes what they say, they prosper by being ruined. After nearly two years pressure in the money market, during which all paper suspected of being speculative in its character has been summarily rejected, and much that was fairly legitimate politely declined by our bank, trade not only survives but is decidedly improving, In spite of an UMtnistakeable want of the circulating medium, in" spite of a ruinously high rate of interest, in .spite of bad debts and failing demand, our merchants and traders have survived the past two years, and are busily engaged in extending their business and enlarging their stores. Those who have watched the state of commercial affairs attentively during this period can come to no other conclusion than that, having passed this period of trial satisfactorily, trade is sound and healthy generally throughout the country. With a solvent Government, an Increasing revenue, and a sound and healthy state of business, there is fair reason for thankfulness and congratulation that we have escaped with so little real suffering. Nor are there wanting signs of progress and improvement for the future. The want of the necessary capital required to assist the trade of the Province, which has curtailed legitimate enterprise, and raised the rate of interest on first- class securities to 15 per cent., is likely to be supplied at no distant period. Not only is private capital to a large extent finding its way down from the neighbouring colonies, induced by extravagant interest and sufficient security; but there is every reason to believe that one if not two colonial banks intend commencing operations in the Province within a short time. The facilities thus afforded tp our traders, and,, which will certainly be prudently administered, will result in an increase of enterprise and activity to the benefit of all classes of the community. Among other possible contingencies which loom in the distance and bold out hopes for the future are the commencement of the railway works between our towns and the probability of a paying gold field being found close to our borders.

If there is fair reason to suppose that this improvement in our prospects will be realized, and that before long a marked progressive movement will be visible, it is not difficult to foresee that the country will suffer from the want of a sufficient supply of labour to meet the increased demand. Should public works be resumed on a larger scale, should the railway be commenced, and at the same time the general business of the Province take a start, the latter will have to be carried on under the great discouragement of an extreme rate of wage's, or else be given up altogether. We commend this subject to the attention of our- Government."