The Depression

Otago Witness, Issue 1795, 17 April 1886, Page 13

The Depression

Editor Witness,— -There has been a great deal of public correspondence on the above subject, but I don't think the real «ause of the depression which is eating away the substance of the country and causing a great number of the settlers to lose heart and feel that it is hopeless to fight against the present low prices of produce, has been touched — viz., tfhe high rate of dividends the loan companies are still able to pay to their shareholders. These loan companies aro somewhat in a measure to blaroe for the state this country has drifted into by their great anxiety to get their funds invested, and by inducing individuals to purchase land at high prices. This was all very well so long as the properties could be made to pay interest j but now, with the fall in the price of produce, this can no longer be done, and they, keeping up the vats of interest at the old level, witt soon absorb a great portion of the land in the country, a disaster from which rb will take years to recover. I maintain that the law of supply and demand ought not to apply in such a state of matters as now exists here. Seeing that these loan companies have reaped a rich harvest during ihe time the aountry was prosperous, they ought now to reduce the rate of mterpst and share the loss with the settlers, a coarse the adoption of which would give many of them a phauce of tiding over the depression. Failing this of their own free will as a matter of policy, it may become a question for consideration whether the Slata should not reap some benefit from the high dividends extracted from the settlers and sent out of the country. Yours, OCC.9 April T. h. B.

Blr J. C. Meadway, in a letter to the Daily Times, prutests against the proposal for leasing the seal fisheries as a whole for a term of 3'ears, on the ground that the adoption of this course would be unjust to a number of persons at present employed in the industry. " c sa yj> '■— If it is contemplated by the Government to fofcter this industry in « innnner beneficial to themselves and to the many, why not have thrown open the foreshore or known places of resort of the sunl into so many lonsn g divisions, of say 100 miles em-h-as for instance :-l, Campbelltown to Solnnders- 2, Stewart 's Island, .3,1 uyseguv -„ , . 4 Ding's Sound to. to Dap's *>°um^ *< b° to £*. lW v ' ;« rimilnr or other divisions of thefirXre or the Sole U the two Wands-nnd nytiipse means give the non-capitalist a chance of following his old labour without being sub&rviet>t to the monopolist I