MR JAMES ALLEN BEFORE HIS CONSTITUENTS.

Otago Witness, Issue 2202, 14 May 1896, Page 21

MR JAMES ALLEN BEFORE HIS CONSTITUENTS.

Sir James Allen, M.H.R., addressed a meeting of his constituents in the Town Hall at Slilton on Monday evening. There was a large audience, although the weather was inolemenb, and amongst those present were a considerable number of ladies. The chair was taken by the Mayor (Sir Donald Reid). Tbe Chairsian, in introducing Mr Allen, said that the coming session would be tho fifth session of Parliament in which Mr Allen had represented the constituency of Bruce, and that losing so there was uo need for ao introduction to the audience. He could assure their member of a patient hearing on the p&rfc of the people of Milton, and he could say that nothing would please Mr Allen more than to be at the olose of his address subjected to a strict ex*orinstion and to have his conduct regarded with fche • closest scrutiny. Ho regretted that the weather was so unfavourable, bub as he saw present men who had come from a Ah Unce it geemed plain, that the same lively intercut wa« taken in politics by the people of Bruce as bad beeu taken by them in times p»»t. MrAiXKN said: I quite hope with you, Mr Mayor, that I shall bo tested with questions at the 'end of my address, and also that they will be put' quickly, because it is not pleasant to sit in a caair waiting to be plied with questions that do not come. To every question that is asked so far as I can I will give a pl*in and straightforward answer. • Ferh»ps it would be well before cosamenoing my address on general matters to set at rest the uneasy minds of soma of my constituents — I do nob know that I can call them my polro^r~ irieuda, and I do not want to call them my political enemies, because I hope to convert them all to my side.—(Applauie) There are some people extremely anxious to know why I have not been to Milton before daring this recess ; Borai who w:e anxious to know whether I am going to. stand tor Bruce again, and there are yet others who would fain believe that some particular and chosen friend of, mine has been selscced to take my place. Now it is pleasant to think that one has » great many friends, a number of whom wonld fill this placo worthily ; bub those friends bo far as their feelings are known to me are content that I eheuld represent Brace for a little time longer. Bo far no word of complaint ha* reached me from them, tha dewre has not been expressed tkat they would gladly see me away aad uxjoneifeke in my place, so thoao politically inquisitive friend* on the other side may taka it from Hie to-night tbat I do intend to stand again for Bruoe, aud that though Dancdia may have its cbaums for me, I have been so long ab Bruoe that Brace has a great many more. I have a great number of frlouds politically and otherwise here, and though it may saem hopeless I desire that the titae may oome when you n»y all be gathered iato my garaer. — (Laughter and applause.) Before going on to wh&t it is particularly my dusire to say to-night, thera are two-looal matter* to which r«,f«ranc3 should be made. I wirii to congratulate you upon the erection of the new coutthoase asd the exchange of the Athe»Eßum reserve. It is gratifying to me that theo thiugs havo been accomplished. THB OPPOSITION POLICY. Now it is the fashion tj a»,k the Opposition and Opposition members what they have to say for themselves with regard to a policy. ' Let me assure you that when you hear the cry v&ised by Government supporters that the titae has oome for the Opposition to declare it 3 policy, you may be quite certain that the Opposition criticism is -striking home and telling severely upon the Govarnmenb. About the last ory the Government supporters can raise Rg*iuj>t an Opposition is tho cue they are raising now— "that the Opp>.sirion haa no policy." Allow me to tell you that the Opposition never has a policy except that of criticising the actions and would-1»e actions of the Governmenb. No indU tWu»l member of the O&poaitton can possibly formulate any policy ab all. Ha can come before jraUj as I .do this evening, to let you know his individual opinions upon tvny of the political questions of the day, and to do so is his duty ; bub the time doss cot oome fora member of the Opposition to formulate any p»licy aatilhe is associated with other men who are called upon to form a Government, aad then by coaferenos and mutual oonesHions they are enabled to evolve a policy for bhs p*rty. However, it is not right- when those drms.nd« are m»do opon ns that we should be entirely silent. Sometbieg may be ssid with regard to questions of yoiic? from an Opposition point of view, fjpeaktng for myself as an individual member, it i« impossible to giva you any very distiact and dofiaite outline of policy with regard to particular me* sores, but on broad principles I can give you some idea of what seems to sue may be deimed a reasonable poliay-'for an Opposition, Ib tbe first place I sbould Hk* to ice a restorafcion of ranpeefc for law. Yon will soe^by-and-bye, in the oonrie of my criticism of the actions of the Government, what is meanb by that. I should like to a*e aonfHence encoaraged amongst the people who are here and amonjat those vrko c«rus wilh their Bsoa«j to spend. I should a'ao liko to see encouraged kindlier feeliegs betwoeu maa and man and between class aud class. Iv saying that, without hesitation I ateerb that tae prs"sent Government have to a very large extent lived and thriven politically by raising up feelings of enmity between class and claw ; and •whenever men can do so they ought to do all in their power to oreato kindlier feoling between man aud man and to restore tha confidence cf one class in tha other, for in that way great good would ba done to the country. I should also like to see encouraged the industry and thrift of the peoplo, and an increase of commerce and ef self-reliance. These are some broad lines of what, as an individual member, I should consider a sound policy for the country. — (Applause.) THE ■UNEMPLOYED. Leaving that, as there is no time to deal with ib now fully, I want as rapidly as possible to go through some of the work of the last session and of tha preceding one. Ia tha first place you should cast your eyes over the present condition of New Zealand, and recollect- that now for a period of fiva year* the Government has bees in power, and that thty came into power and have held power all along, having a large majority behind them. There is no question of that. They have had every possible means of carrying out any pejicy that they wished to carry out. They have bad every advantage and facility given &«m. But what do you find dow p Do you find, af tor all these facilities have beea granted to 'them, and with these large majorities at their back, that the condition of the- couatry is inch as ts give yoa unmixed satisfac-ion ? Is it not the fact that trade is so limited that, though money is plentiful, it is extremely difficult to find any satisfactory investment for it? Is it net *lso the 'fact' that the one great question the present Ministers ■ gave all to Understand they would tackle and cope with was tbe probleovof the unemployed ? And yet is not the evil o£ the unemployed as great — jes, and greater- -to-day than it ever has been feJKtv £fe*l*ndii £he*e things mo sU (lain

and patent to every man, and there is no need to expatiate upon them. Is it not also the f*ot that the charitable aid expenditure of the country has inoreaeed to an enwmous extent, end that in spite of that increased expenditure mea have had to put thoir hands iato their pocket*, in the cities and elsewhere, during the last winler to supplement the charitable aid in ordac to relieve distress P Taess thiugs are quit* pkin and patent to you all, and in face of the fact that every facility was given to tho Government in the way of money and land, the Government have not oured them. Ido not for a moment nay that it was possible for the Government to have cured them. Tkero may bs difficulties that will require a much longer timo tb.au the existence lof one Government to remove ; but ths Government undertook their removjl.^ That they still exist cannot be ft cause of satisfaction tj anybody, but it is right to point ont how oompletdy the Government have failed iv dealing with this question. DISFIAKCB OP THB I,A"W. It i« my business to criticise what has bean done. Well, in tUe fitst place, misrfipre*entv tion and dtfimce of the lair teem to be to thoss in office at the present time excusable methods for the retention of power. It may bs strung language to usa to ohargo them with raiir«preteatafcion and defiance of the law, but I shall at any rate attempt to prove that charge this evening, and every man or woman who really has the interest of this country at heart, and who claims to bo a patriot, will surely say that the first thing to be desired is absolute obadioncs to the law, especially on the part of those who are law-makers. — (Applause.) Surely no misrepresentation oan ever commend itself to any Now Zealand patriot, nor can any want of candour to th« British public, when the British public are asked to put their hands into theirpookefa to help our finances. Such things cau never be countenanced by any true New ZoaUnder, aud there is surely do necessity in a wealthy, thriving country like this, with the population w« have, to misrepresent our o»ie to the British capitalist or to anybody else. I want to show you, however, that there really has batn mitr<pre;eut<t.tton, though I rsm not going to stay any length of timo in doing so. You all know what took plaoe in London with regard to the million and a-half loan, for the matter has been so wall threihcd out that probably you all know as much about it as Ido mjsolf ; but there have bean numerous other instances of mitrepresent&tion, and ou9 that cannot be paiied by, because it is so patent, is with roipect to what has been so long the parrot-cry of thoss in power at the pr«ent time — the cry of HON-BORROWING. They have boasted before the country time after time, and they made it their political cry everywhere, that they have baen a nonborrowing Government. Now it is perfectly easy for aayone to answer that. Tho answer to it cau be found in the Blue Books of the colony. Tfeti'e is a return of tWe public debt, and ib discloses thift fact, that the public debt of the colony hft3 during fcha time the preieat Mini* try have been in office increas«d by the sum of £2,881,624, and this does not include the £1,500,000 borrowed for loans to sattlers. Cau anyone in the face of that faob say that this tvs b.-ea a non-borrowing Government ? If you add the million and a-half for loans to setters, and do^ucti — foe I want to be quits fair—anything that may have besn un«penfc at 31si Hard! 1895, you will gsfc tho real iticreaso in the public d»bfc of the colony during thatitae the present Ministry have bean in omco. Now how has this fact boon put before the country by the very man who ought to toll fche fibdolu^c truth in tbe matter ? The CoJonial Treasurer r fspeaking at Wintoa the other dsy, said tho iacreasa ia the debt was not this amount, bu" £1,545,000. Why does he aay that, and is it tha fact ? Ife is one of those half-truthß that are worse than — I won't say lies, because that is a strong word ; but it is a half-truth, and you know what I mean by th»t. He has dona what he has frequently done in tho Houss — that is, he has sot quoted the real debt of the colony : not thu net debt, but the gross debt, — aud I will give you a abort illustration allowing to you the trick he really has been pl&jing. Sappose I owe £200, but have saved and pot by in the bank £100 for the purpose of ropayiag the £200 when due, my gross debt is £200, but as I hare £100 saved to pay it my real debt is £100. Naw supposing during the next ysar I_ spend fche £100 I have saved my gross dobt i* still £200, and my real dobt is also £200. Now Mr Ward would make the position of the man in those two caaaa the same by quoting tbe gross dobt, whwsas it is plain that in tbe former oasa tha man was rwdly £100 bettor off than ia the latter. And so Mr Ward quoted to his Winton audwaea the gross debt, omitCing to deduofc therefrom the amounts saved in eaoh io«tauc«, ia fact ignoring the sinViag fun«!e alto<>tk*r, whicb in 1891 w«re £1,487,042, but had dropped ia 1895 ta £751,932, a tliffv-reuee in amasnt put by to repay lomis of £735,110 ; adding, therofore, the amouat of N&vinge of the pf-flt that have been seized duriug tha last five years— rmmoly, £735,110— t0 the amonut given by Mr Ward-^-£1,546,614-3OU get £2,281,624, th 6 t-ue inoce*se in the debi. Just a few words moLe with regard ta tho positioa taken up by the Minister fsr Laudx respecting this qne-tiou of borro«i»if. They have bsea forced now to admit that the cry of " noa-borrawing Govdrutuoat" — was nonsease. They have fallen back I bow oa &a excuse — viz., that •• they do not borrow for the same purp«s:s as previous Governments," — and so you fi*d the Hon Mr M'Kenzio at Palraorston saying : "Tho purpo3ea for I whiaia borrowed money h«,d been applied by the present Government were very different from those to which it had been previously applied," and then ho ©ncim«rites the purposes for which he admits his Government had borrowed — viz , "Land for settlements, Native land, public works, roads, surveys " ; — and he concludes by saying, " Tais was not borrowing under the old sjstsm; it was borrowing for purposes which imaiejlUtely yielded profit. In times gone by money was borrowed to purchase district railways which had been made by private people to opon up their own lands and relieving the proprietors of rosponubility in conntciion with them." Now all these were objects for which previous Governments had been borrowing except the oao of land for settlements, for he had not included the loan to settlers. I shall presently have something to say as to this new addition for puichnsiog land for settlement, for it does not seem so far to have worked out satisfactorily except to the fortunate 6eller, judged by the experience of such purchases as the Pomahaka and Blind River estates. What, therefore, can he mean by Bajiug tUat the Government did not borrow for the same purpose* for which other Governments borrowed ? There is only one interpretation I>D bo put upon it — that is, bec*use they borrow for some other purpose as well ; therefore, he is able to say the/ did not horror* for the same purposes as other Goyernmantj did, I have ehowu, however, that with one exception they did borrow for the same purposes, though they did not borrow in exactly the tame way as othnr Governments did. It is perfectly correct that there has been a new method of borrowing adopted. The land for settlements toheme can hardly be said to be working oat B&tisf&otoi'ily. Svon in the Miniitet'o

own distriob as a means of settlement it h*s not proved a success, for with regard to the Pukebapu estate I believe I am correct in saying that not a single new settler will ba found on tha ground. Hvery acre has bsen taken up by ! man living round about, aud that is how a number of people canoe tj be settled on the laud. It is the old t^opls who were on the land, ahead/ settled there, that are tstkiug uy the sections of the purobased estates, aud are being pub down ia the lists as new settlers. Well, I have shown conclusively, I think, that the Government borrows for the same purpose as previous Governments did. Not thsy m»ke another excuse with regard to borrowing, and it is that they do not do it upou the London market. Well, all I c*n s*y is that if th«ce is any necessity to borrow it would bo far better for the colony to go upon the London market, or upon any other market where they oan get money cheapest, and so save the payment of high rAtes of iutereat. What really are the fsc's with regard to Our borrowing ? Let us pia th*in down to this last excuue — th»fc th«y are not borrowing upon the London market. I shall be able to show that if there is no borrowing on the London market there ia borrowing somewhere e'.e?, and perhaps ia & worse pUoo, Wh\t are the ftots regarding borrowing ? We can borrow, as you are aware, at 3 or 3£ per cent, in London if we want woney. Wa have borrowed, and a great deal has baen made of it, at 3 per cent, on th 9 London nmkefc, and I u*y ib would be far better for us to go there and borrow at 3or 3£ per oenfc. th\n that the Government should eeiz9 the accumulations of pa<»t years' sinking funds. Those sinking fund-? which have bt en saved are yielding U3 4-, ty, 5, and 7 psr cent, interest, and we are seizing them and paying them into tha public warka fund, so that we are losing from 4 to 7 per cent on tbem, and we "aro having to pay 4- or 5 per cent., or evei -a greater rate, of interest tor money borrowed locally. These siaking Funds released during the five years "the Government have b3en in offfoo amount to £511,239, and thoy have been paid into the public works fund. It is trjo th*t £100,000 have also been transferred to pay off-focae flbaMflg debt., but if you compare thia with what took plaoo under the previous Administration you will find this d ffrenco : that wheiea.B the previous Admiuutration never paid a single Bixpence of released sinking fuad into tho public works fund, this Government has paid over half a million. I want also t» tell you that, apart altogether from the seizure of the sinking fund"), the/ are new borrowing for tUe public works funds direct un-ier a number of Biaall special acts, uuA it is the re.to of interest they tve paying that I want to cull attention to. A glance at tho public debt tab!© will show that und»>r special acto passed since 1892 money has been borrowed, uni appears in the debt table to the amount of £874,932, and th*,t it bears, or did be<»r, ftow 4- to 5 per cent, interest;. In addition to th\a we have th« Treasury bills outstanding at tho 3Ls>t March 1895, amounting to £810,000 at 4- and 4-i per cant., and this practically is now not a floating debt but a standing debt of the colony, for it remains at that sum nearly all the year round. Here, therefore, are p.nuunts totalling a million atid a-half of money out-standing on March 31, 1895, for which we are pa) iog 4 par cent, and up to as high as 5 per cut. intsresi;. And I would ask you to notice these two particular points : that whereas on« credit is good enough t J obtain mojiey at 3 or 3£ per cent, in Lindou Ministers havo had, consistent with their policy, lo pay 4- and up to 5 per cent, for the use of money, simply for the purpose of asiying that they .were not going to the Loudou money market' to borrow. I aak you secondly to note this, that though these loans are not directly floatad in London, they fiud their w*.y there by process oi conversion ; so that in sayiDg that wo are not borrowing in the London market they are fetafcing what is nob strictly the fact ; beeausa year after year these conversions go on and the loans find tfaeir way eventually to London. A great de»l has be.n made out of the faosfc that by convorsioas we have beea caving the amount of interest the ooloay is pajing. But at what cvrsb ? I say that theaa coiversiona have beeu carried on in »s wrele'aed and as idiotic a way as the Treasurer could havti carried them on, and I am going to give one ineb&nce that ought to sink home deeply ia every aian'6 understanding. The iastftnee I give ia of a loan amounting to half a million of mo<;ey whi^h bore only 4- per c<mt. interest. I am not speaking of the kinking fund. It bore 4 per cent, interest, and had. attached to it a large amount of sinking fund. Consequently tbTe wires were pulled in order that this half-million loan might be converged, not for the purpose of reducing the rate of interest, but for the purpose simply of seiaing this accumulated sinking fund. And so it was decided that, at no matter what cost, that loan would ht.ve to be converted. And at what cost was it converted ? For every £100 of that loan we had to pay £117 so as not to borrow directly. IE we have to borrow for public works— if thfre is any neeeasifcy for that— tffc would be better in every way, aud as regards financa far sounder, ta go Btraighb to tha Londoa market and aay we want monay lor public works, and lafe us have it at 3 or 3Jr per cent, at the outside rather than go into suoh a transaction as this —(Applaase.) I want now to go back to the question of the purchase of the district railways. In hia speech made at Falmerston, the Hon. Mr Rl'Keuzie said that they were not borrowing for the same purposes as past j Administrations, — that they were not barromug as had been done for the purchase of district railways, — that was, for the purchase of railways which h id gone through the lands of one or two individuals. Now, who was it that passed the District Railways Purchasing Act ? At present I do not say anything as, to whether it was a sound or a bad policy, but I take it, from the Minister for Lands' criticism, that he considers it was an uusouad policy. Let us then turn to tha records in Hansard to ste who was responsible for it. You will find that in 1885, when tho act ' did becoma law, Mr MKenzie was whip for | the party that carried it, and alao voted tor it upon every occasion, and the present leader of the Government also voted for the second reading, but his conscience 6truck him, and on the third rtaiing he raisefc a proto»t against it ; but we do no fiud the Hon. Mr M'K^nzie raising any protest. On every occasiou he voted for it, and if he says now that it is an unsound policy he should remerafcr that it was he and his party wb.3 committed the country to it; for you will find that the leadiDg member* of the Opposition— Captain Russell, Mr Buchanan, and tho Hon. Hr Rolleatoii— m almost every instance voted a^-'Mish the District Railways Purefeaatng Bill. N ge.-''lai«en, not ooly have you different

is i r-iaub-ttioHs with regard tothe fac'.s — not oaiy rj..Vd you foolish acts, a? I have ehowu, wilh regard to tho conversions, bub yon b.4ve had opsu defiance of the law ; and I say it is an extremely sad thing when one is on a public platform to say that those who are in aulhoHty —those who take the lead iv the making of the law and who ought to be bhe first to obey it, — have takeu up such a position that they are bhe very people who defy the law and who break it. By Urar the public accounts of tfc» -cqLaay, «a

soon as they are audited by tha Anditorjcener&l, ought to be placed before the Honne of Parliament. You would think that any reasonable men would see tint it was a right and necessary thing that the public accounts of the colony, duly audited, shoald be early placed before tho House, even if there was no spic'fie law on the matter. How are members to do their duty if they do not get these accounts placed upon the table of the House as soou as they have been audited P These accounts were audited, before we went up to Wellington, but they were never placed upon the table of the House until in tho very dying hours of the session, and I do not know that they vttre ever placed thera at all. All I know is that they now appear bound up with the Blue Book* of the colony. They were frequently aiked for, buti woru never fcupplied. That is an o^eu defiance of the law. Then we have had open defiance of the law with regard to the Civil Service Act. The returns show that ia 1891 numbata of o&dets were placed iv their poMtious iv defiance of the Civil Service Act. I will not go into details.

PARTY. GOVERNMENT. You know that it is not a very long step when one hai onco defied what is ri^hl to put in it* place the rule of might ; and that is really what has taken place. Ib is now the rule not of right, bub to a very large extent the rule of might And so you flud that by pressure upon their followers in the House, and by the refusal of re'uni, and reasonable returns, to the members of the Opposition, who wished to fiud out what was the real condition of aff^ir<s — you find that by aots of terrorism over the civil service, and by many such acbions — suoh, for instance, at that iv connection wibh tho inspectorship of the Porirua Asylum — the Government hiive brought parliamentary uaa^es into uuch disrepute in this colony that even amongst their own strongest supporters — and it comes from them most — has arisen a cry (".gainst party government altogether. Now I think thure is nothing inherently wrong in party government. It is tbe development of many years, and it is a good system, but like any other good sjstesn it is open to abiue ; and thurs is no question that it h\s been so abused that the feeling against it baa arissn to such an enormvuti extent that we stand in real danger of losing an old patliatnent&ry institution like this. It is a sad thing that we should have come to this state ; and I think it should be considered by thoss who are fightirg against the system of party government that the cure does not lie in doiag away with that system, but in seeiog that tha men who are placed in high positions in tha colony are those who will h*ve respect for the law and respect for the u<»gea of Parliament/.

THE BANK QUESTION. - j And now I must hurry on to say a little about two or three very important matters which took place during the last session. Of course you will expect ma to hftVe something to s»y with regard to the Bank of New Zealand. You will recollect the fact that in the year 1894 this colony guaranteed two millions of money to the Bank of New Ze*lan<3. Perhaps you will not recollect that the colony had security for tkat. Th«y had security on tho uncalled capital of the shareholders. Then you will recollect tbat last year we were asked to make a further amendment of the law that has really resulted in this colony abandoning all its security with regard to the two millions of money. It is false to say that tic two millions were lost. They were not losb. We had tho security of the shareholders against lh«m and the assets of the bank, but now wo have not a sixpence of security against that two millions. Tbat wa% ab&nd'oned, afcid the result is that tha colony has got deeper and deeper into the clutches of the Bank of New Zefcland ; and now you and I aad all the res!; of tho coloaisfcs have become shareholders ia that institution to the extent of half a million of moauy. We also have made a guarantee to the Assets Company to make good all ftp deflcieucea between £2,731,000 and whatever its assets may yield. You have also made yourselves guarantors that you will mik« up any dufioiency in the working exjiensea and the incomß of the Assets Company. I thirik you will see from this, without giving f uither details, that the colony has tied itself up very closely indeed with nn institution which was in a .very precarious, and m&y be, for all I know, still in a very serious condition. It would be wrong for anyone to say one word against; the institution, to its injury, now. It is here ; we have done what Wd have done and have to make fche beat ©i it. Wo muit all hope it will succeed, and that the colony will not bo called ou to make up any of the sums guaranteed ; but no man holdiog the opinions I do can rightly keep his mouth closed with reg*rd to tho action of the Government th>t has brought us into this position. I for one, and I believe many otihor members of ■ Parliament, were deceived in 1894. We were then told that th« Ministers had taken every care to look iato the Recounts of the institution, but it is nov apparent that thty did not do so. They mt-.y have been deceived by Mr Murray, who was advising them, or they may not, but I beliere thsy had then available all the information that Was placed before the committee laat year, and that they did not look into tha* informa'ioii carefully, for if the>y did they k«pt back the facts from the House. If that information had been placed before the country and the House in 1894 I venture to say very few members of the House would have supported the action then taken. It is often said tbat because of the action taken in 1894 wa were ri^jht iv doiug what we did last year. There are members of j the Opposition party who think sj, but I do not ' agree with them, aud you may take it as a fact j that there is no party feeliug iv the House on this subject, and probably most members acted not from party feeling with regard to the bank but from honest conviction. My honest couvictiou, even last year, was that it would have been better to leave the institution alone ; certainly my firm conviction is that in 1894 we ought not to have had anything to do with it. But who led us, and how were we led into ib? You know how in 1894, in a single night, the legislation was forced through, and that the Government refused us a coinmUt«e of inquiry, or any information at all with regard to the bank ; the} simply said the bank would close its doors in the morning if we did not pass the bill ; and so the thing was forced through. Who led us into this ? You know who were in power at the time, and you know who the Co'onial Treasurer was when all this was done. I have not anything to say regarding the Colonial Treasurer's personal connection with any institution. There are various rumours put about regarding that, but I am not going to refer to any rumour at all, but to quote the Treasurer's owa words, nob uttered now, not uttered in a time of excitement when possibly all sorts of causes m.ty have been at work — I am going to take you ba,ck to the calm and deliberately expressedopinion of the present Colonial Treasurer in 1890, when he himself was criticising the aotion of the then Ministers with regard to this very institution. You will find, on turning to Hansard for IS9O, th*t tha present Colonial Treasurer thea eitid : "It would be to the best interests of the colony at the earliest moment to endeavour to effect a change iv its banking arrangements. . . Ido not think that the good name of tho colony ihould be assoctottd with either

the downfall or the troubles of any institution, aud I do hope that the Government will endaa. your to do something to alter the preiecf system of the banking affairs of the colony. 1 * That was what ho said in 1890. He was not Colonial Treasurer tben, bat was oritiofeing another one. Well, not nnu>y years after that, when ho felmßelf came into offies, he tad his opportu»i!iy. H«ra ia his opinion *t that time. Ho had h)s opportunity to alter the banking aff»irs of the colony, so tbat the " good name of the colony should not be »s«K>i»ted with either tha downfall or the troubJea of any institution." Has he eton« so? I say he haa de>ib*rately led the ooloay into and conneotei it with the troubles of that institution, in spite of his expressed opinion to the ooakary in 1890.

MIDLAND IUILWAT. Geufcleraan, another Urge question which, came before us during l**t eoaaion was tho question of the Midland railway. You know the position ot it now. The colony has taken powwuion of tint lin», and no doubt Miatstsrs tsko to themselves great credit for this ; but as a matter of fact it was the only course open to them after what happened during the previous session of Pa-lianienfc. And I waafc you to renmnber this": that though the line h»s b«en seized and nothing h-is ixwjn paid for ifc, the question of the rights of debenture .holders has yet to bo settled. The debei.ttiro-holders have the first claim upon the Hue, and although the colony has seized it it may yet happen that the colony must settle with Iho debenture - holders, You should rccolleot also that the" Government have beea forced into thii position not by Iheir own action, but by fch« action of the Home. What was ib the Government wanted to be done in 189 i. Ministers then came down with a proposftl, not to conclude fche contract aad tike pojisei*ion of the lice, bub with % proposal that this coloay should pay the company £618,000 in order to keep the company s,float. That waa tbe Ministerial proposal, bat the Hou?a would not listen to it, and throw ife out. Tha Goyercm?nb were then forced into the po*ition of seizing the line, as has bsea done during the p»Bt year. But you should recollect that though the line has baeu seized and is now in the hnnds of the colony, it may yet be a ye»y aerions burden to u», for undoubtedly ib will now be tasked on to other lines to be eonsU-ucted out of colonial money. I h»ve always opposed the construction of this East and West Const railway, believ jug that tho time for undertaking this work wcuM not arrive for many year*, and I aboil bs very sorry to see this lino tacked on to other Hues, suoh ta thn -North Inland Trunk railway and the Obigo Central, and to see them put on the svme category, though I am certain that the immense political influence of Canterbury and Nelsoa »nd fche West Coasb and others interacted in the lines will have them, tacked together, and yoa will probably see a very large borrowing policy proposed to pub them all through.

THB TARIFF. It is also uece-sary to s«y a faw words regarding the tariff. Tbe new tariff is now »n accomplished fact, and i(- is perhaps turdly wotta while to was'e any time upon it, except to say th*t it has beon one of those means by which the Government have been able to provide you with a surplus this year. Ibis true they have taken the duties off some thiwga ; ib is also equally true th»t they h*ve put very much larger amounts upon others. The Government clcim credit for having taken th^ duties off dome thing*, the removal of which duti«fl renders relieE to farmers. Now tha Government did not take those duties eff — the Hou'-e took them oil. T*ke for iustacco fencing wi^e, barbed and plain, which i« now admitted fieo. The Goveiumsnt wished io keep a duty on fencing wico, but the H'/u*e would not have it in spite of the wish of the Guverumenb, It was the Housg — rajseli! and ottwr members, who took the dutie-s off tho<e things so as to relieve tha farmer* of the taxe? put upon them All I desire further to sxy ab ut the tariff is that, although unquestionably the objaot wibh which the amend meat of tbe l&riff was brought in was the removal of tha so-called anomalies in it, in spits of there having been a commission, five sets of resolutions, and four different bills, by the tariff as now on the Statute Book not one of theso anomalies has been removed. What has been done is this : Increivsed duties in tbe way of Proteatioa have been put upon certain things, and there can be uo other objftot for it except the raising of more revenue. In this indirect and, I think, hurtful way increased revenue has been wrung from the pockets of the people in ordor to pro* vide the Fo-oalled surplus this year.

THK TRHATIH3 AND FINANCE. Nor shall I have time to say anything about the vrentie* this evening except that the most objectionable feature in them it that they bound us for seven years to each of the colonies' named, and that/ we eosld not m»ke similar arraogemeoti with aay other colonies without giving one. year's notice to thorn, that we were about to do so. It wonld be interesting if I had timo to say something about the million and a-half loan for settlers. I have, however, now only flufneieat time to say that of tbh loan only comparatively a very small portion haa been lent out, and that some of it has beea already repaid. Why that is so Ido not understand. Whether it is that it is not so popular amongst settlers &s it was anticipated it would be, or whather it ia that the s&ttleris have beeu able to provide themselves with wean* at a cheaper rate than the Government charge, I do not know, but the f*ct remains th*t over £2000 has been repsid. Nor oan I stay to dilate for any length of time upon tho alteration in the constitution of the board, or to say much about the notion of the Minister for Lauds at the board, but I do warn tho peeple tbat if this board is not kept otrictly non-political — if it ia not kept strictly as a bminess board to tha lending out of uionoy in business-like transactions — it will inevitably lead to bad results. It is only by being extremely care'ul in the way the money is lent x>ut that it can possibly be a 6uccese, and even with care I very much doubt the success of the scheme. But there is one f aot c junected with it that is often lost sight of s How is it that the Government can lend tha settlers money at 5 per cent., and is thero any reasonableness in saying that by doing so they hive been ablo to reduce the rates of interest ? It may be owing to the fact that this money is avertable from tho Government at a obeap rate that the rate of money has been reduced ta ' farmers. It may be, andl know it is tbe case, that money is being lent privately at the rat« of 5 per cent, upon good securities ; but how Is it that the Government axe able thus to lend their money, and how is it that the Government have » special advautnge over the prlrate lenders? I tell you they have a special advantage over private lenders in this wr.y : The private lenders have to pay Id in tho-pound mortgage tax ; the Government have to pay no mortgage tsx ab all. Tbis is the f*ot that ab the present time that where you can borrow from the private lenders ab 5 per c?nt. — and its oan be done on good securities — tbat private lender is only getting 4£ par cent. bec»nsa of the mortgage tax, whereas the Government are getting 5 per cent. If the oheap money i* re&lly what is wanted, then why did not the Colonial Treasurer accept the suggestion! 1 QRUO I My ■uggesfcion was that when any £8g

vate>lender was prepared to lend at 5 per cent, to farmers the Government should nob charge the mortgage tax. That would test thp thing. If whit was wanted was cheap money, there is the w«iy of getting it But, then, vthat would hsppcn if private lenders did not pay .mortgage tax ? WL>y, you would have to mate up tbe aruouut of r< venue, and if the Government is lending tueney (hat is replacing the money th&fc in days gone by paid mortgage tax, who bas to make up the difference? Why, the ordinary taxp>Tcr of the colony, of -course. So you see it i« uofc all gold that g'-ittsrs as regards the lending of cheap money to farnitrs, THE SURPUJB. I now coma to say a tew wordg with regard to tbe supposed sarj.il as. It is expected, wo a r e told, that there will be a surplus of £150,000. I have told you one way by which Ihe surpluß is made vp — hy increasing taxation through (ho customs tariff. There ia, however, a very much more seri- us and woree pl&n which has been adopted this* \*sr, and has never be^n before, to cre*'e a s irplus — if it- exists. Ton will hive beacd ot what has b?en termed the seizing of the local bodies' ! sinking funds. The facts ara these : As j you ara aware, the local bodies have j borrowed mont-y from the Government and bave agreed to repay it in a certain numbtr of years. They J h»ve to pay 5 per oont. each year to the Government, and by law the Government ba.i had to set a»ide 2 per cent, as a sinking fund to redeem these lotos when they become due. The accumulations of these sinking funds j had amounted l*st year to £64.397, and a further amoui.t will accumulate during the year, ending 31st March 1896, equal to £20,000 more. Oat of the 5 per cent, interest p*id by the local body 1 per cent, was to create a nuking fund; another 1 per cent, being fou 'd, half by the hod assurance fund, and half from the cunadli- | dated revenue. The amount accumulated in respect of tha sinking fund of the. local' bodies' loans may be put at something like £84,000. Now it was never intended that the ordinaty process of raising debeuUvts egaiust these accumulations Bhoold ever tnke place, bat the Uw unfortunately has been sc stained that the Government bave been enabled to raise debentures ag»inst | those sinking funds, and what has happened this year, for the first time in the history of the colony, is that m6n«y has been borrowed against the 8 a sinking fund accumulations — the sc umulfctions not only of this ye*r but of past years — End that money h»s been paid into Ihe consolidated fuod as ordinary revenue. The caving* of past years have therefore been borrowed a««.inst and treated as revenue, and as those savings amount to £84,000 that will to a lar t e extent nuke up the surplus of the year. I say th»6 this transaction, although it may come within the four corners of the Uw, and apparently the Auditor and Controller-general thirks it does, the ugh the Assistant Auditor and Controllfr-fcCn'-r- 1 dops Hot think to — is financially as aiMouad as ».uy transaction could poitibty be, and the result will be that tbe provisions which had .been made by Uw ta repay these local bodies' loans at the end of a certain number of years will be done away with, end . every siogle loan to local bodies will become a permanent debt for the colony. And wbat is worse, I think, is the piling up by the Government of the revenue of the colony by mowij borrowed against the accretions of. the rinkrng fund. I should lika to point oat thit the Public Aeoounts Committee had this matter before them, and by tho pressure of Mini*teri»l influence passed, although not by a very Urge majority, the report which now appears in the Blue Books, and which lays '• — "That the committee,' having carefully examined into the transaction relating to the JB*ue of debentures for £145,400, end having taken tho evidence of the Secretary to the Treasury and the Controller and Auditorgeneral, find that the transaction was a proper one, and was, in _the opinion of the Solicitor - general and the Controller and Auditor-genera), in accordance with Uw." That is the report of the committee, but it does noS represent the opinion of the whole of the committee by any means. The Hon. Mr Larnaeh, who was chairman of the committee, speaking the other day in Lawrence, referred to this transaction, end I understand he raid he did ; think it wa« a proper one. It is rather carious if that is so, because here we have recorded in the minutes what t<. ok place. This is the fact, ffho miontes show — Upon assembling at 4 o'clock, the Hon. Mr Bcddon moved the motion of which he had given notice. Mr Hontgoroeiy moved to strike out the words "a proper one," in the last line. Upon thr question being put, a division was called for, and the names were taken down as follow :—: — Ajea. s— Mr 6. Hutchison, Hon. Mr Larnnch, Mr Montgomery, 'l)r Newman, Hon. Sir R. Stout. Noes, ti— Mr Guinness, "Mr M'Qowau, Hon. Mr Bi-ddon, Mr Tanner. Mr T. Thompson, Hon. Mr Ward. The, Hon. Mr Larnach is one of the five " Ayes," and,, therefore, how he can now fay the transaction was a proper c-n», when he himself voted that it was not is to we quite inexplicable. LAND SETTLEMENT. A great deal ht« been s*id to you and to the eoonfary generally that the stroDg point of this Government is Jand settlement. I believe It is because people have not inquired into wbat is taking place th*fe they bave taken for granted that nil that is said about; land settlement is absolute- 1 j correct. An ex*minafeion into what has been going on will show that although land settlement has been progressing tub a f&iily rapid rate there is nothing ia tb*fc direction to so much congratulate oneself upon. It wiU also be found upon elimination, especially in the pastoral districts, that, in order to ob'aia laad far letUement, the Minister for Lands has, in many ca*e», taken a«ray th»b country which was necessary during the ' Winter searon for lambing, the results betDg that a good de»l of the paaboral country npon the hillside* ba* become »Imo&t worthlefs, it being impossible to make a living on it owing to the low count: y having been taken itw&y. The Minister himself has had to admit that it will cot do to t*ke away from the pastoral country aIL the low- lying adjacent couotry. I find tho Hon. Mr M'Konzie, 'speaking at Palcnerfcton tha ©the? day, is reported to have sad: " As to the general land policy throughout the co'ony, the Government had, since they came iuto office, up to December 31 l»st in one way or another pnfc 10-SO2 »ett,Ws on 2,404,925 acres, giving an average ot 223 acres e«eh. That w*s, it would ba admitted, a fair average." That is approximately correcb ; I do nob object to that, bat what Ido object to i« what follows. He goes on to say i " Very 4;fiftr t nt to that of the previous' Government, who disposed of land at ihe rate of thi'u^anda of »crt«* to- s< itn iiidi riduala." Now, I wtnb to put tbe f-»rt* btrnre fOU to show how unfair this critici-in ig. I *m quoting from M Cl, 1895— Selectors and lands selected under tel.tlenient conditions' : In 1888. 1889, aud 1890 tbe figures were :— No. of Average ' Selectors. Acres. Acreage per Settler. 6625 1,255,217 • 189 During the next five yeara, with the present BHnisterfor L»ndi» in office, the figures were :— 10,740 2,643,312 Stf

You will therefore see that the average acreage per m*n waa less under tha previous Administration than under tha presenb. You will aUo understand when you divide these figures and take them for the year thtb ths average number per year cf settlors placed ■!<> >n tfa« laud during thfitinioof thepreV'Oii-i Admiui tralion was 22o3, and the average uuinber per yiar daring thu piesent A.duimistra'ion has been 21*8. H.iw can ib be said that under the previous Administration the resultß have been very different ? I am not quoting these figures to bolster up the prevkus AdministraUon, bat to show how uafair is the criticism which s&ys tbat laud at Itmeni; hae been going on at each an exfraonlm-tiiiy rapid rate compare.! with wo, it preceded if, when the fijiuros absolutely prova the contrary. You mus!i recoliect, too, that; special facilities hivve l,e n iff-rad to the Govurum nfc to carry on tho work of laud settlement. Th-y have had money voted to them and aots passed by which to secure private l^n for stttl-'mant. Thyse figures inc'udo t l io Chsviob »nd othef lanis 1 purchased uuier the L^tid 'or Settltm :ntf Act, as-.d yofc in spite of thab ib c\u be shown from the tabU s tbab tha set .lemenb of the land has not b ou so rapid per year as uudcr the previaus Administration. Then you will Jiad ' thjib the Hon Mr M'Senz'e cays : •■ One thing wa» shown by experience to be necei+ary, *»d I that was that laud boards should have a rigab t lo select settlei'd, to keep oub tin md ff -"o-nt, ! and" allow only honajide working men «h • vei-e ; in e*ruesb to go on the land and take np al'ot- ' ments." I scarcely know how to criUctse this I statement. One teems aJmcst inclined to say, " If any man wants to go upon the land, let him, no matter who he is " ; but at the s%ma time one mu«t recognise that there in a certain nmuuufc of reasonablouess in the Minister's statement lam joiag to admit for the pucposu of ayg«m»r.t thab it is revo M<*, r.nd if ', it is, and if ho has come to think b v. ••■ 'i\<; a j comment it is upon hia owu line of poliu, H>j j ha« now come to see that it is of no rue putting men upon land unless they are hona fide workisg nseu who are in earnest to go ou the laud. He is therefore bound now to sdmil; that thsre v a certain mb mob of failure in his hnd settlement; schemes — bound at any rate to admit thab ! aa a solution of the unemployed difficulty his land settlement schemes aw a failure. Lan ! only drawing, I thiqk, fair conclasions from what the honourable gentleman said in his speech ab Falmerston. THE GOVEtINKKNT PHOQKAMMIS. There is no time to express at length any opinion about the p-.licy for ««-xb session I believe ib is to be a Fair R-n l , Bill, a Fair Inter* sc Bill, ft Local G m-rnmenb Bill, and a Municipal Pire Insurance Bill. Well, though the schem s may possibly be attractive, I veu- ! ture to think not many of them will become law—cart aiuly not the Undesirable Immigrants Bill, in~tha shape in which it origiualiy c*me dovrn. As to the Fair Interest Bill, I do not se* how the Government can couirol the rUes of inti'r-s'''. Nom*nis bound to lend mooey, and wi'l not <W an v.ule-ss he w&nto to. Regarding the F*ir Re^t Bill, I do cos know that anybody will be particularly benefited by tlnfc— certainly it will destroy any length of tenure ;—; — »n<3 with regard to the L'icai Government Bill, ib is a measure of enormous' size, and there ia doubtless a great deal in it, bub I hardly think thu County of Bcuce will be very well aV-^fied with thab bill. As to municipal fire imucAuce, I think the lesa municipalities u&Vtf to do with a dangerous business like this the batter ib will be for ths ratepayers. — (Applause.) CONCLTJSIOW. And now I have to bring whafe I have to gay to a conclusion." During the last five years you bave had a Government, with all sorts of facilities granted to *hem, attemdtiiDg to deal wita various social difficulties — the un.-jtop'oyed, for instance, — and, as I have shown, failing utterly. You have had them altering ths system of contract to co-operative labour, and you will nave to admit that at any rate tbe origin&l idea of bhe co-operative labour system has failed — that the idea of a batch of steang men. »nd' weak nwn ente-ing upm co-operative etuplo^me-nt aud the stronger rjsin helping his weaker brother, does not work in practice. Ib is not in human nature, with hutnau nature constituted as ib is at tho present day, that a strong working m*n should go and work in a g»ng alongside a vce%ker brother to help the I weak brother and accept the same wages; so I that h»B broken down. Then you have had all sorts of schemes for bettering ths condition of one or another class of people, and no doubt eotue. of the f chimes were good. Some of those schemes received the support, and the strong snpporb, of the leader of (he Opposition and of many of his friends. The Hon. ft? r Reeves h«s had to admit that in the House. Bub after ell, apart from tha schemes and the work done, I do believe that the parliamentary institution has nob raised itself to a higher level th*n it occupied before ; rather do I think tUmb it has been suak to an altogether lower level — that misrepresentation, thsb defiance of the law, that want of candour to the people at Home wlieu asking th?m to lend us tfatir money, th*fc *Il tbf?e thing-* have tended not to raise the Government in tha ».yes of the people, bub that they h^ve brought tho G^vemmenb of the country to a lower platform of political morality. I say, too, that the cure foe this rests not with the Housr* as it is nt present constituted — for it is powerless against tho frightful power of might,— bat that the cure rests with the people themselves — with the inhabitants of this country. If you have— an I believe everyone here has — respect for l*w. if you have ree-pecb for righb, if you have respect for truth and respect for candour, then you ougbt to speak out with no uncertain voice ab the forthcoming electio&s. I do not care who the men are in Opposition or in the Governments, bub for goodness saka let an honest people be represented by an honest Government. — (Applause.) I think you can judge from what I have said, from what you have read, acd from whit you yourselves know that the word "honesty" can scarcely be written on all the transactions oJ the present Government. Therefore the issue depends upon you and upon the women of the colony, who are now electors ; ib depends upon th"m and upon you and upon all the e lectora throughoub New Zeajind. It is for tbe electors to determine for themselvts whether they will be led away by p»rrot eric*, whether they will be led away by the raising of class difference*! f.nd class feelings, or whether they will conab'nu to say : "We will have these differences healed ; the right band of friendship shall be held out from one olas9 to the other, a-td, a'lova all things, hone3t men shall be placed in power." — (Applause). QUESTION AND VOTE M-- P Gii.wr <-u-' Wr vhinhnd sir ••nis ■'. 'v infi»rc.i (h m ->f t^o o^ o i>i v/hy ht !a =ji-0 s<lrfr^3^s'd ihim b-.-fi..r<s H-: ha>i u.t dove co, however. Mr Allen gaid he rfid not; think his friends w«,nte>l any reasons. Thpy knew he would corae when it seemad best to htm fcbab he Khonld. He h*d decided to v^sib t-a'.-h pla-iein tie clcotor*le, and he took sorce of the omallec places firtfe. He had heard that he was to be blessed- by Ihe appearance of a Minister ab Kaitangata, und lit Milton. By way of political tactics, he t therefore possibly preferred to have his bolt in

after ihe Minister, instea-i o? letting the Minister geb his bolt in after him.— (Applause.) Mr J. Inglis movel -"That this mettiug accurd Mr Allen a heirty vote of thanks for his addreis, aud reaffirm their confidence in him as their ovniHer." Mr M Ci.vjtONT 3econ led the .motion, which waa carried all bu l ; uaauim ju^ly, ouly one hand being held up against it. Mk Allen taauked his auditors for the patieut hearing they bad given him, and tbe meeting closed with a vote oE th*.nks to tho major for presiding. Afc Kaitangvtaon Tuesday the Major (Mr W. M. Shore) ouuupiud the ch»ir, and tha maetiog throughout mv t have been gratifjing to Mr Allen as representative of tt»e district. The vote of continued cjnQdeuoa wa» prop-<s.'d by Mr Johnston, seconded by Mr Bell, aud carried uuan ; moualy. Ab Wangaloa on Wedaesday night, in spite of bad ro»di, mosb of the rejtden-,s in the district Yttrt present at the m?e>'.i< g, itcciuduig aeveraS l-"dieq. The chair wa9 ocoupiol by Mr Peter Ha^garb (county councillor). Tiia vote of c^nfidt-nco wa^ proposed by Mr W. T. Smith in a felioitou.j speech, waich was appliu ied by the audience Mr John Hag^arfc, in seconding the motion, raid that after a porusil of Hauaard he w*9 convinced that in Mr Allen they hid the right man for B<*uc£, :«nd that he would vote and work for him against all comers at next election. The qu-s*ion3 put at the meeting were mostly of local interest. The mealing at Mafcau oa Thursday evening waa of a hearty charscber. Mr W. Mosiey (county councillor) was in the oh»ir. A vote of continued coufi ience was proposed by Mr James Smaill. seconded by Mr Rutherford, and carried. A few questions were replied to by Mr AUqq.