The Temuka Leader SATURDAY, OCTOBER 16, 1886. OAMARU BANKRUPT.

Temuka Leader, Issue 1500, 16 October 1886, Page 2

The Temuka Leader SATURDAY, OCTOBER 16, 1886. OAMARU BANKRUPT.

Thb North Otago Times—the Oamaru morning paper—virtually admits that Oamaru is bankrupt. It says :

“The value of property in the borough for rating purposes must be reduced by close upon one-half, and as the security of each loan is specifically stated, and cannot be increased, the interest cannot be raised, and the borough, to use a vulgar phrase, must ‘ bust.’ If this view ■ of the matter is a correct one there will be large numbers iu (he place—despairing of progress and dreading what they call direct repudiation—who will be only too glad to avail themselves of the opportunity of lightening their burdens—at the expense of the bondholder.” Those who have laughed at us for suggesting possible bankruptcy may find in the end the facts and figures and remedies suggested iu this paper turning out true. Oamaru is bankrupt now ; the colony will eventually be so unless something is done, and it is possible that the wiseacres whose density of skull is impenetrable to com mon sense will then realise the truth of what we have been trying to inculcate. No doubt it will be said that there is no connection between Oamaru bankruptcy and national bankruptcy. This is sheer nonsense. If Oamaru fails to meet her engagements with her creditors the credit of the whole colony will be greatly damaged. Commenting on the subject the Otago Daily Times says that it will be “ held to justify the slanders of Mr Froude on the honesty and honor of the people of New Zealand,” and that •* such a proposal cannot bat inflict grievous injury on the, colony at lerge.” The paper further calls on the ratepayers of Oamaru “ to repudiate all complicity with the sentiments attributed to them,” and windsnp by reminding them “ that at least £SOOO of the borough debt consists of money borrowed from the funds of the Government Savings Bank. These are bat feathers in the stream, but they accentuate the recklessness of the proposition set forth by the North Otago Times, which can only be fitly characterised as a scandal and a disgrace to New Zealand.” This is very good advice, bat can it be accepted ? Can the people of Oamaru continue to work from year’s end to year’s end for the loan and money rings 7 By all means if they can pay their debts let them ; we sincerely trust they will, for it would undoubtedly be a national calamity, and would damage our credit greatly. We are convinced, however, that the fatal hour is drawing near, and it is only a question of time when more than Oamaru must take some means of relieving themselves of their hardens; Mr Bracken, in Dunedin, the other day said that the debts of local bodies amounted to £15,000,000; with the loans about to be raised the Government debt will be over £36,000,000; and there can be very little doubt but that our private indebtedness is pretty close on another £36,000,000. Prom the public debt must be deducted the sinking fund, which is close on £4,000,000, and then we find the total indebtedness of the colony over £80,000,0U0. And yet the tendency is to increase it. There is no use in fixing the blame on Sir Julias Vogel; neither can the whole puilt be placed on the shoulders of Major Atkinson. There is not the toss up of a halfpenny difference between them. If Major Atkinson bad been in power our burdens would have been increased all the same. There is one thing in favor of the present Ministry ; they are trying all in their power to foster local industries, and settle people on the land. Mr Batiance has settled more people on the land, and done more towards land settlement during the years he has held office than Mr Holieston did during all the years he held ofifice, But though the present Government are doing their best in those respects they cannot save the colony without Protection and a National Bank, and the sooner people see it the better. Oamaru has set the ball of repudiation rolling, and the question is, where will it stop ? We do not know, bat we know this, that we have done our duty ; we have shown the people the quick sands ob which they are standing, and if they take no notice of the warning let them take the consequences.

CHEQUE EXCHANGE. The Timaru Herald of last Monday is greatly troubled in mind and body over the Lumpers’ Union strike in Auckland. Its digestion has been deranged, and its sleep rendered restless owing to the immorality of these men binding themseive? together to get fair play from their employers, but it has not one word to say against the union of the banks in keeping up the high rate of interest. And it has not one word to pay about the recent innovation of

charging exchange on cheque. The Timaru Herald is wise in its generation ; it knows that the poor working man cannot hurl it, but it knows that the banks and money rings can. It knows the side on which its bread is buttered, and that is the side it takes to. Really, however, it might have pointed to the inquitous tax the banks have inflicted on people through having to pay this exchange on cheques. It ip certainly scandalous, and doubtless only that the people are too much their slaves more would have been beard of if. The banks were doing well; they were making their Hi to 20 per cent on the capital invested, and carrying cartloads of gold to tbs reserve fond. They ought to have been satisfied with that, without trying to secure all. They have been too grasping, bat it is possible they may overdo it. However, they know the class of sheep they have to fleece, and doubtless they are aiming at getting the whole country into their clutches.