The Temuka Leader TUESDAY, JANUARY 31, 1888. BORROWING CAUSES DEPRESSION.

Temuka Leader, Issue 1692, 31 January 1888, Page 2

The Temuka Leader TUESDAY, JANUARY 31, 1888. BORROWING CAUSES DEPRESSION.

Ik recent articles we directed attention to the extraordinarily prosperous condition o£ "Victoria, and attributed it chiefly to the fact that she had adopted a policy of protecting her industries. The Christchurch Press has gone to a wonderful lot of trouble to show that Protection has nothing to do with her prosperity, and attributes, it t® the fact that she has been spending borrowed money. Reference to statistics will show how fallacious this is. At the end of June 1879, Victoria had a debt of £20,022,065. On the 31st of December 1886, this had increased to £30,114,203. The loan she raised a few weeks ago is the only addition to it we know of. On the 31st of December 1879, the public debt of New South Wales was £15,789,910. On the 31st December, 1886, it had risen to £41,034,249, and it has been rising since. These figures are taken from the Statesman’s Year Book, and the New Zealand statistics, two reliable authorities, and what do they show? Simply that during the last seven years Victoria has borrowed only 10 millions while New South Wales has borrowed 26 millions, yet we are told, without a blush, that borrowed money is the secret of Victorian pros p erity! There is another view of this question. It will be seen that in 1879 the debt of Victoria was 20 millions while New South Wales owedonly 15millions, and it will he remembered too, that Victoria was then in a fearful state of depression, while New South Wales was exceedingly prosperous. In order to get rid of the depression Victoria was then borrowing madly, but the more she borrowed the more depressed she became, till a statesman rose who changed the policy of the country. He was not rich, he did not inherit a great name, he owned neither lands nor flocks, he was only a little storekeeper in a suburb of Melbourne, and his name was Graham Berry. He was despised, hated, calumniated, for he had qualities uncommon in politicians earnestness, honesty, and ability. He saw that plunging ruinously into debt was wrong, and instead of resorting to it he adopted a policy of Protection. The result is unparalleled prosperity. While Victoria depended for prosperity on borrowed money she was depressed; New South Wales has ever since depended on it, and she is in a deplorable condition. Since 1879, she haa borrowed 26 millions against the 10 millions Victoria has borrowed, yet Victoria has as many lines of railways and better public buildings, and now she is raising the salaries of her public servants, while New South Wales is cutting them down and dismissing her servants where possible. And now as regards New Zealand. Her debt in 1879 was £23,958,310, in 1886, it was £37,587,776. Thus in the seven years in which Victoria, with her population of .nearly a. million, spent 10 millions of borrowed money, New Zealand with her population of half a million spent 14 millions. New Zealand is dismissing some of her public servants, and cutting down the salaries of others, in the vain hope that by that means she can make both ends meet; Victoria is raising the salaries of her public servants, and she has a large surplus of revenue yearly. Borrowed money can not therefore be the cause of Victoria’s prosperity, and it stands to reason that it can not, for no people ever got rich by getting into debt.

WHEAT AND WOOL, It is wonderful how Conservative newspapers are now trying to explain away the prosperity of Victoria so as to show that Protection has nothing to do with it. The Press, in a recent article on that subject, quotes the Argus—the Victorian Conservative organ—to show that the prosperity of Victoria is mainly due to the fine seasons she has experienced. It says: “Not only has the wool clip this year been heavy, but prices are good. The wheat harvest is in full operation in Victoria, and the accounts agree that there will be a magnificent yield. With these great interests flourishing, the slow but steady diminution in the yield of gold is scarcely noticed.’’ Here we have an interesting admission. Hitherto Conservatives proved conclusively to their own satisfaction that the secret of Victoria’s prosperity was its “ yield of gold,” but here it is admitted that it is diminishing, while Victoria’s prosperity is increase

ing, and splendid harvests, heavy yields of wool and wheat —for colonial Conservatives think that heaven a;id earth begin and end with wool and wheat —are the cause of Victoria’s i prosperity. When silly, love-sick, stupid swains meet the ladies of their hearts they are generally depicted as talking about the weather. To talk of the weather is generally regarded as indicative of imbecility, and when our Conservative friends give credit to the weather as being the source of Victoria’s prosperity they ought not to complain if sensible people laugh at them. But it is better to answer such stupidity as this with solid facts, Let us take the yield of wheat per acre to show how fallacious this is 1883. 1884. 1885. 1886. Bshls. Bshls, Bshls. Bshls. per per per per

acre. acre. acre. acre. N.S. Wales ... 16.34 15 10.32 17.37 Victoria .. 14,10 9.52 8.99 11.49 New Zealand 26.02 25.43 24.40 24.89

These figures are taken from the New Zealand Statistics, published by the Government. And what do they show? Simply that Victoria is the least productive of any of the colonies, and that her yield of wheat was three bushels per acre less in 18BG, than it was in 1883. What will the-silly people who talk about the weather say to this fact? If a good yield;of wheat can render a country prosperous, why is not New Zealand prosperous? She can produce nearly three times as much per acre as Victoria—yet she is in a miserable condition, while Victoria is prosperous. We have shown that it is not! wheat which has made Victoria prosperous, and the following table will show that wool has aot done so either No. sheep No. sheep No. sheep in in in

N.S. Wales. Victoria. N. Zealand. 1883 31,796,308 10,739,021 13,384,075 1884 30,379,871 10.637,421 14,056,266 1885 37,820,906 10,681,837 16,564,595 1886 39,169,304 10,700,403 16,564,595 This shows that while New South Wales has increased the number of her sheep by nearly 9,000,000, and New Zealand by more than 3,000,000, the number of sheep in Victoria has decreased by over 30,000. Yet we are told that it is to wheat and wool a great deal of the prosperity of Victoria is due. Now we have shown that neither gold nor wheat nor wool is the secret of the prosperity of Victoria, and consequently is it not reasonable to conclude that Protection plays an important part in the matter ? One lesson is taught by these figures —and it is that wool and wheat alone cannot make a country prosperous, and those who have the notion in their heads that they are the salt of the earth because they .are engaged in these pursuits had better turn their thoughts into more reasonable channels. Wheat and wool are right enough in their way, but since the introduction of machinery they emp'oy very little labor, and consequently they are not calculated to increase population. We want population, and we cannot have it unless we develope our industrial resources—and that we cannot do unless we adopt a policy of Protection.