CAPITAL AND LABOUR.

Taranaki Herald, Volume XL, Issue 9232, 18 November 1891, Page 2

CAPITAL AND LABOUR.

TO THE JcDITOR. Sir, — Your corrected version of a cablegram about withdrawal of capital from New Zealand, cent by tho Press Asßoeiation agent in Sydney, now appears to be as unreliable as before, as it does not give tho name of the company, or others, which it refers to, nor the authority for making tho statement. The message might bo quito as bogus in its statements as the telegrams which have caused such annoyance to some of the leading men of Auckland lately. Whoever sent the message in the first placo must have been either ignorant of tho names of the companies, or afraid to montion them — in any case the people and Government of New Zealand would bo very foolish to take any notice of such au unauthenticated statement. Undoubtedly the large withdrawals of produce and gold to pay very heavy interest on borrowed capital helped to cause and intensify tho depression under which this and other coantrieß suffered during several years past. Any settlers of experience will say the same. If they had had no interest to pay they could have managed to at least make a living during a temporary depression of prices; but, as it was, they had to send greatly increased proportions of their produce to pay interest. Many of them j came to the conclusion that it would havo been better for them, and for others, if they had relied on their own capital, namely, labour, instead of borrowing. A large expenditure of foreign capital is very good for workmen for a short period, while the money is being spent, but when that ends they see another side of the question. Those men, who have squandered their money, become poverty-Btricken, and raise the cry of the unemployed in the towns, or compete" with each other for low wages in tho country, or try to get out of the country by hook or by crook. The men who have saved money invest in land or start working as contractors, or start a small business of soino kind, but they also suffer when the borrowed money has been spent, as they have generally used some borrowed money to start their business; and they find that they cannot carry on because of low prices, less trade, and heavy interost, and so fila their schedule. I have no doubt that capital is of great service to everyone, but when capitalists want too much for thoir services tkey are a curse to a country, and are better away. Capital and 'labor will always remain where there are men willing aad able to work. — I am, &c, Labor and Capital. [Capital will be removed from a country where it is unjustly taxed, and be invested elsewhere.— Ed T.H.I