The Timaru Herald. THURSDAY, MAY 23, 1889.

Timaru Herald, Volume XLVIII, Issue 4546, 23 May 1889, Page 2

The Timaru Herald. THURSDAY, MAY 23, 1889.

Oue Melbourne files contain reports of the annual meeting of the Melbourne Chamber of Commerce, at which the acting president delivered an interesting address. As might have been expected he had a good deal to say about the land boom and the reckless spirit of speculative gambling m stocks and shares. With regard to the boom he said that np to the beginning of 188b' tho market value of real property m and around Melbourne was lower than that ia corresponding situations m and around Sydney, especially m the case of suburban lands. A calculation based upon those relative values justified the earlier investors m looking for a large profit when increasing population should create a more active demand. The time came, and the success of the first m the field was very startling, " for it is certain that more fortunes were made out of dealings m hind m tbe three years preceding the collapse than m any previous period of the colony's history." After describing graphically the manner m which the excitement spread, and reckless speculation took the place of legitimate investment, the acting president went on to say : — " Unfortunately the whole wild, reckless business was intensified — nay, I think I may say its continuance was only rendered possible — by an exceptionally easy condition of the money market, due to the large influx of British capital, both m the shape of public loans and special transfera of accumulated reserves to the colonies for investment. When that fertilising stream began to diminish m bulk the end came with unlooked-for suddenness. Scores of business men, who saw that this result must follow, and loudly predicted it, found themselves entangled m the ramifications that ensued, so widespread had been the operations, so complicated the inter-relation of the numerous companies and their satellites. Bitter no doubt havo been the reflections, and angry we know have been the recriminations which the public havo been permitted to hear. Much m the way of company promoting and company management has been revealed that bliows how largo an element of unscrupulous smartness has crept into our business life iv these latter days. And perhaps the ugliest feature of all is the wholesale spirit of repudiation that has been evoked by the desperateness of the situation. No doubt hundreds of people have been deceived and hoodwinked into many of these much promising investments ; but the great bulk of them only went m to get out at somebody elae'B expense, and ao long as they made a profit would cheerfully have passed on the deceit which they are now so ready to denounce, if by bo doing they can avoid their legal liability. lam bound to say here what I have maintained m other quarterp, that I think tho banks made an initial mistako m reducing the rate of interest on deposits to •! per cent. I have alwaya contended that a 5 per cent deposit rate is tho normal figure that satisfies the saving classes. When they cannot got that they become rcstleas, and look round for a nioro immediately profitable outlet. Probably a large number put thoir money into investments last year which they are bitterly deploring to. day. Buthundrede of thousands of pounds were simply i transferred as deposits la land nui I

finance companies and building societies, where the rate paid upon them ought to have suggested the belief that it could hardly be earned without incurring great speculative risks. So far as I can learn, these depositors have not m any case been direct losers, but the use made of their money tended greatly to prolong and intensify the inflation of values, and to complicate the difficulties which arose when .maturing deposits were called for, and were found to be invested m unsaleable allotments." Then he dwelt on another unsatisfactory feature of the period under review — the development of habits of extravagance and luxurious living by men who supposed that they were piling up enormouß profits. This artificial condition of affairs, combined with the expenditure of visitors to the .Exhibition, gave a great and unhealthy stimulus to trade and led to over-importation. The conclusion, however, arrived at by the acting president is, as far as we can gather, that not any very great amount of harm has been done. He has no doubt that if next eeaßon proves favourable for the agricultural and pastoral interests Victoria will be restored to her ordinary condition of prosperity. His reason seems to be as follows : — " For, after all allowances have been made, I think I am justified m Baying that a large proportion of the so-called losses of the last year have really only been failures to realise anticipated profits. Of course there have been important changes m the incidence of wealth, and scores of cases of individual disaster. But many of the men whose schedules to-day present figures of quite apalling magnitude had nothing to lose three years ago, and the bulk of those who have lost their legitimate savings by ' paying too dear for their whistle* have but passed them over to others, possibly better able to take care of them. That this is really the case is evidenced b> the fact that the bank deposits m the outlying districts, where land haß been moßt largely dealt m, have increased enormously as compared with those m the agricultural and mining districts. In places like Heidelberg, Dandenong, Coburg, and others, men who two or three years ago found it necessary to get small advances on their deeds have now their thousands on fired deposit. This tends to show that the community as a whole has not suffered financially, though it would be idle to say that it has not been injured by the wrench which has been given to credit, and the recklessness by which the redistribution of wealth has been achieved." We are sorry to learn from our report of the last meeting of the Temulta School Committee that the master of the school is to be asked to furnish the committee with a list of those persons who have not subscribed to what is called the incidental fund. We assume that the persons referred to are the parents of some of the children attending the school. The amount of money allowed by the Board of Education to the committee for incidental expenses is not sufficient to meet all legitimate demands on it. It is a very ordinary state of affairs, and committees must often leave necessary work undone, or endeavour to supplement the board's dole from some outside source. TVe do not blame the Board of Education for want of liberality. We believe that they apportion their revenue faithfully and to the very best of their judgment. If they were to pay more towards incidental expenditure there would be a deficiency m other directions m which the money is even more urgently required. There onght to be some legalised provision for a small fee to be paid either by the parents of children attending the State schools or by the local bodies m whose districts the schools are situated, and the sum thus raised should go to supplement tbe incidental fund. Until, however, such a. proviaion is made, tho school committees are under the necessity of raising a little money by hook or by crook. If the parents of the children are willing to contribute there caa be no objection to their doing so, but it ought to be fully understood that, m the present state of the law, there is no compulsion m the matter. If any of the parents do not pay neither they nor their children should be called to account m any way whatever, either directly or indirectly. The State system is supposed to bo free, and incidental expenditure, each as Bcbool committees incur, is absolutely necessary to the efficient working of the system. If the irregular fee does not yield enough, the committee must try other means — either organise entertainments or send round tbe bat. Generally speaking the account is squared at the end of the year, and the incoming committee commence work with a clear sheet or perhaps a very small credit balance. But whatever may bo the necessities of the case there should be no pressure brought to bear on tho parents of children to make them pay a fee not recognised by law. Why do the Temuka School Committee want their headmaster to furnish them with a list of defaulters ? We are very much afraid it iB for no good purpose. They cannot sue for the amounts, but they might be ill-judged enough to make the names public by hanging up a list, or they might adopt other means for causing a little unpleasantness to parents who had declined to put their hands into tbeir pockets. It will be remembered that a few months ago a little girl m an Auckland State school was caned because her parents had neglected to send a fee imposed either by tbo committee or the Board of Education. We don't suppose that the Temuka committee ore thinking of any such method of getting m the money, but they are asking for a list, and if they get it they certainly ought to be very careful what they do with it.