AUSTRALIAN PROSPERITY.

Timaru Herald, Volume LXXXIII, Issue 13012, 27 June 1906, Page 4

AUSTRALIAN PROSPERITY.

The speech : delivered by tlie. .Qorerafer of ■■■■, New South Wales at the opening 4tSr iihe State Parliament, yesterday confirms' the '" optimistic, reports that have 'been. ■ about Australia's ' returning '. prosperity.. •The simple explanation, of this-'-happy condition of affairs is an ample rainfall. The experience of Australia shows that natural - \ causes are principally responsible, for ai prosperity which" it has become an article',..':■■ of faith "it* New Zealand to ascribe to..'■. the politician. In this colony, of we have not to contend with the droughts which periodically devastate the island con- . •tinent, but our prosperity dates from the perfection of the refrigerator and' the sepnr.itcr, and has been assisted by the high prices of our primary products, in which Australia, thanks to her fainfalV is now able to participate. Since the break-up of the drought, the 'Commonwealth has made a marvellous recovery both hj: agriculture and in the pastoral industry. The result 5s reflected in the satisfactory condition of the finance* of New South Wales to' which Sir Harry Raw«cm referred yesterday. The year closed with a record surplus of about a million sterling, beating the result achieved in Zealand last year. Unlike this colony, however, New South Wales has ' not made its prosperity an excuse for indulging in heavy borrowing. The year which produced the record surplus was also distinguished by the lowest loanexpendittßie on record, and!, apparently' UHfc cautious policy is to be continued. Mr Carruthers has been forfcrsnafe in taking* control of affairs on an incoming tide of prosperity, for the careful' finance wJiicH , he has had to adopt in succession ttt Mr O'Sullivan's j orgy, of borrowing for alleged public'works, would have been severely felt if the, people had not been earning gcod money -in * legitimate way. There is, however, -a, lesson for New Zea* land in the ' way in which - Nevr South -Walei-f is -using her prosperous 'condition ' to • ease off her reliance on the forqfeu moneylender. T' e ronficrrAtion of Oris colony, of course, make* the work of -development more expensive than is tlie case in New South Wales, but there can be no question that by concentration- on important undertakings, our 'borrowed money migh-D be made to yield quicker and better results than are apparent -under the systemnow an vogue.