MACAULAY’S WORK.

Timaru Herald, Volume CXXXIV, Issue 18833, 23 March 1931, Page 2

MACAULAY’S WORK.

To tile Editor of tile “ Timaru Herald.'* Sir, —Should “Historian’s” Irishman have been domiciled in Napier during the late earthquake, he would have found, I think, that his walls would have required indeed to be plumb, and more than plumb to have withstood the shock. They would have required to have been well and truly built, and braced in every direction. And I have been trying to show that Macaulay's works are as much of that character as is humanly possible, though I will agree with “Historian” that apart from bias, nearly everything that one hears or reads, though seemingly on the best authority, is certain to find contradiction on some of its particulars, very often, however, owing to th. very human feeling that certain things, to use an Italian proverb, ought to be true if it is not so. And that may have been the feeling of "Historian” in saving that the British Government did not blunder in the policy enunciated on May IS, 1811, and quoted in my last letter to you. I feel certain that they did blunder, as the inevitable consequence was that the precious metal, in spite of stupid prohibition against . its exportation, went to those countries in which it could obtain its real value. And this at a period when gold was vital to England for the maintenance of the armies Its exportation for the purpose of our commerce, and lastly its escape from the laws that deteriorated its value all operated to drain England of its gold and silver; and, in proportion as it became scarcer, their comparative value with paper increased, inasmuch that 15/- In coin became at least equivalent to twenty shillings in paper bank notes. Much has been said as to the over-issue of bank notes. It may always be taken for granted that where there is an incontrovertible paper, there is an over-issue of banknotes, because the over facility of having or making money will naturally lead to the over advance of it. At the period I write of the British Government thefr efforts to sua-

rain the value of the notes and without success. They forbade persons giving more for a guinea than 21/- in paper money, and forbade persons exchanging a 20/- banknote for less than 20/-. They tried in short to prevent gold and silver getting the same price in England that they could get out of it. I again agree with “Historian” that perhaps we are drifting into waters that are too deep for us, and who knows what law we may infringe in discussing matters of State. I will venture, however, to point out that on 20th May 1819 Peel's proposals (and he said “given without shame or remorse”), compelled the bank to resume cash payments at a da£e which the bank anticipated by resuming them in 1821. Luckily, owing to many causes, the chief of which, of course, was the glorious success of British armies, the bank and the Government were able to meet the accumulation of promissary notes (banknotes). Can the Empire meet the vast accumulation of notes that exists to-day, and, I wonder had the heavy gold payments to France anything to do with an accumulation of this kind? The dark period that “Historian” speaks of—the “Manchester massacre” the general unbalanced methods of taxation, political unrest, the general revolt against unjust laws led to a state of affairs that culminated in complete Free Trade and the greatest period of expansion and prosperity the Empire has ever known. I do not intend to be tempted to write more on this subject, which is really not the matter in the first place I wished to draw the attention of the public to. This was the present need for our statesmen to try and re-adjust matters, so that a farmer will get a sufficient proportion of money out of the “national dividend” to pay decent wages to his employees, and to employ more of them. Unless this is done, and the farms brought back from mere sheep walks (which don’t pay at present, and certainly will not find work for the rising generation) into hives of production, the country, if not already bankrupt, very soon will be. It must surely be clear to everybody that we have spent too much in cities and towns. The Government have lent millions to build town mansions, the deposits on which must now inevitably be largely in default, and will be a national charge. We are paying far too much above world parity for our manufactured goods and all this added to the continued increase in cost of government. the cost of economically useless roads, and public works, has set up the position that the position of the present producing farmer is seemingly hopeless. It may be that gradually as the ruined farmers are pushed out, a new breed of farmer, born of the large latent wealth said to be in the country, will take charge after the manner of the 80’s. And then, God help the worker to get a POUND STERLING.