THE Wairarapa Age MORNING DAILY. THURSDAY, MARCH 22, 1906.

Wairarapa Age, Volume XXVIII, Issue 8101, 22 March 1906, Page 4

THE Wairarapa Age MORNING DAILY. THURSDAY, MARCH 22, 1906.

Mr W. P. Reeves, High Commissioner for New Zealand, contributes an interesting article, under the heading of "Recovery and Progress of New Zealand," to the ourrent number of the Financial Review of Reviews. Jn the course of his article Mr Reeves says: "The colony of New Zealand, whioh, between 1879 and 1895, underwent 16 years of more or less Bevere depression, has now enjoyed 10 years of remarkable prosperity. It is not the least exaggeration to say that

its present position and immediate prospects are probably brighten than* at any moment of its chequered'biatory. Thirty years ago—in the heyday of Sir Julius Vogeli-New Zealand was likewise accounted prosperous, bat it would bo easy to show that the same solid foundation of production and well being which is now to be found did not then exist there. In the seventies there were dangerous symptoms—a wild land speculation, a bad banking system, and a want of variety in industries and products. These are now happily absent. So there is now no reason for apprehending any such shock as that which the crash of the Glasgow Bank brought about in Now Zealand in 1879, and which falling prices of wool and wheat intensified and prolonged." ***** A clear and concisely-put. summary of New Zealand finance follows. Mr Reeves does 'not shirk the common criticism of New Z'ealand , Government land expenditure to the effect that charges, which ought to come out of are placed upon, capital. He admits that here and there the critics make out good oases though the items are usually rather petty in the bulk,, but as against these he points out that during the past fifteen year* the ordinary revenue has shown surpluses, out of which a total sum of £4,855,000 has been, transferred to the Public Works Fund, and that the Treasury may therefore claim that revenue has reinforoed loan expenr diture with a solid contribution of nearly £5,000,000. "If, than," he says, "some of the minor public works outlay should have been defrayed from revenue, that may be balanced by the foregoing contributions." *• #■ ,* *• *• Mr Beeves admits that. "New Zealand taxation' is not light, and is not growing lighter," but he contends that this is justified by the results. Mr Reeves does not deny that there baa been withdrawal of British-owned capital 1 from New Zealand to the extent of twelve millions sterling since 1891, bat he explains that by saying, "This is the displacement of ioreignowned capital by capital owned by New Zealanders," and he draws attention to the fact that during the same period the value of property in New Zealand rose from £150,000,000 to £222,000,000 in value, and that, apart from the reduction of interest rate, the withdrawal of British owned capital was largely due to the fact that it was not required in the colony.