Wairarapa Standard Published Tri-weekly, Price 1d. FRIDAY, OCTOBER 2, 1885. The Existing Depression.

Wairarapa Standard, Volume XVIII, Issue 1741, 2 October 1885, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. FRIDAY, OCTOBER 2, 1885. The Existing Depression.

The Chairman of the Dunedin Cham* her of Commerce, Mr J. T. McKenzie, at the recent annual meeting of that body, delivered an address to the members, in the course of which he dealt with the existing depression in the colony, and its causes. On this subject he remarked Everyone is trying to trace the cause of the existing depression with a view to' finding a remedy. It seems strange that, with all the advantages we possess in the shape of productive soil, splendid climate, and other great natural resources, we in New Zealand should find the whole of our varied interests in their present state of suffering. On looking around we find that our two main interests—the agricultural and pastoral industries—show no signs of amelioration ; on the contrary, both are more depressed now than last year. And to what is this due ? Not merely to the unprecedently low prices which prevail for grain and wool, but also, in my opinion, to the action of our financial companies, with large sums of money at their disposal, who have induced farmers and wool growers to invest in land at exorbitant prices, the high interest and charges on which are far beyond what even judicious husbandry and grazing of the land can possibly return. Until this state of things is altered, and the lands of the colony are in the hands of the settler at prices which will enable him, not only to pay fair interest on what he is obliged to borrow, but in addition return a reasonable profit on his labor, we caunot hope for permanent improvement.” There is a good deal of truth in those statements. In past years while the millions of Yogel’s first borrowing scheme were being spent, land went up to a price far beyond its real value for producing purposes. Even in the case of buying land from the Crown, people were tempted, under the competition of the auction system, to pay such a price for their holdings that they ultimately found they could not make them pay. Then the price of land on the deferred payment system has, during past years, been much too high to enable people of small means to pay up their instalments of the purchase money, and at the same time make a decent living out of their holdings. The fact is that the agricultural interest in many parts of the colony has been too heavily handicapped by the high price of land, and this is one of the causes of the existing depression. In the older districts the original buyers of agricultural land from the Crown at 10s an acre, who have stuck to their holdings, are able to do fairly enough because the original price paid was very low. But the buyers of land at second and third hand, have a difficult work before them to make both ends moot, owing to the high price paid for the laud, the interest on money which they have borrowed, and tho low prices which they obtain for their prouuce. to indicate the existence of a disease ian prescribe its remedy. The country settlers cau*

not help the fact that wool and wheat fetch low prices, and that the frozen meat export trade does not produce the returns which might reasonably be expected from it. But when the times are depressed and profits are curtailed, it behoves the Government and the people to practice economy, prudence, and self denial till things mend, The colony cannot now afford to lavish money on political railways and other public works which cannot possibly prove reproductive. Fortunately, Parliament, in a rough and ready fashion, has imposed a check, to a certain extent, upon the Government expenditure by cutting down the public works estimates by over £500,000. This reduction will inflict some measure of hardship here and there, but the general effect of it will be salutary and beneficial. If the Government will proceed cautiously and prudently in their general and and public works expenditure for some time to come, and the body of the people will act in the same direction, affairs will right themselves in time. And with all the talk of depression it is amazing to find that the great majority of the people in the colony are individually in a position of con siderable comfort. There is very little poverty in the Wairarapa district amongst those who are temperate, industrious and fairly thrifty, The bulk of the settlers live well and dress well. They go to race meetings, pastoral and agricultural shows, balls and social gatherings. They pay visits to the Exhibition in town and spend a good deal of time and money in such innocent pleasures. If they experience bad times and are “ hard up ” it is remarkable how readily money can be found for all those pleasant gaieties, outings, and junketings. It is true that sometimes those very people dpclare “ that they never were more short of money in their lives and that times are very bad indeed,” but that is mostly when they are asked to pay up a newspaper subscription of 10s or £l, or an advertising account of somewhat greater extent. There does seem to be a difficulty of paying such a small thing as that, but, generally speaking, money can be readily enough found for all other purposes. It may therefore be concluded that while a certain amount of depression exists in the colony it is of such a nature as can be endured without special suffering or hardship. And we believe that the existing depression is only temporary. The wool market may improve, and the frozen meat trade is certain ere long to be placed on a more satisfactory footing than it at present has obtained. Then, year by year, the colonists are extending and increasing the number of their productions, while new industries and manufactures are rapidly multiplying. If the colonists will only be prudent and patient for a time the colony will ere long be in a position of prosperity.