Wairarapa Standard Published Tri-weekly, Price 1d. WEDNESDAY, APRIL 28, 1886.

Wairarapa Standard, Volume XIX, Issue 1825, 28 April 1886, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. WEDNESDAY, APRIL 28, 1886.

Sir Julius Vogel’s Speech.

The speech delivered by Sir Julius Vogel on Saturday night, at (the Royal, Wellington, was, in some respects, very disappointing. It contained no fresh information about the financial condition of the colony, or the intentions of the Government as to the future. It is true the speaker stated that the Government had a surplus of £87,000 at the close of the financial year, bat the Premier had already given the public this piece of information some time back. A large portion of tbe speech was devoted to a criticism of the speeches previously delivered by Major Atkinson, Mr Ormond, and Sir George Grey. Sir Julius denounced Sir George Grey’s proposal for an irredeemable paper currency, showing that its result would be an increase in the value of ordinary articles of consumption, and increased prices of everything - such a state of things as would lead to a single determination and desire to redeem tbe currency. In the Argentine Republic a system of paper currency was now in force, and he noticed that the newspapers there attributed to it all their losses, high piices, high interest, high duties, etc. Therefore he thought Sir George Grey’s proposals, so far as they suggested and enforced paper currency, would not have the support of the reasonable portion of the community. On the subject of the existing depression, Sir Julias said the colony was suffering from diminished enterprise and a want of employment consequent upon the panic, created in a large measure by the doleful tone taken by the Government in past times inducing a want of confidence; by the loose way in which tbe rights of property have been treated, and lastly by the fall in the prices of the staples, wool, and wheat, which had led to the diminished value of the lands of the colony. This diminished value had embarassed many large holders and prevented them from giving the employment to labor which they otherwise would have given ; and it had also increased the risks of employing capital by those who would otherwise be disposed to do so. It was difficult now to judge how far the fall in wool might be permanent. It bad fallen largely, and it was Jperhaps too much to expect it would return to its old value. There were prospects of a rise, however, because we could produce at a profit at the present rates, while they could not elsewhere. The ports of Australia were shut out from keen competition by the heavy inland carriage and recurring droughts, which we had not. On the Plate River, too, they had difficulties in the land carriage, export duties, and depreciated paper currency, and a consideration which bad to be added is the very large rate of interest and the duties that bad to be paid. Altogether, it seemed to him certain that wool must continue to be with us an important industry ; for, whilst it weuld pay in New Zealand under the conditions of the lower valuation of land, we therefore had the certainty that it would go out jof the productions of other countries when prices went down to such a level that would still pay in New Zealand.” It is to be hoped that the opinion of Sir Julius that the price of wool will go up is going to be realised. The speaker then referred to the subject of ''thrift” rs a suggested remedy for the depressio 1. Ho denied that the contraction of expenditure forced upon the colonists by the present depression was an (exercise of thrift—it was simply forced instead of exercised economy, and instead of that i being the remedy for depression it was one of its causes. Sir Julius gave an illustration of this iu the following way:—

“ Suppose the case of a man we will call Smith. He has dismissed some of his servants, puls down his horses and carriages and living economically. To complete his misfortunes, a statesman, (say like Major Atkinson, comes and says to him, " Smith, I congratulate you, The depression lias dnoe you good—taught you the virtue of economy and thrift.” Now, can you not fancy Smith’s replying, " Why. you infernal idiot, don't you know I’m economical because I am obliged to be so. As to you supposing fam doing more good for the country it is absurd. Before wool and wheat fell so, and you shut up the energies of the country by a creeping Public Works Policy, and preaching ‘ lie down and wait,’ Iwas better able to afford my then expenditure then 1 can afford my expenditure now. I was employing mure people at good wages, who could also employ others. lam paying hundreds of pounds less a year for articles made in the colony. My wife and laughters are not able to dress as well as they were, or buy so much of your excellent Wellington Woollen Company’s material. They are not able to employ as many workmen. I am moieeconouiicul, but I am not doing more good to the colony ." 1 am bound to economise.”

There is a fulacy underlying this sort of argument. The colonists are suffering from a period of depression and “ they must therefore cut the coat according to their cloth.” In the '■ booming times" of big loans and reckless expenditure many of the colonists got into an extravagant way of living. When the period of reaction ! and depression came they were compelled to retrench their expenditure and be economical. Sir Julius says that enforced economy is not thrift. We. on the contrary, contend that the being compelled to save is the first lesson in thrift. Many people in this world would never learn to practise thrift until it was forced upon them as a stern necessity. And the lesson thus taught will often prove a most valuable and salutary one. Economy iu living, practised tbrongb compulsion, will often become tbe

practice in future years when the circum- | stances of individuals have become more j prosperous, and there is money coming in with the choice of either spending it in extravagant living or putting a fair portion of it by as a provision for the future. We firmly believe that the depression of the last four years will cause many of thecolonists toadopj pecinanently, a more prudent and economical scale of expenditure than they practised in the days when the first millions were being lavishly scattered, and opportunities of easy money getting were opened at every turn. But besides this, we altogether disagree with the opinion of Sir Julius Vogel “ that economy on the part of the colonists will increase the existing depression.” What is the real state of the case ? As the result of Sir Julius Vogel’s original huge borrowing and reckless spending policy, the colony is saddled with an enormous debt, the payment of the interest on which absorbs a large portion of its revenue. Then the value of our staple exports in the shape of wool, tallow, wheat, and frozen meat has materially fallen off, so that far leas money is got for them. In short, on one hand, the colonists are saddled with heavy payments for interest on loans, and on the other they have a smaller income upon exports, with which to pay their debt. . They must therefore live more economically, and thus try and make both ends meet. There must be economy of living (alike in the case of individuals and in that of the nation, as represented by the Government. It is quite true that the first effect of a drawing in of expenditure will be to lessen employment, and thus for the moment increase the existing depression ; but in the long run, a system of prudent and economical administration on the part of the Government, and also a contraction of expenditure on that of the colonists, will bring things round to a healthy condition, and cause the depression to pass away. Apparently, Sir Julius Vogel’s philosophy is never to mind the depression, but continue to “ crack on ” as fast and as recklessly as possible—raising further huge loans, spending them recklessly, and thus producing a brief period of purely fictitious prosperity, to be followed by a time of re-action and depression a thousand.fold worse than anything which the colony has hitherto experienced. We sincerely trust that there are enough of intelligent, far-seeing, and patriotic men in the Parliament of the colony, whose efforts will result in the complete frustration of Sir Julius Vogel’s reckless schemes. We shall deal in detail with the other parts of Sir Julius Vogel’s speech in future articles. At present it may be said that he fenced with the question of Protection and Free Trade, but in the end plainly declared that the Government meant to infuse additional Customs Duties on imports. Should the Government make any proposals such as they did last session of a Customs Tariff, essentially Protective, end materially raising the cost of living to the great mass of the people, then we feel confident that they will be iguominiously defeated, and driven from place and power. The other features of Sir Julius Vogel’s speech may be briefly indicated. He scouted the idea of retrenchment, declared that a reduction in the cost of our jenormously overgrown Civil Service was mpracticable, praised up the East and West Coast Railway Scheme, explained that the policy of the Government was to push on railways generally, and spend as little as possible on other works, and finally declared, in effect, that the right way of getting along was to borrow all we could get, develop everything possible in the shape of the internal resources of the colony, and “ crack on ” the ship of State full split, with every inch of canvass set, and “ stuusails ” on botli sides, above and aloft. The peroration of the speech was of the '• Hip, Hip, Hurrah” kind and appeared to “ tickle (he grounllugs. Anyhow ;the meeting gave Sir Julias a vote of thanks for his speech, and also expressed approval of a policy of progress. We shall have something more to say on those points in a future article.