Wairarapa Standard Published Tri-weekly, Price 1d. WEDNESDAY, JUNE 2, 1886. Mr Travers on the Depression.

Wairarapa Standard, Volume XIX, Issue 1839, 2 June 1886, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. WEDNESDAY, JUNE 2, 1886. Mr Travers on the Depression.

Mb Travebb, the President of the Welling ton Chamber of Commerce, recently delivered an address on the causes of the existing depression, at a meeting of that body, “ How is it," he remarked, “ that with the exceptional advantages we possess in the following respects, viz.—in a climate eminently suited to the development and maintenance of life—in a soil capable of yielding in abundance and of excellent quality, all descriptions of agricultural pro* dace-in great and varied mineral wealthin a population whose industry and general capacity is unquestionable—in large supplies of labor saving machinery—in means of communication, not only between various parts of the colony, but also with the great markets of the world, to an extent of which we little dreamt ten years ago—how is it that notwithstanding these favorable conditions, we find our 'principal industries unremunerative, our trade crippled and unsatisfactory, and a general complaint of diminished profits and restricted markets In searching out the causes of this state of things Mr Travers said “ that it war necessary to look, in the main, to causes operating outside of the colony for the reason of the depression now felt in the principal industries of the colony,” In other words, Mr Travers considers that the depression existing in Oreat Britain and the continent of Europe has, in a great measure, been the cause of the depression in this colony. Mr Travers partly attributes the depression in Great Britain and Europe to the immense sums spent in military and naval armaments and materials for war purposes ; also to the general annual increase of the expenditure of the Governments of the Great Powers of Europe, The effects of this class of expenditure, and of the concurrent maintenance of large standing armies, has been to increase enormously the taxation of the people over the entire Continent of Europej and so to narrow, very seriously, their means of purchasing ordinary consumable articles. This state of things Mr Travers thinks has made itself felt in the ooleny, by means of the diminished purchasing power of the people In Europe, who are consumers of articles produced in the colony. Mr Travers does not reason this out with all the clearness which is desirable, but that is the general drift of his argument.

Referring to the state of affairs in the colony, Mr Travers points out that whilst onr debts have notoriously increased since 1880, and whilst our population has increased by no less than 100,000 persons during the same interval, the value of our exports only increased £467,247 in 1885-as compared with 1880. The following table of the value of onr principal exports daring each of the above years shows how this has been brought about :

_ , 1880. ISB4. 1885. Wool .. ..£3,169,300 £3,267,527 £3,205,278 Tallow .. .. 146,635 234,829 176,992 Hides and Skins .. 143,324 227,118 207 653 Gold .. .. 1,220,263 988,953 80o!s06 Grain and Com, flour, potatoes, hops, 4c., .. 967,796 901,998 636,221 Produce, such as butter, cheese, bacon, &c,, .. 13,447 123,627 185,737 Preserved meat .. 38,563 69,224 81 401 Frozen meat .. .. 346,090 373,857 Raw material, such asgum, phormium fibre, timber, So.. 310,097 619,728 475,597 Whalebone, oil, sealskin, 4c. 9,513 . 16,305 10,693

The foregoing figures show that the produotion of wool in 1880 wu 66,960,0001b5, in 1884 81,189,0001b5, and in 1885,86,600,000, or nearly 20,000,000 lbs more than in l«6o ** was dnriD 8 the year 1881 and *IBB2, iu!‘ the P at falUn 8 off in produce took place, bm Money loss, so far as the price of the wool was was not great. It will be seen, however, that with the additional 20,000,0001bs exported in 1885, the wool of that year only realised £36,975 pore than Jthe produce of 1880, whereas, if prices had been maintained at home, it ought to have realised an additional £BOO,OOO ’at least, a sum not compensated for by the returns from preserved and frozen meats, hides, skins (including 9,000,000 of rabbit skins), and tallow. There has been a very great decrease also, both in the quantity and value of grain, corn, flour, &0., exported since 1880, the fall in money being from £930,601 in that year to £572,301 in 1885, whilst the falling off since 1883 has been still more serious. Of course, all this points to the conclusion that the low prices obtained for wool and frozen meat, and the diminished exports of grain have caused the colony to obtain less money than it would have done during a period of better prices and more prosperous trade. But despite the somewhat gloomy state of affairs which these statistics disclose, Mr Travers thinks that there is little tear tor the future of the colony, if care and economy be introduced into the management of our resources. On this point he remarks ll Waste, public and private, has been large, but private savings have also been large, and may be considerably increased. Important stuns, which but a few years past would have been looked upon as fabulous, have been expended by the general and municipal authorities in a reckless and. improvident manner, and still greater sums are annually wasted by the mass of the people in the nee of spirits and tobacco. The moneys so wasted, if usefully employed in both eases, WwW go for to pot m «ad to owr pmot

depression. On the other hand, productive manufacturing industries are increasing the capital invested in them, amounting now to upwards of £4.000,000. Savings Bank deposits, investments in life assurance, and in j other forms of saving are increasing, Indies* ting that the colony baa not reached any crisis in finance, and that it may, with the exercise of prudence, be saved from any disas ter. But, looking to the condition of trade and commerce in [Europe, to the uneasiness existing there by reason of the seeming probability of the Great Powers being involved in war, and to the consequent certainty that no speedy change for the better is likely to take place in the value of our staple productions, I think it is oar duty to urge that “ Economy,” both public and.private, should be rigidly practised. The temptation to borrow, which the present cheapness of money at Home offers to our politicians, ought to be carefully controlled, so that no additions should be {made to our public debt, except for works and services of a pressing nature.” As. a farther remedy for the depression Mr Travers urges the adoption of a systematic plan of immigration. " But,” be adds, " immigration should not be confined to the introduction of labor only. The country should be opened to the agriculturist possessing capital. We should offer inducements to the vine growers of France, Germany and Belgium—to the cultivators of the silk worm —to the growers of tobacco, and others of the products of the higher classes of cultivation—for which there is enormous scope in this island at all events—to settle amongst us ; and we should especially encourage the growth of fruits, particularly of the walnut and chestnut, the apple, the pear, and the quince, which will find a leady and profitable market in various parts of the world, with which we are graidually getting into rapid and regular communication. To those who, like myself, travel through the country extending to the south of a line drawn from Mokan to Napier, it aeems impossible that poverty could exist, if means of land communication were established, and thrift and industry practised. In conclusion, I can only express a hope that care and wisdom will prevail to prevent one of the finest countries in the world from suffering financial disaster."