The Evening Herald.

Wanganui Herald, Volume VIII, Issue 2363, 20 January 1875, Page 2

The Evening Herald.

15 fiKst objection Mr F.itzherbert has to;;6'ffer : to the; proposed abolition of the provinces; system, is' .financial!'.'. "If tiu^re"was pine tiling,'' he"said, itii.fe world thai;.the moneyed/classes of England abhorred, "detested,;:and were frightened of,; it was .a\ proposal forcpnstitutional cliang-es.. Directly two tilings toolc pi ace-—the application for: large 'loans ~ and : constitutional changes—the inclination 6f, the moneylender was to button up hils ; pockets!" As'-if;. tb^make the argument' overpowering^ Mr Fitzherbert add^d—" So much for the interest of the. Colon}' at large !" To: understand this position accurately, .it-is to - refer to the nature of,the,, experience to which Mr Fitzherhcr.t, appeals, and asceriain if it bears arvy 1 analogy to our 'political condition. In what circumstances do

the money-lenders button up their' pockets ? Tlie frequent revolutions in France have doubtless somewhat lowered the value of its securities. Spanish : politics have seriously injured the credit of the nation ; and the interminable civil strife of the South American republics have "depreciated to the lowest ebb the national credit of the different states. But there are countries in which revolutions do not seem to injure materially their borrowing powers. The case of France is the strongest in history. The credit of the nation stood so high that the most unprecedented disasters did not appreciably affect it. Yet all forms of Government in France during the present century have been short-lived. She had five milliard francs—equivalent to 200 millions sterling—to pay to Germany, with perhaps half as much more to meet the ravages inflicted by the war. It was all raised, England being the principal lender. The abolition of serfdom in Russia was a constitutional change' of the most radical tendency. In this instance, the credit of the country was enhanced in consequence of the change. On the other hand there have been less constitutional changes in Turkey than in any other country, and the credit of the country is ever low. It was wise in Mr Fitzherbert to state his proposition in general terms, for if he had appealed to examples, without which such statements are worthless, he must have failed in bringing forward a single instance analogous to the colony. The truth appears to be that the public creditor looks to the character of the constitutional change, rather than to the [ simple fact that it is one. We do not ! suppose the important individual who can inflict the greatest of disasters by buttoning up Ins pockets, would be in the best of humours if he found that the colony was going to exchange its constitution for what is•. known as the -Norwegian system. He would probably view the matter in a different light, however, when informed that there was an excrescence attached to the English constitutional model in the colony, which was growing very troublesome, and that this foreign element was about to be carefully removed, in deference to the wishes of the people. The public creditor would remember that when the Colonial Government in 1868 took over the Provincial liabilities, the transferred securities immediately rose in value ; he would he informed that the (- provincial institutions " had become very expensive, sell-willed, and difficult to manage ; and he would know that when the constitution had undergone the expurgation, and provincialism became " a shadow of things that were," the representation of the peojrte would remain untouched, the legislative body be in full vigor, and the responsibility of the "colony unimpaired. It is difficult indeed to" understand how Mr "Fitzherbert, who was the financier that performed the operation' of transferring provincial liabilities to the Colonial Government, can suppose that the abolition of a system so foreign to the genius of constitutionalism in England and her colonies, would prejudicially affect our credit, No politician of experience, at any rate, can follow.-him until he supports his proposition by arguments applicable to the case. The credit of the Colony is doubtless a most important factor in any political discussion at the present time. No -argument is more pertinent to the question of the proposed changes. If public works Avere likely to be suspended- in consequence of the contemplated legislation, it ought at least to be deferred. In. this, as in most political questions, we can- only decide after weighing the probabilities. It would advance Mr Fitzherbcrt's cause if he could show that the Government proposals had. created any alarm amongst the holders of New Zealand, securities. I This, of course, he cannot do. And who can doubt that, if these proposals were viewed with disfavour on 'Change the colonial bonds would suflbian immediate arid, sensible depreciation ■?■ In. the absence of all signs of displeasure on the part of the public creditor, we unhesitatingly assert that Mr Fitzherbert's proposition does not apply to New Zealand, and that we may, safely venture on the proposed line of action, if not with the expressed approval, at least'without the slightest indication of opposition on the part of English capitalists.