Colonial Finance

New Zealand Tablet, Volume XXX, Issue 47, 20 November 1902, Page 18

Colonial Finance

Tho extent to which the colonies rely upon the United Kingdom for financial supplies is graphically illustrated in the Australasian Joint Stock Companies' Year Book. The colonies owe the enormous sum of over 541 millions, leaving out altogether private debts. Of this sum above half consists of Government debts. The tendency of late years is towards a proportionate decline in investments from tho United Kingdom and.a corresponding increase in the amount invested locally. Sir J. G. Ward said the other day that the Colony could ' snap its fingers ' at the British money lender, though it was nothing else but fear oi the damaging influonco of leading London financiers concerned in the Midland Railway debentures that caused the House to award them £.150,000 in settlement of all claims. But what the Acting-Premier probably meant was that more and more colonial investors are ready to invest in Government loans even for short terms, and at rates of interest running from 4$ per cent.

downwards. The total amount of the United Kingdom's investment's' continues to increase, but in a lower ratio than colonial investments. In truth it must be admitted that the colonial idea of expenditure is a liberal one. The United Kingdom spends nearly £7 10s per head of the population per annum, and Australia nearly £10 ! Yet the farmer k,eeps up a large standing army and the greatest navy in the world. That very ' hard times ' are in store for the colonies before long is not to be doubted, and though Opposition attacks upon the New Zoaland Government's finance are not convincing, yet n word of caution may not be out of season. The only hope of this Colony is that because of its perennial fertility it will prosper out of its sister colonies' troubles. In ten years Australia has lost 46$ million sheep. We expect that the total shortage of wheat this year over the whole continental area will be at least 5 millions of bushels. Oats must also be imported very largely. The barley crop is already sure to be a failure, and a million and three quarter bushels of maize have been ordered from the Argentine toy Sydney and Queensland, where maize is usually a staple crop. Butter production has fallen off, and the export this season will not exceed 3000 tons, against 14,000 in 1900. New Zealand will probably be a large seller of such products to Australia for the next year or so, and in this will find a corrective even lor general depression. With a good and vigorous government in power the benefit should be enhanced.