New Zealand.
Persons who resided in England ten years ago cannot have forgotten the extraordinary general interest that had existed there for several years with regard to New Zealand. Its climate, fertility, its natural beauties, its general attractions both for the emigrant and for the capitalist, were well-worn themes. To the careful eye these facts are all reflected in the figures herewith given:—
Table I.–20 Years' Imports and Export.
Year. |
Population. |
Imports. |
Exports. |
|
|
£ |
£ |
1872 |
279,560 |
5,142,951 |
5,190,665 |
1873 |
295,940 |
6,464,687 |
5,610,371 |
1874 |
341,860 |
8,121,812 |
5,251,269 |
1875 |
375,856 |
8,029,172 |
5,828,627 |
1876 |
399,076 |
6,905,171 |
5,673,465 |
1877 |
417,622 |
6,973,418 |
6,327,472 |
1878 |
432,519 |
8,755,633 |
6,015,525 |
1879 |
463,729 |
8,374,585 |
5,743,126 |
1880 |
484,864 |
6462,011 |
6,352,692 |
1881 |
500,075 |
7,457,045 |
6,060,866 |
1882 |
515,785 |
8,609,270 |
6,658,008 |
1883 |
537,556 |
7,974,083 |
7,095,999 |
1884 |
569,386 |
7,663,888 |
7,091,667 |
1885 |
575,755 |
7,479,921 |
6,819,939 |
1880 |
588,720 |
6,759,013 |
6,672,791 |
1887 |
601,929 |
6,245,515 |
6,866,109 |
1888 |
604,547 |
5,941,900 |
7,767,325 |
1889 |
616,559 |
6,297,097 |
9,339,205 |
1890 |
625,508 |
6,300,577 |
9,824,109 |
1891 |
634,058 |
6,503,849 |
9,566,397 |
page 8
We give the figures representing the population, since this is a most important element in connection with the arrivals of new capital. A million pounds borrowed by a community of 250,000 persons—an average of £4 per head—will produce & widely different effect to that which would be produced if the population were twenty times as large. In the latter case, the average would be only 4s. instead of £4 per head. In the small community the sum of one million would create very marked results; in the large community it might scarcely stir the commercial atmosphere. The second table which we now give shows the movements of capital into New Zealand as represented by the excess of imports:—
Table II.—Imports of Capital.
Year. |
Excess of Imports. |
Excess of Exports. |
Excess por 1000 Population. |
|
|
|
Imports. |
Exports. |
|
£ |
£ |
£ |
£ |
1872 |
.... |
47,714 |
.... |
170 |
1873 |
854,316 |
.... |
2,817 |
.... |
1874 |
2,470,543 |
.... |
7,222 |
.... |
1875 |
2,200,545 |
.... |
5,854 |
.... |
1876 |
1,231,706 |
.... |
3,087 |
.... |
1877 |
645,946 |
.... |
1,645 |
.... |
1878 |
2,740,138 |
.... |
6,328 |
.... |
1879 |
2,631,459 |
.... |
5,649 |
.... |
1880 |
.... |
190,681 |
.... |
393 |
1881 |
1,300,179 |
.... |
2,786 |
.... |
1882 |
1,951,262 |
.... |
3,781 |
.... |
1883 |
878,039 |
.... |
1,632 |
.... |
1884 |
572,221 |
.... |
1,023 |
.... |
1885 |
659,982 |
.... |
1,146 |
.... |
1886 |
86,222 |
.... |
146 |
1887 |
.... |
620,654 |
.... |
1,032 |
1888 |
.... |
1,825,425 |
.... |
3,016 |
1889 |
.... |
3,042,168 |
.... |
4,930 |
1890 |
.... |
3,523,532 |
.... |
5,629 |
1891 |
.... |
3,062,548 |
.... |
4,830 |
It could be said with some truth that these figures contain in a concise form the commercial history of New Zealand for twenty years. In 1873 British capital began pouring into that colony at the rate of £2817 for every 1000 of the population, and for the next nine years (excepting a remarkable break in 1880) the flood of wealth continued to flow, with fluctuations. it is true,
page 9
but representing an enormous total, and averaging about £4000 per year for each 1000 of the population, or probably not less than £16 to £18 for each male adult In 1883 it was evident that a change was taking place—less capital was coming. By the close of 1887, the stream had run completely dry. In 1887, and more markedly in 1888, it became evident that not only was there no new capital coming out, but that the British investor was not finding enough new capital to balance the colony's indebtedness for interest. The last three years it would appear almost doubtful if the British investor has invested anything in New Zealand, and that that colony has been called upon to pay unaided the whole of the interest on her public and private indebtedness. During the past three years New Zealand has paid an average of £8,200,000 in excess of the value of her imports. The difference that lies between years when £4000 per 1000 of population is flowing in and when £5000 is flowing out, reaches £9000, or about £45 a year for the average family of five persons. Does not everyone, know how that up to about 1882 New Zealand was enjoying a state of extraordinary prosperity? Population increased, towns sprang up, employment was plentiful and well paid, enterprise was everywhere, fortunes in property were rapidly made, companies paid handsome dividends. After 1882 things seemed to go gradually wrong; the summer days faded away, to be followed by the chilly days of autumn, and those by the bitter days of winter. Scarcely an industry, a bank, a company, or business of any kind, scarcely even a private individual who was not subjected to severe strain and painful loss. A glance at the population figures shows the difference of the periods we have referred to:—
|
|
No. |
Per cent. |
Growth of population five years ending |
1876 |
132,000 |
50 |
Growth of population five years ending |
1881 |
102,000 |
26 |
Growth of population five years ending |
1886 |
88,000 |
18 |
Growth of population five years ending |
1891 |
45,000 |
7 |
During these respectivo periods the increase of population averaged per year 10.0, 5.20, 3.60 and 1.40 per cent. The paltry growth during the past five years indicates how keen the struggle for existence has been. Indeed, since 1885 there has
page 10
been a steady exodus from New Zealand, in all no lesa tino 17,600 persons have left that colony in excess of the number of those who have arrived, showing that so far from being able to take new colonists New Zealand has not been able to find work for her own natural increase. Reference to the first table will show with what pluck the New Zealanders met the adverse times. They set resolutely to work, and developing the resources of their magnificent country, they have during 1889, 1890 and 1891 produced, exported and sold to the rest of the world nearly three million pounds' worth of commodities per year over and above their previous average. Though the strain of changed conditions is not yet worn out, the financial position of New Zealand to-day must be infinitely superior to what it ever was in those years of vast borrowings. Viewing now as a whole those years of exuberant prosperity and those of painful suffering, it is plain that it would have been for the best interests of New Zealand if her importations of capital had been on a far smaller scale. They exceeded the absorbing power as far as possibilities for actual development went. New Zealand has completed an experience which carries lessons for all Australia, and, as we shall see, Australia needs the lessons.