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The Cyclopedia of New Zealand [Wellington Provincial District]
The Hon. William James Mudie Larnach
The Hon. William James Mudie Larnach,
C.M.G., held the portfolios of Colonial Treasurer, Minister for Public Works and Railways, and Commissioner of Stamps in the Grey Government from early in October, 1877, until nearly the commencement of the session of 1878, and subsequently he held the portfolios of Minister of Mines and Minister of Marine in the Stout-Vogel Government from the beginning of January, 1885, until the middle of October, 1887. Mr. Larnach was born in 1838 at Castle Forbes, Hunter's River, New South Wales, the estate of his grandfather, Major Mudie, who arrived in New South Wales with his family in 1821 under the auspices and arrangements made with the Imperial authorities by his cousin, Sir Charles Forbes, that he should have free cabin passages for himself, his four daughters and servants, the right to select 4000 acres of picked agricultural land as a freehold on his arrival in the Colony, and be supplied with twenty head of cattle and six horses, with rations for his family and twenty men for six months from the time of selecting his land grant. His father, John Larnach, of “Rosemount,” Hunter's River, who was one of the earliest pioneers, arrived in the colony of New South Wales by the ship “Andromeda” in 1822 in his nineteenth year as a cadet to Major Innes, a large land-owner and squatter. He afterwards became a large freeholder, squatter, and agriculturist, the owner of extensive sheep, cattle, and horse stations in New South Wales, on the “Namoi” and “Peel Rivers,” and “Borah Creek,' Liverpool Plains, and also in the McIntyre Country, for many miles on both sides of the McIntyre River, respectively known as “Tulcumbah” and “Callandoon” Stations. The honourable gentleman was educated at the Rev. Irvine Heatherington's High School, Singleton, Patrick's Plains, Mr. T. W. Robinson, from the High School, Edinburgh, who afterwards became principal, being second master, and at the Sydney College. The materials for the erection of the capacious schools, Presbyterian church, and manse at Singleton, built of bricks, were the gift of Mr. Larnach, senr. The subject of this notice had the opportunity and took it, as a lad, of visiting the first goldfield discovered in Australia by Hargreaves, near to Bathurst, and of working on the “Turon River” as a juvenile digger for four months. Subsequently having gained large experience in agricultural and pastoral pursuits, he turned his attention to commerce and banking, particularly the latter, to which he devoted himself exclusively for twenty-five years, commencing at the initial step of the profession. During 1866 and part of 1867, Mr. Larnach took a well-earned holiday with his family and travelled from Melbourne, Victoria, through England, Ireland, Scotland, Wales, and the Continent of Europe, and it was shortly after his return to Melbourne that proposals were made to him from London such as ultimately led to his settling in New Zealand towards the end of 1867. He arrived at Dunedin in September, 1867, under a long term engagement with the London directors of the Bank of Otago, to take the chief colonial management of its business connections throughout New Zealand and Australia. He was successful in his efforts, and continued in that position until about 1874, when the business, under an agreement made in London, was merged in the National Bank of New Zealand. After remaining a few months in the service of the new bank to arrange its business, Mr. Larnach purchased a half interest in an extensive mercantile firm, but took little part in the active management of it. In 1875 he was induced to give his attention to politics for the first time, contesting the seat for the Peninsula with Mr. Stout (now the Hon. Sir Robert), who was successful, though only by a narrow majority of eleven votes. A year later, however, he was returned to represent the City of Dunedin, with Messrs. Stout and Macandrew as colleagues against several other candidates. During the session of 1877 Mr. Larnach, as the mover of a vote of No-Confidence in the Whitaker-Atkinson Ministry, became famous. His motion was successful. The Government resigned, and the Marquis of Normanby, then Governor, sent for the honourable gentleman and entrusted him with the duty of forming a new Ministry, the result being that an administration was formed, known as the Grey Government—Sir George Grey being Premier, Sir George Whitmore, Colonial Secretary; Hon. Mr. Larnach, Colonial Treasurer, Minister of Public Works and Railways, and Minister of Stamps; Hon. Mr. Sheehan, Native Minister and Minister of Justice; Hon. Mr. Macandrew, Minister of Lands and Immigration; Hon. Mr. Fisher, Postmaster-General and Minister of Customs; Hon. Mr. Ballance joining later as Colonial Treasurer, and the Hon. Mr. Stout, on Mr. Larnach's resignation, became Attorney-General and Minister of Lands and Immigration. The leading policy in Mr. Larnach's Financial Statement delivered by him in November, 1877, was the proposal to colonialize the Land Funds of the provinces, which was done. Early in the following year, at the request of his colleagues, Mr. Larnach went
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to London to float a three million loan—known as the ten-forty loan. Before leaving he was urged by the Cabinet to leave the resignation of his seat in the hands of his colleagues in the event of it appearing necessary for them to use it. He at first demurred to this, but yielded when an understanding was arrived at, suggested by his colleagues, and recorded in the minutes, to the effect that if they found it necessary to use his resignation before his return to the Colony, he would be simultaneously called to the Legislative Council. This arrangement, thus entered into in good faith, was never fulfilled. His resignation was used by his colleagues before the following session, but Mr. Larnach was not called to the Council. He remained in England for nearly two years, and was successful in negotiating the three million loan which he had undertaken to float. It is chiefly to him that the Colony is indebted for the arrangement made in 1878 with the Bank of England, instead of dealing, as heretofore, with financial houses such as Rothschilds and Barings. When he first made the suggestion that the Bank of England should act as the Colony's bankers, and undertake to float the three million loan and future loans, the idea was ridiculed as presumption akin to colonial assurance by City men generally. Mr. Larnach, however, persevered in his belief, and succeeded in impressing one of his co-loan agents, Sir Penrose Julyan, with the importance of the proposal, and that gentleman undertook to arrange an interview with the
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Governor of the Bank of England, which he did. The governor, however, being away from the City, the deputy-governor was seen, and he at once took kindly to the proposal, called the court of directors together, when a decision was arrived at entirely favourable to Mr. Larnach's suggestions, much to the surprise of many old and astute City men. Ever since that eventful time the Bank of England has continued to act as bankers for the Colony. The three million loan then floated was the first Australasian loan which had ever been negotiated through “the old lady of Threadneedle Street.” For Mr. Larnach's efforts in this important matter he was, without any solicitation on his part, created a Companion of the most distinguished Order of St. Michael and St. George. He was appointed one of the two commissioners to represent the Colony at the French National Exhibition of 1878, and spent some months in Paris in connection with his duties. On Mr. Larnach's return to New Zealand in 1880, he, being out of Parliament through the breach of faith referred to of his late colleagues, contested the Peninsula seat, rendered vacant by the accidental death of the member, the late Mr. Seaton, and was returned against the late Bishop Moran and other candidates. In November, 1884, on the occasion of the Stout-Vogel Government coming into power, Mr. Larnach was asked to take office, although he had expressed a desire not to do so; but was chiefly concerned in helping to keep his party in power. He subsequently, however, agreed, at the request of the Premier and the Colonial Treasurer, to accept the portfolio of Colonial Secretary, and be transferred to the Council after the close of the session; and meanwhile to arrange with a member of the Council to accept the position and act for the Government in the Upper House during the session. The Hon. P. A. Buckley after consideration agreed to do this, and for the first time was sworn in as a Minister of the Crown; he performed the duties for the remainder of the session; but after its close he refused to carry out his promise by resigning unless specially requested by the Premier to do so. Later on Mr. Larnach was again communicated with at “The Camp,” Otago, and asked to come to Wellington. After arrival he was invited to accept the separate portfolios of Minister of Mines and Minister of Marine. He agreed to do so on the condition of having a free hand towards giving an impetus to the mining industry throughout the Colony, which industry had for some years been painfully languishing for want of practical assistance and energy being brought into play with it. During the honourable gentleman's three years of office he did a great deal in the way of practically developing the mining industry throughout New Zealand, in various directions, such as had not before been tried. If the esteem and respect for him by the mining community can be regarded as a decree of successful administration then the honourable gentleman ought to feel very proud of his record as Minister of Mines under the Stout-Vogel regime. The honourable gentleman, an old Volunteer, was gazetted Hon. Colonel of the Otago Volunteers in July, 1887, and he still holds his commission. He represented the Peninsula constituency until 1890, when he was defeated at the general election of that year owing to his absolute refusal to yield to the extreme demands of the Labour Party, then suddenly grown into existence. In 1894, on the death of the Hon. Vincent Pyke, he contested the Tuapeka electorate, defeating Mr. McKay J. Scobie McKenzie by fifty-five votes. Mr. Larnach has always belonged to the Liberal side of the House in politics, though retaining an independent attitude. During the session of 1894, while speaking on the Budget, he recommended the Colonial Treasurer not to issue the Advances to Settlers Loan at a higher rate of interest than three per cent., explaining how it could be negotiated, and forecast with remarkable exactness the result if his advice were followed. It was nine months afterwards that £1,500,000 of the loan was offered by the Colonial Treasurer in London, when Mr. Larnach's forecast was followed, and his prognostications were absolutely borne out. The honourable gentleman is a supporter of the Seddon-McKenzie-Ward Government. He has been married three times—in 1859 to Miss Guise, only
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daughter of the late Richard Guise, junr., freeholder and squatter, of “Towong” and “Illilliwah,” Murray and Murrumbidgee Rivers, New South Wales, by whom he has had six children—two sons and four daughters, five of whom survive. His first wife died in November, 1880. In January, 1882, he married Miss Mary Cockburn Alleyne, eldest daughter of the late R. J. Alleyne, landowner and squatter, of “Bringagee” station, Murrumbidgee River, New South Wales; this lady died in January, 1887. In January, 1891, Mr. Larnach married his present wife, Constance de Bathe Brandon, the eldest daughter of the late Hon A. de Bathe Brandon, barrister-at-law and solicitor, of Wellington, for many years a member of the Assembly but during later years and until his death a member of the Legislative Council. The Ballance-Seddon Government, early in 1891, set up a most important Royal Commission, composed of the Hon. Mr. Larnach, Mr. T. Kennedy Macdonald, and Mr. Andrew Loughrey as members, to examine into and report as to the past and present working of the Public Trust Office, and its true condition. The hon. gentleman was appointed chairman. The Commission proved most capable of its difficult task, considering the limited time it had to do its work. The searching enquiry made, and the thorough manner in which the commissioners performed their duties was universally admitted to have been a public benefit. On the report and advice of the Commission, a complete reform of the mode of keeping the books and accounts and conducting the business of the Trust Office was immediately commenced, and has since been continued, both to the advantage of the institution and the interests of the public generally.