No. IV.—Accumulations.

It not unfrequently happens that when our free-trade opponents are driven into a corner by the refutation of all their other arguments, they fly for comfort and consolation to the rate of wages, coupled with the cost of living, said to obtain in New South Wales on the one hand and in Victoria on the page 16 other. It would be a thankless and bootless task to attempt anything like a close and accurate comparison of the rates of wages in any given number of years in so many kinds of employment as each country affords, or the average price of provisions, regardless of quality, which form the staple of consumption in each community. A very little consideration will suffice to make it clear that in two countries so closely united geographically, so intimately connected commercially, and between which intercourse, both by sea and land, is so great and so easy, there cannot for long together be much variation in these particulars. Oranges may be a little cheaper in Sydney than they are in Melbourne, because they are grown so easily in New South Wales; while vegetables and fruit generally may be cheaper in Melbourne than in Sydney, because they are grown more plentifully here, and New South Wales depends very largely upon Victoria for its supply of these necessaries; but, as a whole, there will not be much difference in the cost of living, and whatever difference there may be is in favor of this country. It is true that the Free-trade Association of New South Wales, in one of the leaflets to which reference has before been made in these articles, fathers the statement that "under free-trade the price of wheat has for the last 10 years averaged 6d. a bushel more in Sydney than in Melbourne." Assuming this statement to be true, it is the best argument for protection from the consumer's point of view (and the consumer is the free-trader's pet) that could possibly be found. Wheat in Victoria, where it is protected to the extent of nearly 8d. per bushel, has been, it is asserted, during the past 10 years cheaper by 6d. a bushel than in New South Wales, where it is free. This is a notable admission which will doubtless be turned to account by the protectionists across the border. At any rate, whatever other effect it may have, it flatly contradicts and disproves the other assertion of the Free-trade Association that living is cheaper in New South Wales than it is with us. Then as to wages, is it not evident; that while Victoria, by its policy, succeeds in maintaining wages at their present satisfactory rate there cannot be any great permanent divergence from that rate in New South Wales? Doubtless there are temporary and partial fluctuations in both countries, due to local causes, but there cannot be any material difference of a general and permanent character, for the migration from one country to the other is too easily accomplished for such a condition to be possible. Just now wages are lower, if anything, and harder to get in Sydney than they are in Melbourne. The consent of the men engaged in Hudson and Co.'s works to an all round reduction in their wages, a few weeks since; the recent demand of large bodies of unemployed upon the Government to come to their assistance; and the large numbers of New South Welsh mechanics who are now in Melbourne and its neighborhood, looking for work, all go to place this fact beyond dispute. This, however, is due to the circumstance that the large employment of the people upon public works, carried out by reckless borrowing and thriftless sale of the public estate, has been brought to a standstill through the stoppage of the supplies from these sources, thus throwing large numbers of persons out of employment and adversely affecting every branch of trade. A spurious prosperity, or the appearance of prosperity, has been kept up for some eight or ten years past by a monstrously lavish expenditure of public money, which, as already stated, has either been borrowed or obtained from the sale of land; and this fictitious condition of affairs has all along been claimed by the commission agents and other interested parties, calling themselves free-traders, as the result of that policy and the triumph of their principles. If it needed anything else to dispel this illusion, the financial statement just made by Sir Henry Parkes must surely have sufficed for that purpose, and have opened the eyes of the people of New South Wales to the nature of the fools' paradise in which they have been living. Notwithstanding their gospel of free-trade, their command of the London money market, their immense territory, their enormous revenue from land, their large income from taxation and page 17 their outrageous expenditure in every direction, our friends across the border find themselves today with a deficit of £2,500,000, while we in Victoria, with none of these advantages, are in the happy position of having a surplus of some £200,000 or £300,000. But then it must be remembered that we have manufactories turning out goods to the value of about £24,000,000 per annum, and constantly increasing the amount, while New South Wales is not so circumstanced, and in consequence has to depend upon us and others to supply its wants.

These figures show conclusively, not only which country has the larger amount of accumulated wealth invested in these three favorite channels, but also which country is adding to its store most rapidly—the increase for Victoria being £44,732,622 in the five years, as against £28,624,000 for New South Wales, an excess in favor of this country of £16,108,622, equal to £3,221,724 per annum. Thus, it is clearly demonstrated that we in this country are accumulating wealth in these three investments alone faster than our neighbors by the sum of £3,221,724, and that while they have, during the past five years, increased their wealth in these directions by £5,724,800 a year, we have increased ours at the rate of £8,946,524 a year. It may, perhaps, be said that our greater accumulations are due to our larger population; and that, while our gross amount gives us the greater figures, page 18 in proportion to the population the advantage is with New South Wales. Let us look into this aspect of the question and ascertain how far such an explanation of the situation would be warranted. In 1880 New South Wales had a population of 741,893 persons, and its above accumulations for the year were equal to £77 10s. 7d. per head of the population. In 1885 the number had increased by 216,021 and the accumulations by £28,624,000, equal to £132 10s. per head for each additional head of population; and making the average per head for the whole population at the end of 1885 £89 18s. 6d., being an increase per heal in five years of £12 7s. 11d. Treating the Victorian figures in the same way, the following results are obtained:—The population in 1880 was 860,067, and the accumulations amounted to £103,481.530, which being divided gives £120 6s. 4d. to each. Thus, to begin the five years with, our population was richer than that of New South Wales by £42 15s. 9d. per head. Our population increased in the five years by 131,802 persons and our accumulations by the sum of £44,732,622, equal to £339 7s. 10d. per head for each additional head of population, which is more than £200 per head more than the New South Wales rate of increase, that being £132 10s. Taking our total population at the end of the five years, namely, 991,869, and dividing the accumulations at that date, £148,214,152, by that number, we find that the average per head was £149 8s. 6d., while the average, as above shown, for New South Wales was only £89 18s. 6d., an excess for Victoria of £59 10s. per head of its population. These figures prove that the more these statements are examined and analysed the more unanswerably they demonstrate the immense superiority of this country in point of wealth, and facilities for accumulating and profitably investing it when obtained.

It is almost beyond our imagination the jubilation and exultation there would have been in free-trade circles and free-trade journals if only the results which protectionist Victoria can show had been matched or surpassed in any other of the surrounding communities, more especially New South Wales. What a life the poor protectionists of Victoria would have led, and would now be leading, if only the facts and figures had been reversed: and that free-trade New South Wales could show the value of its manufactures to be £24,000,000 per annum, and the savings of its people as much superior to ours as the above illustrations show ours are actually superior to theirs.

These figures show that while the increase in these accumulations was, in round numbers, £2,500,000 during the 10 years from 1870 to 1880, it was £4,250,000 during the five years from 1880 to 1885; and, further, that this more rapid and much larger increase during the later five years is due to the enormous strides our manufactures have made in that same period. The increase in value of manufacturing plant in the five years was £1,531,311, as against £228,292 for agricultural plant and £48,411 for that of mining. There can be no doubt, either, but that the great increase in building society deposits and capital which above given, is largely due to the adoption of that mode of investment by the employes of these same manufacturing industries. This table, therefore, affords additional and unquestionable proof that the department of page 19 national enterprise which most directly depends upon our protective policy is by far the most prosperous of a prosperous series, and that the superior position which Victorians as individuals and Victoria as a community now holds, financially and industrially, is mainly due to the fiscal policy which for the last 20 years has guided and controlled its career.

From this final statement is ascertained the astonishing and highly satisfactory fact that in 15 years this country has added to its capital by savings in the above investments alone the magnificent sum of £94,923,309. What stronger or clearer proof is needed of the superiority of a policy which seeks to build up an internal trade in its own products and manufactures in preference to fostering a commission business in the products of foreigners? None surely, unless by those who "being convinced against their will remain of the same opinion still." It would be impossible to produce a more complete proof of the success of such a policy having such an object in view than the industrial enterprises of this country afford.

The facts, which have been placed beyond a doubt by the analysis of the statistics of the two countries which is now brought to a conclusion, may be summarised thus:—

1.	That New South Wales having had 50 years the start of Victoria, four times the territory, payable coal fields, and all the other advantages enumerated in the first of these articles, with its so-called perfect fiscal policy thrown in, is to-day far behind Victoria, industrially and financially, measured either by rate of progress or actual results.
2.	That while New South Wales shows larger results gauged by the bare figures in the matter of foreign trade, the figures are themselves not to be depended upon, and even if they be absolutely correct the trade they represent is very largely made up of dealings for commissions in the products of other countries rather than a legitimate trade in its own products.
3.	That while our external trade is somewhat smaller than that of New South Wales it is of a healthier and more profitable character, and every year increasingly so as the finished products of our factories are increasingly taking the place of raw material in our exports.
4.	That eliminating the one product, wool, from the exports of both countries as an article unaffected by either fiscal policy, our exports of all other products exceed those of New South Wales, and that the portion of them represented by manufactured goods is with us increasing, while with New South Wales it is decreasing.
5.	That in the matter of intercolonial trade we have distanced our rival entirely, so much so that in the markets of New South Wales itself the greatest demand is found for our manufactured and other products.
6.	That as regards the progress even of the pastoral industry, as gauged by the value of stock, Victoria has had far and away the best of the competition during the past decade.
7.	That fin the department of Agriculture New South Wales is so far behind as to make the idea even of a comparison absurd.
8.	That as regards the export of agricultural products our neighbor has not yet reached the stage of self dependence for its food supply, while Victoria has for years past had a large surplus to sell abroad.
9.	That as a manufacturing country New South Wales is hopelessly in the rear; that while it makes a hard struggle to keep in sight, even on paper, by claiming to have thousands more factories than Victoria has, it is of no avail; for the factories so called are chiefly repairing workshops, producing little or nothing, page 20 as the imports of New South Wales show that the class of goods they are supposed to make hare to be almost entirely supplied from abroad.
10.	That on the other hand our factories are what they claim to be; that they are constantly increasing in numbers, but more particularly in size and importance, as shown by the enormous growth in the value of their plant, machinery, land and buildings, and their output of finished products.
11.	That whatever progress has been made by New South Wales during the past 20 years is largely due to two causes altogether apart from its fiscal policy; the one being the development of its pastoral industry by Victorian capital and energy, and the other being a reckless and lavish expenditure of money by the Government, chiefly obtained from the sale of Crown lands, the people's patrimony.
12.	That bringing the whole facts of both cases and the whole circumstances of both countries to the test of actual results, as proved by the accumulations of wealth in each, the outcome is so immensely in favor of Victoria and its protective policy as to make any further comment or discussion superfluous.

Judged by these practical results, therefore, direct and indirect, Victoria and the policy of protection come triumphantly through the ordeal, and New South Wales adds another to the many illustrations of the national folly of being guided by "theorists," and the danger of leaving the shaping of a country's career to those sections of its community who, having no ideas of their own, are content to follow such monitors.