State Guarantees.

We have here neither more nor less than the old "enemy-whine" which used to be so prevalent in Otago some years ago. It was used by a great Otago politician, and seemed both to edify his people and support his conscience. When a scheme fails through its own absurdity, and the stupidity of its proposer and worker, the latter is apt to be laughed at or questioned. He then defends himself. "My plan and I were all right, and just on the point of success, when a man, my enemy, declared to all and sundry that we were both wrong, and with a lot of cunning and villany he got them to believe him. Faith fell. I have somewhat failed this time, but won't the next. Hate, then, my friends, your enemy and my enemy; stick to your friend and martyr, so torn and disfigured by misfortune as scarcely to be recognised as one, etc. etc." Priests in the temple of humbug often discourse the enemy-whine. The statement made above in the financial speech is palpably erroneous. When the article appeared in Fraser's Magazine at home, written against New Zealand's finance (and which, no doubt, is alluded to), the Colonial funds did not fall a sixpence, and when it was answered by Vogel, page 63 the funds did not rise a sixpence. Had people been disposed to read magazines to learn the state of our public credit, they had then an opportunity. If they took it, and relied on the information, it is strange that it did not show itself on their conduct.

The dealers in Colonial or other stocks do not need to go to Home magazines for information regarding the financial condition of almost any people in modern times. This, at any rate, is a free country. Its press is free. Every information can be had with the least possible amount of trouble by anyone, not only as to the public income and expenditure, but as to all our resources. He may further publish the same all over the world, and none dare make him afraid. He can consult for himself the Blue Books annually published, and does not require anyone to lead him to correct conclusions. The attack and defence have each their fair field and no favour. To gag the press of England is impossible, and the public servant who would be above criticism is impudent indeed. It is not to be denied that New Zealand has been vulnerable for a long time on the side of its finance, but no writer of the required acumen has appeared on the field.

The causes are perfectly evident which have led to the fall in New Zealand's securities. Any man of page 64 common sense knows that taxation, where the people are not utterly enslaved, can only draw from a given number a given sum; that this was nearly reached here even before the present borrowing began; that the public lands, which are a sort of security, are being rapidly parted with, while the demand for more money grows chronic and eternal; that the money which has not been utterly squandered has been spent on railways, nine-tenths of which are virtually unproductive, because made before we have full use or need for them, and thus demanding further taxation or a sacrifice of the waste lands; that in a country so bare of capital, wages to the labourers who have been imported at great expense cannot be forthcoming, necessitating their departure to other lands not under a similar cloud; and that the price of the chief colonial productions is falling, and likely to fall. These are the causes which have led to the difficulty New Zealand statesmen find in borrowing money.

But this part of the Statement, I maintain, is an insult to the people of this Colony. Never, perhaps, since the day of civil government broke in rudest dawn, was the call of the magistrate responded to by any people as was lately seen in New Zealand. Vogel and his fellows sounded the trumpet of supposed progress, and a considerable display of faith, page 65 alacrity, and determination was witnessed. They put their shoulders to the wheel. Of course a croaker would now and then suggest that declamation and verbose lumber were scarcely convertible terms with learning and caution; but then he was reminded that envy and calumny never forsook the good who were great.

Time has passed, and now effects somewhat unexpected begin to follow causes. The tramp of a coming change, and one not for the better, sounds clearly on the ear. Men ask of the man whom they have trusted, and he answers with an enemy-whine. He is not bold enough to confess to the blame and the blunder. But "an enemy hath done this," he replies.

It is also, we think, an insult to the people of Britain who are in effect told that they are being misled by their press in believing what is not true, and in ceasing to confide in the Colony without sufficient cause. Such reflections are uncalled for. It must be known to many that of all the colonics to which a warmth of friendship was felt by the old country, New Zealand held first place. Many causes conduced to this. It was the latest and youngest colony. Its insularity and individuality and uniqueness, its being the antipodes and a true page 66 Britain of the South, and a land of the mountain and flood, all drew attention to it and hastened its colonisation. The prejudice in favour of the land has not been withheld from its people, and if there be signs of wavering we should not look too far away for reasons.

We may add that the remark made above, that when a Government adds to its liabilities by guaranteeing a certain interest to a railway company, instead of borrowing the money directly and doing the work itself, its credit would not be affected thereby, is decidedly new. It is also a very great pity that Sir Julius Vogel did not find this out sooner. It is one of the most wonderful discoveries human genius ever compassed. When applied to private life, the case may be stated thus:—Man No. I has some money to lend. Man No. 2 borrows it, and agrees to pay five and a-half per cent, for it, if he can; but if he cannot, here is Man No. 3, who agrees to make good the deficiency, and who does so to the extent of three and a-half per cent, per annum. In other and darker days, it was thought that No. 3's credit and resources were damaged by such an obligation as that, and that neither he, his wife, nor family would gain anything by it. These dreams are all dissipated now, and the door of hope has opened with a vengeance.