One first-rate boon New Zealand colonists had—good health. Out of four thousand people in Canterbury in 1854 but twenty-one were returned as sick or infirm. It almost seemed that but for drink and drowning there need be no deaths. In Taranaki, in the North Island, among three thousand people in 1858-59 there was not a funeral for sixteen months. Crime, too, was pleasantly rare in the settlements. When Governor Grey, in 1850, appointed Mr. Justice Stephen to administer law in Otago, that zealous judge had nothing to do for eighteen months, except to fine defaulting jurors who had been summoned to try cases which did not exist and who neglected to attend to try them. Naturally the settlers complained that he did not earn his £800 a year of salary. His office was abolished, and for seven years the southern colonists did very well without a judge. Great was the shock to the public mind when in March, 1855, a certain Mackenzie, a riever by inheritance doubtless, "lifted" a thousand sheep in a night from the run of a Mr. Rhodes near Timaru, in South Canterbury, and disappeared with them among the Southern Alps. When he was followed and captured, it was found that he had taken refuge in a bleak but useful upland plain, a discovery of his which bears his name to this day. He was set on horseback, with his hands tied, and driven to Christchurch, 150 miles, by captors armed with loaded pistols. That he was a fellow who needed such precautions was shown by three bold dashes for freedom, which he afterwards made when serving a five years' sentence. At the third of these attempts he was shot at and badly wounded. Ultimately, he was allowed to leave the country.
A sheep-stealer might easily have fallen into temptation in Canterbury at that time. In three years the settlers owned 100,000 sheep; in four more half a million. Somewhat slower, the Otago progress was to 223,000 in ten years.
Neither in Canterbury nor Otago were the plough and the spade found to be the instruments of speediest advance. They were soon eclipsed by the stockwhip, the shears, the sheep-dog, and the wire-fence. Long before the foundation of New Zealand, Macarthur had taught the Australians to acclimatize the merino sheep. Squatters and shepherds from New South Wales and Tasmania were quick to discover that the South Island of New Zealand was a well-nigh ideal land for pastoral enterprise, with a climate where the fleece of a well-bred merino sheep would yield 4 lbs. of wool as against 21/2 lbs. in New South Wales. Coming to Canterbury, Otago, and Nelson, they taught the new settlers to look to wool and meat, rather than to oats and wheat, for profit and progress. The Australian coo-ee, the Australian buck-jumping horse, the Australian stockwhip and wide-awake hat came into New Zealand pastoral life, together with much cunning in dodging land-laws, and a sovereign contempt for small areas. In a few years the whole of the east and centre of the island, except a few insignificant cultivated patches, was leased in great "runs" of from 10,000 to 100,000 acres to grazing tenants. The Australian term "squatter" was applied to and accepted good-humouredly by these. Socially and politically, however, they were the magnates of the colony; sometimes financially also, but not always. For the price of sheep and wool could go down by leaps and bounds, as well as up; the progeny of the ewes bought for 30s. each in 1862 might have to go at 5s. each in 1868, and greasy wool might fluctuate in value as much as 6d. a lb. Two or three bad years would deliver over the poor squatter as bond-slave to some bank, mortgage company or merchant, to whom he had been paying at least 10 per cent. interest, plus 21/2 per cent. commission exacted twice a year, on advances. In the end, maybe, his mortgagee stepped in; he and his children saw their homestead, with its garden and clumps of planted eucalypts, willows, and poplars—an oasis in the grassy wilderness—no more. Sometimes a new squatter reigned in his stead, sometimes for years the mortgagee left the place in charge of a shepherd—a new and dreary form of absentee ownership. Meanwhile, in the earlier years the squatters were merry monarchs, reigning as supreme in the Provincial Councils as in the jockey clubs. They made very wise and excessively severe laws to safeguard their stock from infection, and other laws, by no means so wise, to safeguard their runs from selection, laws which undoubtedly hampered agricultural progress. The peasant cultivator, or "cockatoo" (another Australian word), followed slowly in the sheep farmer's wake. As late as 1857 there were not fifty thousand acres of land under tillage in the South Island. Even wheat at 10s. a bushel did not tempt much capital into agriculture, though such were the prices of cereals that in 1855 growers talked dismally of the low price of oats—4s. 6d. a bushel. Labour, too, preferred in many cases, and not unnaturally, to earn from 15s. to £1 a day at shearing or harvest-time to entering on the early struggles of the cockatoo. Nevertheless, many workers did save their money and go on the land, and many more would have done so but for that curse of the pioneer working-man—drink.
The Colony's chief export now came to be wool. The wool-growers looked upon their industry as the backbone of the country. So, at any rate, for many years it was. But then the system of huge pastoral leases meant the exclusion of population from the soil. A dozen shepherds and labourers were enough for the largest run during most of the year. Only when the sheep had to be mustered and dipped or shorn were a band of wandering workmen called in. The work done, they tramped off to undertake the next station, or to drink their wages at the nearest public-house.
The endowed churches, the great pastoral leases, high-priced land (in Canterbury), and the absence of Maori troubles, were the peculiar features of the southern settlements of New Zealand. These new communities, while adding greatly to the strength and value of the Colony as a whole, brought their own special difficulties to its rulers. With rare exceptions the settlers came from England and Scotland, not from Australia, and were therefore quite unused to despotic government. Having no Maori tribes in overwhelming force at their doors, they saw no reason why they should not at once be trusted with self-government. They therefore threw themselves heartily into the agitation for a free constitution, which by this time was in full swing in Wellington amongst the old settlers of the New Zealand Company. Moreover, in this, for the first time in the history of the Colony, the settlers were in accord with the Colonial Office. As early as 1846, Earl Grey had sent out the draft of a constitution the details of which need not detain us, inasmuch as it never came to the birth. Sir George Grey refused to proclaim it, and succeeded in postponing the coming-in of free institutions for six years For many reasons he was probably right, if only because the Maoris still much outnumbered the Whites; yet under Earl Grey's proposed constitution they would have been entirely governed by the white minority. Warlike and intelligent, and with a full share of self-esteem, they were not a race likely to put up with such an indignity. But Governor Grey's action, though justifiable, brought him into collision with the southern settlers. Godley, with questionable discretion, flung himself into the constitutional controversy.
Grey was successful in inducing the Maoris to sell a fair amount of their surplus land. During the last years of his rule and the four or five years after he went, some millions of acres were bought in the North Island. This, following on the purchase of the whole of the South Island, had opened the way for real progress. The huge estate thus gained by the Crown brought to the front new phases of the eternal land problem. The question had to be faced as to what were to be the terms under which this land was to be sold and leased to the settlers. Up to 1852 the settlers everywhere, except in Auckland, had to deal, not with the Crown, but with the New Zealand Company. But in 1852 the Company was wound up, and its species of overlordship finally extinguished. By an English Act of Parliament its debt to the Imperial Government was forgiven. The Colony was ordered to pay it £263,000 in satisfaction of its land lien. This was commuted in the end for £200,000 cash, very grudgingly paid out of the first loan raised by a New Zealand parliament. Thereafter, the Company, with its high aims, its blunders, its grievances, and its achievements, vanishes from the story of New Zealand.
In the Church settlements of the South the Wakefield system came into full operation under favourable conditions. Three pounds an acre were at the outset charged for land. One pound went to the churches and their schools. This system of endowment Grey set himself to stop, when the Company's fall gave him the opportunity, and he did so at the cost of embittering his relations with the Southerners, which already were none too pleasant. For the rest, Canterbury continued within its original special area to sell land at £2 an acre. When Canterbury was made a province this area was enlarged by the inclusion of a tract in which land had been sold cheaply, and in which certain large estates had consequently been formed. Otherwise land has never been cheap in Canterbury. The Wakefield system has been adhered to there, has been tried under favourable conditions, and on the whole, at any rate up to the year 1871, could not be called a failure. As long as the value of land to speculators was little or nothing above the "sufficient price," things did not go so badly. The process of free selection at a uniform price of £2 an acre had amongst other merits the great advantage of entire simplicity. A great deal of good settlement went on under it, and ample funds were provided for the construction of roads, bridges, and other public works.
Meantime, Grey was called upon to devise some general system of land laws for the rest of the Colony. The result was the famous land regulations of 1853, a code destined to have lasting and mischievous effects upon the future of the country. Its main feature was the reduction of the price of land to ten shillings an acre. Had this been accompanied by stringent limitations as to the amount to be purchased by any one man, the result might have been good enough. But it was not; nor did those who ruled after Grey think fit to impose any such check until immense areas of the country had been bought by pastoral tenants and thus permanently locked up against close settlement. Grey's friends vehemently maintain that it was not he, but those who afterwards administered his regulations, who were responsible for this evil. They point out that it was not until after his departure that the great purchases began. Possibly enough Sir George never dreamt that his regulations would bring about the bad results they did. More than that one can hardly say. In drawing them up his strong antipathy to the New Zealand Company and its system of a high price for land doubtless obscured his judgment. His own defence on the point, as printed in his life by Rees, is virtually no defence at all. It is likely enough that had he retained the control of affairs after 1853 he would have imposed safeguards. He is not the only statesman whose laws have effects not calculated by their maker.