Nevertheless, the Provinces did not fall without a struggle. In both Otago and Auckland the older colonists mostly clung to their local autonomy. Moreover, Sir George Grey had taken up his abode in the Colony, and was living quietly in an islet which he owned near Auckland. Coming out of his retirement, he threw himself into the fight, and on the platform spoke with an eloquence that took his audiences by storm, all the more because few had suspected him of possessing it. Keen was the fight; Major Atkinson, quondam militia officer of Taranaki, made his mark therein and rose at a bound to take command of the Centralists; the Provincialists were fairly beaten; the land passed to the Central Government. The management of local affairs was minutely subdivided and handed over to some hundreds of boards and councils which vary a good deal in efficiency, though most of them do their special work fairly enough on accepted lines.
Though colonists join in complaining of the number of these no serious attempt has, however, been yet made to amalgamate them, much less to revive any form of Provincialism. Municipal enterprise has made few attempts in New Zealand to follow, however humbly, in the wake of the great urban councils of England and Scotland. Water companies indeed are unknown, but most of the towns depend upon contractors for their supplies of light; municipal fire insurance is only just being talked of; recreation grounds are fairly plentiful, but are not by any means always managed by the municipality of the place. None of the town councils do anything for the education of the people, and but few think of their entertainment. The rural county councils and road boards concern themselves almost solely with road-making and bridge-building. The control of hospitals and charitable aid, though entirely a public function not left in any way to private bounty, is entrusted to distinct boards. Indeed, the minute subdivision of local administration has been carried to extreme lengths in New Zealand, where the hundreds of petty local bodies, each with its functions, officers, and circle of friends and enemies, are so many stumbling-blocks to thorough—going amalgamation and rearrangement. In New Zealand the English conditions are reversed; the municipal lags far behind the central authority on the path of experiment. This is no doubt due, at least in part, to the difference in the respective franchises. The New Zealand ratepayers' franchise is more restricted than that under which the English councils are elected.
A few words will be in place here about the continuance and outcome of the Public Works policy. Sir Julius Vogel quitted the Colony in 1876, but borrowing for public works did not cease. It has not yet ceased, though it has slackened at times. In 1879 a commercial depression overtook the Colony. The good prices of wool and wheat sank lower and lower; the output of gold, too, had greatly gone down. There had been far too much private borrowing to buy land or to set up or extend commercial enterprises. The rates of interest had often been exorbitant. Then there happened on a small scale what happened in Victoria on a larger scale twelve years later. The boom burst amid much suffering and repentance. In some districts three-fourths of the prominent colonists were ruined, for the price of rural produce continued on the whole to fall relentlessly year after year until 1894. The men who had burdened themselves with land, bought wholly or largely with borrowed money, nearly all went down. Some were ruined quickly, others struggled on in financial agony for a decade or more. Then when the individual debtors had been squeezed dry the turn of their mortgagees came. Some of these were left with masses of unsalable property on their hands. At last, in 1894, the directors of the bank which was the greatest of the mortgagees—the Bank of New Zealand—had to come to the Government of the day to be saved from instant bankruptcy. In 1895 an Act was passed which, while guaranteeing the bank, virtually placed it beneath State control, under which it seems likely gradually to get clear of its entanglements. This was the last episode in the long drama of inflation and depression which was played out in New Zealand between 1870 and 1895. No story of the Colony, however brief, can pretend to be complete which does not refer to this. The blame of it is usually laid upon the public works policy. The money borrowed and spent by the Treasury is often spoken of as having been wasted in political jobs, and as having led to nothing except parliamentary corruption and an eternal burden of indebtedness and taxation. This is but true to a very limited extent. It was not the public borrowing of the Colony, but the private debts of the colonists, which, following the extraordinary fall in the prices of their raw products between 1873 and 1895, plunged so many thousands into disaster. Nine-tenths of the money publicly borrowed by the Colony has been very well spent. No doubt the annual distribution of large sums through the Lands and Public Works departments year after year have had disagreeable effects on public life. In every Parliament certain members are to be pointed out—usually from half-settled districts—who hang on to the Ministry's skirts for what they can get for their electorates. The jesting lines at the head of this chapter advert to these. But they must not be taken too seriously. It would be better if the purposes for which votes of borrowed money are designed were scrutinized by a board of experts, or at least a strong committee of members. It would be better still if loans had to be specially authorized by the taxpayers. But when the worst is said that can be said of the public works policy, its good deeds still outweigh its evil. It is true that between 1870 and 1898 the public debt has been multiplied six times; but the white population has nearly tripled, the exports have more than doubled, and the imports increased by 75 per cent. Moreover, of the exports at the time when the public works policy was initiated, about half were represented by gold, which now represents but a tenth of the Colony's exports. Again, the product of the workshops and factories of the Colony are now estimated at above ten millions annually, most of which is consumed in New Zealand, and therefore does not figure in the exports. The income of the bread-winners in the Colony and the wealth of the people per head, are now nearly the highest in the world. In 1870 the colonists were without the conveniences and in many cases comforts of modern civilization. They had scarcely any railways, few telegraphs, insufficient roads, bridges and harbours. Education was not universal, and the want of recreation and human society was so great as to lead notoriously to drunkenness and course debauchery. New Zealand is now a pleasant and highly civilized country. That she has become so in the last thirty years is due chiefly to the much-criticised public works policy.
Before parting with the subject of finance, it should be noted that in 1870 the Treasury was glad to borrow at slightly over five per cent. Now it can borrow at three. The fall in the rate of private loans has been even more remarkable. Mortgagors can now borrow at five per cent. who in 1870 might have had to pay nine. This steady fall in interest, coupled with the generally reproductive nature of the public works expenditure, should not be overlooked by those who are appalled by the magnitude of the colonial debts. For the rest, there is no repudiation party in New Zealand, nor is there likely to be any. The growth of the Colony's debt is not a matter which need give its creditors the slightest uneasiness, though no doubt it is something which the New Zealand taxpayers themselves should and will watch with the greatest care. It is quite possible that some special check will ultimately be adopted by these to ensure peculiar caution and delay in dealing with Parliamentary Loan Bills. It may be that some application of the "referendum" may, in this particular instance, be found advisable, inasmuch as the Upper House of the New Zealand Parliament, active as it is in checking general legislation, may not amend, and in practice does not reject, loan bills.
Chapter XX
IN PARLIAMENT
"Shapes of all sorts and sizes, great and small
That stood upon the floor or by the wall,
And some loquacious Vessels were, and some
Listened, perhaps, but never talked at all."