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 RAPARA

 
 RAPARA 
 
 OR 
 
 THE RIGHTS OF THE INDIVIDUAL 
 IN THE STATE 
 
 BY 
 
 ARCHIBALD FORSYTH 
 
 LONDON 
 T. FISHER UN WIN 
 
 PATERNOSTER SQUARE 
 1897
 
 All rig/its reserved.
 
 Dedication. 
 
 TO ALL THOSE WHO DO NOT KNOW THAT HUN- 
 DREDS OF THOUSANDS ARE STARVING IN THE 
 MIDST OF PLENTY. AND TO ALL WHO, 
 KNOWING THIS, NEGLECT TO GIVE 
 A HELPING HAND TO HAVE 
 THIS PLENTY JUSTLY 
 DISTRIBUTED 

 
 RAPARA ; 
 
 OR, 
 
 The Rights of the Individual in the State 
 
 constitutes a polity which is best expressed by the name 
 
 Equalistic Individualism, the basis of which is — 
 
 That all natural wealth and gifts of Nature belong to the 
 community, and should therefore be treated so as to bestow 
 the greatest benefits on its individual members ; and that all 
 produced wealth belongs to the individuals that produced it, 
 and should therefore be their exclusive property. 
 
 That any polity which disregards these natural conditions 
 violates the natural right of individuals. 
 
 That our present polity of Monopolistic Individualism, 
 which grants private property in land with its stores of 
 natural wealth, and Communistic Collectivism, which claims 
 produced wealth as the common property of the community, 
 both violate the natural rights of individuals, while the polity 
 of Equalistic Individualism conforms to both, and therefore 
 recognises the Rights of the Individual in the State. 
 
 Many eminent sociologists, and economists now hold the 
 doctrine that individuals have no natural rights, all rights 
 being merged in social law based on expediency. The accept- 
 ance of this doctrine amounts to an acknowledgment that 
 what is, is right, and therefore that slavery and every other 
 violation of natural right is justified. The American slave 
 laws were based on expediency. The black-haired men, if 
 they considered it expedient, could make all the red-haired 
 men their slaves, and in the absence of the recognition of 
 natural right there would be no criterion by which to judge 
 the justice or injustice of such a measure. Society would be 
 in the position of a ship at sea, without either chronometer, 
 quadrant, or compass. Society law, in curtailing many of the 
 rights claimed by individuals, have for their object the preser- 
 vation, not the destruction of natural rights. Hence the 
 rights of individuals in a civilised country are greater than 
 in a savage one. This doctrine of the non-existence of natural 
 rights is doubtless a useful one to those in possession of 
 hereditary privileges, pensions, and monopolies, because it 
 asserts what is, is right, and recognises no criterion by which 
 its justice can be judged. It therefore stands as a barrier to 
 just and necessary measures of reform.
 
 INTRODUCTION 
 
 Complaints against the barriers that stand between 
 land and labour in the production of the necessaries 
 of life, and against the laws of distribution, have 
 been heard in ancient as well as in modern times ; 
 but the introduction of machinery, railways and 
 ships operated by steam have intensified these 
 complaints, have increased the volume and lowered 
 the cost of production of nearly all the necessaries 
 and luxuries of life, and have thereby benefited the 
 great mass of the people ; but it is a deplorable fact 
 that under existing laws of production and distribu- 
 tion this increased stream of wealth flows largely into 
 useless channels, making the very rich richer and 
 and the very poor poorer in an accelerated degree 
 from year to year, and we now have hundreds of 
 thousands starving in the midst of plenty. 
 
 Politicians, economists, and social philosophers 
 throughout Europe and America are aware of 
 these facts, and have been occupied in preparing 
 and discussing remedial measures. Several of these 
 proposed measures have been attempted to be 
 carried into practice with, in most cases, dis-
 
 x INTRODUCTION 
 
 couraging results, and no real advance has been 
 made, and now the outlook is darker than ever, 
 for we have now a new problem to face — the 
 problem of invested capital, which threatens to 
 swallow up all available wealth in a few generations. 
 
 The polity of individual competition under just 
 conditions should be conducive to the general 
 welfare, but the conditions under which individual 
 competition is now being carried out assuredly 
 produces great and unnecessary inequality and 
 injustice. 
 
 Under the late feudal system the land with its 
 stores of mineral wealth was held by the feudal 
 lords as trustees for their dependents; and had 
 the discovery of improved machinery, railways 
 and steam been made during the feudal tenure 
 the resultant benefit would have been shared by 
 all classes ; but when the system of individualism 
 took the place of feudalism the feudal lords seized 
 the land and declared it to be their private property, 
 and used their power to transfer the taxes and duties 
 attached to the land on to the shoulders of the 
 people. Subsequently a permanent land tax, or 
 rather rent-charge, of 4s. in the pound of annual 
 value was imposed, which still remains the law of 
 England ; but although the discoveries in machinery, 
 railways and steam, combined with the increase of 
 population, has increased the value of rural land 
 three to five-fold, and town and city land ten to 
 fifty-fold, no fresh valuation has been made, and 
 instead of paying 4s. in the pound of annual value 
 in accordance with the Act, the payment does 
 not average more than 3d. in the pound, so that 
 the people of the United Kingdom have virtually
 
 INTRODUCTION xi 
 
 lost their land and have to pay some .£65,000,000 
 per annum for the right to mine, fish, cultivate 
 and live on their own land to a class that in no 
 way assists in the production of the necessaries 
 of life. 
 
 With all this increase in the production of all 
 the necessaries and luxuries of life, the greater 
 their superabundance the greater is the number 
 of starving people. To relieve this destitution a 
 poor law has been established in the United 
 Kingdom, but at the best it is only an act of relief, 
 and is not, nor is it intended to form, a remedy 
 for preventing wealth accumulating where it is not 
 required, or for directing it into the possession of 
 the very poor who cannot command sufficient of 
 the bare necessaries of life. 
 
 With the view of remedying this state of things, 
 trades unions have been formed and carried on 
 for many years ; and although they did considerable 
 good in their early stages, many intelligent friends 
 of the working classes believe that during the last 
 decade their good effects are balanced by the bad 
 ones, and that they have not touched the seat of the 
 evil which they were intended to cure. If trades 
 unions in their efforts to increase the rate of wages 
 — to which they are doubtless entitled — decrease 
 the volume of employment — for this is undoubtedly 
 its effect — shared their earnings with those thrown 
 out of employment, no objection could justly be 
 taken on the score of unfairness to the great mass 
 of working men and women ; but, unfortunately, 
 when strikes succeed in raising wages in the in- 
 dustries which have to compete with foreign-made 
 goods, and employment is thereby diminished, the
 
 xii INTRODUCTION 
 
 strong and expert workman reaps the benefit of 
 increased wages, while the weak and less expert 
 are thrown out of employment ; for it goes with- 
 out saying that when the number of workmen 
 exceeds the demand, the strongest and ablest will 
 have the preference over the weak and less expert 
 workmen, so that in strict justice those without 
 employment should share with those that are in 
 work ; but even under this condition, although 
 trades unions may benefit its members, they are 
 powerless to benefit the great mass of those depen- 
 dent on the sale of their labour while shut out 
 from land, the great raw material of the earth from 
 which all necessaries have to be extracted. 
 
 As a rebound from existing Monopolistic Indi- 
 vidualism, the doctrine of Communistic Socialism 
 sprang into existence and went to the other extreme 
 in claiming the produce of labour as the common 
 property of the community. Socialists blame the 
 law of competition as the main cause of the evil, 
 and advocate its entire abolition in favour of 
 associated production and distribution. This system 
 has had several trials, but all have failed. Yet many 
 earnest and intelligent men cling to it as the only 
 harbour of refuge from present and future evils. 
 State socialism or State production has many able 
 advocates, and that form of it which contemplates the 
 State as an employer and the people as its employes 
 is certainly more promising than communism. At 
 the same time thoughtful and intelligent observers 
 of the working of large joint-stock companies and 
 firms engaged in successful production, are of 
 opinion that these large firms and joint-stock 
 companies have the benefit of self-interested owners
 
 INTRODUCTION xiii 
 
 or directors to watch over the changes in methods 
 and machinery, and thereby keep the cost of pro- 
 duction at its lowest point ; while production by 
 the State would have none of this self-interest to 
 watch over its industries, and being free from the 
 spur of competition, new methods and machinery 
 would, it is feared, be neglected, and the cost of 
 production become greater than in countries where 
 self-interest and competition have full play. If 
 State socialism succeeds in getting a trial, it may 
 be found that State managers are as vigilant and 
 efficient as self-interested owners or directors. Even 
 at the present time various States are carrying out 
 duties and services in an efficient manner which 
 some years back it was considered could only be 
 carried out by private enterprise and supervision. 
 England carries out the post and telegraph service. 
 The Australasian Colonies, South Africa and Ceylon, 
 own and control the railways, post and telegraphs, 
 wharf and docks, and a considerable portion of the 
 railways in India, Germany, and several other 
 countries are owned and controlled by the State. 
 These State services are economically and efficiently 
 carried out, and doubtless it will be found that 
 other services can be undertaken either directly 
 by the State or through the medium of munici- 
 palities. "The London County Council" and 
 the "Glasgow Town Council" are now efficiently 
 carrying out duties which a few years back were 
 considered to be outside the duties and beyond the 
 control of Government ; but it is altogether different 
 as regards production, for in addition to the danger 
 of not keeping abreast of the times, there is the 
 danger ^nd difficulty connected with the rates of
 
 xiv INTRODUCTION 
 
 wages, and what is still more difficult, the relative 
 rate of wages of different trades, and the danger 
 of favouritism and bribery. It therefore appears 
 that while State duties are likely to be extended, 
 a complete system of State socialism embracing 
 all classes of production is neither workable nor 
 attainable. Now had State Socialists bestowed the 
 same amount of ability and energy to remove the 
 barriers that stand between land and labour by 
 the nationalisation of land as they did on State 
 socialism, land nationalisation would now at least 
 be within the lines of practical politics. Several 
 methods for nationalising the land have been pro- 
 posed, but unfortunately Mr. Henry George came 
 upon the scene. He has shown more ably than 
 any previous writer the evil effect of private property 
 in land, but his proposed remedy of confiscation 
 has done more to discredit and damn the movement 
 than his exposure of its evil effects did to help it. 
 Had he advocated nationalisation with compensa- 
 tion, land nationalisation would now be a burning 
 political question instead of being thrust back for 
 two or three generations. Many hold that the great 
 bulk of landowners in England are not entitled 
 to compensation for land when resumed by the 
 State. The question is one open to discussion, 
 but in any case it will be impossible to carry land 
 nationalisation without paying compensation to the 
 owners. 
 
 Unfortunately the land and labour problem, for 
 they are both one, is not the only one calling for 
 solution, for during the last twenty years a new 
 disease has made its appearance, which is increasing 
 at an alarming rate. This is the progressive increase
 
 INTRODUCTION xv 
 
 in invested capital, which threatens to swallow up 
 all wealth except enough to yield a bare subsistence 
 to labour in ten to twenty years. Doubtless the 
 rate of interest is being gradually reduced, but the 
 aggregate amount is gradually increasing and must 
 eventually make nine-tenths of the community pay 
 interest to the remainder. It would be pleasant 
 to believe that the reduction in the rate of interest 
 is due to the increased wealth of the producing 
 classes, enabling them to do with smaller advances 
 from capitalists, but statistical information shows 
 that the great and increasing volume of interest 
 and dividends derived from investment in debentures, 
 bonds, manufactures, railways, canals, ships, mort- 
 gages, and rents show that this is not the case, 
 but that the reduction in interest is due to the 
 enormous amount of wealth which investments 
 have already enabled capitalists to accumulate. A 
 considerable portion of their wealth arises from 
 rents of land, and particularly from ground rents, 
 in the great centres of population. The nationalisa- 
 tion of all land under a scheme of compensation 
 to owners, in which all forms of wealth should 
 be assessed to raise the necessary funds, would 
 divert this portion into the national revenue; but 
 to fully meet this new evil the only remedy in view 
 is the adaption of Adam Smith's principle of "equal 
 sacrifice" in taxation; but in the face of the 
 Conservative reaction, and particularly the iniquitous 
 Agricultural Rating Act, passed by a House of 
 Commons elected on all but universal suffrage, the 
 prospect of carrying a measure of taxation based 
 on the principles of "equal sacrifice" must at best 
 be looked upon as a distant remedy.
 
 xvi INTRODUCTION 
 
 On the other hand, we have the reductions in 
 rents of land in Ireland and Scotland, passed in 
 the interests of producers, and although the Finance 
 Act of 1894 does not diminish the flow of wealth 
 into the hands of the very rich, it appropriates a 
 portion of the accumulations of deceased persons 
 and uses it for the benefit of the community. The 
 outlook is doubtless a dark one, but as sure as 
 night follows day a Radical reaction will follow 
 the Conservative boom, when the iniquitous legis- 
 lation passed by the Conservatives will be repealed, 
 and the Conservative party, now disgracing the 
 national honour by voting ^2,000,000 per annum 
 to themselves out of the general revenue, be placed 
 beyond the power of committing further acts of 
 disguised robbery. 
 
 Rapara is comparatively a small community, but 
 it is sufficiently large and sufficiently civilised to 
 enable readers to see and estimate the value of 
 its laws and institutions, free from the complexity 
 which necessarily prevail in old and densely popu- 
 lated countries. Rapara is a model Radical State, 
 where the gifts of Nature are open to all, and where 
 wealth, the result of labour, is secured by individuals 
 in proportion to their enterprise, energy, and thrift, 
 while indolence and extravagance is visited with 
 poverty in varying degrees ; but all have sources 
 of employment that enable the industrious and 
 provident to live in comfort, rear a family, and 
 save something for old age. The chances of making 
 a fortune, so as to leave their children well provided 
 for, is not great, but the easy acquisition of land, 
 which secures employment, is a better guarantee 
 against want than the fortunes which parents in
 
 INTRODUCTION xvii 
 
 Europe are enabled to leave their children. In 
 Europe fortunes are frequently lost from misfortune 
 and other causes, leaving the losers in a worse 
 position than those who inherited nothing from 
 their parents or relatives. 
 
 Read the history of Rapara and see whether 
 several of its laws are not calculated to ameliorate 
 the condition of the " submerged tenth," and there- 
 fore worthy of adaption in England and Australia. 
 
 i *
 
 CONTENTS 
 
 CHAPTER I. 
 
 PAGE 
 
 Pioneer Settlement i 
 
 Visit of pioneers — Conference with chiefs — Settlement 
 agreed on — Pioneers returned, 1843 — Eastern end ceded 
 to Europeans — Agreement with chiefs — Settlement 
 commenced. 
 
 CHAPTER II. 
 
 Rapara and its People 7 
 
 Physical features — Soil and climate — Visited by Spanish 
 and Dutch navigators — Introduction of missionaries and 
 schools — Christianity and code of laws adopted — Opara 
 Harbour, River, and Lake — Native settlements and pro- 
 ductions — Maori characteristics and chiefs. 
 
 chapter iii. 
 Progress and Development, 1843-1850 . . 18 
 
 Crops planted — Destroyed for want of fencing — State 
 Council formed — Franchise qualification — Import duty 
 imposed — Issue of State notes — Weights, measures, and 
 currency — Commissioners of State land appointed — In- 
 creased production — Free education — Excise duty im- 
 posed — Discussion on State notes.
 
 xx CONTENTS 
 
 CHAPTER IV. 
 
 PAGE 
 
 Land Tenure and Occupation Ordinance . 29 
 
 Epitome of Land Ordinance — Freehold and leasehold 
 tenure discussed — Amendments to make freehold and 
 leasehold optional — Pioneer land claims settled. 
 
 CHAPTER V. 
 
 Events and Developments, 1850-1860 . . 53 
 
 Weekly Herald started — Gold discoveries in California — 
 Weekly Times started — Gold discoveries in Australia and 
 effects— Exodus of settlers — Coffee factory opened — Re- 
 turn of settlers— Occupation of Maoris — Census in 1853 — 
 Discussion on exports, imports, and incomes — Decrease 
 in wages — A strike averted and discussion thereon. 
 
 CHAPTER VI. 
 
 Electoral Campaign 67 
 
 Election preparations — Property versus household qualifi- 
 cation — General election on old qualification — Second 
 Council met, 1855 — New Constitution passed — Epitome of 
 Act — Legalisation of all measures passed by first Council. 
 
 CHAPTER VII. 
 
 Maori Land Settlement Act . . . -93 
 
 Duties of Commissioners — Election of 1867 — Adoption of 
 Commissioners' Report— Ratiras granted freehold rights 
 — Improvements granted to tenants — Services and goods 
 computed into money — Forecast of land nationalisation — 
 Ratiras' claims and English landlords contrasted. 
 
 CHAPTER VIII. 
 
 State Borrowing v. Protective Duties . . 102 
 
 Plebiscite on State borrowing or protective duties- 
 Articles and speeches thereon — State notes— Protection 
 contrasted with Free Trade — Protection tariff introduced, 
 1859 — Discussions thereon — Epitome of tariff.
 
 CONTENTS xxi 
 
 CHAPTER IX. 
 
 PAGE 
 
 Opara Irrigation and State Bank . . .123 
 
 Sources of funds— Cost of works— Rates for water— State 
 notes — Water rales versus land sales — State bank pro- 
 visions — Discussion thereon — Foreign exchange. 
 
 CHAPTER X. 
 
 Progress of Production, 1860-1870 . . . 141 
 
 Decrease in exports — Necessaries plentiful and cheap — 
 Beautiful prospect in rural districts — Freehold land un- 
 cultivated — General election, 1862 — Irrigation water free 
 versus water rate — Amendment of Municipal Law — ■ 
 Election, 1867 — Freehold Compulsory Leasing Act and 
 epitome — Discussion thereon — Census, 1863 — Land occu- 
 pied — Revenue and expenditure — Imports and exports — 
 Women and Children's Protection Act. 
 
 CHAPTER XI. 
 
 Legacy and Succession Duties . . . .156 
 
 Progressive in amount — Progression on classes — Hus- 
 bands, wives, and charities free — Discussion thereon. 
 
 CHAPTER XII. 
 
 Events and Development, 1870-1873 . . 166 
 
 Rice, sugar, and taro on irrigated land — Freehold land 
 speculations — Freehold Leasing Bill results — Employ- 
 ment and rates of wages — Coin for internal currency — 
 Census, 1873 — Revenue and expenditure — Imports and 
 exports — State borrowing and non-borrowing policy 
 discussed. 
 
 CHAPTER XIII. 
 
 Test Election on Land Nationalisation . . 175 
 
 Death and election of President — Necessity for land 
 nationalisation — A reply — A counter reply — Conservative 
 manifesto — Radicals appeal to the electors.
 
 xxii CONTENTS 
 
 CHAPTER XIV. 
 
 PAGE 
 
 Land Repurchase Act . . . . . 190 
 
 Epitome of Act and explanations — Discussion thereon — 
 Act passed — Assessment on all forms of wealth — Certifi- 
 cates of land values used in payment of assessment rate. 
 
 chapter xv. 
 Amendment of Acts 211 
 
 Rent Appraisement Act — Divorce Act — Electoral Act 
 amended. 
 
 CHAPTER XVI. 
 Progressive Wealth Tax of 1883 . . . 226 
 
 Articles for and against a wealth tax — Discussion on 
 uniform and progressive rates — An equal sacrifice in 
 taxation discussed — Provisions of Act. 
 
 CHAPTER XVII. 
 
 Progress and Development, i 873-1 884 . . 239 
 
 Discussion on electoral reform — Industrial progress — 
 Protective duties and ironworks discussed— Railway to 
 Akitiki — Census — Land under cultivation — Revenue and 
 expenditure — Imports and exports for 1883 — Local 
 Government — Code of laws — Education, religion, and 
 amusement — The State bank and land administration. 
 
 CHAPTER XVIII. 
 
 Inquiry into Land Tenures .... 257 
 
 Rapara Compulsory Leasing Act and Land Nationalisation 
 Act. Are they applicable to England and Australasia ? 
 
 CHAPTER XIX. 
 
 Inquiry into Internal Currency . . . 276 
 
 A State bank of issue — Legal tender inconvertible — 
 State notes — Current accounts in trading banks 
 
 & 
 
 considered.
 
 CONTENTS xxiii 
 
 CHAPTER XX. 
 
 PAGE 
 
 Australasian Borrowings 282 
 
 Its continuance must eventuate in default — Aggregate 
 debts of Australasia — Debts of the several colonies — 
 Annual liability to non-residents — Pro rata amount for 
 the United Kingdom. 
 
 CHAPTER XXI. 
 
 The New Evil Threatening Society . . 289 
 
 Modern investments — Rapid concentration of capital and 
 wealth — Decrease in rate of interest with increase in 
 amount — Threatens to absorb all wealth in excess of 
 a bare subsistence for producers — Taxation to the point 
 of " Equal Sacrifice " the only available remedy- 
 Extremes of poverty and riches in London.
 
 CHAPTER I 
 
 PIONEER SETTLEMENT 
 
 Visit of pioneers — Conference with chiefs — Settlement agreed on — 
 Pioneers returned, 1843 — Eastern end ceded to Europeans — 
 Agreement with chiefs — Settlement commenced. 
 
 Rapara had been visited by several whalers and a 
 few merchant vessels between 1830 and 1840. These 
 visitors spread reports all over the Pacific of its 
 beauty, fine climate, rich soil, friendly inhabitants, 
 and unoccupied land. During the visits of these 
 vessels some twenty runaway sailors had become 
 residents ; but being, for the most part, ignorant 
 men and without any means they conferred little 
 benefit on the natives, as they contented themselves 
 with leading a comparatively idle life. In 1840 the 
 island was visited by the whaling barque Ranger 
 of Sydney, owned and commanded by Captain 
 Black. She had five passengers, all men of means, 
 who came to inspect the island in order to ascertain 
 whether it possessed the advantages for settlement 
 with which it had been credited. These visitors 
 were Mr. Brown, a Ceylon coffee planter ; Mr. Hay, 
 a sugar planter from Jamaica ; Mr. Petresen, a 
 Swedish farmer ; Mr. Grant, an experienced farmer
 
 2 PIONEER SETTLEMENT 
 
 from Scotland ; and Mr. Innes, a settler from New 
 South Wales. They were kindly received by the 
 native chiefs, shown over the island, and invited to 
 come and settle amongst them. After conferring 
 with the principal chiefs, they agreed with Captain 
 Black to join in forming a settlement provided they 
 could purchase a large tract of land. The chiefs, 
 however, refused to sell land, but offered to give 
 them as much as they could cultivate. This promise 
 was too indefinite to satisfy the visitors ; they asked 
 for seven miles on the south side of Opara Bay, with 
 a depth of three miles, stipulating that succeeding 
 settlers should be allowed to take up half of this 
 quantity. After protracted negotiations the chiefs 
 agreed to grant them seven miles along the south 
 side of Opara Bay, with a depth of two miles, for 
 which the visitors consented to give a quantity of 
 goods, consisting of cotton and linen, cloth, axes, 
 knives, saws, guns, and ammunition. About one- 
 third of these goods was delivered to the chiefs at 
 the time ; the remainder was to be forthcoming 
 when the visitors returned. Subsequent settlers 
 were to be allowed as much land as they could 
 cultivate, subject to an annual payment in goods and 
 produce for the use of the Arikis. This was agreed 
 to, and the visitors divided their grant into seven lots. 
 Mr. Black was allowed to take the eastern lot as it 
 afforded the best site for a shipping station ; the 
 western lot was reserved for a town site ; and the 
 five remaining lots were drawn for. The agreement 
 was finally ratified by five of the principal chiefs. 
 The visitors conferred together on the various kind 
 of goods and materials which each of them was to 
 bring for his special industry, and they left the island
 
 RAPARA 3 
 
 to prepare all necessary materials so as to return in 
 some twelve or eighteen months. Captain Black 
 returned early in the following year with a cargo 
 composed of building and whaling material and 
 general stores, and with 106 persons — men, women, 
 and children. He at once commenced to erect a 
 jetty and necessary buildings on his land. By the 
 month of July he had established six whaling stations, 
 distributed over the coast of the mainland and the 
 outlying islands, all furnished with whaleboats and 
 crews. Mr. Hay and Mr. Grant returned together 
 in January, 1842, in a vessel loaded with agricultural 
 implements, cattle, sheep, horses, seeds, and general 
 stores, together with 250 persons, mostly young 
 married couples. Mr. Innes arrived in March and 
 was accompanied by six gentlemen, all possessed of 
 the necessary means to establish themselves in their 
 respective industries. They brought with them a 
 large amount of stores and materials, including a 
 complete foundry and engineering plant, three steam 
 engines, two saw-mills, and 274 men, women, and 
 children, amongst whom were a number of mechanics 
 and professional men. Mr. Petresen arrived in May 
 and brought with him seven Swedish and Danish 
 farmers, accompanied in all by 420 men, women, 
 and children ; the party had with it a large supply 
 of building materials and stores, some forty head of 
 live stock, and a large supply of grain and other 
 seeds. These all took possession of their various 
 lots and proceeded with the erection of temporary 
 houses and buildings. Mr. Petresen and Mr. Innes 
 sold and leased portions of their land to those whom 
 they brought with them. 
 
 Before any selections were made outside the
 
 4 PIONEER SETTLEMENT 
 
 boundaries of the pioneers' grant it was considered 
 advisable to consult the native chiefs in further 
 determining matters connected with the selection 
 and occupation of land. Five of the principal chiefs 
 attended, and all the Europeans except hired ser- 
 vants. After considerable discussion it was agreed 
 that all the land, with two small exceptions to the 
 east of a line passing through Opara Bay, River, and 
 Lake, then south to the ocean, should be handed 
 over to the Europeans for settlement ; whilst all the 
 land to the west of this line should for ever remain 
 in the possession of the Maoris. The European 
 land was to be subject to payment of goods and 
 services for State purposes. It was afterwards agreed 
 amongst the Europeans that, until otherwise deter- 
 mined in public meeting, settlers should be allowed 
 to take up 80 acres of land at an annual rent of 
 one shilling per acre, out of which the chiefs should 
 be paid their share in money in lieu of goods and 
 services. Several Europeans demanded that they 
 should be allowed to purchase land on the same 
 terms as the pioneers ; but the chiefs refused, and 
 insisted that the purchase of land was unknown in 
 Rapara, and that the goods given by the pioneers 
 were accepted as an equivalent for State contribu- 
 tions. This was denied by the pioneers, and the 
 question remained at this time unsettled. It was 
 agreed that the town site, consisting of two square 
 miles, was to be under the entire control of the 
 Europeans. Is was further agreed that, as the har- 
 bour, the river, and the lake at its head all went 
 under the name of Opara, the harbour and the 
 European town should be named Raoto. 
 
 At a subsequent meeting held by the Europeans
 
 R A PARA 5 
 
 it was agreed that one square mile of the town site 
 should be surveyed into quarter-acre allotments and 
 selectors should have the option of taking up one or 
 two lots subject to conditions of building a house 
 on one within one year, and one on the other lots 
 within two years ; in default the lot or lots were to 
 be open to be taken up by others. The annual rent 
 was fixed at £3 per lot until otherwise determined. 
 It was agreed to hold the other square mile in 
 reserve for parks, roads, and suburban settlement. 
 
 A Mr. White was appointed State surveyor, with 
 power to employ such assistants as he required ; and 
 as there were several experienced surveyors available 
 it was agreed that the survey should be prosecuted 
 vigorously, and that no land should be allotted until 
 surveyed. 
 
 To avoid delay only a small part of the town was 
 laid out in allotments. Two survey lines were carried 
 out some twenty miles in the country, and their 
 extremities connected. On the nearest and best soil 
 along these lines lots of 20, 40, 60, and 80 acres 
 were surveyed. So great was the expedition in 
 surveying that in four months 60 town and 340 
 country lots were ready for selection, the grant 
 being decided by lot when there was more than one 
 applicant. The greater portion of the lots were 
 quickly taken up, and all available labour was 
 brought into play in erecting houses ; these were 
 mostly of a temporary character, to be replaced by 
 permanent edifices as soon as the saw-mills could 
 supply the necessary timber. 
 
 Mr. Brown arrived in February, 1843, and brought 
 with him twenty Europeans, several being men of 
 means, and forty Indian coolies. He agreed to
 
 6 PIONEER SETTLEMENT 
 
 exchange his lot adjoining the town for three square 
 miles in the district of Koran. The introduction of 
 the Indian coolies was viewed with great displeasure 
 by a majority of settlers. Mr. Brown, and others 
 who accompanied him, intending to go into coffee 
 and sugar growing, pointed out that the cultivation 
 of coffee could not be carried out successfully by 
 European labour ; and that, although he expected to 
 get native labour, it could not be supposed that 
 natives would work for others until they had ac- 
 quired a taste for European goods. At a meeting 
 of native chiefs and Europeans called to consider 
 the question it was agreed that Mr. Brown should 
 be allowed to carry out his agreement with the 
 coolies, but that, until otherwise determined, no 
 settler should be allowed to bring into Rapara 
 under an agreement of service any but persons of 
 European or Polynesian race.
 
 CHAPTER II 
 
 RAPARA AND ITS PEOPLE, 1840 
 
 Physical features — Soil and climate — Visited by Spanish and Dutch 
 navigators — Introduction of missionaries and schools — Chris- 
 tianity and code of laws adopted — Opara Harbour, River, and 
 Lake — Native settlements and productions — Maori character- 
 istics and chiefs. 
 
 Rapara is situated in the South Pacific same 200 
 miles to the south of Austral Island. It consists of 
 Rapara the mainland, about 88 miles long from east 
 to west, and about 60 miles in breadth from north 
 to south, and contains about 5,200 square miles. 
 There are three small islands, having a total area of 
 some 1,100 square miles, making a total of 6,370 
 square miles, or 3,470,000 acres. The western end 
 of Rapara is mountainous and of volcanic formation. 
 Some of the peaks attain an elevation of about 1,800 
 feet. The upper portion of the hills is rocky, pre- 
 cipitous, and barren ; but the foothills rise in gentle 
 slopes, and are clothed with an evergreen mantle of 
 shrubs and of palms and other trees. This moun- 
 tainous district occupies about one-third of the 
 island. It is well watered, and, with the exception of 
 the hilltops, is covered with rich volcanic soil. On the
 
 8 RAPARA AND ITS PEOPLE, 1840 
 
 west it is penetrated by a number of bays, with valleys 
 of considerable size. These valleys are separated 
 by ridges which terminate in steep cliffs on the sea 
 shore. The eastern side of this district is bounded 
 by the Opara River, running from south to north 
 through a broad and rich valley which reaches two- 
 thirds across the island. The eastern and northern 
 portion of the island forms an undulating plain, with 
 a mean elevation of some 200 feet above sea level. 
 The Bay of Opara lies on the north coast, and forms 
 the only secure harbour for large vessels in the 
 island. The valley of Opara runs in a south-western 
 direction for some thirty miles, when it bends round 
 to the south-east, along the foot of the hills, and in 
 ten miles reaches its source — Opara Lake covering 
 an area of about nine square miles. About half of 
 this valley is covered with forest, the other half 
 being clad with a coarse but nutritious grass. The 
 eastern portion of the island contains belts of timber 
 in various places ; over two-thirds of it the same 
 coarse, nutritious grass spreads its mantle. The soil 
 on the greater portion of the island is of good quality, 
 one-half being very rich, and three-fourths fit for culti- 
 vation. In most parts of the main island several 
 species of wild taro, and arrowroot, and other fari- 
 naceous roots grow in great abundance, and afford, 
 or rather once afforded, food for an immense number 
 of wild pigs and goats. 
 
 A small volcanic island, called Arroa, to the west 
 of the mainland, is entirely covered with semi- 
 tropical vegetation; it has an area of about no 
 square miles, but has no resident population except 
 pigs and goats. The island of Bora is separated by 
 a channel two miles wide from the mainland on the
 
 RAPARA 9 
 
 eastern end. It has an area of about 450 square 
 miles, and stands about 200 feet above sea level ; it 
 has very little timber, but is covered with good grass, 
 on which many thousands of sheep and cattle now 
 find pasturage. 
 
 The third island, Tontabu, is situated four miles to 
 the south-east of Bora, and is of the same character ; 
 it is now used entirely for pasturing cattle. It has 
 an area of 430 square miles. 
 
 There are several other small islands, but they are 
 of little use, and need not be enumerated. 
 
 Rapara is well watered, having the benefit of 
 tropical rains in summer and southern rains in 
 winter. It enjoys a delightful climate, the tempera- 
 ture ranging between 55 and 65 in winter, and 
 between 70 and 85 in summer ; but for the greater 
 part of the year the temperature is only a few degrees 
 above or below 66° ; and although it was visited 
 by several epidemics some thirty years back, it 
 is now one of the healthiest islands in the South 
 Pacific. 
 
 The Rapareese are a fair type of the Polynesian 
 race both in features and customs. Their institu- 
 tions and laws resemble those of the Cook group 
 more than the Georgian or Austral Islands. In 1840 
 the population was estimated at 2,400, but by their 
 own account the population was more than double 
 this some thirty years back. The decrease is con- 
 firmed by the traces of abandoned villages and culti- 
 vation discontinued. This decline is accounted for 
 partly by tribal wars and partly by two epidemics 
 which ravaged the island — the last one as late as 
 1805 — and reduced the population by one-half. 
 About 1760 the island was visited by a Spanish
 
 io RAPARA AND ITS PEOPLE, 1840 
 
 vessel, from which the inhabitants received presents 
 of pigs and goats, whilst some ten years later a Dutch 
 navigator enriched them with a variety of seeds, 
 plants, and fruits. Owing to their isolated posi- 
 tion, they had little intercourse with neighbouring 
 islands. 
 
 Between 1820 and 1840 a number of whalers had 
 visited the island several times, and some members 
 of their crews deserted and took up their residence 
 there. In 1830 several natives of Rapara visited the 
 Society Islands, where they were instructed by native 
 missionaries, several of whom accompanied them 
 back to Rapara and were kindly received. Schools 
 were opened in several districts, and a strong desire 
 to be taught was shown ; but although a few conver- 
 sions to Christianity ensued, the great mass of the 
 people refused to discard the gods of their forefathers. 
 Several other missionaries and teachers followed, and 
 great progress was made in reading and writing, 
 whereby the teacher was enabled to reach the ears 
 of those who refused to attend the schools. The 
 pupils were provided with short essays showing the 
 advantages to be gained by the adoption of Chris- 
 tianity, and with a code of laws similar to those 
 adopted on the Cook and Georgian groups. The 
 code thus circulated amongst the pupils was com- 
 municated verbally to the chiefs and people. Several 
 of the chiefs were greatly impressed with the infor- 
 mation so derived, but were afraid to confess their 
 opinions openly. At this time their laws did not 
 extend to one-half of the ordinary offences that 
 should have come under legal cognisance. The 
 petty chiefs and ratiras, whenever they had the 
 power, compelled the cultivators to hand over to
 
 RAPARA 1 1 
 
 them a part of their produce. Offences were some- 
 times punished without proof, and proved offences 
 often escaped without punishment. Light offences 
 were often visited with heavy punishment, and heavy 
 ones with light penalties. These evils were seen 
 and felt before the arrival of the missionaries ; but 
 when it became known that a code of laws had been 
 adopted in other islands which put an end to these 
 wrongs, the burden could no longer be endured, and 
 the adoption of Christianity and a code of laws 
 began to be openly advocated. At this juncture 
 Tira, the chief of Opara, who was considered the 
 most powerful chief, openly declared for Christianity 
 (1835), and the whole of his tribe pursued the same 
 course. In less than twelve months all the chiefs 
 with their people followed this lead. No sooner 
 was Christianity adopted than the cry arose for its 
 complement — a code of laws similar to those adopted 
 in the Cook group of islands. At this juncture the 
 missionaries used every effort to induce the chiefs 
 to call a meeting to consider the question ; for 
 although each chief exercised all but supreme power 
 in his own district, Tira was recognised as the 
 " Ariki Sui," or Head Chief, and, had he opposed 
 the change, the code could not have become general. 
 At length a conference of the six principal chiefs 
 was held, at which the matter was submitted to a 
 meeting of chiefs and ratiras, or petty chiefs. This 
 meeting was held at Meroo, as Temba, the chief of 
 that district, claimed to be the heriditary Ariki Sui, 
 or Head Chief, and was supposed to be more hostile 
 to the new code than any of the other chiefs. 
 During the interval between the two meetings the 
 missionaries and their pupils got the proposed code
 
 12 RAPARA AND ITS PEOPLE, 1840 
 
 drafted, which they read over and explained to the 
 chiefs and ratiras. The heads of families put in a 
 claim to be represented at the meeting in accordance 
 with the ancient custom ; but to this the chiefs 
 objected, as they foresaw that no agreement in respect 
 to any laws relating to land could be dealt with if 
 the cultivators were allowed to attend and vote at 
 the meeting. Up to 1770 the tenure of land was 
 a semi-feudal one, in which occupiers of land had 
 to contribute produce and service to their respec- 
 tive chiefs only ; but from that date the petty 
 chiefs or ratiras had gradually enforced the pay- 
 ment of produce and services, the greater part of 
 which they retained for their own use. By 1780 
 these enforcements had become so general that the 
 ratiras openly claimed them as rent for the land 
 occupied. To resist this payment a civil war ensued 
 (about 1790), in which the ratiras proved the victors ; 
 and, although a number of influential men with 
 their followers were able to resist these exactions, 
 the great mass of the cultivators had to submit to 
 increasing demands from year to year to support 
 the retiras, their retainers (tiras), and servants 
 (tagatoes). Previously the tiras performed all per- 
 sonal services required by the ratiras, while the 
 tagatoes were employed in fishing, in cultivation, 
 and other labour required for the support of the 
 ratiras and tiras. In this position the goods and 
 services contributed by the great body of the people 
 went to support the Arikis and pay for other 
 Government expenses. But from 1770 things had 
 undergone a gradual change, in which the tagatoes 
 had been made the personal servants of the ratiras 
 and tiras, who now enforced payment in goods and
 
 RAPARA 13 
 
 services as for rent of land from the cultivators, and 
 got this rent-charge sanctioned by the Assembly. 
 The severity of this rent burden can be seen from 
 the fact that in 1810 the ratiras and their followers 
 amounted to nearly one-fourth of the population, 
 and that they performed no useful labour towards 
 their own support, but lived a life of idleness and 
 pleasure at other people's expense. 1 
 
 The convention met at the appointed time and 
 numbered about ninety persons, made up of indepen- 
 dent chiefs and petty chiefs and ratiras. The new code 
 was read and explained by the native compilers. All 
 were agreed that its adoption was desirable, but several 
 members took objection to some of its provisions. 
 All the provisions in the code were fully considered 
 and debated, some were struck out, others amended, 
 new ones added, and on the fourth day the code of 
 Rapara was passed subject to amendment and ratifi- 
 cation at a meeting to be held in six months. At 
 this second convention the subject of succession 
 to the head chieftainship was brought up ; but it was 
 seen that to adjudge the succession either to Tira or 
 to Temba would split the convention into two parties, 
 and the country into two hostile camps ; the adop- 
 
 1 The folly and injustice of granting monopolies in land to a few 
 individuals is easily seen under the primitive laws and institutions 
 of Rapara. But although this injustice is not as apparent under 
 the complex laws and institutions of England and other countries, 
 the injustice of the system is equal, if not greater. The repeal 
 of the duty on corn freed the English community from one part 
 of the burden they had to bear for the benefit of landowners, 
 but the land rent portion (amounting to some ^60,000,000 per 
 annum) still remains a charge on all kinds of productions. Free 
 industry from this burden, and none but the indolent, the 
 extravagant, and the drunkard need suffer the pangs of hunger 
 and starvation.
 
 14 RAPARA AND ITS PEOPLE, 1840 
 
 tion of the code would thus be prevented and in all 
 probability war would ensue. It was therefore 
 agreed that Tira should remain head chief during 
 his lifetime. The completed code of 1836 consisted 
 of twenty-eight sections and embraced murder, 
 theft, restitution of lost and stolen property, neglect 
 to maintain family, trespass or damage to crops, 
 Sunday observance, administration of justice, mar- 
 riage, bigamy, adultery, slander, drunkenness, rents 
 of land, State contributions, trial by jury in certain 
 cases, appeals to Governor or head chief of district 
 for pardon or mitigation of sentence. In the case 
 of some offences magistrates were given discretion- 
 ary power of punishment ; in others they were 
 bound between the maximum and minimum penal- 
 ties ; but for the majority of offences they were 
 bound to inflict the penalty stated in the code. In 
 practice the code was found to be far from perfect, 
 but a great improvement on the cruel and barbarous 
 laws previously in existence. It put an end to many 
 unjust and oppressive acts of which the previous 
 laws took no cognisance ; and although offences 
 against the laws continued after the adoption of the 
 new code, these offences became fewer from year 
 to year, so that in 1840 the people had become 
 comparatively industrious, moral, religious, and 
 peaceful. 
 
 About one-third of the natives was located on the 
 western side of the valley of Opara, where the 
 mountain streams supplied the necessary water for 
 irrigating the taro, yams, arrowroot, and other vege- 
 table products. The remaining two-thirds occupied 
 the valleys on the western portion of the island. 
 Opara Bay, or as renamed Raoto, is situated on the
 
 RAPARA 15 
 
 northern coast. It is formed by a narrow peninsula 
 on the north and is about seven miles long, with a 
 mean breadth of two miles. Two small islands at 
 its eastern end protect the entrance, making it a safe 
 and land-locked harbour with ten fathoms of water. 
 The native town of Mana, where Tira resides, is situ- 
 ated at the north-western extremity of the harbour, 
 having the river between it and the European town 
 of Raoto. It contains a population of about 350 
 inhabitants, consisting of fishermen and dependents 
 of Tira, whose jurisdiction extends over those living 
 on the west side of the Opara River. 
 
 There are only a few cultivators in Mana, as the 
 land in its neighbourhood is level and offers no flow 
 of water for irrigation. There is another native 
 town about fifteen miles to the west which contains 
 a population of about 250 people ; it is named 
 Meroo, and it is here that the chief Temba resides. 
 There are two small native settlements on the 
 eastern side of the Opara River at Koran and Oraki, 
 but these combined have a population of only about 
 150. The bulk of the Maoris live on the western 
 coast, where the mountain streams afford water for 
 irrigating their crops. They reside in small villages, 
 seldom containing as many as 150 people. Their 
 crops consist of taro, yams, maize, millet, sweet 
 potatoes, kumeras, oranges, limes, pineapples, 
 bananas, a few cocoanuts, and a great variety of 
 sub-tropical and temperate fruits, several kinds of 
 which they procured from the Spanish and Dutch 
 ships. Pigs and fowls are plentiful ; wild goats 
 swarm all over the island. Fish is both abundant 
 and good, and is largely used as an article of food. 
 The Maoris, as they call themselves, vary a good
 
 16 RAPARA AND ITS PEOPLE, 1840 
 
 deal in their complexions, but are on the whole 
 fairer than their northern neighbours in the Austral 
 and Cook groups. They are active, intelligent, and 
 good-tempered, although passionate when excited. 
 They will work with a will to accomplish something 
 they have set their minds on, but will not keep at 
 steady labour for any length of time. They are 
 expert boatmen, either in their own canoes or in 
 European boats ; hence they make good sailors, and 
 are now largely employed as whalers on the whaling 
 stations round the island. They practised polygamy 
 in the past, but the institution has nearly died out, 
 only about one in twenty of the natives having 
 more than one wife, who, as a rule, exercises con- 
 siderable influence in the control of the family. 
 Their greatest fault is dishonesty : even up to 1850 
 they could seldom resist the temptation to steal 
 when they considered they were not likely to be 
 found out. Yet theft is severely punished by the 
 magistrates, and forms the matter of nearly half 
 the charges that come before the Ariki courts. 
 There is no doubt, however, that larceny is less 
 common than before, and that it will soon bear a 
 normal proportion to the total of offences against 
 the law. 
 
 The Maoris readily obey their chiefs, and treat them 
 with respect ; at the same time there is none of that 
 abject deference displayed which is to be seen in 
 nearly all the South Sea Islands ; and should a chief 
 interfere in matters outside his proper province 
 his subjects are not backward in asserting their 
 rights. 
 
 The chieftainship is mostly hereditary, but there 
 are cases in which force of character sets aside
 
 RAPARA 17 
 
 hereditary right. There is every indication that 
 under just and considerate treatment the Maoris 
 will progress and multiply, though such has not 
 been the usual fate of the South Sea Islanders.
 
 CHAPTER III 
 
 PROGRESS AND DEVELOPMENT, 1843-1850 
 
 Crops planted — Destroyed for want of fencing — State Council 
 formed — Franchise qualification — Import duty imposed — Issue 
 of State notes — Weights, measures, and currency — Com- 
 missioners of State land appointed — Increased production — 
 Free education — Excise duty imposed — Discussion on State 
 notes. 
 
 After the conference with the native chiefs re- 
 specting the land, the settlers began to construct 
 temporary roads and bridges. Houses were built ; 
 land was cleared and planted with potatoes, yams, 
 and other vegetables ; maize, peas, wheat, and 
 millet were sown, and all did well in their early 
 stages, but the prospect of a good return was 
 blighted owing to the ravages of the wild pigs and 
 goats, and the crops were reduced by one-half ; yet 
 the yield was nearly sufficient to supply local wants. 
 In the beginning of 1844 great efforts were made to 
 fence in as much land as possible ; but as the 
 native timber was unsuitable for splitting, the 
 amount of fencing was limited to the supply of 
 
 sawn timber. The settlers, however, succeeded 
 
 18
 
 RAPARA 19 
 
 in fencing in all the land that had been brought 
 under cultivation in the previous year, with the 
 result that agricultural produce of every kind 
 was doubled and proved equal to all demands. 
 In 1843 Mr. Black sent his vessel to Valparaiso 
 with a cargo of whale oil. It brought back a 
 variety of necessaries, as well as some $5,000 
 in Spanish money. Five vessels arrived during 
 1843 — two from Europe, two from Australia, 
 and one from Valparaiso. These brought general 
 cargoes and a considerable addition to the 
 live stock, consisting of horses, cattle, and sheep ; 
 also some 350 persons — men, women, and children. 
 Up to June, 1845, there was no settled form of 
 government other than was represented by an 
 European acting in the double capacity of magis- 
 trate and steward ; nor was there any clear under- 
 standing as to the political relations between the 
 Maoris and Europeans. A conference was therefore 
 held between the chiefs and Europeans. At this 
 time the Europeans were as numerous as the 
 Maoris, and many considered that each race should 
 manage its own affairs, the union between the two 
 being federal in character ; but a majority foresaw 
 danger in this proposal : the adoption of it might 
 induce some European nation to interfere, and 
 particularly was intervention from England feared, 
 as the bulk of the settlers were English subjects. 
 If on the other hand, Europeans formed a part of the 
 State under a Maori ariki, such interference was 
 not likely to arise. This latter opinion prevailed, 
 and it was agreed that the European treasurer 
 should pay to the native chief ^400 annually 
 towards defraying the cost of the Ariki's courts,
 
 20 PROGRESS AND DEVELOPMENT 
 
 and that a fair sum should be expended on roads 
 in proportion to the native contribution to the 
 revenue. It was agreed that the native schools 
 should be conducted as before, and that a State 
 Council, consisting of ten Europeans and ten 
 Maoris, should be formed and meet annually, each 
 race to appoint it own councillors. This State 
 Council was to have power to pass all necessary 
 measures for both races. A meeting was held 
 of the most wealthy and influential Europeans, 
 who agreed to limit the electoral vote to Europeans 
 holding not less than 80 acres of land, or having 
 not less than five men in their employment. The 
 Maori councillors were appointed in accordance 
 with Maori custom. 
 
 The State Council met for the first time in June, 
 1845, and amongst other matters appointed an 
 Executive Council of four ; consisting of Mr. H. 
 Russell, Collector and Treasurer ; Mr. J. Walker, 
 State Secretary ; Mr. A. Gray, State Steward of 
 Works ; and Temba (Chief of Meroo), Steward of 
 Native Affairs. Tira, Chief of Opara, was appointed 
 President of the State of Rapara. A duty of 5 
 per cent, ad valorem was imposed on nearly all 
 kinds of imported goods, and 10 per cent, on 
 spirits, wine, and beer. The native code of laws 
 was revised and enlarged to meet European wants, 
 moreover, several European magistrates were ap- 
 pointed. The town of Raoto was empowered to 
 levy rates and exercise all municipal functions. 
 School teachers were appointed at small salaries 
 and allowed to charge scholars prescribed fees. 
 The Treasurer was authorised to issue State notes 
 as required, the value not to exceed ^10,000 in all ;
 
 RAPARA 21 
 
 such notes were to be a legal tender for all classes 
 of debts and to be repaid at the discretion of the 
 Treasurer. This measure, it was explained, became 
 necessary as nearly all settlers either brought their 
 wealth with them in the form of goods or left a 
 portion to pay for future supplies, so that money 
 which consisted of British and Spanish coin was 
 so scarce that most payments had to be made 
 by orders. Even the Government was often com- 
 pelled to give certificates of its indebtedness, which 
 circulated all over the country and were accepted by 
 the Government for duties or other debts ; so that 
 State notes now took the place of Government 
 orders. 
 
 During the years 1844 and 1845 eighteen vessels 
 arrived in Raoto with general cargoes, and 870 men, 
 women, and children, some of whom took up land 
 and others entered into business, whilst those depen- 
 dent on the sale of their labour readily found 
 employment. 
 
 During 1846 and 1847 there was a great increase 
 in the area of land under cultivation, but this 
 increase was retarded by the continued necessity 
 to fence out the pigs and goats from all kinds 
 of crops ; however, a more than sufficient supply 
 of wheat, maize, taro, yams, potatoes, and other 
 vegetables was produced. Cattle and sheep had 
 thriven and multiplied ; yet both mutton and 
 beef remained at a high price. The wild pigs 
 and goats, however, furnished a plentiful stock 
 of coarse animal food. Fruit and fish were both 
 abundant and cheap. 
 
 Up to the end of 1846 all grain had to be ground 
 by steel mills, but at that date a steam flour mill was
 
 22 PROGRESS AND DEVELOPMENT 
 
 started capable of grinding for the whole island. 
 A private bank was opened in 1847 by a Valpa- 
 raiso firm, who introduced some $70,000 in Spanish 
 coin, which, with the State notes, furnished a fair 
 amount of circulating currency. 
 
 At the meeting of the State Council in 1847 graz- 
 ing of stock on State lands was dealt with, and a 
 charge of 4s. per annum for horses and cattle, 
 and is. 3d. for sheep was made. An ordinance 
 was passed dealing with the currency, as also with 
 weights and measures. The English pint and 
 pound were made the units of measure and weight, 
 under the decimal system ; the dollar was made 
 the unit in the currency, in regard to which it 
 was declared that a sovereign was to be taken as 
 the equivalent of $5, a shilling or a mark as the 
 equivalent of 25 cents, and a halfpenny as the equiva- 
 lent of «i cent. 1 
 
 The salaries of Government officers and employees 
 had hitherto been passed by the Executive Council ; 
 but it was considered that these salaries should be 
 determined and passed annually by the State 
 Council, and after due deliberation this course 
 was adopted. In fixing the various salaries it 
 was recognised that all officers whose time was 
 entirely occupied in carrying out their duties should 
 be fairly remunerated, but that officers who were at 
 liberty and had leisure to follow their ordinary 
 occupations should be paid a salary in proportion 
 to the time devoted to the public service and the 
 work performed ; thus the heads of several depart- 
 
 1 The currency was dollars and cents, but for the convenience of 
 English readers it is converted into £ s. d. at the ratio stated in 
 the ordinance.
 
 RAPARA 23 
 
 ments received smaller salaries than some of their 
 subordinates. 
 
 A Mr. James, an experienced lawyer, was appointed 
 to the position of Minister of Justice, his functions 
 to include the reviewing of the decisions of magi- 
 strates and the determination of appeals brought 
 before him. Two Europeans and a native chief 
 were appointed Commissioners of State Lands, 
 charged with the duty of formulating a measure to 
 deal with all such lands. Estimates of expenditure 
 were passed for the erection inter alia of State offices, 
 school houses, a post office, a police office, a light- 
 house ; as also for the construction of roads and 
 bridges and a wharf. These works, together with 
 the salaries of officials, absorbed the whole of the 
 estimated revenue, and left a probable deficit of 
 some ^800, while .£4,000 in State notes had been 
 issued. 
 
 The indefinite agreement made between the first 
 pioneers and the native chiefs proved a constant 
 source of friction among the pioneers, the Land Com- 
 missioners, and the public. The first mentioned 
 contended that the payment in goods which they 
 made to the chiefs was payment for the purchase of 
 the fee simple of the land granted to them. The 
 chiefs, on the other hand, maintained that this pay- 
 ment was merely a prepayment of the annual State 
 contribution which all native landowners had to pay. 
 The commissioners sided with the chiefs, and held 
 that the payment only covered two or at most three 
 years of the annual State contribution ; that rent was 
 accordingly due for at least two years. This view 
 was resisted by the pioneers on the ground that the 
 land granted to them on their first visit was their
 
 24 PROGRESS AND DEVELOPMENT 
 
 freehold property, the value of which was not equal 
 to the expense of the voyage from and to Sydney. 
 Under the circumstances the Council deemed it 
 advisable to appoint a commission, consisting of the 
 Minister of Justice, one European, and one native, 
 to inquire into the matter in dispute, and to report 
 on the same to the Council. 
 
 Clearing, fencing, and cultivation was carried on 
 at an increasing rate in 1847, and it became apparent 
 that agricultural produce would be in excess of home 
 consumption, while no profitable export market was 
 available. In addition to the crops of wheat, maize, 
 and millet, quantities of coffee, rice, sugar, and 
 tobacco were produced this year, and it was expected 
 that next year their production would be sufficient 
 for local requirements, and that in the following 
 year they would become articles of export. This 
 expectation was not fulfilled with regard to tobacco ; 
 but coffee, sugar, and rice became staple articles of 
 export, and, with whale oil, supplied the principal 
 means of purchasing a variety of necessaries that 
 could not at this time be produced on the island. 
 
 In 1848 some thirty vessels brought cargoes to the 
 island, but not more than half were able to secure 
 return cargoes. The maize and wheat shipped 
 resulted in a loss to the exporters ; but whale oil, 
 coffee, sugar, rice, and wool found good markets. 
 The quantity, however, was not great enough to 
 yield an equivalent for the necessary imports. 
 
 All the food products of the island, including beef, 
 mutton, and pork, were both plentiful and cheap ; 
 but money and employment became very scarce, 
 and efforts were made to induce the Government to 
 increase the issue of State notes for the construction
 
 RAPARA 25 
 
 of roads, bridges, and other public works urgently 
 required. This was objected to on the ground 
 that, as the State notes were not worth the coin 
 which they represented, any further issue would 
 cause a still greater depreciation. To this it was 
 answered that the depreciation of State notes was 
 caused solely by the demand for coin wherewith 
 to purchase foreign goods ; that the exports of 
 coffee, sugar, rice, and tobacco would soon be 
 sufficient to pay for all foreign goods required ; 
 and that in the meantime it was folly to let 
 people go without employment and farmers with- 
 out a market for their produce while new roads and 
 other works were sorely needed. The Government 
 took this latter view of the case, and more State notes 
 were issued to defray the expense of constructing 
 roads, bridges, and other works of public utility. 
 The result was that the demand for goods increased 
 and labour found new fields of employment. 
 
 Only one matter of importance was dealt with in 
 1849. A measure was carried to regulate education, 
 which was made free, compulsory, and secular. 
 
 Settlement and cultivation went on at an ever 
 increasing rate. All kinds of agricultural produce 
 were in excess of home requirements. Whale oil, 
 sugar, coffee, rice, and a few other articles were 
 exported in larger quantities than before. Tobacco 
 and beer were produced to an extent great enough 
 to meet the home demand. A considerable quantity 
 of clothing, furniture, candles, boots, and other 
 manufactured articles, including spirits, was now 
 being produced in the island, yet the exports were 
 barely sufficient to purchase the necessary imports. 
 The consequence was that the money brought to
 
 26 PROGRESS AND DEVELOPMENT 
 
 the country by the settlers and financial institutions 
 was drained away to make up the deficiency. Under 
 these circumstances an agitation arose to remedy the 
 evil by placing a protective duty on such articles as 
 could be produced in the island under a moderate 
 rate of duty, but leaving such articles as required 
 a high duty to be purchased with the proceeds of 
 exports. Against this proposal it was urged that as 
 protective duties would increase the cost of the 
 protected articles, this increase would in its turn 
 add to the cost of articles of export, and tend to 
 prevent, or at least to diminish, their production on 
 a larger scale ; and that consequently such a 
 measure would defeat its object. Thus nothing 
 was done in fiscal legislation at this time beyond 
 the imposition of an additional duty on spirits. In 
 1846 spirit had been distilled from the tiea root, 
 which grew in great plenty all over the island ; in 
 the following year stills were multiplied ; in 1848 
 and 1849 both sugar and grain were used for distilla- 
 tion, and one-half of the spirit consumed was distilled 
 in the island — with a proportionate reduction in the 
 revenue. To counteract this reduction the import 
 duty on spirits was increased to 4s. per gallon (= ten 
 English pints), and an excise duty of 6d. per gallon 
 was imposed on home distilled spirits. The passage 
 of the measure gave great offence to the temperance 
 party and to those opposed to differential duties in 
 favour of home production. On the other hand, the 
 measure was supported by the great bulk of the 
 people. Had the majority possessed the means of 
 forcing the hands of the Council, a general protective 
 tariff would have been carried. Meanwhile the 
 discussion went on both in public and private.
 
 RAPARA 27 
 
 The Draft Land Ordinance submitted by the Land 
 Commissioners was made public at the end of 1849, 
 and was on the whole favourably received ; but great 
 fears were entertained that it would be altered in 
 favour of the land-purchasing party, as it was known 
 that the members of that party had been using every 
 means in their power to secure a majority in support 
 of private property in land. It was common know- 
 ledge that six or seven of the native chiefs in the 
 Council were strong advocates of giving the petty 
 chiefs and ratiras the power to enforce rents on 
 cultivated land in their respective districts ; and the 
 land-purchase party had agreed to support the chiefs 
 on condition that the chiefs supported their views ; 
 but this compact was in some measure vitiated when 
 it was found that the native lands were not included 
 in the ordinance and were not to be dealt with. 
 The European land-purchase party now persuaded 
 or endeavoured to persuade the native rent party 
 that the passage of a measure authorising the sale of 
 land in Easterland would strengthen and pave the 
 way to a measure authorising the collection of rent 
 in Westerland — both measures being based on 
 private property in land. It was not known to what 
 extent the native councillors were swayed by these 
 arguments, and great anxiety was manifested as to 
 the result. A petition was got up praying the State 
 Council to have a fresh election before dealing with 
 the Land Ordinance, and urging that in such election 
 all householders should be entitled to vote. This 
 petition was considered in the Council, and it was 
 said that as members of the Council had been elected 
 five years, there was no reason for a fresh election 
 before 1855 ; for although on the other hand no
 
 28 PROGRESS AND DEVELOPMENT 
 
 definite time was stated, it was generally understood 
 that the election should hold good for ten years, and 
 it was resolved that an ordinance should be passed 
 at the next session of Council defining electoral 
 rights and formulating regulations for carrying out 
 an election in 1855. 

 
 CHAPTER IV 
 
 LAND TENURE AND OCCUPATION ORDINANCE 
 
 Epitome of Land Ordinance — Freehold and leasehold tenure dis- 
 cussed — Amendments to make freehold and leasehold optional 
 — Pioneer land claims settled. 
 
 The State Council met in 1850 and proceeded to 
 consider the Draft Ordinance prepared by the Land 
 Commissioners. The following is an epitome of the 
 measure as passed by the State Council : — 
 
 In this ordinance the Land Commissioners are 
 charged with continuing the survey of Easterland 
 into parishes of sixteen square miles, or as near 
 thereto as the features of the country will admit. 
 The parishes are to be divided into sections of 640 
 acres, and these are to be divided into 80-acre 
 blocks, which blocks are to be sub-divided into 
 10-acre lots as required for settlement. A town or 
 village is to be laid out in each parish ; 160 acres 
 being the area assigned for a village, and 320 acres 
 for a town, each having a similar area reserved for a 
 common. All land is to be held on perpetual lease- 
 hold tenure and subject to rent appraisement every 
 
 thirty years. Land is to be open to selection after 
 
 29
 
 30 LAND ORDINANCE 
 
 survey and proclamation to that effect. Any person 
 who has attained the age of eighteen years may select 
 one or more lots up to one entire block of eighty 
 acres of rural land. Town sites are to be surveyed 
 into |~acre lots, and one or two lots may be selected. 
 Village sites are to be surveyed into ^-acre lots, and 
 one or two lots may be selected. Occupiers of all 
 classes of land are to be at liberty to sell their tenant- 
 right of one or more lots, but they are not to sub-let. 
 Dwelling-houses may be erected and let out to 
 tenants on parish land, provided that not less than 
 half an acre is attached to each house. The penalty 
 for a breach of this condition is to be double rent. 
 All State tenants are entitled at any time to surrender 
 any number of adjoining lots to the Government. 
 On town and village land a house must be erected 
 within twelve months, and if two lots are held a 
 second house must be erected within two years from 
 date of selection. Failure to fulfil the building 
 conditions renders the lot or lots on which failure 
 has been made liable to be selected by other 
 persons. 
 
 Rural parish land must be occupied within six 
 months from date of selection, and one-tenth of it 
 must be cultivated within two years, and one-tenth 
 of it every subsequent year until six-tenths is culti- 
 vated. The remaining four-tenths may be used for 
 residence or in any way the occupier thinks best. 
 Failure to fulfil the cultivation condition subjects as 
 much of the land as is not protected by cultivation 
 to be open to selection by other persons, even should 
 portions of each lot be under cultivation ; but 
 reselectors are to pay to the occupier the appraised 
 value of improvements.
 
 RAPARA 31 
 
 Leases are to date from the 1st of July preceding 
 the date of selection, and a full year's rent has to be 
 tendered with the application ; subsequent rents are 
 to be paid on or before the 30th of September in each 
 year. The rent of town and village land — Raota 
 excepted — is to be £1 per lot ; of rural land, 2S. per 
 acre ; but the Land Commissioners are charged with 
 the duty of grading the rents according to value, with 
 power to increase the rent to 2/6 for extra good land 
 and to decrease the rent to 1/6 for extra poor land. 
 Leases are to confer no right to any minerals under- 
 ground. 
 
 The Commissioners are empowered to take from, 
 add to, or resume such portions of occupied land as 
 may be required for perfecting surveys or for roads, 
 and receive from or pay to the occupier the appraised 
 value thereof. 
 
 All parishes in which the land is partly occupied 
 is to be at once proclaimed open to selection. Other 
 parishes may be proclaimed open to selection at the 
 discretion of the Commissioners ; but when the Com- 
 missioners have received written applications for 
 one-tenth of the land in any parish block, a pro- 
 clamation is to be at once issued. The unoccupied 
 land in any proclaimed parish is to be under the 
 control of the residents, who are to pay to the State 
 4d. per acre ; the residents are empowered to make 
 regulations for depasturing stock, removal of timber, 
 stone, roots, and other natural products, and are em- 
 powered to levy rates for carrying out all necessary 
 roads, fences, drains, bridges, and other works. 
 
 All main roads are to be formed and maintained 
 by the Commissioners so as to reach the boundary 
 of every proclaimed parish.
 
 32 LAND ORDINANCE 
 
 The Commissioners are empowered to resume land 
 for any public purpose and for extending the area of 
 any town or village in which all the lots are occupied 
 on receiving applications for building sites from not 
 less than ten persons. The resumed land and its 
 improvements are to be appraised, and the value, 
 together with 10 per cent., paid over to the occupiers. 
 The applicants are to pay their share of the value of 
 the improvements and to be subject to the same 
 conditions of rent as other occupiers of town or 
 village land. 
 
 It is provided that all land occupied or selected 
 before the time when this ordinance comes into 
 operation — except the land granted to the pioneers 
 — is to be subject to the rents and conditions pre- 
 scribed in this ordinance. 
 
 The maximum area of land to be selected by any 
 one person is to remain at eighty acres until 1880 ; but 
 on and after that date the maximum area to be 
 selected and the maximum area to be occupied by 
 any one person, whether acquired by selection, 
 purchase, succession, gift, or as mortgage, may be 
 reduced from time to time by a vote of the State 
 Council as pressure of population may require ; but 
 the minimum is in no case to be less than twenty acres. 
 When any such reductions are made the Land Com- 
 missioners are empowered, on the application of any 
 person who has resided ten years in Rapara, to resume 
 the excess of the land applied for and put the appli- 
 cant in possession on payment of the value of the 
 appraised improvements with 10 per cent, added. 
 
 The Commissioners are empowered to fix rates for 
 grazing on rural land or at their discretion to leave 
 such land for any period not exceeding seven years,
 
 RAPARA 33 
 
 subject to cancellation on twelve months' notice. 
 They are likewise empowered to lease the islands of 
 Bora and Tontabu for grazing only for any period 
 not exceeding twenty years, such rent to be deter- 
 mined by tender. 
 
 "Cultivation" is denned to include all land 
 ploughed, trenched, or otherwise prepared, which 
 is sown or planted yearly with any kind of grain or 
 vegetable ; likewise land planted with fruit trees or 
 bushes, coffee, sugar, or other useful plants, or having 
 the soil kept clear of weeds by cultivation ; likewise 
 land ploughed or otherwise prepared, sown with 
 grass or other fodder, or plants, at least every five 
 years ; and one-fifth of the area of the cultivated 
 land may consist of land in fallow. 
 
 On the requisition of any five persons the Com- 
 missioners are to hold an inquiry as to whether the 
 occupier of any rural land has fulfilled the conditions, 
 and if not may authorise any person to re-select as 
 much of such land in adjoining lots as is not pro- 
 tected by fulfilment of conditions, the applicant 
 paying the value of the appraised improvements. 
 
 The Commissioners are empowered to frame regu- 
 lations for carrying the provisions of the ordinance 
 into effect, and on receiving the sanction of the 
 Executive Government these provisions are to have 
 the full force of law. 
 
 The land-purchase party in the Council were taken 
 by surprise when they found that the Commissioners' 
 report did not pronounce in favour of the sale of 
 land, and expressed their indignation against the 
 Commissioners for reporting in favour of a leasehold 
 tenure, which they contended was an unheard-of 
 
 4
 
 34 LAND ORDINANCE 
 
 proposal and contrary to the practice that obtains 
 in all civilised countries. " If such a system is the 
 outcome of reason and intelligence, why," asked 
 Mr. Walker, " has it not been adopted in America, 
 Australia, and other new countries in course of 
 settlement ? The reason should be obvious to every 
 intelligent person, and particularly to those who have 
 had any experience in the settlement of a new 
 country, where the greatest want is of roads, bridges, 
 wharfs, and other public works, without which the 
 land is worthless. To enable these works to be pro- 
 vided it is absolutely necessary to sell the land so as 
 to obtain the necessary funds. There is another 
 equally strong reason why the land should be sold, 
 and that is that the occupier may feel that the land 
 is his own property and that such improvements as 
 he may make are secured to himself and his family. 
 Our presence here is due to the enterprise of the 
 pioneers, who at their own expense undertook a long 
 and costly voyage to ascertain the suitability of the 
 island for settlement. Would such a voyage have 
 been made in search of land that could not become 
 the property of the voyagers and for which they 
 would have to pay a yearly rent ? No ; freehold land 
 was the lodestone in their case and we must main- 
 tain the same attraction, or see the country go back- 
 wards, and those of us who have means, energy, 
 and industry, deprived of the competency in quest 
 of which we came — a competency for which we 
 severed our connection from dear friends and from 
 our native country. Are we to be deprived of our 
 right by allowing this wild, socialistic measure to 
 become law ? No ; in the interests of ourselves and 
 of the country we will propose an addendum to this
 
 RAPARA 35 
 
 ordinance, which will enable those who desire free- 
 hold land to obtain it, and at the same time allow 
 those who prefer leasehold to enjoy it under the 
 provisions of the main part of the ordinance." 
 
 Such arguments were answered by the leasehold 
 party with the contention that the allegation made, 
 that freehold tenure was necessary to induce the im- 
 provement of land, was in direct conflict with past 
 experience. England, Ireland, and Scotland, they 
 said, all had had the institution of private property 
 in land in force for over three hundred years ; yet 
 English statistics showed that not more than one- 
 seventh of such freehold land was cultivated by the 
 owners, who compelled the cultivators to pay such 
 high rents that tenants could only pay their labourers 
 starvation wages. It would be deplorable if such a 
 state of things should ever obtain in that country. 
 "We admit," they said, "that so long as there is 
 plenty of unoccupied State land open for settlement, 
 private landowners can do little injury to indi- 
 viduals or the public ; but as soon as all State lands 
 have become private property and the island fully 
 populated, landowners can and will demand rents 
 that will only leave the cultivators a bare subsistence, 
 or may perhaps follow the example of Irish land- 
 lords and enforce such rents as will reduce the 
 cultivators to semi-starvation." 
 
 With regard to the necessity of selling land in 
 countries under settlement so as to provide funds for 
 the construction of roads, bridges, and other works, 
 it was true, they admitted, that this course had been 
 followed in North America and Australia and other 
 new countries ; but that was no proof that the 
 practice was a wise one. "We have here in Rapara,
 
 36 LAND ORDINANCE 
 
 before our eyes, evidence to the contrary in the fact 
 that land rentals have furnished funds for the con- 
 struction of roads, bridges, and other works in pro- 
 portion to the amount of settlement. No doubt the 
 construction of these works has been aided by the 
 issue of State notes, but this aid has cost the country 
 nothing, as the State notes were urgently required 
 for currency, and have therefore served two useful 
 purposes." 
 
 A Mr. James Wilson, a strong advocate of national 
 land and a man who was looked upon as the ablest 
 advocate in the Council, said he could not allow 
 the discussion to close on this part of the question 
 without pointing out that he had, without going to 
 England, the most positive and direct proof here 
 in Rapara that freehold tenure in land did not tend 
 to promote cultivation and improvement. " Look," 
 he said, " at the block of 5,000 acres granted to the 
 pioneers. It is in close proximity to the town ; it is 
 all good soil, well adapted for cultivation. It has 
 been in their possession for eight years, yet not one- 
 tenth of it is under cultivation. Contrast this with 
 the land taken up on lease along the Koran road, 
 fully one-half of which is now in cultivation. If 
 this were an isolated case it would be of little weight 
 as an argument ; but observe that the owners of 
 freehold land in England, Ireland, and Scotland do 
 not cultivate their land : they let it out to others on 
 conditions that offer no inducement to improve- 
 ments, two-thirds of it being let from year to year 
 and the improvements confiscated whenever the 
 landlord thinks fit to resume possession. Leaseholds 
 in England — the outcome of freehold land tenure — 
 are as a rule granted at rack rentals ; there is no
 
 RAPARA 37 
 
 tenant-right, and the rent has to be paid over to 
 the landlord for his own use. Now, in Rapara 
 leaseholds are granted on moderate rent ; all im- 
 provements are the property of the tenant, and 
 possession is secured to him and his descendants for 
 ever ; moreover, the rent is paid into a State fund 
 of which he is part owner and from which he will 
 receive his share in the use of roads, bridges, and 
 other public works. 
 
 " Mr. Walker," Mr. Wilson continued, " has en- 
 deavoured to cast odium on this Land Bill by 
 characterising it as a wild, Socialistic measure ; but I 
 have too high an estimate of his intelligence to 
 believe that he holds this opinion. As, however, 
 there may be some members of this Council who do 
 not recognise the radical difference between natural 
 wealth, the raw material of the earth, and produced 
 wealth, the produce of labour, it may be as well to 
 point out that natural wealth is the gift of nature and 
 cannot be increased by the labours or efforts of man ; 
 it therefore belongs to all and should be used for 
 the general benefit. Produced wealth is derived from 
 natural wealth and may be increased indefinitely 
 by the labour of individuals ; it therefore belongs 
 to and is the private property of the individuals who 
 produce it, to be used for their own benefit. Now 
 it will be seen that the monopolistic individualist — 
 representing the general policy adopted by most 
 civilised countries — makes both natural and pro- 
 duced wealth private property, while the commu- 
 nistic collectivist desires to make both natural and 
 produced wealth public property. On the other 
 hand, the Radical, or more properly the equalistic 
 individualist party, to which I belong, holds that
 
 38 LAND ORDINANCE 
 
 natural wealth is inherently public property, and 
 should be used for the general benefit, while pro- 
 duced wealth is justly the property of the individual 
 who produced it, and should be used for his own 
 benefit. My friends and I are thus just as much 
 opposed to the doctrine and practice of the mono- 
 polistic individualist who makes natural wealth 
 private property, as to those of the communistic 
 socialist who is striving to make produced wealth 
 public property. We hold, I repeat, that all natural 
 wealth belongs to the community in common, and 
 that all produced wealth belongs to the individual 
 producer in particular. I know — he said — that there 
 are a large number of people who do not recognise, 
 or will not acknowledge, the radical difference 
 between natural and produced wealth. This arises 
 from several causes. Some people lack the neces- 
 sary mental ability to reason out the matter. Others 
 are dominated by their early education to an extent 
 that amounts to mental emasculation. Others have 
 strong predilections in favour of a wealthy -landed 
 aristocracy, and they defend private property in 
 land solely for this reason, regardless of its other 
 effects. But the largest number consist of those 
 too indolent to consider this or any other measure 
 of reform, and are therefore the greatest barriers to 
 all measures of progressive legislation. A previous 
 speaker stated that freehold land was the lode- 
 stone that brought the pioneers to Rapara, and 
 that this lodestone must be maintained to draw 
 population to our shores. The gentleman who 
 made this statement has exhibited intelligent fore- 
 sight ; for although freehold land will have little 
 advantage over leasehold until all State lands are
 
 RAPARA 39 
 
 occupied, when this is attained and land is in great 
 demand, the freeholders will be able to drain out of 
 the masses of cultivators in the form of rent that 
 competency which he said we all came here to 
 seek — that is to say, a fortune. Now, it is to prevent 
 such a state of things that I favour leasehold and 
 oppose freehold tenure ; and although fortunes may 
 not be made out of cultivation under leasehold 
 tenure, a comfortable living will doubtless be 
 secured with sufficient means to rear a family, and 
 sufficient savings to provide for old age." 
 
 From other speeches made on the occasion we 
 select what seems likely to interest the reader. One 
 member contended that it was unwise to charge a 
 rent on that portion of the land which by the Act 
 might remain uncultivated, as it was a charge on un- 
 productive land. To this it was answered, that such 
 land need not remain unproductive, selectors 
 being in no way restrained from cultivating the 
 whole. To allow uncultivated land to go rent free 
 would result in every one taking up more land 
 than he intended to cultivate, thereby scattering 
 settlements all over the country, and by this means 
 increasing the expense of road-making, schools, and 
 other things. One councillor urged that as the 
 great object of the Bill was to give all who had the 
 means and were desirous to cultivate an opportunity 
 of securing the necessary land, and as no single 
 person could by his own labour cultivate more than 
 ten acres, the right to select eighty acres was calcu- 
 lated to defeat this object. The answer to this 
 expressed the Radical view, which recognises the 
 various degrees of intelligence, enterprise, industry, 
 physical strength, and pecuniary means possessed
 
 40 LAND ORDINANCE 
 
 by different persons. Such variation being con- 
 sidered, the range from ten to eighty acres was not 
 more than was required to give these qualities full 
 play ; whereas by making the lots uniform in size 
 we should be compelling some to take more and 
 others less than they could cultivate. One person, 
 it was argued, has a large family, expensive tastes and 
 habits. To minister to these he is willing to work 
 ten or perhaps twelve hours per day and to keep 
 thirty acres in cultivation. Another person has a 
 small family, simple tastes, few wants, and perhaps 
 little physical strength and no capital. Such a 
 person would prefer to take up ten acres which he 
 could cultivate in preference to paying rent for 
 twenty acres, half of which would remain unpro- 
 ductive ; others again, with the aid of capital, 
 energy, and hired labour, would be able to cultivate 
 forty or perhaps sixty acres. To the employment 
 of hired labour a member (who held Socialistic 
 views) objected on the ground that all should be on 
 a footing of what he called equality. He was met 
 with the objection that the non-employment of 
 hired labour instead of producing equality would 
 be the means of producing the greatest inequality. 
 What, it was asked, would be the position of young 
 men without means and dependent on the sale of 
 their labour ? What would be the position of those 
 too ignorant or too improvident to undertake the 
 cultivation of land on their own account ? If the 
 area of allotment were limited to what one man 
 could cultivate, these weaklings must be reduced to 
 starvation. 
 
 That the ignorant and the improvident are to be 
 found, and will continue to be found in every
 
 RAPARA 41 
 
 community, cannot be denied, and any Land Act 
 which ignores them will inevitably prove abortive. 
 Mr. Walker, the leader of the Conservative party, 
 challenged the right or the wisdom of placing any 
 limit to the quantity of land to be held by one 
 person, so long as the holder paid the State rent 
 and fulfilled the State conditions. There might be 
 reason, he said, in limiting selections to eighty or 
 a hundred acres ; but when the legal conditions of 
 occupation were fulfilled, there was no good reason 
 for preventing the taking up of other selections. 
 To this it was answered by Mr. Wilson that doubt- 
 less the limitation was an arbitrary law not based 
 on any economic principle, but notwithstanding 
 this the past experience of European countries made 
 it a social necessity. The extremes of wealth and 
 poverty, the destitution and starvation to be seen 
 in Europe, should be carefully guarded against here, 
 and the Bill proposed to do nothing more than 
 prevent persons from holding large areas of land 
 to the exclusion of others ready to cultivate to as 
 great, or perhaps greater, extent than the occupier. 
 The restriction to one block of eighty acres formed 
 no restriction to the acquisition of large estates, as 
 the selections of others could be purchased to any 
 extent. To meet this danger the Bill wisely pro- 
 vided that land held in excess of eighty acres by one 
 person could be resumed by the State for home- 
 steads for others on payment of the appraised value 
 of improvements with 10 per cent, added. The 
 provisions made as to sub-letting had the same 
 object in view, that is, to prevent the acquisition 
 of large estates ; and all but extreme Conservatives 
 must acknowledge that these provisions are justified
 
 42 LAND ORDINANCE 
 
 in the interests of the country and of future genera- 
 tions. 
 
 The section defining cultivated land was strongly 
 objected to by several speakers. Why, they asked, 
 should a farmer who preferred to put most of his 
 land under artificial grass be prevented from doing 
 so by the proviso that not more than two-tenths of 
 the cultivated area was to be in grass ? Surely the 
 farmer was the best judge of what he should or 
 should not cultivate ; and to compel him to plough 
 up land that had been in grass for five years was 
 the height of injustice. The reply was that, whereas 
 permanent grass might satisfy some wealthy or 
 indolent farmers, cultivation turned the land to a 
 higher and more productive use, and enabled a 
 greater number of people to subsist on a smaller 
 area ; that even for stock-feeding five acres under 
 cultivation would feed more stock than fifteen acres 
 under permanent pasture. It would be thus grave 
 injustice to allow large areas of land to be used for 
 pasture, when others were willing to take them 
 up for cultivation and to turn them to better 
 account. 
 
 The provisions empowering the Commissioners 
 to resume land for the extension of towns and 
 villages were strongly objected to ; but it was shown 
 that in the absence of such provisions people might 
 be unable to obtain land for residences and be 
 reduced to the dreadful condition that obtains in 
 Europe, and particularly in England, where thou- 
 sands of people are denied land on which to reside 
 in the very parish in which they were born. We 
 all admit that the lands of Rapara belong to the 
 community ; surely any law that can prevent any
 
 RAPARA 43 
 
 member of this community from acquiring land 
 whereon to live is a denial of the inherent right 
 to live in one's own country. Moreover, as the 
 terms of resumption provide for the payment of 
 all improvements at their appraised value with 10 
 per cent, added, the occupier is treated with justice 
 and consideration. 
 
 At this stage in the discussion Mr. Russell gave 
 notice that he would propose an addendum to the 
 Bill when the several sections were dealt with, and 
 he laid this addendum on the table. It was no 
 sooner read over than the Council was seized with 
 the greatest excitement, and the leasehold party lost 
 control of speech and action. The following is a 
 copy of the addendum : — 
 
 " Notwithstanding anything to the contrary in the 
 provisions of this ordinance, any present or future 
 occupiers of town, village, or parish land shall on 
 and after the first day of January, 1851, be entitled 
 to purchase the fee-simple of such land at its 
 capitalised rental of twenty years, one-half of which 
 shall be payable at date of purchase and the balance 
 by three equal yearly payments. And the purchase 
 of the fee-simple shall release such land from the 
 conditions of residence, cultivation, sub-letting, 
 house-building, and sale or purchase." 
 
 This proposed addendum produced great con- 
 sternation amongst the leasehold party. It was well 
 known that the monopolistic individualist party had 
 been intriguing both with the Europeans and with 
 the native members to support this amendment ; 
 hence came a conviction that Mr. Russell would 
 not have proposed it unless he felt sure of carrying 
 it. A meeting of the leasehold party was held, and
 
 44 LAND ORDINANCE 
 
 it was determined to take immediate steps to rouse 
 the people to a sense of their impending danger. 
 
 In pursuance of this determination, couriers were 
 sent round amongst the farmers and settlers inform- 
 ing them of the position of affairs. Meetings were 
 held both in the town and in the country, and 
 resolutions were carried to resist the passage of the 
 addendum, even by force of arms should need be. 
 The people, or at least a large majority of them, 
 were kindled to fury, and marched through the 
 town in martial order, carrying firearms and shouting 
 " Death to the Traitors ! " So great was the uproar, 
 so general the excitement, that when the Council 
 met it refused to proceed with the business, and 
 adjourned for three days. During this time the 
 members of the Executive enrolled a guard to pro- 
 tect the Council during its deliberations. 
 
 The Council met at the appointed time and 
 resumed the discussion on the remaining sections 
 of the Bill. Considerable debate arose on the 
 section relating to the land granted to the pioneers. 
 The report of the special commission to which the 
 question was referred practically sustained the claim 
 of the pioneers, and held that the payment in goods 
 made to the native chiefs was given and accepted as 
 payment for the fee-simple of the land ; that the 
 value of such goods at the time was £iSo, and the 
 cost of the voyage ^500, making a total of ^680 
 which the pioneers had paid for their land. Several 
 of the native chiefs protested against the adoption 
 of the report, pointing out that, even if the pioneers 
 were entitled to include the cost of the voyage as a 
 portion of the cost of the land as between them 
 and the European settlers, it could not in justice
 
 RAPARA 45 
 
 form any part of the payment to the native chiefs. 
 Those in favour of the report of the Commission 
 admitted that the payment, including the cost of the 
 voyage, was far below the value of the land now 
 that increase of population had augmented the 
 ground value, but contended that at the time it was 
 made, and under the then circumstances, it was 
 a fair consideration for what was received. Mr. 
 Wilson supported this view of the case, but agreed 
 that the cost of the voyage had nothing to do with 
 the native chiefs, who were short by ^.500 of the 
 value of the land as indicated by the Commis- 
 sioners' report. As the forms of the Council would 
 not allow him to propose that this sum be awarded 
 to the native chiefs, he would, he said, ask the 
 Treasurer, Mr. Russell, to do so ; and he would 
 suggest the insertion in the motion of a recom- 
 mendation that Oman, chief of Kono, and Wanga, 
 chief of Koran, should receive shares equal to those 
 of the other chiefs. If the proposed compensation 
 were not granted, he would oppose the project of 
 the Commissioners. Mr. Russell adopted the sug- 
 gestion, and moved that the sum of ^500 be paid 
 over to the native chiefs, one-fifth each to Tira and 
 Temba, and the balance in equal shares to Malla, 
 Gom, Oreki, Narjika, Oman, and Wanga. The 
 Treasurer said that in proposing to give Tira and 
 Temba a larger share than the others, he had done 
 so with the consent of other chiefs, as such a 
 division was in accordance with native rights and 
 customs. 
 
 Several members, both European and native, 
 objected strongly to the absence of any cultivation 
 condition. "Look," they said, "at the evil effects
 
 46 LAND ORDINANCE 
 
 that have already arisen through the non-enforce- 
 ment of cultivation. Here is a block of some 5,000 
 acres only one mile from the town boundary ; it is 
 all suited for cultivation, while up to the present 
 time only about one-twelfth of it has been brought 
 under the process. Now, although there was a dis- 
 pute between the pioneers and the natives as to the 
 tenure of the land, there is no dispute that it was 
 clearly understood by both parties that the land was 
 to be used for cultivation." After considerable dis- 
 cussion the section was passed, and the long and 
 vexatious dispute seemed to have come to an end. 
 
 Nevertheless, on a subsequent occasion the culti- 
 vation condition was again brought under discussion, 
 and was objected to on the ground that selectors, 
 when taking up land, might miscalculate as to the 
 quantity they would be able to cultivate. Sickness 
 or other misfortunes might overtake them and pre- 
 vent fulfilment of the cultivation condition, thereby 
 making their land liable to be selected by others, 
 perhaps at a time when improved circumstances 
 would have enabled them to increase the rate of 
 cultivation to such an extent as to reach the pre- 
 scribed proportion and so preserve the whole of 
 their land. To this it was answered that the pre- 
 scribed proportion of cultivation was made very 
 small to meet such cases, and that the absence of a 
 cultivation condition would go a long way to defeat 
 the object of the Bill, which was to give all an 
 opportunity of taking up land for cultivation at a 
 moderate rent, to cover the cost of the roads and 
 bridges necessary for the use of such land. It had 
 been said that the State rent would compel most 
 people to cultivate their land, and that in any case
 
 RAPARA 47 
 
 owners should be credited with sufficient intelligence 
 to know what their own interests were. Now, if self- 
 interest induced landowners to put it to its most 
 profitable use, the large parks, pleasure grounds, and 
 game preserves in England would not, it was argued, 
 be found there ; but their existence showed that 
 pecuniary considerations fail to cause land to be put 
 to its most profitable or highest use. Under State 
 ownership to take land from occupiers which they 
 did not cultivate inflicted on them no loss. To give 
 it to persons willing to cultivate it enriched both 
 the State and the cultivator. 
 
 Taking the Bill as a whole, we are confident that 
 the cultivation condition is the very kernel of the 
 measure and will prove a blessing to future genera- 
 tions. 
 
 After the various sections had been gone over 
 and passed with some unimportant amendments, 
 Mr. Russell proposed the addendum of which he 
 had given notice. 
 
 He said "his addendum did not propose to 
 interfere with the main principle of the Bill — lease- 
 hold tenure ; it simply enabled those who preferred 
 freehold tenure to secure it, whereas those who pre- 
 ferred leasehold tenure could continue to occupy 
 under the provisions of the Act. As for the culti- 
 vation condition, he neither believed in its wisdom 
 nor thought that it could be enforced by the pro- 
 posed pains and penalties ; and, as to the accumu- 
 lation of large estates, he did not see why industrious 
 and provident persons should not have the same 
 opening for investment in land as was enjoyed 
 elsewhere. To close this opening would have the 
 effect of making them transfer their savings to other
 
 48 LAND ORDINANCE 
 
 countries, and so deprive the island of the greater 
 part of its capital. He knew he said that the native 
 chiefs were divided on the subject of the rent charge 
 made by the ratiras on cultivated native land, and 
 he now warned those in favour of this rent charge 
 that if his freehold land proposal was negatived the 
 rent charge on native land would meet a similar 
 fate ; for it was evident that the rent charge could 
 not be sanctioned unless the land on which it was 
 made was adjudged to be the freehold land of the 
 ratiras. Finally, he felt it his duty to caution them 
 not to be coerced by the clamour, riot, and threaten- 
 ing language with which the town had been resonant 
 for the past week. Let them vote fearlessly, every 
 one according to his own convictions." 
 
 Mr. Wilson replied, and said " he likewise would 
 advise every one to vote according to his convic- 
 tions ; at the same time convictions might be based 
 on erroneous data, or on true data erroneously 
 reasoned from, or misapprehended, and he felt that 
 some further explanation of the matter at issue 
 should be submitted to them before they came to a 
 vote. In the first place Mr. Russell had referred to 
 the excitement and threatening language used by the 
 people outside. He would yield to no one in his 
 respect for law and order, and denied that any acts 
 of riot had taken place. Yet he was willing to con- 
 fess that plain language had been used, and he held 
 that the strongest protests were warranted by the 
 circumstances of the case. Some time back a 
 petition signed by a majority of the people was 
 presented, praying the Council to have a general 
 election before dealing with the Land Ordinance. 
 This petition was considered and rejected by the 

 
 RAPARA 
 
 49 
 
 Council. No one would dispute the fact that at 
 the time the present Council was elected leasehold 
 tenure of land was the accepted policy of the 
 country. Now, whilst land tenure properly came 
 within the province of the Council, it was entirely 
 beyond their right and inconsistent with their duty 
 to depart from a settled line of policy without 
 giving the electors an opportunity to express their 
 opinion on such an important question. The 
 people, then, were fully justified in their protests, 
 nay, they were justified in making threats and carry- 
 ing them into execution as a means of resisting such 
 an unwarranted and treacherous proposal. He, for 
 his part, would discharge his duty by beseeching the 
 Treasurer to withdraw his addendum, and not to 
 imperil the peace of the country and the lives of its 
 people. There was a saying, " Whom the gods wish 
 to destroy they first make mad," and should Mr. 
 Russell persist in putting this motion to the vote, 
 whether it were carried or not, he would be com- 
 mitting political suicide. Should the motion be 
 continued and put to the vote, I earnestly ask 
 every member of this Council, whether in favour 
 of freehold tenure or not, to vote against it and let 
 the question come before the people at a general 
 election. When the majority have pronounced all 
 will accept the decision." 
 
 Oreki, the chief of Oman, said " he had intended 
 to support the motion, as he believed that the 
 land should belong to the white chiefs as well as to 
 the Maori chiefs and that the tagatas (or working 
 people) of both races should pay them rent ; but 
 he thought the arikis, ratiras, and tiras should 
 have a voice in the question, more especially as its 
 
 5
 
 50 LAND ORDINANCE 
 
 decision now might rouse men to deeds of blood. 
 He should therefore, although he had promised to 
 support the proposal, vote against it, and he asked 
 his Maori friends to do so likewise." Several other 
 speeches were made for and against the motion. 
 One native chief, Manjiki of Permack, said that he 
 scorned the white tagatas and their threats of blood- 
 shed ; and if Mr. Walker would give the order he 
 would bring his people to Raoto and punish these 
 turbulent tagatas. Owing to the uncertainty of the 
 result both parties prevented the question from being 
 put to the vote for some time, and when it was put 
 the excitement was so intense that no one answered 
 " ay " or " no " for some time. When the division 
 took place the motion was negatived by a majority 
 of three votes, there being five Europeans and three 
 natives for and six natives and five Europeans 
 against it. 
 
 The clause empowering the Government, subject 
 to the advice of the Land Commissioners, to resume 
 land from leaseholders who held more than fifty 
 acres and who had fulfilled the cultivation conditions, 
 for the purpose of re-leasing it to others, was again 
 brought up for consideration. Mr. Kemp said that 
 he was opposed to such a provision even if all the 
 land fit for cultivation was taken up. In any case it 
 would be time enough to grant such a power when 
 the necessity for its exercise arose. Mr. Wilson 
 replied to the effect that there was no likelihood 
 of such a power being required for the next thirty 
 years, but if no provision was made in the ordi- 
 nance such resumptions would be looked upon as 
 repudiation. He therefore, to get over the difficulty, 
 begged to amend the clause, so as to empower the
 
 RAPARA 51 
 
 Council, after thirty years from the passing of the 
 ordinance, to reduce the maximum both of selection 
 and occupation, so that the rising generation should 
 not be deprived of their right to occupy and culti- 
 vate land. He thought there was no reason to fear 
 that the Council would carry the reduction in the 
 maximum area to a point detrimental to profitable 
 cultivation. At the same time the clause provided 
 that the maximum should not be reduced below 
 twenty acres. Doubtless ten acres would be suffi- 
 cient to occupy the time and energy of one man ; 
 but if the holdings were limited to ten acres there 
 would be no employment on the land for those 
 whose means did not permit them to cultivate on 
 their own account. He did not consider that immi- 
 grants from other countries had a right to claim a 
 share of the land in private occupation ; but it was 
 otherwise with those born or long resident in the 
 country, and therefore the latter only had the right 
 to claim land in excess of the maximum. 
 
 Several speakers opposed the clause on the ground 
 that it destroyed fixity of tenure and perpetual lease. 
 No doubt, they said, the State has a right to see 
 that the selected land is properly cultivated, but who 
 carries out this cultivation is a question with which 
 the State has nothing and should have nothing to do. 
 If an industrious and enterprising man has even 160 
 acres of land in cultivation, where is the wisdom or 
 justice in taking a portion of that land from him and 
 giving it to another who cannot make it more but who 
 may make it less productive ? This was answered by 
 others to the effect that such views might be fairly 
 advanced in European and other countries that dis- 
 regarded the rights and uses of natural wealth, and
 
 52 LAND ORDINANCE 
 
 carried out a polity based on the laissez-faire doc- 
 trine, but was entirely out of place in Rapara, where 
 natural wealth is held to belong to all, and is to be 
 used for the public benefit, and where the view pre- 
 vails that it is the duty of the State to legislate so as 
 to avoid as far as possible extremes in either wealth 
 or poverty. After considerable discussion the clause 
 was agreed to. The Report was adopted, and the 
 second reading was carried on the following day by 
 a majority of three votes.
 
 CHAPTER V 
 
 EVENTS AND DEVELOPMENTS, 1850-1860 
 
 Weekly Herald started — Gold discoveries in California — Weekly 
 Times started — Gold discoveries in Australia and effects — 
 Exodus of settlers — Coffee factory opened — Return of settlers — 
 Occupation of Maoris — Census in 1853 — Discussion on exports, 
 imports, and incomes — Decrease in wages — A strike averted 
 and discussion thereon. 
 
 The passage of the Land Ordinance and the defeat 
 of Mr. Russell's addendum had the effect of restor- 
 ing tranquillity ; but a section of the native chiefs 
 felt it a grievance that the Land Ordinance did not 
 deal with native lands : they had hoped it would 
 enable them to enforce the payment of rent for all 
 cultivated land. Several influential Europeans were 
 displeased at the decision of the Council with respect 
 to the land granted to the pioneers in 1840. The 
 land-purchase party were sorely disappointed at the 
 defeat of their motion, as sufficient votes had been 
 pledged to carry it, but three of the voters had been 
 coerced by fear, they said, to vote against it. They, 
 however, expressed their determination to use every 
 effort to procure a majority in its favour. With 
 these exceptions the Land Settlement was looked upon
 
 54 EVENTS AND DEVELOPMENTS 
 
 as a just and intelligent measure calculated to en- 
 courage settlement and cultivation. The narrow 
 escape the people had had from having private 
 property in land thrust upon them showed them the 
 dangerous position in which they stood ; convinced 
 them that safety could only be found in a general 
 election, in which all householders should have a 
 vote ; and suggested the advisability of increasing the 
 number of European councillors in proportion to the 
 increase in European population. 
 
 In 185 1 a newspaper called the Weekly Herald was 
 started. It professed to belong to neither party, and 
 announced that it would open its columns for the 
 discussion of party questions to both parties alike. 
 For about three months it adhered to this promise, 
 but was gradually compelled to depart from it and 
 take up a definite attitude. Within six months from 
 its first publication it became the recognised organ 
 of the Conservative party. The Radicals were un- 
 represented until, in 1852, a second newspaper, called 
 the Weekly Times, came out as their avowed organ, 
 and devoted a large part of its columns to economic 
 and political questions. This compelled the Herald 
 to adopt a similar course. Thus the people of 
 Rapara had both sides of every question placed 
 before them, and were free to support what they 
 believed to be the wisest and the best policy. 
 
 The news of the gold discoveries in California 
 reached Raoto in 1850, and caused considerable 
 excitement. Early in 1851 a vessel left with a cargo 
 of all kinds of produce and some forty-five pas- 
 sengers ; three more followed during the year with 
 similar cargoes and some 176 passengers. Early in 
 1852 the gold discoveries in Australia became known,
 
 RAPARA 55 
 
 and before the end of the year four vessels left for 
 Australia with produce and passengers. At this time 
 fears were entertained that most of the able-bodied 
 men would flock to California or Australia. In 1853 
 and 1854 no less than ten vessels left for California 
 and fourteen for Australia, all carrying a large num- 
 ber of passengers ; but the high prices of all kinds 
 of produce arrested the outward flow of population ; 
 wages, too, had more than doubled. Only a small 
 number sailed in 1855, while many of the early 
 passengers returned. In 1856 and 1857 a g rea t 
 number of returned passengers arrived, and were 
 accompanied by not a few successful diggers with 
 ample means to start farming and other industries. 
 The demand for agricultural produce continued up 
 to 1858, but the quantity and price gradually de- 
 clined, and in i860 agriculture ceased to be profit- 
 able. Some new markets were found in the Pacific, 
 but maize, wheat, and several other kinds of pro- 
 duce were in excess of the demand and declined in 
 value. Coffee and sugar, however, found a ready 
 market in Chili, California, and Australia at remu- 
 nerative prices. There were now seven coffee plan- 
 tations owned by Europeans, and many natives had 
 for some years past devoted themselves to coffee 
 cultivation, which they sold as parchment to Mr. 
 Brown, who in addition to its cultivation had erected 
 a factory for its preparation. Owing to the great 
 increase that had taken place during the past few 
 years Mr. Brown's factory was unable to cope with 
 the quantity, and in 1857 a new factory was erected 
 by a joint stock company in Raoto, which afforded 
 employment to many workmen. 
 
 Since the first settlement the natives had gradually
 
 56 EVENTS AND DEVELOPMENTS 
 
 acquired a taste for a variety of European goods, but 
 the gratification of this desire was restricted by want 
 of money wherewith to purchase such goods, as 
 nearly all their produce was consumed by themselves. 
 They supplied the Europeans with fish and several 
 kinds of fruit. A small number rendered service to the 
 farmers in various capacities ; but their chief employ- 
 ment was in boating, on board whalers, and as coffee 
 plantation hands. In 1851, however, they com- 
 menced growing coffee on their own account, and 
 proved good and careful cultivators. By 1858 there 
 were more than a hundred separate growers engaged 
 in its cultivation. This largely increased their supply 
 of money and their consumption of both home-made 
 and imported goods. 
 
 In 1853 a census of the population was taken, 
 which gave the total population of Rapara at 19,450, 
 or 10,720 males, and 8,730 females. Of this number 
 16,180 were of European race, 2,634 Maoris, and 541 
 Polynesians from other islands. 3,175 Europeans 
 resided in the three towns of Raota, Koran, and 
 Marieta, about 2,100 in villages, and the remaining 
 10,905 in the rural parish lands. 
 
 The area of land cultivated by the Maoris cannot 
 be given, but in Easterland 160,580 acres of State 
 lands had been selected, of which 8,300 had after- 
 wards been surrendered to the State so as to avoid 
 payment of rent for land not required for cultiva- 
 tion ; thus there remained 152,280 acres in occu- 
 pation, and of this acreage about 56,000 acres were 
 under cultivation. The pioneers were granted 6,240 
 acres, making a total of 158,520 acres of land taken 
 up. 
 
 The imports for 1852 amounted to -£29,021, and
 
 RAPARA 57 
 
 consisted of drapery, hardware, iron, chemicals, 
 wine, spirits, tea, and a variety of articles which 
 could not be produced in the island at this period. 
 The value of the exports amounted to -£25,829, 
 coffee, rice, and sugar being the principal contribu- 
 tories to this amount. Wheat, maize, wool, tallow, 
 oil, and hides were likewise exported. 
 
 The revenue amounted to .£31,127, made up of 
 rent of land, .£7,642 ; customs and excise, ^£21,205 ; 
 and pasturage, ^£2,294. The expenditure amounted 
 to ^27,905, leaving a surplus of .£3,222. 
 
 The value of the imports being .£3,200 in excess 
 of the imports, several prominent politicians stated 
 through the Herald that Rapara must be getting 
 indebted to foreign countries, as the imports had 
 exceeded the exports for several years. This was 
 denied by others, who pointed out that the import 
 value included the freight and charges, and in some 
 cases the expected profit, while the export value did 
 not include freight, being the net amount which the 
 goods were expected to realise at their destination, 
 so that the fears of foreign indebtedness had arisen 
 from want of financial and economic knowledge. 
 No, it was said, if the imports exceeded the 
 exports for numbers of years in succession to the 
 extent of 20 or 30 per cent, this would indicate that 
 the country was accumulating a debt to foreign 
 countries. On the other hand a large excess of 
 exports over imports for a series of years would 
 prove that the country had become the creditor of 
 other States. In an article in the Times on the 
 industrial and financial position of the country, it 
 was stated that, although sufficient statistical infor- 
 mation was not available to determine the actual
 
 58 EVENTS AND DEVELOPMENTS 
 
 annual income or the value of home production, 
 yet a close approximation might be arrived at by the 
 information in the census. There were 4,640 adult 
 Europeans, of which 3,480 were engaged in produc- 
 tion, and 1,160 adult Europeans engaged in render- 
 ing services and in distribution. After full exami- 
 nation it was estimated that the 3,480 producers 
 produced goods to the value of .£271,400, being at 
 the rate of about ^78 per annum each, and that 
 those engaged in rendering services and distribution 
 would earn a similar rate of income, which would 
 amount to ^90,400, making the gross annual income 
 amount to ^361,800, or £22 8s. per unit of popula- 
 tion. This view of the case was challenged by the 
 Herald on the ground that the gross amount of 
 income could not exceed the gross value of produc- 
 tion. The incomes of distributors, and those 
 engaged in rendering services, being derived from 
 production must reduce, it argued, the incomes of 
 producers to that extent, so that the gross income 
 could not under any circumstances exceed the gross 
 value of production. It then went on to taunt the 
 Times with publishing novel and visionary opinions 
 on financial and economic subjects, a course which 
 must in the end bring it into public contempt. 
 
 The Times retorted by acknowledging that the 
 Herald, while displaying taste and judgment in its 
 literary articles, had by its economic and financial 
 ignorance already exposed its views on these subjects 
 to general ridicule, principally by attempting to 
 criticise questions beyond its comprehension. The 
 economic conditions, said the Times, regulating in- 
 come are doubtless little understood even by 
 economists, but nothing but crass ignorance could
 
 RAPARA 59 
 
 induce a public journal to deny that the aggregate 
 income can exceed the aggregate value of produc- 
 tion. This excess varies in different countries 
 according to the extent to which division of labour 
 has been carried, and the degree of civilisation to 
 which the State has attained. England, France, 
 Germany, and the United States yield aggregate 
 incomes about double the aggregate value of pro- 
 duction, while Spain, Italy, Russia, Sweden, and 
 Denmark would only yield aggregate incomes vary- 
 ing from 25 to 70 per cent, in excess of the aggregate 
 value of- production. Now, with regard to income 
 in Rapara, as the aggregate value of production is 
 not disputed, the estimated value may be taken as 
 correct. The aggregate value of production being 
 ^25 1,400, this will be the aggregate income of those 
 engaged in production, which will be expended 
 partly on consumable goods and partly for services 
 received. The consumable goods, consisting of 
 food, clothing, and other consumable necessaries, 
 with 5 per cent, savings for maintenance of capital 
 amounts, as will be shown hereafter, to three-fourths 
 of the whole on £203,550, leaving £67,850 to be 
 expended in payment for services rendered. The 
 services are rendered by professional men of all 
 classes — Government officers and employees, domestic 
 servants, and others not engaged in production. 
 Now, as the producers spend three-fourths of their 
 incomes on consumable goods, and one-fourth for 
 services rendered, the income of the service class 
 would be spent in a similar proportion, one-fourth 
 going to the service-rendering class, and three- 
 fourths being expended on consumable goods, until 
 the whole value of production is consumed. By
 
 60 EVENTS AND DEVELOPMENTS 
 
 the time this end is reached these transmitted in- 
 comes will amount to .£90,400, which, added to the 
 original income of ^271,400 of the producers, will 
 bring up the total income to ^"361,800. The esti- 
 mate of the value of production may be 10 per 
 cent, over- or 10 per cent, under-estimated, but that 
 the proportion expended on consumable goods is 
 approximately correct is proved by the fact that the 
 transmitted incomes give the same rate to service 
 Tenderers as is earned by the producers — namely, 
 .£78 each, or ,£22 8s. per unit of population. 
 
 The Herald, or rather a correspondent of that 
 paper, criticised the Times article. The " Times — he 
 confessed — had undoubtedly shown that the aggre- 
 gate income of Rapara largely exceeded the aggregate 
 value of all its productions ; but it had failed to 
 prove the actual extent of this excess, nor had 
 it pointed out where production ends and distribu- 
 tion begins. Is transportation a part of production 
 or of distribution ? he asked. Is the baker a dis- 
 tributor or producer ? Is the value of the farmer's 
 wheat and the miller's flour alike to be credited 
 to production. The difficulty of drawing a line 
 between production and service shows the diffi- 
 culty of ascertaining the actual aggregate value of 
 production, which (notwithstanding transmitted 
 incomes) constitutes the national income." 
 
 In answer to the Herald correspondent the Times 
 replied "that, while freely admitting that the aggregate 
 value of production constitutes the national income, 
 it contended that the secondary or transmitted 
 incomes — in proportion to their volume — are of as 
 much importance as the income derived from direct 
 production ; for it must be manifest that as between
 
 RAPARA 6 1 
 
 two States whose productions are of equal value, 
 the State that yields the largest amount of trans- 
 mitted income must be more civilised, prosperous, 
 and wealthy than the other. There was no doubt a 
 difficulty in drawing a line between production and 
 service, but fortunately the census returns of Rapara 
 almost entirely removed this difficulty, as all those 
 occupied in transportation to a market or port of 
 shipment were classified as producers, and all those 
 engaged in retailing goods and forwarding them 
 to their customers were classified as distributors. 
 As to the bakers and others who are partly manu- 
 facturers or producers, and partly distributors, the 
 census returns, if properly made out, would divide 
 the employees into the two classes in proportion to 
 their services. With regard to the farmer and the 
 miller, or other manufacturer, there was no difficulty 
 in arriving at the value of production, as the cost of 
 all raw material used had to be deducted from the 
 value of the manufactured article. A farmer pur- 
 chases £4 worth of manure and sells ;£ioo worth of 
 wheat to a miller ; the miller manufactures it into 
 ;£i20 worth of flour and bran ; the farmer is there- 
 fore a producer of wheat to the value of £96, the 
 miller is a manufacturer of flour and bran to the 
 value of £io } and, if we include the manure 
 merchant, who is a producer of manure to the value 
 of £4, we have a total in all of £140. If all raw 
 produce were fully manufactured into the state in 
 which it is consumed in the country in which it is 
 produced, its value would be best taken in this state, 
 as such value would then include the cost of prime 
 production, and of all stages of manufacture through 
 which it had passed. But as a large proportion of
 
 62 EVENTS AND DEVELOPMENTS 
 
 raw and semi-manufactured produce is exported 
 from the producing country, it becomes necessary to 
 value it at the several stages through which it has 
 passed, and in this valuation to deduct the cost of 
 the raw material used. We are quite willing to 
 admit — said the writer — in fact, we never claimed, 
 that the value of production and the amount of 
 income given was anything more than a close 
 approximation ; but if the next census is made to 
 include all necessary returns, the actual amount can 
 easily be given. In conclusion, we beg to thank the 
 editor of the Herald for his criticism, which has 
 given us an opportunity of showing him and the 
 people of Rapara how much the interest of all classes 
 of the community are dependent on the volume of 
 production." 
 
 The fall in the price of produce owing to the 
 loss of the Californian and Australian markets com- 
 pelled the farmers to reduce the rate of wages, and 
 the demand for labour was not equal to the supply. 
 The labourers held meetings and threatened to strike 
 against any reduction. It was pointed out to them 
 that the fall in the price of produce necessitated a 
 corresponding reduction in wages ; and should they 
 be foolish enough to strike under such conditions, 
 the larger proportion of them must go without 
 employment ; for, although at this season of the 
 year farmers would be compelled to keep a few 
 men at the old rate of wages, they would not 
 employ any to put in new crops, as they would 
 sustain a loss at present prices and at those antici- 
 pated for the future. The Times took an active part 
 in convincing the labourers that a strike could by 
 no possibility result in their favour. " The men
 
 RAPARA 63 
 
 who arc cultivating land by their own labour," 
 wrote the journal, "have to be content with lower 
 prices, and consequently with lower wages. How 
 can you expect that a strike can compel farmers 
 to employ you at a loss ? If you really think that 
 the wages offered by farmers for your labour are 
 not proportionate to the produce of that labour, 
 there is plenty of land open to you, and at easier 
 terms than in any other country ; and by working 
 on this you could secure the whole value of your 
 labour. Do not, we beseech you, injure yourselves 
 and your employers, and expose your lack of intelli- 
 gence by following the example of your working 
 friends in Europe, who at times strike for higher 
 rates of wages than employers can afford to pay 
 and higher rates than other workmen are willing 
 to accept. When the price of produce rose in 
 1853, 1854, and 1855 wages rose at a corresponding 
 rate ; and had you threatened to strike at that time 
 the rise perhaps might have been secured ; but now 
 there is a great fall in the value of all kinds of pro- 
 duce, and you must either accept lower wages, go 
 without employment, or cultivate land on your 
 own account. Should any of you adopt the last- 
 mentioned course you will find that the price of 
 labour is regulated by the value of its produce. 
 We do not mean to say that this is the case in 
 Europe, where the bulk of the land, the raw 
 material of the earth, is in the hands of landlords, 
 who compel the cultivators to pay rents which 
 leave workmen only a bare subsistence on the coarsest 
 and cheapest class of food. But here the rent is paid 
 into a fund that is expended for your own benefit, 
 you enjoy excellent food, and can save enough in
 
 64 EVENTS AND DEVELOPMENTS 
 
 a few years to set you up as cultivators on your 
 own account." These admonitions had the desired 
 effect, and each accepted the highest wages he 
 could secure. 
 
 At the meeting of the Council in 1852 the 
 business paper, amongst other things, contained 
 " Amendments in the Land Ordinance," a subject 
 of debate which took the Council, or at all events 
 the Radical part of it, by surprise. The first 
 amendment was substantially the same as that 
 proposed by Mr. Russell and defeated in 1850, 
 which enabled the occupier of any leasehold land 
 to turn it into freehold at the capitalised rental of 
 twenty years, and to be freed from all the condi- 
 tions which applied to leasehold land. It was 
 evident that the matter was brought on after due 
 deliberation, as the Council was surrounded by- 
 some thirty special constables fully armed, who 
 prevented all approach to the Chamber by un- 
 authorised persons. Arguments, threats, and pro- 
 tests were freely used by the land-leasehold party. 
 The arguments used when the Land Ordinance 
 was under discussion were repeated, and many 
 fresh ones used against the amendment, to which 
 Mr. Russell replied. He said "he relied on two 
 reasons for a full justification of his action in this 
 matter. First, the amendment did not disturb the 
 existing conditions of leasehold tenure, nor did it 
 compel any one to purchase land. It left people 
 free to occupy land on either leasehold or freehold 
 tenure, as they thought best, and no one could say 
 that the proposed price was not a full and fair one. 
 Second, it was evident that Rapara would be greatly 
 benefited by the construction of works to irrigate
 
 RAPARA 65 
 
 Opara Valley, so as to enable them to render the 
 land now lying barren and unproductive service- 
 able for the growth of rice, which was held to be 
 the most profitable crop that could be grown ; and 
 he trusted that these considerations would be suffi- 
 cient to secure a majority in favour of the motion." 
 The motion, after two hours' discussion, was put 
 to the vote and carried by a majority of two, there 
 being six Europeans and five Maoris for, and four 
 Europeans and five Maoris against. 
 
 The second amendment proposed to extend the 
 area of selection to 320 acres in Opara Valley. 
 Mr. Russell said that his reason for proposing this 
 extension of the area of selection was to enable 
 those who desired to go into rice cultivation to 
 obtain a sufficient area of land, as eighty acres 
 was manifestly too little to enable rice growers to 
 grow at a profit. This view was not held by all, as 
 several asserted that there were no conditions con- 
 nected with rice cultivation that necessitated a larger 
 area than for land under any other kind of grain. 
 The amendment, on being put to the vote, was 
 carried by a majority of four, and the motion, 
 "That these amendments stand part of the Land 
 Ordinance," was passed by a majority of two. 
 When the -public became aware of what had been 
 done they became very excited, and many were 
 afraid that it would be the signal for riot, and even 
 rebellion ; but the Radical leaders took steps to 
 dissuade their followers from such a course, as 
 they saw that the battle had to be fought on the 
 new electoral and constitutional Bill, and that this 
 fight would require all their strength to force a 
 sufficiently liberal measure to enable the wrong 
 
 6
 
 66 EVENTS AND DEVELOPMENTS 
 
 that had been done in passing this freehold con- 
 dition to be rectified by process of law. For this 
 reason the leaders used every means in their power 
 to dissuade all from using threats or force to pre- 
 vent the purchasing conditions from having full 
 play, for if allowed full play, they said, the effects 
 of the Bill in inducing people to take up land to 
 turn into freeholds (the greater portion of which 
 will remain uncultivated) would do more to dis- 
 credit freehold tenure than any argument that could 
 be used. These efforts were successful, and very 
 little was said either in public or private to discredit 
 the contention which prevailed.
 
 CHAPTER VI 
 
 ELECTORAL CAMPAIGN 
 
 Election preparations— Property versus household qualification — 
 General election on old qualification — Second Council met, 
 1855 — New Constitution passed — Epitome of Act — Legalisa- 
 tion of all measures passed by first Council. 
 
 No legislation of importance was undertaken in 
 1853. When the Council met in 1854 the 
 Executive Government proposed a series of resolu- 
 tions on which to base a constitutional and 
 electoral ordinance. These resolutions declared 
 that the State Council should consist of thirty 
 members, twenty to be elected by Europeans and 
 ten by the Maoris ; that its duration should be 
 seven years, unless sooner dissolved ; that the 
 President should be empowered to dissolve the 
 Council when a no - confidence vote was passed 
 against the Executive Government, and to nomi- 
 nate a member of the Council to the position of 
 head of the Executive, who was empowered to 
 chose his own colleagues ; that Tira should be 
 President during his life, and that future Presidents 
 should be elected by the Council ; that the qualifica- 
 tion of European electors should be the possession 
 
 67
 
 68 ELECTORAL CAMPAIGN 
 
 of not less than sixty acres of freehold land, or the 
 possession of not less than sixty acres of leasehold 
 land, on which all conditions were duly fulfilled, or 
 the possession of not less than two town lots of 
 land on which two houses have been erected, 
 valued at not less than ^160 each ; that every 
 person entitled to be an elector must have resided 
 not less than three years in Rapara, and must have 
 attained the age of twenty-five years ; and that the 
 qualification of Maoris should be the possession 
 of a family or house and cultivated land. 
 
 It was proposed to amend the fifth resolution by 
 increasing the number of European representatives 
 to twenty-five. The proposers of this amendment 
 stated that the Europeans outnumbered the Maoris 
 more than sixfold, and to give anything like equal 
 representation either this amendment must be 
 adopted, or the Maori members must be reduced to 
 five, or at most six. Several members supported 
 the amendment ; but when put to the vote it was 
 lost, and Nos. i, 2, 3, 4 resolutions were carried 
 as proposed. The fifth resolution was bitterly 
 opposed. Mr. Wilson proposed an amendment 
 that the qualification of European electors should 
 be the occupation of a house in a town or a village, 
 or the occupation of twenty acres of rural leasehold 
 land on which all conditions were fulfilled ; that the 
 age be reduced to twenty-one years ; and that the 
 period of residence should be lowered to two years. 
 He contended there was no just or good reason why 
 town residents with only one house should be 
 deprived of the franchise, and there was less reason 
 in depriving the residents in the villages of their 
 rights. Another member said there was some reason
 
 RAPARA 69 
 
 in giving large property owners larger voting power 
 in a municipality than small property owners ; but 
 the case was very different when the member to be 
 elected had the power to pass laws affecting the life, 
 liberty, and rights of individuals, and every one, 
 however poor, had as deep an interest in such laws 
 as the richest person in the community. He was 
 not in favour of universal suffrage, as he considered 
 people should show by a fixed home that they were 
 not mere birds of passage before being entitled to 
 claim a vote, but two years was a sufficient time to 
 acquire the qualification which he had proposed, 
 and as regards the age qualification surely twenty- 
 one years, which was regarded in all civilised 
 countries as the age of manhood, should entitle 
 every person otherwise qualified to have a vote. 
 Several native chiefs considered eighteen years the 
 proper age that should entitle young men to the 
 franchise ; and although by Maori law and custom 
 only tiras or heads of families who had other people 
 employed in the cultivation of their land were 
 entitled to vote at elections of arikis and chiefs, 
 they would not be opposed to granting votes to all 
 heads of families occupied in the cultivation of land, 
 but they had now a large number of Maoris em- 
 ployed whaling, boating, and working on coffee 
 plantations, who had houses and wives, to whom 
 they would oppose the granting of votes. They 
 were therefore opposed to household franchise being 
 granted to Maoris, but saw no objection to granting 
 it to Europeans permanently residing on their land. 
 They agreed with the proposal in the resolution to 
 give the Europeans twenty members as against ten 
 members to Maoris, but could see no advantage to
 
 70 ELECTORAL CAMPAIGN 
 
 be gained by Europeans in increasing the number, 
 as two to one would place them in a majority, and 
 twenty-five to ten could do no more. Mr. Russell 
 would not accept any of the amendments. He 
 stated that the proposals were as far in advance of 
 European nations as it was safe to venture at the 
 present time. They could be enlarged if found 
 desirable, but could not be curtailed if once they 
 were granted, however badly they might act in 
 practice. After prolonged discussion the resolutions 
 were carried by a majority of two votes — seven 
 Europeans and four natives for, and four Europeans 
 and five Maoris against. 
 
 Mr. Russell proposed the adjournment of the 
 Council for four months, to enable the Government 
 to formulate the Constitution and Electoral Ordi- 
 nance, but before the date of meeting a proclamation 
 was issued, postponing the consideration of the 
 ordinance until June, 1855. 
 
 No time was lost after the electoral resolutions 
 were passed to form a thorough organisation to 
 resist the passage of the proposed electoral law and 
 to secure the passage of the proposed amendments. 
 A league was at once formed, called the " Household 
 Suffrage League." Both Easterland and Wester- 
 land were divided into small districts, and three 
 members of the League were appointed to each 
 district, whose duty it was to visit every house and 
 use every effort to induce the head of the household 
 to join the League, or at least to support its pro- 
 posals. Meetings were held in each district as soon 
 as a fair number of declared adherents were secured. 
 The delegates of the League were instructed to 
 endeavour to get as many influential residents to
 
 RAPARA 71 
 
 speak in preference to speaking themselves. Large 
 mass meetings were frequently held in centres of 
 population, at which the political leaders attended 
 and addressed those present. A single delegate 
 only — a Maori if possible — was appointed to the 
 Maori districts, charged with the duty of finding 
 Maori delegates for each district. This proved a 
 much less difficult task than was supposed, as the 
 rent-paying class at once saw that if freehold tenure 
 became firmly established in Easterland the claim of 
 ratiras to the freehold of the land in Westerland 
 would likewise become firmly established ; and also 
 that this could only be prevented by securing house- 
 hold votes, so as to elect a majority of those opposed 
 to freehold tenure, and in favour of the nationalisa- 
 tion of all land. While holding this opinion the 
 more intelligent of the Maoris considered it prudent 
 to keep their opinions secret, except to their own 
 friends, as they said amongst themselves that any 
 strong demonstration in favour of land nationalisa- 
 tion might alarm such of the present Maori coun- 
 cillors as favoured the claims of the ratiras. This 
 advice was generally followed, and although the 
 League had a greater proportion of adherents 
 amongst the Maoris than amongst the Europeans, 
 the former were very reticent, and exhibited in 
 public little interest in the Electoral Ordinance. 
 The Europeans, on the other hand, were very 
 demonstrative, and tried to make it appear that 
 they had an overwhelming majority, so as to alarm 
 the present members of Council, and to convince 
 intending candidates that their election could only 
 be secured by supporting household suffrage. The 
 members of the League spared neither time nor
 
 72 ELECTORAL CAMPAIGN 
 
 expense in strengthening their position. In their 
 house-to-house canvassing they had ascertained that 
 there was a majority in their favour under the 
 existing electoral law, and they determined to use 
 every effort to postpone the consideration of the 
 new Electoral Ordinance until the opinion of the 
 country was taken under the old law. 
 
 During this time the Conservative party was by 
 no means idle. The Herald was full of articles and 
 letters pointing out the dangers likely to follow a 
 measure so far in advance of European nations. 
 One writer in the Herald said that "he would not be 
 opposed to household suffrage where the working 
 of the Government measure snowed that it could be 
 granted without danger ; but he hesitated to support 
 it at present, knowing that should it prove disastrous 
 there was no means of retracing our steps. If there 
 was to be a second chamber elected on a fair 
 property qualification, so as to prevent hasty and 
 experimental legislation, they would run the risk of 
 granting household suffrage, but even on this con- 
 dition men of property must have votes in each 
 electorate in which they are qualified, so as to be in 
 a position to protect their property. It was not 
 openly stated in public, but every one was aware 
 that the Radicals were informing the people that 
 should they secure a majority steps would be taken 
 to nationalise, or, in other words, to confiscate, all 
 freehold land. No doubt it was said that an assess- 
 ment would be made to provide funds to pay land- 
 owners the appraised value of their land ; but in this 
 assessment landowners would be assessed and made 
 to pay a large portion of the sum raised to pay for 
 their own land. Such an act was nothing but
 
 KAPARA 73 
 
 robbery and spoliation, and if every intelligent man 
 did not oppose it at every step, they would richly 
 deserve to be robbed." The Conservatives held public 
 meetings in the centres of population, at which their 
 resolutions were negatived, which had the effect of 
 their calling meetings of those in favour of both 
 freehold and leasehold tenure, combined with giving 
 votes only to those who had a stake in the country. 
 Their speeches showed that they did not consider 
 their prospects very good, as both their addresses 
 and newspaper articles were mainly devoted to 
 picturing the frightful state of things that would 
 ensue should household suffrage become the law 
 of the land, and a very small portion of their utter- 
 ances was devoted to defending their own proposals. 
 The Council met in June, 1855, and after dis- 
 posing of the ordinary routine business entered 
 upon the consideration of the Constitutional and 
 Electoral Bill. Mr. Russell said, "he was willing 
 to admit that the present qualification of electors 
 could not be defended. It was no doubt passed 
 into law by the Council, but this was after the 
 election had taken place, and owing to this circum- 
 stance the legality of the election might be disputed ; 
 but at the time there was no constituted Govern- 
 ment, and everything must have a beginning. He 
 was likewise willing to admit that the qualification 
 was too exclusive, and placed all legislative power 
 in the hands of too small a number. They had, 
 therefore, extended the franchise to as great an 
 extent as they considered prudent, and they would 
 be willing to extend it still farther after the present 
 extension had a fair trial. As to the proposed Con- 
 stitution, he thought that although it was of a very
 
 74 ELECTORAL CAMPAIGN 
 
 primitive type, it would on that account be more 
 suitable for this small community than a more 
 elaborate one, and they would be willing to place 
 themselves in the hands of the Council to amend it 
 and make it more perfect." 
 
 Mr. Wilson said, " taking into account the fact 
 that the members of the Council were elected in a 
 manner which was at least informal, or as it might 
 be contended in an illegal manner, it would be a 
 pity to convey this illegality into the new Constitu- 
 tion and Electoral Ordinance. The electoral qualifi- 
 cation now in existence had been passed and 
 legalised by the Council, and any election carried 
 out under it would be legal beyond dispute. He 
 therefore suggested that a new election should be 
 held under the existing law, so as to place the 
 Council in a proper position to pass a Constitution 
 and electoral law in a legal manner. Such Council 
 should have valid powers only until an election was 
 held under the new ordinance to be passed." After 
 some consideration the Government agreed to the 
 course suggested, and intimated that the present 
 Council would be dissolved forthwith, and the neces- 
 sary regulations issued for carrying out the election. 
 The new Council was to meet in September. 
 
 The election was appointed to be held on the ist 
 of August, and was conducted in a quiet and orderly 
 manner, both parties being sure of victory. As pre- 
 viously stated, the Radical party had found, by their 
 house-to-house canvass, that they had a majority of 
 the electors under the existing qualification ; but 
 they soon learned that this majority seemed likely to 
 be turned into a minority by the action taken by 
 their opponents, who got their friends to take into
 
 RAPARA 75 
 
 their employment sufficient men to fulfil the qualifi- 
 cation. Several of the pioneers leased and sold por- 
 tions of their freehold land, which they transferred 
 to their friends, so as to qualify them as electors. 
 The Radical supporters followed their example, and 
 every available man enlisted in the service of one or 
 other of the rival parties. Under these circum- 
 stances the Chief Judge was called upon to determine 
 whether land transferred or leased, or men taken 
 into employment after the date of the election pro- 
 clamation, could be counted as constituting electoral 
 qualification. The judge decided in the negative, 
 and so this attempt at manufacturing electors be- 
 came abortive. When the election was over, it was 
 found that the Radicals had secured six seats, and the 
 Conservatives four ; but the rejected on the Conser- 
 vative side included Mr. Walker, the State Secretary, 
 who was the most experienced man in the Executive 
 Government. The Executive thereupon invoked 
 the decision of the judge as to whether every 
 member of the Executive must be a member of the 
 Council. This the judge decided in the negative, 
 for, although all the members of the Executive 
 Government were members of the Council at the 
 time they were appointed, there was no condition 
 to this effect in the present temporary Constitution. 
 No alteration took place in the election of Maori 
 members, all the old members being returned. 
 
 The new Council met in September, and passed a 
 new code of rules for regulating procedure, after 
 which the Constitutional Bill was brought before the 
 House. In introducing it, Mr. Russell said "he was 
 fully aware that it might fairly be contended that a 
 body of thirty members was too large and cum-
 
 76 ELECTORAL CAMPAIGN 
 
 bersome for such a small community ; but if the 
 increase of population continued at the present rate 
 this objection would soon cease to be valid." The 
 various sections were gone through seriatim, and 
 passed without amendment, except the section re- 
 lating to the appointment of the head of the Execu- 
 tive Government. This section was amended by 
 placing the power of appointment in the hands of 
 the Council, instead of in those of the President. 
 Mr. Wilson proposed an additional section which 
 declared, that on receipt of a requisition from not 
 less than one-twentieth of the registered electors 
 asking that any of a number of specified questions 
 should be submitted to the vote of the electors, such 
 questions should be submitted to them, and they 
 should answer Yes or No. Such questions were to 
 be determined by a majority of votes ; but any 
 ordinance that had passed the Council was to be 
 negatived only by a majority of the registered elec- 
 tors answering " No." Mr. Wilson, in proposing 
 this section, said " he was aware that many of the 
 members would prefer a second chamber to prevent 
 hasty legislation. Now he was not himself opposed 
 in principle to a second chamber, but he held that 
 such a chamber would not fulfil the functions of a 
 referendum. To show the necessity of establishing 
 the referendum as a valuable factor in legislation, he 
 had only to direct their attention to the vote of the 
 late Council, by which the land-purchasing condition 
 was added to the Land Ordinance. It might be said 
 that had there been two chambers in existence the 
 land-purchasing condition would not have been 
 carried ; but this was a mere gratuitous assertion, 
 for the history of Europe showed that the existence
 
 RAPARA 77 
 
 of two chambers often failed to prevent the passage 
 of unjust legislation. Many people," he said, "were in 
 favour of assigning the initiative in legislation to the 
 referendum, which really meant destroying represen- 
 tative Government. In fact, to give the referendum 
 the power to initiate legislative measures would 
 destroy its usefulness. He had included alternative 
 questions in its functions, and the Council could by 
 a vote formulate such questions, and submit them 
 to a referendum ballot. It would be seen that he 
 had defined the questions that could be submitted, 
 but to make things doubly sure he had expressly ex- 
 cluded rents, taxes, duties, or expenditure. This 
 would not prevent the Council from submitting 
 alternative questions on financial matters ; for in- 
 stance, the Council could submit to the referendum, 
 ' Are you in favour of increased custom duties ? ' or 
 ' an income tax ? ' to which the answer ' Yes ' or 
 1 No ' could be given as the voters preferred. Or 
 the question might be put, ' Shall we have two 
 Houses of Parliament or the referendum system ?' 
 The answers to any of these alternative questions 
 could only be taken as the opinions of the electors, 
 and would be comparatively useless, compared to 
 the answer ' Yes ' or ' No ' to such a question as 
 'Shall such an ordinance be carried into law ?' In 
 the case of such a question the ' noes ' only need be 
 counted, and in the event of there being a majority 
 of the enrolled electors that answered ' No,' the 
 ordinance submitted would be lost. It would," he 
 said, " be a dangerous action to make the acceptance 
 of any ordinance dependent on the number of 
 ' ayes,' as few people would trouble themselves about 
 measures to which they had no objection. To those
 
 78 ELECTORAL CAMPAIGN 
 
 who preferred a second chamber to the referendum, 
 he observed that he felt sure that the Radical party 
 would be willing to submit to the electors this ques- 
 tion, ' Are you in favour of a second chamber or a 
 referendum ? ' and to abide by the result. They 
 were now only commencing legislation. A 
 number of important questions had to be dealt with, 
 and determined, perhaps, on lines offensive to large 
 minorities. Now, if the referendum were carried, 
 appeal might be made to the electors, who might, 
 perhaps, endorse the opinions of the minority, and 
 thereby prove they were in the right. On these 
 grounds," he concluded, " I ask you all to support 
 this section and show that you do not mistrust the 
 electors you are about to enfranchise." Several 
 speakers suggested alterations in the questions that 
 could be submitted to the referendum, and several 
 of the changes proposed were accepted. Mr. Russell 
 contended that it was not necessary for the measure 
 to be embodied in the Constitution, and that it could 
 be more conveniently dealt with in a separate enact- 
 ment. One of the new members, a Mr. E. Holland 
 — who subsequently became one of the most in- 
 fluential, able, and respected men in Rapara — 
 showed conclusively that the power to negative 
 ordinances that had passed the Council made it an 
 important constitutional measure, and that it could 
 not be otherwise treated. When put to the vote it 
 was passed by a majority of four votes. The 
 second reading was carried by a majority of five 
 votes. 
 
 The following is a brief epitome of the Consti- 
 tution, as passed by the Council on the 14th of 
 September, 1855 : —
 
 RAPARA 79 
 
 Rapara is to be governed by a State Council, an 
 Executive Government, a Referendum, and a Presi- 
 dent. 
 
 The Constitution is to remain in force until altered 
 by a vote of three-fifths of the members of the Coun- 
 cil, that vote not being disallowed by the referendum. 
 
 The State Council is to consist of thirty mem- 
 bers — ten to be elected by the native Maoris and 
 twenty by the European electors, with power to 
 increase the number to thirty, in proportion to any 
 increase in the population ; and each Council is to 
 exercise its functions for a period of seven years, 
 unless sooner dissolved by the President. 
 
 The President is empowered to dissolve the Coun- 
 cil on a no-confidence vote against the Executive 
 Council, or when the State Council is unable to pro- 
 ceed with legislation, and a dissolution is advised by 
 the Executive ; in either case the President is to 
 issue writs for a new election within three months 
 from date of dissolution. 
 
 When the head of the Executive Council resigns, 
 the State Council is charged with the duty of elect- 
 ing one of its own members to the position of head 
 of the Executive Council. The member so elected 
 is empowered to choose his own colleagues. When 
 resignation is followed by a dissolution and a 
 general election, the newly-elected State Council is 
 to appoint the head of the Executive. 
 
 The Executive Council is to consist of not more 
 than five members, three of whom at the least must 
 be members of the State Council. They are to hold 
 office until their successors are appointed. 
 
 The initiation of measures and motions for the 
 imposition of duties and taxes and the expenditure of
 
 80 ELECTORAL CAMPAIGN 
 
 public money is to rest solely with the Executive 
 Council ; but this proviso is not to preclude private 
 members from initiating bills which necessitate the 
 imposition of fees or expenditure of public funds 
 for carrying their provisions into effect. 
 
 No money is to be borrowed by the State until 
 the proposal is laid before the electors, and a ma- 
 jority of all the enrolled electors is obtained by 
 referendum. 
 
 Ordinances that have passed the State Council by 
 a majority of four-fifths of the whole Council may 
 be forthwith signed by the President, and come 
 into force at the date named therein; but ordinances 
 passed by less than four-fifths of the entire number 
 of members shall be held in suspense for three 
 months. If within that period a requisition, signed 
 by not less than one-twentieth of the enrolled 
 electors, asking to have such ordinance submitted 
 to a referendom of the electors is presented to the 
 President, he is charged with the duty of carrying 
 out such reference. Should the question submitted 
 be answered in the negative by a majority of all 
 registered electors, the ordinance is to be annulled ; 
 but if not so answered or not submitted to the refer- 
 endom, it is to be signed by the President and come 
 into force on the date stated therein, provided that 
 ordinances or resolutions for the imposition of taxes 
 or expenditure of public funds shall not be subject 
 to suspension nor to a referendum vote. 
 
 Provision is likewise made by which the State 
 Council can submit alternative questions on any im- 
 portant subject to the referendum ;• but although the 
 answer can only be taken as an index of the opinions 
 of the electors, this should lead to passing popular
 
 RAPARA 8 1 
 
 measures and [preventing the passage of unpopular 
 ones likely to be negatived on a referendum vote. 
 
 The Electoral Bill was brought in and the first 
 reading agreed to without a division. The Council 
 then went into committee to consider the Bill in 
 detail. 
 
 Mr. Russell said "with regard to the division 
 into electoral districts they had considered it ad- 
 visable to vary the number of electors in the several 
 districts to a considerable extent. In electorates 
 where only a small proportion of the land was 
 occupied the number of electors was below the 
 average number, while in electorates in which the 
 greater portion of the land was occupied the number 
 of electors was above the average. As the con- 
 stituencies became more evenly populated, represen- 
 tation would become more equal. Had we made 
 them all equal now the inequality of representation 
 in a few years would be greater than as now pro- 
 posed. Easterland was divided into seventeen 
 electorates, Raoto having three members, Koran two 
 members, and Marieta one member. The remainder 
 being rural parishes, were divided into fourteen single 
 electorates. This would enable such electorates as 
 might rapidly increase in population to have two 
 members, and thereby avoid the necessity of alter- 
 ing the boundaries." 
 
 Some members thought this plan of division 
 would produce too great an inequality in represen- 
 tation, and held that it would be better to make all 
 equal or as nearly so as possible, altering the 
 boundaries periodically so as to maintain something 
 like equality. Mr. Gray said that he would prefer 
 
 7
 
 82 ELECTORAL CAMPAIGN 
 
 equality if it could be secured without too much 
 trouble and expense ; but unfortunately to carry out 
 the system suggested would cause great delay in 
 making a new division, and this equality would be 
 destroyed in a few years. Mr. Holland said that he 
 preferred single electorates ; but to get over the 
 equality difficulty he suggested that Easterland 
 should be divided into five electorates, each to re- 
 turn four members. By this method, and by giving 
 the least settled electorates a slightly lower propor- 
 tion of representation than the more settled ones, a 
 greater degree of equality would be maintained than 
 by means of single electorates. This view was 
 warmly supported by several members, who pointed 
 out that such a division could be made without 
 much expense or delay. Eventually Mr. Holland's 
 suggestion was submitted and carried. 
 
 This amendment required to be supplemented by 
 a new schedule of electoral districts, and it was pro- 
 posed by Mr. Wilson that the districts of Raoto, 
 Koran, Akitiki, Marieta, andKoona be each consti- 
 tuted an electoral district ; that the Land Com- 
 missioners be charged with the duty of surveying 
 the boundaries, so as to give 10 to 20 per cent, 
 fewer electors in the sparsely settled districts than in 
 the more densely populated ones ; and that when 
 such districts were mapped out and described they 
 should constitute the five electorates of Easterland. 
 
 It was proposed by Mr. Russell that the electoral 
 districts in Westerland be the same and return the 
 same number of members as at present. This was 
 put and carried without a division. 
 
 It was proposed also by Mr. Russell that the quali- 
 fication of native Maoris should be the possession of
 
 RAPARA 83 
 
 a house and family and cultivated land occupied as 
 a permanent home, and that every elector should 
 have attained the age of eighteen years. This was 
 generally approved and carried, like the previous 
 motion, without a division. 
 
 Proposed by Mr. Russell : The European electors 
 shall be every male person who is — 
 
 (a) in possession as owner of not less than forty 
 
 acres of freehold land ; or, 
 (6) in possession as lessee of not less than forty 
 
 acres of leasehold land upon which all 
 
 conditions are duly fulfilled ; or, 
 (c) in possession as owner of a house or houses 
 
 on freehold or leasehold land of not less 
 
 than £160 in value. 
 Provided that in addition to the above qualification 
 every person shall have attained the age of twenty- 
 five years and have resided four years in Rapara. 
 
 He said "he was fully aware that these qualifi- 
 cations would be opposed by a large number of 
 members, but he had gone as far in advance of 
 European nations as he could prudently go, for if 
 the people of Rapara went too far there was no 
 possibility of retracing their steps. Should the 
 present extension of the franchise prove a beneficial 
 advance, he would be willing to extend it to house- 
 hold suffrage ; but he was not prepared to plunge 
 headlong into the unknown depths of the democratic 
 pit, from which, to all appearance, there was no 
 escape. We arrived here," he continued, "when 
 there were no laws nor any form of established 
 government. We established what is, no doubt, a 
 primitive form ; but under it we have maintained 
 law and order, reared families and educated them,
 
 84 ELECTORAL CAMPAIGN 
 
 constructed houses, roads, and bridges, cultivated 
 land that yields us all the necessaries of life, and we 
 are now a comparatively wealthy and happy com- 
 munity. Shall we endanger this position by blindly 
 adopting extreme democratic measures, the results of 
 which we cannot foresee ? Look at England and 
 mark the caution with which she has extended the 
 franchise, never taking a step in advance until she 
 has secured a firm foothold for the previous one. 
 Let us follow her example and not rush into a 
 difficulty from which there is no extrication." 
 
 Mr. Holland said, " Mr. Russell had called their 
 attention to the cautious manner in which England 
 had granted extensions of the franchise. This 
 reference to England was an unfortunate one for 
 the cause that Mr. Russell was then supporting. I 
 likewise ask you," he observed, " to look at England 
 and mark the tenacious manner in which her 
 landed aristocracy have for over three hundred years 
 resisted every extension of the franchise, so as to 
 retain the power to legislate in its own interest. The 
 feudal lords were not satisfied with seizing the land 
 which they held in trust for their clansmen, retainers, 
 and dependents, but they followed the seizure up by 
 forcibly annexing large tracts of land to which they 
 had not even a colourable claim. Even up to the 
 present time the seizure of commons is still going 
 on, only that the open robbery has been turned into 
 legalised robbery by the passage of the Commons 
 Enclosure Act, which the landowners were enabled 
 to pass by excluding the people from the franchise. 
 But even this appropriation of the people's land, 
 even the money grants and privileges which they 
 extorted from the sovereign, were not enough.
 
 RAPARA 85 
 
 Hereditary pensions, sinecure offices, and money 
 gratuities they secured to themselves by Acts of 
 Parliament which could never have passed had the 
 people been fairly represented. History has no 
 graver acts of spoliation and robbery to reveal than 
 those which the aristocracy has inflicted on the 
 English, Irish, and Scotch people. That the young 
 life of the nation was not stifled is due to pluck, 
 enterprise, and tenacity of the people, and from the 
 bottom of my heart I say God bless them ! 
 
 " We are practically starting, unencumbered by 
 precedent, to lay the foundation of a new nation ; 
 and the political history of England should warn us 
 against placing legislation in the hands of a few, in 
 the expectation that others would be admitted to 
 share the legislative powers when it became neces- 
 sary. Now should a restricted franchise enable those 
 who exercise it to pass unjust class legislation to their 
 own advantage the greater will be the reluctance to 
 augment the electorate, because the augmentation 
 would tend to render this class legislation impos- 
 sible, or, perhaps, cause the repeal of obnoxious 
 enactments already in force. We often hear vague 
 insinuations of the evils likely to follow from an 
 extended franchise, but no one has ever asserted 
 that such evils may be expected to be as great as 
 those which a limited franchise actually inflicts. At 
 all events, up to the present, the countries having 
 the widest franchise are the countries possessed of 
 the most equitable laws." Mr. Holland declared 
 that he was not in favour of universal suffrage as he 
 believed that the franchise should not be given to 
 birds of passage, but should be the complement of 
 a settled home. Whether persons who possessed no
 
 86 ELECTORAL CAMPAIGN 
 
 home nor any property that bound them to the 
 country should be enfranchised must be an open 
 question ; but he thought every elector should have 
 some stake in his native or adopted country, and he 
 would vote accordingly. 
 
 Mr. White said Mr. Holland's speech went to 
 show that the aristocracy of England had resisted 
 all extensions of the franchise. Surely he had not 
 overlooked the great Reform Bill, which was largely 
 supported by members of the aristocracy and other 
 wealthy men. He was not in favour of a narrow 
 franchise, and was willing to give votes to all who 
 had a moderate stake in the country. At the same 
 time, he could not support any Bill that did not 
 recognise the right of property to representation ; 
 and unless he was assured that the property vote 
 would be carried he would oppose any lower-qualifi- 
 cation. They were no doubt acquainted with the 
 dictum of Adam Smith, who laid it down that the 
 expenses of the State should be borne by individuals 
 in proportion to their wealth. Now this doctrine, 
 which had been endorsed by nearly all eminent 
 economists, might be theoretically right and fair 
 under certain social circumstances, but on the face 
 of it it was a very dangerous one when interpreted 
 in the light of an equal sacrifice. Some persons 
 with, say, an income of £200, could better afford to 
 pay an income tax of 20 per cent, than others with 
 incomes of ^100 could afford to pay 5 per cent. 
 Now if a progressive principle in taxation is 
 admitted, should it not be accompanied by pro- 
 gressive representation ? If this were not carried 
 the provident and wealthy would be entirely 
 at the mercy of the improvident and poor. Pro-
 
 RAPARA 87 
 
 gressive rates of duty might fairly be applied to 
 bequests and succession, as the whole sum was a 
 gift to the beneficiaries, in which the State had a 
 right to share. But if property were denied pro- 
 gressive representation, progressive duties were 
 inequitable and unjust. 
 
 Mr. Wilson said " the previous speaker had 
 evidently misunderstood Mr. Holland's speech. Mr. 
 Holland did not say that the aristocracy had been 
 able to resist extensions of the franchise, but that 
 they had delayed it for over three hundred years ; 
 and although many aristocrats had supported the 
 Reform Bill it was a well-known historical fact that 
 they fought against it to the last, and that the here- 
 ditary House of Lords only consented to its passage 
 in order to save their hereditary privileges. Then it 
 must not be forgotten that the amount of time and 
 money spent in carrying it was something enormous. 
 Surely it was better to start now with the represen- 
 tation for which the English people were contending, 
 than to have to undertake an expensive reform in a 
 few years. He was so sure of this that he had 
 prepared amendments on the qualification clause, of 
 which he now begged to give notice. He would 
 not oppose the freehold land qualification, but 
 would at the proper time limit its exercise to one 
 property vote, so that a freeholder would have two 
 votes, one for his house and one for his land. The 
 leasehold land on which all conditions were fulfilled 
 he proposed should be treated in a similar manner ; 
 but the area should be reduced to twenty acres. If 
 sixty acres were made the qualification, one-half the 
 settlers would be disfranchised. The value of the 
 house property requisite should be reduced to ^80.
 
 88 ELECTORAL CAMPAIGN 
 
 If this were not done, many of the town residents and 
 more than half the village residents would be dis- 
 qualified. The age condition he was for reducing 
 to twenty-one years, and the residence condition to 
 two years. To these conditions he proposed to 
 add another, 'that every elector shall be able to 
 read and write.' Mr. Russell had expressed great 
 fears of the bad results to be expected from a liberal 
 franchise, but he had failed to adduce any example 
 to justify this opinion, and although he did not say 
 so there was no doubt that his fears were founded 
 on the predictions made by the English privileged 
 class in possession of the franchise. Of the evils 
 arising from a restricted franchise they had innume- 
 rable examples in the past history of nations, and 
 they had one very strong one here in Rapara, 
 which was largely due to the action of Mr. Russell 
 himself, that was the amendment of the Land Ordi- 
 nance by which leaseholders were enabled to turn 
 their leaseholds into freeholds. No doubt this 
 amendment was an illegal one even in Mr. Russell's 
 own opinion, which was that the first election of the 
 Council was illegal, and that a fresh election was 
 necessary to enable the Council to pass a Constitu- 
 tional and Electoral Act. But he, Mr. Wilson, was 
 not going to challenge its legality now, and he 
 thought the best thing to be done by this Council 
 before it was prorogued was to pass and legalise all 
 the acts of the late Council. He had already stated 
 that he was not in favour of universal or manhood 
 suffrage, as he thought every elector should have 
 some stake in the country, or at least have a fixed 
 home, whether owned by himself or rented." 
 
 Mr. Russell proposed that all persons being
 
 RAPARA 89 
 
 qualified in respect of freehold land, leasehold land, 
 and house property, should have one vote in each 
 electorate in which they held the above qualifica- 
 tions. To which Mr. Wilson moved an amendment 
 to limit the property qualification to one electorate 
 only, thereby giving those possessed of the property 
 qualification two votes, one for residence and one 
 for property. In agreeing to support a property 
 qualification he did so on the principle stated by 
 Mr. White, that progressive taxation should be 
 accompanied by progressive representation, and 
 although no form of progressive taxation was at 
 present in force there, the time would doubtless 
 come when the circumstances of the State would, in 
 the interests of justice, demand such a form of 
 taxation. 
 
 Mr. Russell proposed that Returning Officers, 
 on receipt of a writ for an election, should call 
 a meeting of the electors to receive nominations 
 and elect the number of members to be returned 
 by a show of hands, unless a poll were demanded 
 by seven electors. To this Mr. Holland pro- 
 posed an amendment that nominations should be 
 made in writing, signed by at least five electors, 
 and should the nominations exceed the number 
 to be elected, the election should be carried out 
 by secret ballot. All ballot papers which con- 
 tained a greater or a less number of names than the 
 number to be elected should be treated as informal. 
 This was opposed on the ground that such a pro- 
 vision would compel electors to vote for candidates 
 whom they mistrusted or considered incompetent 
 to fulfil the duties of representatives. To this it was 
 answered that however unfit some of the candidates
 
 90 ELECTORAL CAMPAIGN 
 
 might be in the opinion of individual electors, it 
 was their duty to vote for the least objectionable 
 four. No doubt the provision was a novel one, but 
 a little consideration must show that it was neces- 
 sary, so as to prevent the elector from importing 
 his personal likes and dislikes into the performance 
 of a public duty. It was well known that in Eng- 
 land large numbers of electors plumped for their 
 friends, regardless who were elected to fill the other 
 seats. In a four-seated electorate this meant per- 
 forming one-fourth part of their duty and leaving 
 three-fourths of it undone. No doubt single electo- 
 rates would avoid this compulsion to vote for 
 objectionable candidates, but in the peculiar circum- 
 stances of the rapid changes in population that was 
 bound to take place in single electorates here, the 
 four-seated electorates already agreed to were the 
 best. The secret ballot was likewise opposed. Mr. 
 Gray said that the man that was too cowardly to 
 record his vote openly did not deserve to have one. 
 The ballot might be useful in England and other 
 countries where employers could coerce their work- 
 men and wealthy men their creditors, but in this 
 free country no acts of coercion could take place. 
 Mr. Miller said that if the use of the ballot led to 
 greater expense or delay he could understand the 
 objection ; but as it was not more expensive, and 
 was more expeditious, and would afford protection 
 to some electors, he could only ascribe the opposi- 
 tion to the power that old customs and educational 
 prejudices exercised over many people's judgment. 
 On being put to the vote the ballot provision was 
 rejected, and the rest of the amendment carried, 
 including the amendments notified by Mr. Wilson.
 
 RAPARA 91 
 
 Several clauses relating to bribery and personation, 
 return of writs and other formal matters, were 
 proposed and passed. The report as amended was 
 carried ; and the second reading (being by the 
 rules the last) of the Bill was put, and carried by 
 twelve votes to seven. The provisions as finally 
 passed, after three days' consideration and discussion, 
 may be briefly stated as follows : — 
 
 The Maori electorates — which are the old tribal 
 districts — are retained, and the elections are to be 
 carried out in accordance with old Maori customs, 
 by which every head of a family was entitled to 
 attend a koora (meeting) and vote. Easterland 
 is divided into five electorates, each returning four 
 members. 
 
 Every householder who has attained the age of 
 twenty-one years, who has resided two years in 
 Rapara and is able to read and write, is entitled to a 
 vote in the electorate in which he resides. Every 
 owner of forty acres of freehold land, and every 
 person in possession of forty acres of leasehold land 
 on which the conditions are duly fulfilled, and every 
 owner of houses and buildings valued at not less 
 than ^160, is entitled to one vote— in addition to his 
 household vote — in the electorate in which he 
 resides ; but the qualification for such vote may be 
 in one or more electorates. The voter must have 
 resided two years in Rapara and must have been 
 qualified for at least six months before being 
 entitled to vote. Nominations are to be in writing 
 signed by not less than five electors. In the event of 
 the number of nominations being greater than the 
 number to be elected, an open poll is to be taken. 
 Strict provisions are made to prevent bribery and
 
 9 2 ELECTORAL CAMPAIGN 
 
 punish personation and other offences. Writs are 
 to be returned four days from date of election. 
 All necessary regulations are laid down for carrying 
 out elections. 
 
 A Bill was brought in and passed legalising all 
 the acts done and measures passed by the first State 
 Council. The dissolution of the second State 
 Council followed soon afterwards.
 
 CHAPTER VII 
 
 MAORI LAND SETTLEMENT ACT 
 
 Duties of Commissioners — Election of 1867 — Adoption of Com- 
 missioners' report — Ratiras granted freehold rights — Im- 
 provements granted to tenants — Services and goods computed 
 into money — Forecast of land nationalisation — Ratiras' claims 
 and English landlords contrasted. 
 
 The last election had turned mainly on the suffrage 
 question. New issues now demanded solution. 
 Both parties were equally agreed as to the desira- 
 bility of irrigating the Opara Valley ; but they 
 differed as to the means to be employed to raise the 
 necessary funds. The Conservative party advocated 
 special sales of land to raise a portion of the expen- 
 diture, and the borrowing of the remainder in 
 Rapara or England. The Radicals were bitterly 
 opposed to this scheme, and, in its place, recom- 
 mended the imposition of increased import duties 
 on a number of articles which could be made in 
 Rapara, the imposition of progressive legacy and 
 succession duties, and an increased issue of 
 State notes. Another matter that claimed attention 
 and could no longer be delayed was the Native Land 
 Question. This question was submitted to a Com- 
 mission consisting of two Europeans and one Maori 
 
 93
 
 94 MAORI LAND SETTLEMENT ACT 
 
 chief, who were charged with the duty of — i. 
 surveying the cultivated land into five-acre lots ; 
 2. ascertaining on what land and on what area 
 the rent-charge had been established ; 3. inquiring 
 into the money value of the produce and services 
 rendered by each cultivator ; 4. determining the 
 proportions of this value paid respectively as rent 
 and as State taxes. After two years' labour the 
 Commissioners laid their report before the second 
 State Council who postponed its consideration to 
 the succeeding Council. The Native Land Com- 
 mission reported that a rent-charge had been estab- 
 lished on a large proportion of Maori cultivated 
 land both by custom and decisions of native 
 assemblies. This rent- charge had doubtless been 
 established by force and fraud against the ancient 
 customs of land tenure ; but as it had been legalised 
 by the native assemblies, it could not in equity be 
 extinguished. The Commissioners, therefore, re- 
 commended that the rent-charge should be legalised 
 by the State Council in favour of the ratiras. But 
 the uncultivated land which had been common to 
 all should, they considered, be treated as State pro- 
 perty. Moreover, all the rent-paying cultivators 
 should be entitled to be paid the value of all 
 improvements whenever their occupancy was ter- 
 minated either by their own action or by that of 
 the ratiras. These recommendations divided the 
 people into two parties, one supporting the Com- 
 missioners' recommendations, the other holding 
 that the rent should be paid over to the arikis or 
 head chiefs for State purposes only, the division did 
 not follow party lines, Radicals, Conservatives and 
 Maoris being found in each section.
 
 RAPARA 95 
 
 Now came the new elections. Radicals and Con- 
 servatives alike spared neither time nor expense in 
 their efforts to gain a victory, and up to polling day 
 the result appeared doubtful. When, however, all 
 the returns came in it was found that the Radicals 
 had secured a majority of six over the Conservatives 
 in the European section, while the Maori section 
 was about equally divided. The election of the 
 head of the Executive Council now became a 
 question of great importance. It was known that 
 the Conservatives had agreed to nominate and 
 support Mr. Russell for the position, while one 
 section of the Radicals had determined to support 
 Mr. Holland and another was equally determined to 
 vote only for Mr. Wilson. Thus a futile three- 
 cornered fight seemed likely to ensue ; but it was 
 subsequently discovered that the election had to be 
 carried out by an exhaustive ballot giving to the 
 successful candidate an absolute majority of the 
 members present. Mr. Wilson's position at the 
 outset was strong ; it was further strengthened 
 when Mr. Holland declared that he would neither 
 consent to be nominated against Mr. Wilson nor 
 accept office even if elected. 
 
 The third State Council met at the appointed 
 time, and proceeded to elect a Chairman, Mr. J. 
 Walker being elected to fill the position. Mr. W. 
 Russell and Mr. A. Wilson were nominated for the 
 office of head of the Executive, or, as would be said 
 elsewhere, Premier. The latter was elected by a 
 majority of eight, and the Council adjourned till the 
 following day to allow Mr. Wilson time to select 
 his colleagues. He appointed Mr. Holland State 
 Secretary, Mr. H. Petresen State Steward of Works,
 
 96 MAORI LAND SETTLEMENT ACT 
 
 and Oro Temba (chief of Meroo) State Steward for 
 Maori Affairs. Mr. Wilson himself assumed the 
 position of State Treasurer. A number of unim- 
 portant measures were first dealt with ; then the 
 Maori Land Question was introduced by Mr. Wilson. 
 In introducing the Bill, Mr. Wilson said that "he 
 felt he had to perform a most painful duty, being 
 compelled either to propose a measure of repudia- 
 tion or one sanctioning the exercise of might 
 against right. He had made himself acquainted 
 with both the ancient and the modern tenure of 
 land in Rapara, and he was satisfied that up to 1780 
 the occupiers and cultivators of land only con- 
 tributed produce and services to the arikis for State 
 purposes ; but as the services were directed and the 
 produce collected by the ratiras, they had gradually 
 increased these contributions and taken the increase 
 for their own use. The tiras and other cultivators 
 some fifty years back had resisted these increased 
 rents, and a civil war ensued, in which the ratiras 
 and their large following obtained the victory. Since 
 that time the ratiras had been able to enforce pay- 
 ment of the rents demanded, and to get the service 
 and rent-charges sanctioned by the native assemblies. 
 In this way they have turned their claims into legal 
 charges. He had frequently expressed his indignation 
 against the English, Irish, and Scotch feudal lords 
 for robbing and despoiling the cultivators of the soil 
 by the seizure of their land. These acts of spoliation 
 had, like the seizures in Rapara, been sanctioned and 
 legalised by the Assembly or Parliament of the 
 country. The right of the ratiras therefore rested 
 on the same foundation as the right of the landlords 
 of England ; that is to say, might had overcome
 
 RAPARA 97 
 
 right, and robbery had received the sanction of law. 
 But there was this marked difference between the 
 right which had been recommended by the Com- 
 missioners and the rights which the feudal lords 
 secured in England, Ireland, and Scotland. The 
 latter secured not only a right to land cultivated by 
 their tenants and dependents, but the right of 
 private property over waste lands, with all the 
 natural timber and wild animals and birds thereon, 
 likewise the rivers, lakes, and bays round the sea 
 coast, with all the fish which they contained ; nay, 
 not content with all this, they claimed and obtained 
 private property in all the coal, copper, tin, and 
 other minerals in the bowels of the earth. Now 
 the rights of property which it was proposed to 
 grant to the ratiras were confined to land cultivated 
 by themselves, their tenants, and dependents, and 
 to such lands as were used by themselves, their 
 tenants, and dependents for residential purposes. It 
 was with great reluctance that they had formu- 
 lated a measure to confer these rights. But had the 
 ratiras claimed rights over waste lands, rivers, lakes 
 and bays, with the minerals under the ground, he, 
 for his part, could not have supported such a 
 demand, as there was no principle of equity on 
 which it could rest. No doubt the right to private 
 property in waste land was much stronger in Europe 
 than in Rapara, where no sales of such land had 
 been made ; whereas in Europe such land had been 
 sold and bought over and over again, and if it were 
 not recognised as the property of the purchasers 
 they would have a just claim for compensation. 
 He and his colleagues, therefore, felt that full owner- 
 ship of cultivated and residential land should be 
 
 8
 
 98 MAORI LAND SETTLEMENT ACT 
 
 granted to the ratiras ; but that the improvements 
 on land cultivated by tenants should be held to be 
 the property of the tenant. In order, however, to 
 free the cultivators from the harassing demands of 
 the ratiras, they had provided in the Bill that the 
 rent should be paid over to the representatives of 
 the Government, who would hand over the portion 
 representing State taxes to the Steward for Maori 
 Affairs, and the portion representing rent to the 
 ratiras. The Commissioners had computed the 
 money value of the produce and services at an 
 average of £1 12s. per annum for each household, 
 and had agreed that a rent of 2s. 6d. per acre on the 
 land under cultivation would be a fair equivalent 
 for this sum. They likewise estimated that iod. of 
 the 2s. 6d. represented State taxes, and is. 8d. rent of 
 land. This arrangement would only be a temporary 
 one for four or, at most, five years, as the Executive 
 had determined that nothing short of the nationali- 
 sation of all land would place the polity of Rapara 
 on a just and secure foundation. To effect that 
 object on the equitable basis of compensation to the 
 owner, a just assessment on all wealth would have 
 to be made in order to provide the necessary funds. 
 Before that course was taken the sanction of the 
 electors must be obtained. They proposed to pay 
 the ratiras their rent in money, so that they could 
 no longer demand what they pleased from the culti- 
 vators." 
 
 Mr. Wilson's speech was followed by others, and 
 the first reading of the Bill was then agreed to. 
 
 The several sections of the Bill were considered 
 in Committee. When the section declaring that the 
 several ratiras, as set forth in the first schedule, had
 
 RAPARA 99 
 
 proved their right to the several parcels of land 
 therein enumerated was proposed, it met with great 
 opposition. Mr. Holder said that Mr. Wilson had 
 placed the rights of the ratiras on a level with those 
 of the landowners of England, who had been in 
 possession of the land for centuries, and had had 
 their rights confirmed by Acts of Parliament, while 
 the ratiras had only gained possession some sixty 
 or seventy years ago, and this possession was ad- 
 mittedly obtained by fraud and force. They had 
 doubtless been authorised to collect the State taxes 
 in the shape of produce and 'labour, and their claim 
 to the receipt of rent rested on the fact that they 
 had embezzled the State taxes. If they were 
 allowed to retain the produce of their dishonesty, 
 he thought it would be very liberal treatment ; but 
 to award them land under such circumstances was 
 the most iniquitous proposal that had ever been 
 made in any civilised country. 
 
 Mr. Holland replied that the previous speaker 
 was evidently unable to look at the subject from 
 a Radical point of view. Both the English and 
 Rapara landholders had doubtless obtained their 
 land by fraud and force, but this fraud and force 
 had been sanctioned by legislative authority both 
 in England and Rapara. No doubt it was a great 
 national evil in this or any other country for the 
 cultivators of the soil to be compelled to pay rent 
 for the support of a useless class that performed no 
 function in the work of production ; but surely one 
 wrong could not be righted by the perpetration of 
 another. It was true that the right of private pro- 
 perty in land had only been established there some 
 sixty or seventy years, as against two to three
 
 ioo MAORI LAND SETTLEMENT ACT 
 
 hundred years in England, and on that ground the 
 ratiras' claim might be considered weaker. But if 
 they contrasted the claims of the ratiras to culti- 
 vated land with those of the English landowners, 
 who claimed not only cultivated land but all waste 
 land together with its natural timber, animals and 
 birds, and all minerals in the bowels of the earth, 
 they must admit that the ratiras had the better case. 
 Men might be entitled to land over which they had 
 exercised authority and control, and on which they 
 had effected improvements, either directly or by 
 tenants or servants ; but we hold that they should 
 have no legal or moral right to the gifts of nature — 
 the raw material of the earth. If the ratiras' claim 
 extended so far, its recognition would be an act 
 of political robbery, which would not be sanctioned 
 by this House. 
 
 The Bill further provided that from the ist of 
 January, 1857, all services and payment of produce 
 should cease, and in lieu thereof each of the occu- 
 piers of land in the first schedule should pay- to the 
 Land Commissioners 2s. 6d. per acre per annum so 
 long as they occupied such land, but no holding 
 should be less than five acres. From the money 
 received the Commissioners are to pay is. 8d. per 
 acre to the several ratiras or landowners for the 
 several parcels of land as set out in the first schedule, 
 and iod. per acre to the Steward of Maori lands for 
 the use of the State. It likewise provided that on the 
 termination of tenancy by either party, the owner of 
 the land should pay the tenant the appraised value of 
 improvements on such land. It further enacted that 
 all persons taking up waste or uncultivated land 
 might take up to ten lots of five acres each, on the
 
 RAPARA 101 
 
 terms as to rent and cultivation prescribed in the 
 Land Ordinance of 1850. 
 
 The several provisions were carefully considered 
 and agreed to, with the exception of that regulating 
 the amount of rent which the cultivators were to 
 pay. One of the Maori members pointed out that 
 by the Bill the Maori cultivators would have to pay 
 a higher rate of rent than the Europeans, and stated 
 that the rental fixed was generally looked upon by 
 the Maoris as both too high and unfair. Several 
 European members supported this view of the case, 
 and Mr. Wilson, on behalf of the Executive, agreed 
 to reduce the rent to is. 8d. per acre, and consented 
 that iod. per acre should be paid to the various 
 arikis out of the general revenue, to defray the 
 local charges which they had to bear. The report 
 was carried, and the second — and last — reading was 
 passed by a majority of seventeen to eleven. Several 
 minor matters were dealt with, and Mr. Wilson 
 intimated that the Government was not prepared 
 to deal with the Opara irrigation scheme this year, 
 but would do so next year, if possible.
 
 CHAPTER VIII 
 
 STATE BORROWING VERSUS PROTECTIVE DUTIES. 
 
 Plebiscite on State borrowing or protective duties — Articles and 
 speeches thereon — State notes — Protection contrasted with 
 Free Trade — Protection tariff introduced 1859 — Discussions 
 thereon — Epitome of tariff. 
 
 Before the Council adjourned in 1857, Mr. Wilson 
 stated that they intended to take a plebiscite vote on 
 the two schemes for raising funds to defray the cost 
 of the Opara irrigation works, and that it would be 
 put before the electors in the form of the questions : 
 " Are you in favour of raising funds to defray the 
 cost of irrigation works for the Opara Valley ? " 
 " If so, should the funds be procured (1) by selling 
 land and borrowing money in England, or (2) by 
 protective and legacy duties, and issue of State 
 notes?" 
 
 Of course, he said, the answers to these questions 
 would not determine the matter, as the Executive 
 would not be bound thereby ; but the plebiscite 
 would reveal the opinion of the electors, and should 
 the Executive disregard these opinions and bring in 
 
 a Bill opposed to them, which was negatived by the 
 
 102
 
 RAPARA 103 
 
 Council, this or any other Government defeated on 
 such an important measure would have to resign. 
 
 If, again, the Bill was passed by the Council a 
 requisition might be lodged to have the Act sub- 
 mitted to a referendum vote, which might result in 
 its acceptance or in its rejection. In the former 
 case the action of the Ministry would be endorsed 
 and the Act become law ; in the latter repudiated 
 and the Act defeated. Thus the referendum, instead 
 of being a dangerous democratic measure, as many 
 alleged, was really a safeguard of the public welfare. 
 This brought the proceedings to an end, and the 
 Council stood prorogued to August in the following 
 year. 
 
 Early in 1857 the Executive sent out to the 
 electors a plebiscite paper with the two questions as 
 previously stated. The issue of these plebiscite 
 papers was the means of causing increased interest 
 in and discussion on the best methods of providing 
 funds for the irrigation works, and the matter was 
 taken up by both of the newspapers. A summary 
 of a few of these articles will enable the reader to 
 gain some knowledge of Rapara politics at this time. 
 
 A leader in the Herald entitled " Proved Practice 
 or Speculative Theory," ran as follows : " The 
 Radicals are now hard at work trying to persuade 
 the electors that the proposal to raise funds by the 
 sale of land and by borrowing enough in England 
 to complete the Opara irrigation works is a menace 
 to the social and industrial development of the 
 country, and that their proposals of protective and 
 succession duties and State notes will be its salvation. 
 Now the main question in this connection is, Have 
 we the means in this small community to construct
 
 104 STATE BORROWING 
 
 such expensive works, and yet have capital enough 
 left to carry on unfettered all our industrial opera- 
 tions ? The question is a serious and important 
 one, and after full consideration we have come to 
 the conclusion that we have not the means. Doubt- 
 less we can raise the necessary funds in Rapara by 
 the proposed duties, but this will so deplete our 
 working capital that all our existing industries will 
 suffer, to say nothing of the increased capital 
 required to bring the Opara Valley under rice 
 cultivation. If this is the case, we will be following 
 the foolish example of the man who spent his last 
 dollar in buying a new purse. Now as to our 
 proposals of raising funds by the sale of land and 
 borrowing, we are advocating no speculative theory ; 
 on the contrary, we propose to follow the lines of 
 the proved practice of other countries, particularly 
 new countries, in the same process of settlement as 
 ourselves. The United States of America, Canada, 
 Australia, and South Africa all find it necessary to 
 sell land in order to construct the roads, bridges, and 
 other public works without which the land is value- 
 less ; and the practice of borrowing funds for the 
 same purpose is now coming into vogue with 
 beneficial results in these countries. According to 
 the doctrine preached by the Times, borrowing 
 money, even for the construction of permanent 
 works of utility, inflicts an injustice on future 
 generations. We, on the contrary, maintain that 
 not only is a national debt justifiable for this purpose, 
 but that all national debts incurred for the defence 
 of the State, the punishment of its enemies, or the 
 prevention of disease are equally justified. With 
 regard to legacy duties, they are only defensible
 
 RAPARA 105 
 
 when they are absolutely required, and under no 
 circumstances can progressive duties be imposed 
 without violating the rights of individuals. We will 
 deal with the proposed protective duties at another 
 time ; but we cannot avoid remarking that it seems 
 strange to propose protective duties after the question 
 has been so fully discussed in England, where it has 
 been proved that such duties are detrimental to 
 the trade and prosperity of civilised communities. 
 Errors, we observe, die as hard in Rapara as in 
 Europe." 
 
 An article in the Times began with the admission 
 that for once at least the Herald had shown that it 
 understood some economic questions. " In its 
 article headed ' Proved Practice or Speculative 
 Theory ' dealing with the question of raising funds 
 for the Opara scheme, the Herald observed : ' Now 
 the main question is, have we the means in this small 
 country to construct such expensive works, and yet 
 have capital enough left to carry on unfettered all 
 our industrial operations.' Now we hold that the 
 question is well and fairly stated and goes down to 
 the bedrock of the question ; for if we cannot raise 
 the funds in Rapara without impairing our produc- 
 tive and industrial development, we are ready to 
 grant that we would be justified in borrowing 
 abroad, rather than in leaving the work undone. 
 But we join issue with the Herald as to whether 
 we have or have not sufficient means in Rapara to 
 carry out this work. So far the calculations show 
 that the work, including distributing channels, would 
 cost ,£53,000. The expenditure would be spread, 
 say, over three years. We have now a fund arising 
 from purchase of land under the Act, amounting to
 
 106 STATE BORROWING 
 
 .£16,400, which may be estimated to reach .£24,000 
 by the end of i860. We had a surplus at the end of 
 1857 amounting to .£6,800, which with the inflow of 
 population and increase in trade and production 
 should reach at least £"16,000 by the end of i860. 
 Taking into account the great increase in population 
 and trade, the internal currency could easily absorb 
 .£14,000 additional in State notes, which would 
 make up the estimated cost without having resort to 
 the legacy duty, which could be held in reserve to 
 be imposed should the land purchase fund and the 
 revenue not reach the estimate. To borrow funds 
 under such circumstances would be the height of 
 folly, as it would entail the payment of interest on 
 funds which were not required. With regard to the 
 other part of the fund-raising scheme, we hold that 
 the desire to see private property in land established 
 is the main reason for advocating its sale, and we 
 plead guilty to a similar desire with regard to pro- 
 tective duties, as we would be prepared to establish 
 a policy of Protection even if the duties produced 
 more than the required revenue, as it would enable 
 us to reduce the rent-charge on land. As regards 
 the merits of Free Trade and Protection, we are 
 sorry that the economic knowledge of our contem- 
 porary does not enable it to see the difference 
 between the circumstances of England and those 
 of this country. Although England has proved 
 that Free Trade is better suited to her circum- 
 stances than Protection, this is no evidence that 
 the case would be the same in Rapara. On the 
 contrary, an examination of the financial relations 
 of England during the last two hundred years offers 
 positive proof that the fiscal policy on which she
 
 RAPARA 107 
 
 built up her industries will be the best policy for us; 
 and that policy was Protection. 
 
 "The policy of Protection was initiated in Eng- 
 land about three hundred years ago, and was 
 gradually extended until it embraced nearly every 
 manufactured article, and a number of raw products. 
 Woollen cloth, linen, leather, silk, iron, were all pro- 
 tected by heavy duties varying from 30 to 200 
 per cent. ; and the importation of some of these 
 articles was absolutely forbidden. The shipping 
 trade was protected by increased duties on goods 
 imported in foreign vessels, and the import of 
 several commodities was altogether prohibited if 
 brought in foreign bottoms. The herring fishery 
 was established by the aid of liberal bounties 
 amounting to more than the value of the fish 
 caught. In the interests of the landowners a heavy 
 duty was placed on all kinds of grain. 
 
 "These protective measures stimulated the pro- 
 duction of all kinds of manufactured goods, and 
 England, instead of being dependent on other 
 countries for most kinds of manufactured goods, 
 became an exporter to other countries at an 
 increasing rate from year to year. This great 
 volume of production brought into play the inven- 
 tive genius of the nation, and aided by scientific 
 discoveries placed England in possession of every 
 variety of machinery operated by steam ; while rail- 
 roads, canals, and steamboats cheapened the cost 
 of transit and turned the country into one vast work- 
 shop, able to produce all the manufactured goods 
 required for home consumption, as well as a vast 
 quantity for export purposes. By 1830 it was found 
 that foreign nations were developing their manu-
 
 108 STATE BORROWING 
 
 factures so as to compete with English goods, the 
 cost of which was largely increased by duties on 
 several kinds of raw material, particularly the duty 
 on grain. The landholders, not satisfied with the 
 possession of the land and all the raw material 
 which it contained, were enabled by keeping legis- 
 lation in their own hands to impose a heavy duty 
 on grain, which enabled them to increase their 
 rents at the expense of those engaged in manufac- 
 turing industries, who were compelled to pay nearly 
 double the price for their bread that other countries, 
 their competitors in the market, paid. The English 
 manufacturers were fully aware of the increased cost 
 of goods caused by the duty on grain and other food 
 products, and an agitation was started in 1836 to 
 have the corn laws repealed, and as the duties on 
 manufactured goods were no longer required, the 
 price being regulated by the export value, the agita- 
 tion embraced the repeal of these duties as well as 
 the duty on corn. The effort required to repeal these 
 duties was a great one ; for, although the franchise 
 had been largely extended, the landed interest was 
 still very strong and offered determined opposition 
 to the measure. Nevertheless, the corn laws were 
 practically repealed in 1845, and the remainder of 
 the protective duties in 1846. The repeal of the 
 latter in no way affected manufacturers, as they had 
 become inoperative. Their repeal was doubtless due 
 to the example which it offered to European nations, 
 who were advised and expected to repeal all duties 
 and to enter on a policy of Free Trade ; but so 
 far as can be judged at present, this advice is not 
 likely to be followed. On the contrary, appearances 
 lead to the belief that other nations will follow the
 
 RAPARA 109 
 
 same course as England took to develop her manu- 
 facturing industries. 
 
 " Freed from the heavy burden of the corn duties, 
 with better machinery, improved methods, and 
 greater facilities of transport, the foreign trade of 
 England has largely increased, and will continue to 
 increase until limited by the productions of other 
 nations. At all events up to the present England 
 has largely augmented her wealth by the adoption 
 of a Free Trade policy. But this success should not 
 mislead any intelligent community into the belief 
 that Free Trade can be beneficially applied to any 
 country, especially to a young country in course of 
 settlement, a country naturally desirous of possessing 
 the varied industries appropriate to a civilised state. 
 We purpose to return to the subject in the hope of 
 showing conclusively that Free Trade is unsuited to 
 Rapara." 
 
 This article was answered by a correspondent in 
 the Herald, who said : " It may be perfectly true that 
 young countries in course of settlement require a 
 measure of protection to enable them to manu- 
 facture their indigenous products ; but to propose 
 a policy of Protection for Rapara is utterly absurd. 
 The woollen, linen, cotton, silk, leather and iron 
 manufactures all demand expensive machinery, and 
 the output requires a larger market than is to be 
 found in Rapara. Thus the Times is only mislead- 
 ing the public in advocating their manufacture here. 
 Our true policy lies in the cultivation of coffee, 
 sugar, rice, and other produce suited to our soil 
 and climate, for which we can find a profitable 
 market in Chili, Australia, and California." 
 
 A correspondent of the Times dealt with the
 
 no STATE BORROWING 
 
 contention so raised as follows : " The writer in 
 the Herald is surely labouring under a misappre- 
 hension as to what articles it is intended to 
 protect. We have plenty of iron ore and lime- 
 stone, and lately coal has been discovered ; but 
 no one with a grain of economic knowledge would 
 propose to put a duty on iron, as the quantity used 
 here is manifestly too small to cover the expensive 
 plant required for its manufacture. The same 
 principle applies to cotton, silk, paper, and linen, 
 all of which, together with iron, would be admitted 
 free under a protective tariff. But the case is different 
 with woollen cloth, leather, furniture, agricultural 
 machinery, clothing, boots and shoes, harness, 
 brushes, candles, soap, and a variety of other 
 manufactured articles, a large proportion of which 
 could be made here under a moderate protective 
 tariff. It may be contended that the consumption 
 of woollen cloth would not be sufficient to keep even 
 one small factory in employment ; but a fair estimate 
 of our requirements will show that this contention 
 is groundless. Our population now amounts to 
 about 30,000, including Maoris, and with the rapid 
 influx already taking place it should, by the end of 
 i860, have risen to 42,000, a number which is fully 
 sufficient to keep a moderate-sized factory in full 
 employment. None of the other articles require 
 expensive machinery for their manufacture, and 
 although wages are higher here than in England, 
 a duty of something like 20 per cent., with the 
 cost of transport on wool, hides, and tallow to 
 England, and the return freight on the manufactured 
 article, should enable one-half or two-thirds of such 
 articles to be produced here, while the imported
 
 RAPARA in 
 
 portion would furnish a contribution to the revenue. 
 Some few years back, before the gold discoveries in 
 California and Australia opened up an increased 
 market for our commodities, our exportable produce 
 was insufficient to purchase the required amount of 
 manufactured goods. From all appearances this is 
 likely to be our position again within a few years, if 
 we neglect to take the necessary steps to increase the 
 production of manufactured articles. A writer in 
 your valuable journal asks ' If protection appears to 
 be useful for establishing manufacturing industries, 
 what is the reason that Australia, with her large 
 population, has not sought its aid ? ' Now the 
 answer to this question is a very simple and 
 obvious one. Her people are all so occupied in 
 the alluring hunt for gold that they have neither 
 time nor inclination to engage in other less attractive 
 occupations ; but already there are signs that this 
 state of affairs is coming to an end ; and when it 
 does, such an intelligent community will not fail 
 to see that Protection will facilitate the establishment 
 of new industries, without reducing wages to the 
 miserable rates current in Europe." 
 
 The Herald again returned to the charge, and, 
 amongst other arguments, denied that Protection 
 could be justified even if it were admitted to be 
 a public benefit. It observed : " Now if Protec- 
 tionists can prove that all the advantages claimed 
 actually do arise from Protection, we take our 
 stand on higher ground ; we maintain that Protection 
 is a violation of the natural rights of individuals. 
 When the State imposes duties on goods for 
 revenue we have no right to complain, as this 
 revenue is expended for the general benefit. But
 
 ii2 STATE BORROWING 
 
 when the State imposes import duties for the 
 purpose of enabling such goods to be produced 
 in the country, the increased price to the con- 
 sumer caused by the duty entitles us to enter a 
 protest. Why, we ask, should A, B, C and D be 
 compelled to pay this increased price to E and F 
 for their benefit ? That this course has been taken 
 by legislative authority in England in bygone years 
 is no justification for following it in Rapara, now 
 that the onward march of intelligence has exposed 
 its injustice." 
 
 The Times, in an article too long to be quoted 
 here, combated the views expressed by the Herald. 
 In regard to the violation of natural right it replied : 
 " We are sorry that the onward march of intelligence 
 referred to by our contemporary has not yet reached 
 the editor of the Herald in far-distant Rapara. The 
 polity pursued in Europe doubtless does in several 
 particulars violate natural rights ; but the imposition 
 of protective duties certainly does not constitute such 
 a violation. If Protection only benefited the persons 
 engaged in the protected industries, enabling them 
 to make greater profits than other producers, it would 
 amount to political injustice, but it would certainly 
 be no violation of natural rights. As, however, pro- 
 tective duties are imposed to enable people to produce 
 goods that otherwise could not be produced, they 
 thus increase the volume of production. But in this 
 production the producer receives no exclusive benefit, 
 as protected industries are open to all alike, and 
 competition regulates the price and the profit, as 
 in non-protected ones. Moreover, the distribution 
 of the benefits arising is not confined to producers, 
 but extends to the professional and distributing
 
 RAPARA 113 
 
 classes, whose incomes are increased by every 
 increase in production." 
 
 A great number of newspaper articles were written. 
 A great number of speeches were delivered with a 
 view to instructing the electors how to vote on the 
 plebiscite. When the papers came in it was found — 
 contrary to expectation — that three-fourths of the 
 enrolled electors had sent in their papers, and that 
 two-thirds of the number had voted in favour of 
 protective duties and State notes. 
 
 For several reasons the protective tariff did not 
 come before the State Council until 1859. It was 
 a simple tariff imposing a 15 per cent, ad valorem 
 duty on the importation of leather, soap, candles, 
 brushes, boots and shoes, house furniture, and 
 harness ; and 20 per cent, ad valorem on woollen 
 cloth of every sort, clothing, agricultural implements, 
 jewellery, and vehicles of all kinds. Spirits paid an 
 import duty of 8s. per gallon, wine 4s. per gallon, 
 beer 2s. per gallon, tobacco 2s. per lb. The excise 
 duty on spirits, 5s. per gallon. All other articles 
 were to be admitted free, but the Executive Council 
 was empowered to increase the tariff by 5 per cent. 
 all round should it consider such a course advisable. 
 
 Mr Wilson, in introducing the tariff, said "They 
 would remember that before the gold discoveries in 
 California and Australia their exports were insufficient 
 to pay for the various manufactured articles which 
 they required, and a considerable amount of money 
 had to be sent out of the island to make up the 
 deficiency. The markets opened by the gold diggings 
 had caused a new state of affairs to prevail for the 
 past five years, and created general prosperity ; but 
 he was sorry to say that present appearances indicated 
 
 9
 
 H4 STATE BORROWING 
 
 a change for the worse, which might again reduce 
 the value of the exports below that of the imports ; 
 in which case they would have to make up the 
 difference in money. To meet such a contingency 
 was one of the reasons why they proposed a pro- 
 tective tariff, which would enable them to produce a 
 larger quantity of manufactured goods, and so cause 
 them to require a smaller amount of imports. He 
 expected that the tariff and the cost of importing 
 would render it possible for them to make fully one- 
 half of the protected goods, while the other half to 
 be imported he estimated would yield 20 per cent, 
 more revenue than under the old tariff. It was 
 possible that the home-produced goods might exceed 
 his estimate, and so reduce the expected revenue ; 
 and that was the reason why they were asking the 
 Council to entrust them with the power to increase 
 the duties 5 per cent, should the revenue require 
 it, without having to go to the trouble and expense 
 of passing a new tariff." 
 
 Mr. Russell said that he thought the power asked 
 an extraordinary and unnecessary one, as the Council 
 could be asked to impose the additional 5 per cent, 
 duty when the necessity for it had arisen. But his 
 argument seemed to have no effect on the Council, 
 as the first reading was carried without a division. 
 
 On the Bill going into Committee, Mr. Kemp said 
 "had the Bill proposed to raise the duty on all 
 articles to 10 per cent, he would not have opposed 
 it, although he considered ad valorem duties to be 
 the very worst form of taxation, as they enabled the 
 dishonest trader to undersell the honest one, and 
 offered a strong temptation even to honest men to 
 become rogues. It was proposed, he said, to place
 
 RAPARA 115 
 
 a 20 per cent, duty on agricultural implements. 
 This might give employment to fifteen or twenty 
 men. Now, he asked, was it not the height of mad- 
 ness to make farmers pay this duty in order to find 
 employment for twenty men ? Would it not be 
 better for farmers to pay these men full wages and 
 let them remain idle, rather than pay such a heavy 
 charge ? All the other articles were in a similar 
 position. Even Mr. Wilson had admitted that he 
 did not expect that the duty would enable more than 
 one-half of the dutiable goods to be made here ; yet 
 consumers would be called upon to pay duty on the 
 whole. Knowing that the State must have revenue, 
 he would have gone the length of voting for a 10 
 per cent, duty, but he would have greatly preferred 
 an income tax. As, however, this could not even be 
 proposed he would move the reduction of the duties 
 on all the articles to 10 per cent." 
 
 Mr. Petresen said "The previous speaker had 
 stated it would be better to pay the twenty men full 
 wages and let them remain idle than tax farmers' 
 implements. Now this argument was frequently 
 used by free traders, but it was an utterly fallacious 
 one. If one-tenth of the agricultural implements 
 were made in Rapara only one-tenth of the duty 
 would go in protection to the manufacturers, as the 
 other nine-tenths would go into the general revenue, 
 so that logically Mr. Kemp could only say that 
 it would be better for the farmers to pay one-tenth 
 of the wages than the duty on the whole value of 
 the agricultural implements. But what about the 
 revenue ? for under such a scheme it would be 
 entirely lost. Now, so far as the farmers were con- 
 cerned, the various kinds of goods which were to be
 
 u6 STATE BORROWING 
 
 admitted free would be a full equivalent for the 
 goods now to be made subject to the higher duty." 
 Mr. Walker said " it was the general opinion that 
 the works to irrigate the Opara Valley should without 
 further delay be commenced, so as to enable them 
 to place it under rice cultivation, which would form 
 a valuable article of export, and afford a large amount 
 of employment. Now, if this was to be carried out 
 it was surely unwise to resort to Protection at present, 
 as its effect must be, by raising wages, to increase 
 the cost of rice production and other articles of 
 export. If the Council was bent on raising part of 
 the funds wherewith to construct the irrigation works 
 from import duties, a 10 per cent, duty on all the 
 articles now subject to a 5 per cent, duty would raise 
 as much revenue and be less oppressive than the 
 duties as proposed ; and as to the suggested special 
 sales of land, he thought the present Land Act gave 
 every facility for acquiring freehold land. Neither 
 borrowing nor the increased issue of State notes were 
 before the Council at the moment, but if not out of 
 order he would like to be permitted to refer to them, 
 as they formed an alternative part of the whole 
 scheme. No one would deny that the Opara scheme 
 promised to be a general benefit not only to them, 
 but to those who came after them ; and, therefore, 
 if they charged the present generation with one- 
 twentieth of the cost the remainder might be fairly 
 charged against future generations, who would have 
 full value for the debt left for them to pay. He 
 therefore thought they were fully justified in borrow- 
 ing the greater portion of the funds — say nine-tenths 
 — required to construct the works. As to the pro- 
 posal of an increased issue of State notes to anything
 
 R A PARA 117 
 
 like the amount suggested, he considered it very 
 dangerous. As an internal currency State notes 
 answered every purpose ; but if a full supply was 
 issued the greater portion of their metallic currency 
 would find its way to other countries, and they might 
 find themselves in difficulties to discharge their foreign 
 obligations. In any case, the issue of State notes 
 must be conditional on the notes being maintained 
 at not more than ij to 2 per cent, under par." 
 
 Mr. Holland said " he was in full accord with the 
 last speaker that measures must be taken to maintain 
 their notes at not more than 1 or 2 per cent, under 
 par. But as to his fear that a full supply would send 
 metallic money out of the country to an extent likely 
 to interfere with foreign exchanges, he (Mr. Holland) 
 thought his fears were groundless, because 1 or 2 
 per cent, would not cover the cost of exportation. 
 As to charging future generations with the cost of 
 permanent works of utility, no one could object to 
 the apparent fairness of the principle ; but it was, 
 nevertheless, a dangerous practice to introduce into 
 a country being founded on Radical lines, because 
 when once they entered on such a course it was 
 hard to stop. There were some few private persons 
 who might benefit themselves by borrowing money 
 for a particular object ; but three-fourths of all 
 borrowers were unable to discontinue such a 
 seductive practice and went on until utterly ruined. 
 The practice was equally seductive to states — in fact, 
 more so, as individuals felt no personal responsi- 
 bility in the payment of either the interest or prin- 
 cipal. But there was another aspect of the principle 
 of State borrowing to be considered. Those who 
 came into the world with inherited property had no
 
 n8 STATE BORROWING 
 
 reason to complain of the charges and interest pay- 
 able on the debt which went to construct permanent 
 works, enhancing the value of their property. The 
 case, however, was different with those who come 
 into the world and found that they had no share in 
 the general wealth and yet were called upon to con- 
 tribute to payment of the interest and debt that went 
 to increase the value of the property of others. 
 "You are all doubtless acquainted," he continued, 
 "with the hundreds of millions of National Debt 
 piled up by the Pitts and others in carrying on an 
 aggressive war against France ? Can any one sup- 
 pose that this war would have been waged as per- 
 sistently as it was if the cost had been defrayed from 
 taxation, instead of being raised by borrowing ? 
 No, the thing is beyond the bounds of probability, 
 and there is no justification in a State borrowing 
 from its own subjects even if they have the means. 
 If they have the means the State should levy 
 either by taxation or assessment what it requires, 
 and thereby check useless expenditure. No doubt 
 a State may be justified in borrowing from a foreign 
 country when her own subjects have not got the 
 means to find the necessary funds. We at all events 
 are not in this position, as we have ample means to 
 furnish all necessary funds for our own requirements, 
 and can therefore keep clear of such an alluring and 
 seductive practice that threatens within a measurable 
 time to convert every one either into a payer or into 
 a receiver of interest. Mr. Walker and Mr. Kemp 
 have both stated that if the present duties were 
 increased to 10 per cent, they would produce as 
 much revenue as the proposed duties and give 
 greater satisfaction. This may be all right from
 
 RAPARA 119 
 
 their point of view, which is that the interests of this 
 country lie in the production and export of raw 
 material. We, on the contrary, hold that the welfare 
 of this country depends on the developing of all the 
 varied industries appropriate to a civilised community. 
 This opinion is derived from history, which shows 
 that nations depending on the production and sale 
 of raw material become poor, ignorant, and oppressed. 
 India, Egypt, and Ireland have adopted this policy, 
 or rather had it thrust upon them. Do we desire to 
 follow their example ? No; we will use every effort 
 to legislate in such a way as to enable our people to 
 produce as large a proportion of the necessaries of 
 life as possible, and the most effective legislation to 
 attain this end is the adoption of a protective policy. 
 We are all more or less acquainted with the desperate 
 struggle which a large proportion of the working 
 classes in Europe have to provide themselves and 
 their families with a sufficiency of the barest neces- 
 saries, and we know that many of them cannot even 
 effect that desirable object. Are we to bring our 
 people into naked competition with our unfortunate 
 brothers in Europe by the adoption of a free trade 
 policy ? If so, we may as well allow our lands to 
 become private property, and let the cultivators pay 
 the owners rents that will only leave them a bare 
 subsistence ; for open ports, even under our present 
 land tenure, will in time compel our working classes 
 to compete with European labour. We left the land 
 of our birth ; we separated from dear relations and 
 friends ; we faced the perils of the sea and the diffi- 
 culty of finding a new home in this foreign, distant 
 land. Shall we cause all these sacrifices to have been 
 made in vain by sanctioning a free trade policy here,
 
 120 STATE BORROWING 
 
 because it is the best policy for England ? What- 
 ever may be the answer in this House, the answer of 
 the electors will be ' No.' We require a policy that 
 will enable us to attain the position of an industrious, 
 intelligent, and civilised community ; we will not be 
 hewers of wood and drawers of water for other 
 countries." 
 
 Mr. Gray said that he trusted that members would 
 not be misled by the plausible speech of the last 
 speaker, who had entirely begged the question and 
 offered no proof of the beneficial effects of Protection 
 in other countries. " Our best policy," he observed, 
 " consists in keeping down the cost of production, 
 so that we may grow coffee, sugar, and rice at a 
 profit, and this can only be done by the admission 
 of imports to enable us to have cheap labour." 
 
 Mr. Wilson replied " it was evident that the 
 last speaker was speaking in the interests of the 
 class to which he belonged — the employers — totally 
 regardless of those dependent on the sale of their 
 labour. But in any case his argument was a short- 
 sighted one, for if imports were admitted free of 
 duty the revenue must be made up by some other 
 form of taxation. Perhaps, like several other mem- 
 bers, he objected to all forms of taxation — a desir- 
 able immunity if it were feasible. Mr. Gray said 
 that no proofs of the beneficial effects of Pro- 
 tection in other countries had been offered ; but 
 surely the history of England furnished evidence — 
 the strongest possible — that her position was due to 
 Protection. The United States of America likewise 
 proved that the development of industries could be 
 effected conjointly with the export of raw material. 
 No doubt if the object was to assist a few wealthy
 
 RAPARA 121 
 
 people able to employ a large amount of labour to 
 make fortunes, a free trade policy was the best. 
 But if they sought to provide all classes with the 
 means of making a comfortable living, of rearing 
 and educating a family, and of making some pro- 
 vision for old age, a protective policy, which would 
 place them beyond the reach of the destructive com- 
 petition of Europe, was the best for this country. 
 Our free trade friends," said Mr. Wilson, "try to 
 make it appear that the duties levied under Pro- 
 tection either are paid away to foreign countries, or 
 are in excess of revenue requirements, both of which 
 positions are erroneous. Now as to the complaint 
 of the increased price paid for home-made goods, 
 in consequence of the duty, it is evident that if such 
 goods could be produced without the duty, its im- 
 position would be useless ; but as protective duties 
 are only imposed so as to enable certain classes of 
 goods to be produced and sold in competition with 
 imported goods, thereby increasing the volume of 
 production — which we all hold to be desirable — 
 the increased price is simply a contribution which 
 all have to pay for this increased production. We 
 are all agreed that the irrigation of Opara Valley is 
 a desirable work, so as to increase the production of 
 rice. This work can only be carried out at con- 
 siderable expense— an expense of which we must 
 all bear our share. Now increased production in 
 manufactured goods is just as desirable as increased 
 production in rice, and neither can be secured with- 
 out increased taxation of some kind. Increased 
 duties of a more protective character would enable 
 us to secure increased production in both rice and 
 manufactured goods. As to the proposal to borrow
 
 122 STATE BORROWING 
 
 the necessary funds wherewith to defray the cost of 
 the irrigation works, or even a portion of such funds, 
 ample reason has already been shown why we 
 should refuse to adopt such a dangerous and unjust 
 method, which could only be justified on the ground 
 of our being too poor to raise the funds in Rapara — 
 a position which no one has attempted to assert. It 
 is therefore the duty of every one who has the 
 general interests of this country at heart to give his 
 vote in support of the new tariff as it now stands." 
 
 On being put, the report was adopted by sixteen 
 to eleven, and the second reading was afterwards 
 carried by seventeen votes against ten.
 
 CHAPTER IX 
 
 OPAKA IRRIGATION AND STATE BANK 
 
 Sources of funds — Cost of works — Rates for water — State notes — 
 Water rates versus land sales — State bank provisions — Dis- 
 cussion thereon — Foreign exchange. 
 
 At the meeting of the State Council in 1862 the Bill 
 for the construction of works to irrigate the Opara 
 Valley was brought in. It proposed to appropriate 
 the sum of £63,000 to defray the cost of the works. 
 Of this sum the surplus revenue was to contribute 
 £28,000 ; new legacy duties, £8,000 ; and an in- 
 creased issue of State notes, £32,000 ; or such an 
 amount as might be required to complete the works. 
 The estimates included the distributing channels 
 for land irrigation, but not the cost of the reticu- 
 lation works to supply Raoto and Koran with water. 
 The Bill proposed to impose a charge of 2jd. per 
 1,000 gallons for irrigation water, 3d. for water used 
 by manufactories, and is. 4d. for water for domestic 
 purposes. Mr. Wilson, in moving the first reading 
 of the Bill, said that they had fully considered the 
 advisability of levying a compulsory rate for the 
 water used for irrigation, but had come to the con- 
 clusion that the best plan was to fix a water rate so 
 
 123
 
 124 OPARA IRRIGATION 
 
 low as to induce all landowners to use the State 
 supply. The surplus revenue at present, he said, 
 only amounted to some £9,600 ; but as it would take 
 three years to complete the work, he had no doubt 
 that the surplus would have reached the estimated 
 amount by the time the works were completed. 
 The estimate of £8,000 from legacy duties was 
 perhaps a sanguine one ; but should these duties 
 prove to yield less they had the State notes to make 
 up any deficiency. Now with regard to State notes, 
 he was fully aware that they could only be issued 
 to the extent of supplying the requirements of in- 
 ternal currency, and that any issue in excess of this 
 demand must depreciate their value below metallic 
 money. They had carefully gone into this matter, 
 and from the great increase in population they be- 
 lieved that the country could absorb a further issue 
 of £24,000 without causing any depreciation in 
 value ; but, to make sure, they intended to bring in 
 a Bill to establish a State bank of issue, to control 
 and regulate the issue of State notes. For this 
 purpose the bank would be authorised to retain 
 20 per cent.— in metallic money — of the amount of 
 notes issued, and with that reserve to purchase the 
 notes so as to maintain their value at not more than 
 i£ per cent, below par. They had expected to be 
 able to carry out this work without imposing legacy 
 duties, but the decreased price and decreased de- 
 mand for exported produce to Chili, California, and 
 Australia, with the consequent reduction in imports, 
 created a doubt which they thought should be met 
 by increased taxation. 
 
 Those who had selected land in the Opara Valley, 
 in the expectation that water for irrigation would
 
 RAPARA 125 
 
 be free, were indignant that a charge was to be 
 made. Mr. Gray said that although they did not 
 agree with the method foreshadowed of raising the 
 funds, they still expected that the works would prove 
 a general benefit. But it appeared that the water 
 was to be charged at a rate that would prevent its 
 use, at all events for irrigation, and consequently 
 the cost of the works would be a dead loss to the 
 whole community. On behalf of those who had 
 taken up land, and on behalf of those who intended 
 to take up land in the Opara Valley, he would, at 
 the proper time, move that the charge for irrigation 
 water should be fixed at id. per 1,000 gallons for the 
 first five years ; and should rice and sugar cultivation 
 show that they could bear a higher rate the charge 
 could be increased. To charge 2|d. per 1,000 
 gallons before they knew whether cultivators could 
 afford to pay such a rate was the height of madness. 
 Other speakers followed, and expressed similar 
 views. 
 
 Mr. Holland replied that they had fully con- 
 sidered the proposed rate, which they considered 
 moderate, but they would give it further considera- 
 tion, and would sooner err on the side of cheapness 
 than make an extravagant charge. None of the 
 members of the Executive, he might state, had any 
 land in the Opara Valley, while all those who 
 opposed the rate were interested parties. However, 
 should further consideration convince them that 
 the proposed rate was too high, the Executive 
 Government would be prepared to make a reduction 
 at the proper time. The first reading was passed 
 without a division, and the Bill was considered in 
 Committee.
 
 126 OPARA IRRIGATION 
 
 When the rating clause came under consideration 
 Mr. Wilson said that they were willing to reduce 
 the price of irrigation water to 2d. for the first three 
 years from the completion of the works, subject to a 
 proviso that the Executive should have discretionary 
 power to raise the rate to 2^d. after three years' trial. 
 This concession failed to satisfy a large number of 
 members. Mr. Walker implored the Executive not 
 to imperil the scheme by making any charge for 
 irrigation water, but to rely on the sale of land in 
 the district irrigated to provide the necessary funds. 
 A discretionary power might be given to the 
 Executive to impose a rate not exceeding id. per 
 1,000 gallons after a trial of five years. Under such 
 conditions he and his party would consent that the 
 rent of all land within the reach of irrigation should 
 be increased to 2s. 6d. or even 3s. per acre. 
 
 Mr. Petresen replied that Mr. Walker was very 
 generous at other people's expense. He (Mr. 
 Walker) and his party had already secured the free- 
 hold of large areas of this irrigable land, which 
 would largely increase in value if rent on all the 
 unselected land was increased 2s. 6d. or 3s. per 
 acre. But this was not the greatest objection to 
 such a proposal. The increased rent would act as 
 a deterrent to intending selectors to a greater extent 
 than the proposed water charge. 
 
 The amendment to reduce the rate to id. per 
 1,000 gallons was lost, and the clause, on being put, 
 was carried by a majority of seven. All the remain- 
 ing clauses were carried as proposed, and the report 
 was adopted by sixteen to ten votes. The second 
 reading was carried by seventeen to nine votes. 
 
 The Bill for the establishment of a State bank
 
 RAPARA 127 
 
 proposed to place it under the management and 
 control of three Hon. Commissioners, who were 
 empowered to appoint a manager. They were 
 authorised to issue State notes as required, to the 
 extent of -£90,000, less the amount of those already 
 issued. Any further issue was to be first sanctioned 
 by the State Council. They were to retain 20 per 
 cent, of the value of notes issued in coin, the 
 reserve to be used at their discretion in the re- 
 demption of notes so as to maintain their value at 
 not more than 2\ per cent, below par. The Bill laid 
 down that State notes were to be a legal tender for 
 every kind of debt or obligation within the State of 
 Rapara, and that such notes were to be payable in 
 coin solely at the option of the Bank Commissioners. 
 They were authorised to lend notes to banking insti- 
 tutions on specified conditions and on receiving speci- 
 fied securities, at not less than 4 per cent, interest per 
 annum. Such banking institutions were to have the 
 option of returning the whole or any part of such 
 loans, on giving one month's notice. The Bill 
 further imposed on the Commissioners the duty of 
 establishing a savings department, paying interest at 
 a rate not exceeding 4 per cent, per annum, and of 
 framing and submitting regulations for the approval 
 of the Executive. They were authorised to grant 
 cash credits to approved persons on a joint and 
 several bond of at least two approved persons or 
 firms, at a rate of interest not less than 6 per cent, 
 per annum. The State Treasurer was to pay in to 
 the State bank all moneys received and to make all 
 payments through it. The measure likewise pro- 
 vided that the Bank Commissioners were to honour 
 all drafts of the Executive up to 60 per cent, of the
 
 128 OPARA IRRIGATION 
 
 value of the notes issued, free from any charge for 
 interest. 
 
 Mr. Wilson, in introducing the Bill, said "that 
 although the proposed State bank was a novel 
 experiment, as compared with banking operations in 
 other countries, the circumstances here made such 
 an experiment a safe one, when undertaken on 
 careful and well-considered lines. He was fully 
 aware that many intelligent persons considered that 
 the issue of State notes could be used by the 
 Government as a means of forcing loans from the 
 public, without the payment of interest ; but he 
 laboured under no such delusion, as he was fully 
 aware that any issue in excess of the requirements 
 for internal currency would have the effect of depre- 
 ciating their value. Nevertheless, up to the extent 
 of supplying internal currency the Government 
 would ;have the use of the funds free from any 
 interest payment. Of course he would be met with 
 the old European argument that under a full issue 
 of State notes nearly all the metallic money would 
 find its way to other countries to their own disad- 
 vantage and loss. Now he was willing to admit 
 that under such conditions a large portion of their 
 metallic money would be likely to find its way to 
 other countries. But this certainly would not be to 
 their detriment. On the contrary, it would be to 
 their advantage and gain, because they would have 
 in State notes a vehicle of exchange that cost 
 nothing ; whereas, if metallic money were used as 
 the vehicle of exchange, it must be purchased with 
 its equivalent value in goods. " If," said he, " we can 
 use £70,000 in State notes for internal currency 
 instead of £70,000 in specie, we should not be
 
 RAPARA 129 
 
 called upon to purchase the latter, and therefore 
 would have its equivalent value in goods — a value 
 that we should be free to use in the construction of 
 public works, or as a floating capital. We have 
 been urged to make the State notes convertible at 
 the will of the holder, but to agree to this condition 
 would be throwing away the advantage which we 
 expect from their issue. There is, no doubt, good 
 reason for making notes issued by trading institu- 
 tions payable on demand, and compelling such 
 institutions to hold a large proportion — or better 
 still, the whole — in specie to meet such demands. 
 But even with this safeguard note-holders are often 
 unable to obtain payment, either through failure of 
 the issuing bank or through one of those recurring 
 monetary panics so frequent in Europe and America. 
 If such panics are to be avoided, either the State 
 must issue all notes, or issuing banks must be com- 
 pelled to keep specie in their vaults to the full 
 value of the notes issued ; because it is evident that if 
 the specie reserve is less than the notes issued, when- 
 ever a monetary panic ensues every holder of notes 
 will be afraid that -his notes will be the ones for 
 which there are no redemption funds forthcoming. 
 Under such circumstances the issue of notes by 
 banks is worse than useless, because they cause no 
 increase in the currency. No panic of this kind 
 can arise here, as our notes are to be issued on the 
 good faith and honour of the Government, and the 
 entire community is pledged to their due payment. 
 There is one danger to be guarded against, and that 
 is over-issue. To prevent this, the notes authorised 
 to be loaned out to banks can be returned when not 
 wanted, and the Commissioners are charged with the 
 
 10
 
 130 OPARA IRRIGATION 
 
 duty of retaining 15 per cent, of the notes issued in 
 specie, to be used in the purchase of notes so as to 
 prevent depreciation. With these precautions we 
 can safely ask you to support this Bill, which we 
 think should be the forerunner of many financial 
 measures equally sound ; for conservative customs 
 and prejudices are being given up, and reason and 
 intelligence assuming their due sway." 
 
 Several speakers followed for and against. One 
 said he would like to be informed how the Govern- 
 ment could redeem their notes if 60 per cent, of 
 the issue were expended in the construction of the 
 Opara Valley works or any other permanent works. 
 The scheme, he said, might be all right if it was to 
 go on for ever, but a time would come, however 
 distant, when the notes would have to be redeemed, 
 and he was afraid that there would be greater diffi- 
 culty in raising the redemption funds than in 
 carrying out the irrigation works without the aid of 
 State notes. 
 
 Mr. Petresen said " the last speaker gave him an 
 opportunity of explaining a misapprehension which 
 several members entertained with regard to State 
 notes. It might be possible, but it was certainly not 
 probable, that any circumstance would arise which 
 would require the redemption of all the State notes. 
 But," he continued, " as we have to provide for 
 possibilities as well as probabilities, surely it should 
 be evident that with the great increase in population 
 and wealth now taking place we would have no 
 difficulty in raising sufficient revenue to redeem all 
 State notes should it become necessary, which I for 
 my part regard as very improbable. In fact, the 
 gain to the State from the use of State notes would
 
 RAPARA 131 
 
 be sufficient to form a sinking fund equal to their 
 redemption in less than twenty years. Had we 
 followed the advice of the last speaker and the party 
 to which he belongs in raising the funds by borrow- 
 ing in Europe, a sinking fund for repayment would 
 be a wise step ; but to redeem State notes would be 
 incurring great expense to our own injury. We all 
 know how serviceable they have been in the past, 
 and no one has ever heard a doubt even hinted 
 as*te- their genuine value and equivalence to cash." 
 
 The first reading was passed without a division, 
 and the several clauses were considered in Committee 
 on the following day. 
 
 On the clause authorising the issue of £90, 000 in 
 State notes, Mr. Hinton said that he was not opposed 
 to the issue of State notes, if made convertible, as 
 in other countries. Great attention had been given 
 to banking and the issue of notes in England, 
 France, and the United States, and great changes 
 had been made in all these countries with a view to 
 make notes form part of a staple currency. To 
 attain this object all held that notes must be backed 
 by coin and property, of which they are only a 
 symbol, and to secure their acceptance by the public 
 they must be convertible into coin on demand. If 
 inconvertible notes could have been used as cur- 
 rency, how was it that no authority on banking had 
 ever ventured to propose such a thing ? " It seems 
 to me," he said, " that our Executive Government is 
 not inclined to follow surveyed roads, or even by- 
 paths to any goal they seek, but seems determined 
 to search for new roads in unexplored country. 
 Let us follow the beaten track of proved practice, or 
 at least keep it in view, and so avoid being bushed
 
 132 OPARA IRRIGATION 
 
 — which is the inevitable fate in store for our 
 Executive Government." 
 
 Mr. Holland retorted " it was evident from 
 Mr. Hinton's speech that he (Mr. Hinton) had 
 never ventured off the old highway to see if a 
 nearer and better road could be found. Now the 
 issue of convertible notes was doubtless on the 
 beaten track, and the history of banking, both in 
 England and the United States, showed that for 
 the last sixty years this beaten track had been the 
 scene of financial difficulties and disasters. In 1792 
 a monetary panic took place in England in which 
 three hundred banks were compelled to stop pay- 
 ment, and some fifty of them were totally ruined. 
 In 1797 a run on the Bank of England took place, 
 which was only stopped by the Government 
 prohibiting the Bank from paying their notes in 
 coin. This prohibition was the means of saving 
 the Bank of England from the necessity of stopping 
 payment. This run appears to have been due to 
 the prospect of war ; but what we have to note is, 
 that the run was stayed by turning convertible notes 
 into inconvertible ones. At that time it was generally 
 supposed that notes would not circulate unless they 
 were convertible into coin on demand ; but this 
 opinion proved erroneous, as the inconvertible 
 notes continued to circulate freely and were 
 freely accepted by all classes. But what is more 
 to the point, they remained at par until excessive 
 issues brought on depreciation, which resulted in 
 the collapse of 240 banks between 1814 and 1817. 
 In 1 82 1 notes had risen to par and cash payments 
 were resumed. But in 1825 another monetary crisis 
 ensued, mainly owing to the over-issue of notes by
 
 RAPARA 133 
 
 country banks, seventy of which were ruined through 
 their inability to redeem their notes on demand. 
 The Bank Act of 1844 doubtless discouraged the 
 over-issue of notes ; but the Bank Charter had to 
 be suspended in 1847 an ^ I ^57 — that is, so far 
 suspended so as to enable it legally to refuse pay- 
 ment of notes. It was a most remarkable fact that 
 theprovision for paying notes on demand was only 
 erated because reliance was placed on Govern- 
 ment's suspending it when its evil effects could no 
 longer be borne. The history of banking in America 
 showed in a higher degree than that of England 
 the folly of allowing trading banks to issue notes. 
 Between 1 814 and 1819 no less than 195 banks failed. 
 Again in 1834 nearly every bank in the Union 
 stopped payment. In 1840 another banking crisis 
 took place, in which 180 banks came utterly to ruin. 
 Another banking crash followed in 1857, m which 
 all the banks in the States stopped payment. The 
 enormous issue of notes in America in 1861 and 
 1862 and their subsequent depreciation could not be 
 ascribed to bad banking laws, as the issue was in 
 reality a forced loan for carrying on the war ; but 
 the Banking Act of 1864 followed on the old lines, 
 with the certain result of producing its crop of 
 banking and financial disasters. Were they to 
 follow this " beaten track of proved experience," full 
 of rocks and quick-sands, and marked by the 
 skeletons of wrecked banking and financial in- 
 stitutions, or try to reach their goal by a new and 
 more promising road ? Mr. Hinton had asked : 
 If inconvertible State notes were so promising, 
 how was it that none of the European States had 
 adopted them, and how was it that no banking
 
 134 OPARA IRRIGATION 
 
 authority had even ventured to propose them ? 
 Well, the answer to the latter question was that 
 several eminent financiers and bankers had strongly 
 recommended them. That they had not as yet been 
 adopted was mainly due to two causes — first, to the 
 strong conservative objection to any change from 
 long-established methods and customs ; and secondly, 
 to the great power which the members of banking 
 and financial institutions had in legislation, coupled 
 with the advantage, or rather supposed advantage, 
 which they derived from the issue of notes. They 
 might just as reasonably expect amendments in 
 legal procedure from lawyers as improved banking 
 laws from bankers. Both might be liberal on other 
 matters demanding reform, but reforms in banking 
 and legal procedure must be gained by those not 
 directly engaged in those professions. The history 
 of banking in other countries, as well as England 
 and the United States, proved that the issue of 
 notes, however strictly guarded, could not be 
 entrusted to banking institutions trading for profit 
 without subjecting the country to runs, panics, and 
 other financial disturbances. It had been repeatedly 
 stated by many eminent financial authorities that 
 the issue of notes was outside banking business, 
 and that all notes should be issued and controlled 
 by the State. The same authority could not be 
 claimed in support of the view that such notes 
 should be payable in coin only at the option of the 
 bank of issue. But they could appeal to all 
 intelligent people whether inconvertible notes issued 
 by the Government of England, the United States 
 of America, Rapara, and other countries possessed 
 of a settled government, would not be preferred
 
 RAPARA 135 
 
 to the notes of any bank trading for profit, even 
 if such bank kept a sovereign in its coffers for 
 every pound-note issued. That they would be so 
 preferred was shown by the preference given to 
 Bank of England notes during each suspension of 
 the Bank Charter, because the Act of Suspension 
 acted as a Government guarantee for their due 
 payment. For these reasons they proposed that 
 all notes shall be issued by the State, and be 
 convertible into coin at the discretion of the Bank 
 Commissioners." 
 
 Mr. Kemp said he agreed with the proposal of 
 the Government so far, but the question of main- 
 taining notes at not more than i\ per cent, below 
 par required careful consideration. "Presuming 
 that sufficient coin will reach us when foreign 
 exchange is in our favour, will 2\ per cent, cover 
 the cost of shipping coin to Europe when the 
 exchanges are against us ? Freight, insurance, 
 and interest will certainly average not less than 
 3 per cent. ; and if so, any effort to maintain notes 
 at only 2\ per cent, below par will be a failure. 
 If our communications with Europe were as 
 frequent and rapid as those of New Zealand or 
 Australia, 2\ per cent, might be sufficient, but 
 under existing conditions 3^ per cent, was not too 
 much, and I would ask the Government to substitute 
 3 J for the 2\ in the clause." 
 
 Mr. Wilson said that he was fully aware that 
 the rate of exchange was the only means of 
 measuring the relative values of coin and legal 
 tender notes. They had carefully considered the 
 question, and thought 2\ per cent, might be sufficient ; 
 but inasmuch as 2\ per cent, might not be sufficient
 
 136 OPARA IRRIGATION 
 
 premium on coin so as to retain sufficient of it in 
 the State for foreign exchange purposes, and as the 
 higher rate could have no effect in depreciating 
 notes, he would consent to substitute 3J per cent. 
 At the same time he thought that under our pro- 
 tective tariff our exports of goods to Europe would 
 exceed our imports in a few years. This would 
 have the effect of causing an influx of coin into 
 Raoto, perhaps sufficient to maintain notes on a 
 parity with coin ; but even under these circum- 
 stances the 3 J per cent, would simply be inoperative. 
 With this alteration the clause was passed. 
 
 The clause making bank notes a legal tender and ( 
 only convertible into coin at the option of the Bank 
 Commissioners, was carried after some discussion. 
 
 On the clause empowering the Commissioners to 
 lend notes to banking institutions at not less than 
 4 per cent, per annum interest, Mr. Ross moved 
 that 3^ be inserted in place of 4. He said that 
 he saw no reason why the success of the Act should 
 be endangered by fixing a rate of interest that might 
 prove to be too high, in which case the bank would 
 have no means of circulating their notes. If such 
 loans were worth more than 3J per cent, interest, 
 the Commissioners would no doubt get the full 
 value. 
 
 Mr. Wilson said that Mr. Ross was altogether 
 wrong in stating that the State bank depended 
 entirely on banking institutions for circulating 
 their notes, as all the expenditure of the Govern- 
 ment had to be made through the State bank, and 
 the Bank Commissioners were authorised to open 
 cash credit accounts which would enable them to 
 circulate notes to any extent. In order to secure,
 
 RAPARA 137 
 
 to a certain extent, a regulation for the issue of 
 notes, they had provided in this clause that banks 
 could, on a month's notice, return all or any portion 
 of the notes which they had borrowed from the 
 State bank. He saw no reason to reduce the 
 minimum rate of interest. On a division the 
 amendment to reduce the rate was lost, and the 
 clause as proposed was passed. 
 
 The clause for establishing a Savings Bank de- 
 partment was passed without debate. 
 
 The section authorising the Commissioners to 
 grant cash credits to approved persons or firms, on 
 a joint and several bond of not less than two 
 approved persons or firms, at not less than 6 per 
 cent, interest, met with strong opposition. Mr. 
 Walker said, " he was not opposed to the Bill as a 
 whole, but he saw great danger in this clause. They 
 were all aware that the population, with a few excep- 
 tions, was divided into two hostile political camps. 
 The Executive Council had the appointment of the 
 Bank Commissioners in its hands, and could not be 
 expected to go outside its own party. He did not 
 say that the Commissioners so appointed would 
 grant cash credits on inadequate securities, but so 
 long as human nature remained as at present, the 
 probabilities were that they would give the pre- 
 ference to members of their own party. Mr. 
 Holland had stated that the issue of notes was 
 outside the proper functions of banks, to which he 
 (Mr. Walker) agreed ; but it was equally certain 
 that the granting of over-drafts or cash credits with 
 or without security was outside the proper functions 
 of a State bank, as such business could be better 
 performed by trading banks, who would exercise
 
 138 OPARA IRRIGATION 
 
 greater care in the selection of those requiring 
 assistance in this form. It was no doubt necessary 
 that the State bank should have some channel of 
 investments for the funds arising from the Savings 
 Bank department, but why not give them power to 
 make advances on the security of freehold land, and 
 even on houses, and other improvements on lease- 
 hold land ? He begged to move as an amendment, 
 that all the words after ' empowered ' be struck 
 out, and the following words be inserted in their 
 place : ' to lend notes or money on freehold land 
 and houses, and on houses and other permanent 
 improvements on leasehold land.' " 
 
 This amendment was supported by Mr. Kemp, 
 who said that the proposals in the Bill depended, 
 for good or evil, entirely on the business capacity, 
 character, and honesty of the Commissioners, and 
 as they were in the dark as to the persons to be 
 nominated, he for one preferred the amendment 
 to the original proposal. 
 
 Mr. Holland said "the main objection to the 
 clause consisted in the allegation that the Com- 
 missioners would give the preference to those 
 belonging to their own party. Now, could this 
 preference not be as easily given to members of 
 their own party with the securities stated in the 
 amendment, as in those stated in the clause ? In 
 any case, unless the Savings Bank department was 
 to be dropped, some form of investment must be 
 open to the Commissioners. No doubt they could 
 advance some of the funds arising from the Savings 
 Bank through the power to lend to banking institu- 
 tions. But this would place them entirely in the 
 hands of the private banks, who could charge the
 
 RAPARA 139 
 
 public 8 or 10 per cent., or even more, while 
 refusing to give the State bank more than 4 per 
 cent. Now while we have no desire," he continued, 
 " to interfere with private banks or to take up busi- 
 ness that properly belongs to them, we hold that 
 it is the duty of this or any other state — particularly 
 of this small state of Rapara, where we are depen- 
 dent on two banks which can easily combine to 
 charge exorbitant rates of interest — to legislate in 
 the interests of the great mass of the people, in 
 preference to the interest of wealthy companies, 
 which can always look after their own interests. 
 We are not wedded either to the terms of the clause 
 or to the amendment, and we are willing to accept 
 the voice of the Council. But, in conclusion, it is 
 necessary to point out that a State bank such as we 
 propose would be placed in a false position if com- 
 pelled to find investments in mortgages extending 
 over a number of years, and not capable of being 
 called in when emergency requires ; whereas cash 
 credits can to a certain extent be made available for 
 any urgent demands for increased funds." 
 
 After a brief conference between the members of 
 the Executive Council, Mr. Wilson said that they 
 saw considerable force in the arguments advanced 
 by Mr. Walker as to political bias and favouritism, 
 and they were willing to insert in the clause " W T hen 
 two Commissioners agree to accept any applicant 
 and his securities and the same is opposed by the 
 third Commissioner, such cash credit shall not be 
 granted until the matter is referred to the President ; 
 and his decision shall determine the acceptance or 
 rejection of the application." This, he said, would 
 still leave the decision open to political favouritism ;
 
 140 OPARA IRRIGATION 
 
 therefore they would be content that the President 
 should be empowered " to appoint one of the three 
 Commissioners." These additions to the clause they 
 were willing to insert whether the amendment were 
 carried or rejected, because they would be sorry to 
 see such a valuable and necessary provision of the 
 Bill destroyed owing to apprehensions of political 
 jobbery. On being put the amendment was carried 
 by a majority of seven votes. 
 
 The clause directing the Treasurer to pay all 
 moneys received into the State bank and to make 
 all payments through it was carried without debate 
 or division. 
 
 The report was adopted by a majority of nine, 
 and subsequently the second reading was carried by 
 a majority of eight. 
 
 An Act for regulating the taking of a census in 
 1863 was passed.
 
 CHAPTER X 
 
 PROGRESS OF PRODUCTION, 1860-1870 
 
 Decrease in exports — Necessaries plentiful and cheap — Beautiful 
 prospect in rural districts — Freehold land uncultivated — 
 General election, 1862 — Irrigation water free versus water 
 rate — Amendment of Municipal Law — Election, 1867 — Free- 
 hold Compulsory Leasing Act and epitome — Discussion thereon 
 — Census, 1863 — Land occupied — Revenue and expenditure — 
 Imports and exports — Women and Children's Protection Act. 
 
 As previously stated, both trade and production 
 received a check in 1859 through the decreased 
 demand for, and value of, most kinds of produce in 
 California and Australia ; but the production and 
 export of coffee, sugar, and rice had gradually 
 increased. These now form the staple articles of 
 export. The exports have not increased in pro- 
 portion to the increase in population ; but no evil 
 effects have been felt inasmuch as the protective 
 tariff has increased the production of a great variety 
 of necessaries. A woollen factory was opened in 
 Raoto in 1862, which has been in constant opera- 
 tion turning out cloth suitable for the climate. 
 Worsted and fine cloth are still imported ; but all 
 other kinds are produced in the local factory. 
 
 Ready-made clothing has ceased to be imported 
 
 i 4 i
 
 142 PROGRESS OF PRODUCTION 
 
 since 1863, and a considerable number of people 
 are employed at two clothing factories, while tailors 
 and dressmakers are fully occupied. All but the 
 finer qualities of boots are now made in Rapara, 
 while soap and candles are in full supply below the 
 cost of the imported article. Nearly all spirits con- 
 sumed in the island are now distilled there ; rum 
 began to be exported in 1864, and there is every 
 indication that the export trade will increase. The 
 supplies of beef, mutton, and pork are ample and at 
 moderate prices, while fruit is both plentiful and 
 cheap. Bananas, pineapples, oranges, limes, lemons 
 and guavas all grow in great perfection, and greatly 
 in excess of local consumption, large quantities of 
 oranges and pineapples being used for distillation. 
 Latterly the juices have been converted into a 
 species of wine, and even beer, both of which are 
 largely consumed. The export of wheat and maize 
 has all but ceased, as the export value is below the 
 cost of production owing to the great cost of sea 
 transport. A considerable fall in wages has taken 
 place since 1859, but owing to the cheapness of all 
 necessaries and constant employment the working 
 classes are enabled to save a fair portion of their 
 earnings. This is shown by the Savings Bank 
 returns and by the number of land selections taken 
 up by working men. In the Raoto, Marieta, Akitiki 
 and Koran districts a large proportion of the land is 
 now taken up, and as the traveller passes along the 
 main roads cultivated land is never out of sight. 
 The farmers have preserved portions of the indi- 
 genous timber, and planted fruit and other trees 
 round their fields and houses, so that no fairer 
 picture, no greater signs of peace and plenty, are to
 
 RAPARA 143 
 
 be seen in any part of the world. This statement, 
 however, does not apply to a portion of the road 
 between Raoto and Koran. In passing along this 
 road large tracts of uncultivated land with no houses 
 in sight continue for miles, although the soil is of 
 the richest quality. So general is the non-cultiva- 
 tion of freehold land, that the name "freehold" is 
 applied as a term of reproach to all uncultivated 
 land whether belonging to the State or to private 
 persons. These tracts of freehold land are due to 
 the coup which the Council carried in 1852, by 
 which an area of 320 acres could be taken up on 
 lease in the Opara Valley and turned into freehold 
 by purchase at twenty years' rental. No great 
 quantity of land was turned into freehold up to 
 1857 > but in 1858 these lands were rushed under 
 the expectation that water from the contemplated 
 irrigation works would be free and would enable 
 rice and sugar to be produced at a great profit. 
 More than one-half of this land was taken up by 
 speculators who expected that the land would be 
 trebled in value as soon as the irrigation works were 
 completed. The irrigation works were completed 
 in 1865, and had the effect of gradually bringing 
 portions of this freehold land into cultivation ; but 
 more than two-thirds of it were owned by absentee 
 speculators — mostly from Australia — who had no 
 intention to cultivate, but demanded £8, and even 
 ^~I2, per acre from those who wished to till the soil. 
 This state of things disgusted many of the freehold 
 advocates who became strong supporters of lease- 
 hold tenures. 
 
 The general election in 1862, contrary to the 
 expectations of both Radicals and Conservatives,
 
 144 PROGRESS OF PRODUCTION 
 
 resulted in a small majority in favour of the Con- 
 servatives. The Radicals were so sure of carrying 
 the election that they considered it a waste of time 
 and money to enter into any form of organisation. 
 The election turned mainly on the question of Land 
 Nationalisation, and the Conservatives used every 
 effort on behalf of their candidates. At the meeting 
 of the State Council Mr. Wilson resigned, and Mr. 
 Russell was elected head of the Executive, and 
 appointed Mr. J. Black State Secretary, Mr. Gray 
 Steward of Works, and Mr. Iro, Chief of Manjiki, 
 Steward of Westerland. 
 
 The primitive form of Municipal Government 
 first adopted had been continued up to this time ; 
 but it had become unsuitable for several parishes, 
 and Mr. Russell brought in and passed a Bill in 
 1863 giving each parish power to come under the 
 provisions of the new Act, which provided for 
 elective parish councillors on a progressive property 
 qualification based on the area of land held. Every 
 householder had one vote, but larger holdings gave 
 more votes up to four votes for those owning or 
 occupying 320 acres of land. Except as regarded 
 the four votes for the 320 acres of freehold land, the 
 Act gave general satisfaction, but as the qualification 
 specified only extended to freeholders, the lease- 
 holders considered it unfair. 
 
 No measure of importance was dealt with until 
 1867, when Mr. Russell brought in a Bill to amend 
 the Opara Irrigation Act. He proposed to repeal 
 the section imposing a charge for water, so as to 
 make water free. In moving this he said that they 
 were all aware that the Opara Valley land bore the 
 highest rental rate allowed by the Land Ordinance,
 
 RAPARA 145 
 
 and there could be no doubt that this high rent was 
 fixed by the Land Commissioners to cover the use 
 of free water. Had it been known at the time that 
 a charge would be made for water not one-tenth 
 of the freehold land would have been taken up. Of 
 course the water rate was intended to defray part 
 of the cost of the works ; but the money paid for 
 the freehold land would amount to more than ten 
 years' water rates. No doubt several land holders 
 were now preparing to enter on cultivation, subject 
 to the water rate ; but they did not own one-fifth 
 of the land, and the owners of the other four-fifths 
 were evidently determined not to invest money in 
 the cultivation of rice unless water were made 
 free. 
 
 Mr. Wilson said, "he could not find words to 
 express his indignation at such an iniquitous pro- 
 posal. Mr. Russell was perfectly right in his 
 assertion that four-fifths of the owners of the land 
 in the Opara Valley would not embark in rice 
 cultivation if a charge were made for irrigation 
 water. He might have gone further and said that 
 they would not engage in cultivation even if the 
 water cost them nothing. They never took the 
 land up with any intention to cultivate it. No, 
 they took the land up to levy blackmail on those 
 who wished to employ it productively. As to their 
 expecting to get water free, if any such expectation 
 were entertained, its realisation could only be 
 secured by a vile conspiracy. The action of the 
 Government all but confirmed the existence of 
 such a conspiracy, and Mr. Russell was either 
 the tool or the chief of the band of conspirators. 
 Let all those," he concluded, " who desire to 
 
 11
 
 146 PROGRESS OF PRODUCTION 
 
 join this band — whose object is nothing but 
 robbery— vote for this shameless proposal ; but let 
 every honest man give it the most determined 
 opposition. Thank Heaven Mr. Russell cannot 
 repeat the coup by which he carried the freehold 
 amendment in the first Council, as we can appeal 
 to a referendum vote." 
 
 The motion was seconded by Mr. Gray, but no 
 other member spoke in its favour, while several 
 denounced it in the strongest language. On being 
 put, the first reading was negatived by a majority 
 of ten votes ; whereupon shouts of " Resign, 
 resign ! " came from the members of both parties. 
 When the Council met on the following day, Mr. 
 Russell said that they had considered their position 
 under the vote given yesterday, and they could see 
 no reason why they should resign ; but if they had 
 lost the confidence of the Council it was its privilege 
 to say so. On that Mr. Wilson gave notice of 
 motion "that Mr. Russell and his colleagues did 
 not possess the confidence of this Council." When 
 the motion came on Mr. Wilson said it was 
 not his intention to utter one word in support of 
 his motion, as the action of the Government was 
 of such a character that even its own partisans 
 must support his (Mr. Wilson's) motion. The 
 motion was seconded by one of Mr. Russell's 
 supporters. Mr. Russell entered into a long de- 
 fence, in which he repeated the arguments used 
 in moving the first reading of the Bill, and wound 
 up by declaring that the opposition of the Radical 
 party was due to political bias and spite, and that, 
 had the freehold land been the property of members 
 belonging to the Radical party, there would have
 
 RAPARA 147 
 
 been no opposition to the measure before them. 
 Loud shouts of " Liar ! " " Traitor ! " " Conspira- 
 tor ! " now came from the Radical members, 
 amidst the greatest disorder. When order was 
 restored, the motion was put and carried by 
 seventeen votes against eight. Several supporters 
 of the Government did not vote. Contrary to all 
 expectation, Mr. Russell asked for and obtained 
 a dissolution from the President. The election 
 was fixed to take place in August. During the 
 time between the dissolution and the day of election 
 the Radicals held meetings in every electorate, at 
 which they denounced the Executive Council in 
 no measured terms. They declared it to be their 
 intention, if they carried the election, at once to 
 bring in a Bill empowering the Land Commis- 
 sioners to lease all uncultivated freehold land after 
 twelve months' notice at the best rents they could 
 procure, such rent to be paid over to the owners 
 less 5 per cent, for collection and management. 
 They further averred that they would undertake the 
 nationalisation of all freehold land within a period 
 of five or six years. The Conservatives were over- 
 joyed at the Radical proposals, which they said 
 would result in a Radical defeat. Many of them 
 pledged themselves to oppose free water and land 
 nationalisation, but the bulk of the Conservative 
 candidates stuck to free water and freehold land. 
 They fought well, but most of their meetings were 
 so disorderly, even when the meetings were adver- 
 tised for supporters only, that very little of their 
 speeches was heard. The election resulted in the 
 return of twenty-three members in favour of a water 
 rate against five in favour of free water, two being
 
 148 PROGRESS OF PRODUCTION 
 
 neutral. Eighteen Radicals were returned as against 
 twelve Conservatives. The Radicals had a large 
 majority of Europeans, as seven out of the twelve 
 Conservatives were Maori members. 
 
 The fourth State Council met at the prescribed 
 time, and again elected Mr. Walker Chairman, after 
 which Mr. Wilson was elected Chief of the Executive 
 Council. He immediately announced that he had 
 appointed his old colleagues to their former posi- 
 tions. Several unimportant questions were dealt 
 with, after which Mr. Holland proposed the first 
 reading of the Freehold Leasing Bill. 
 
 He said, "they were all fully aware of the large 
 amount of leasehold land which had been converted 
 into freehold by purchase, under the terms of the 
 Land Ordinance ; and they were likewise all aware 
 of the small amount of cultivation on these freehold 
 lands, particularly in the Opara Valley. Now it 
 could not be said that there was not plenty of State 
 land still open to intending cultivators ; but this 
 State land was a long distance from Raoto, and to 
 enable it to be profitably occupied a heavy expendi- 
 ture in the construction of roads would have to be 
 incurred. On the other hand, the uncultivated 
 freehold lands were close to Raoto and accessible 
 by good roads, besides being of better soil than the 
 outside State lands. Most of you," he observed, 
 "heard Mr. Russell's declaration that four-fifths of 
 the Opara Valley lands would not be placed under 
 cultivation unless free water were granted ; but it 
 is a well-known fact that the greater portion of these 
 lands belongs to speculators who have no intention 
 of using them for cultivation, having secured them 
 for the express purpose of compelling farmers to
 
 RAPARA 149 
 
 purchase or rent them at three or four times their 
 cost. Then we have the land granted to the 
 pioneers adjoining the town reserve. Out of this 
 block of five thousand acres not more than six 
 hundred acres are under cultivation, nor can culti- 
 vators afford to give either the price or the rent 
 which is demanded. Nay, the price is more than 
 people are willing to give even for building sites, 
 and, so far as can be ascertained, the owners are 
 determined to retain it until it reaches the value 
 they put on it as building land. Contrast this 
 tract of country with the two first surveyed blocks 
 of about six thousand acres on the Koran road. 
 These blocks are covered with cultivated fields, 
 orchards, and cottages embowered amid fruit and 
 ornamental trees. The two blocks contain a popu- 
 lation of about four thousand people, who are living 
 in comfort on the fruits of their labour. Consider, 
 again, the freehold land in the Marieta and Akitiki 
 districts. The greater part is uncultivated, and is 
 being held to obtain a higher price or a higher rent 
 than cultivators can now afford to give. I have no 
 doubt that we shall hear much talk about the sacred 
 rights of property ; but to me the most sacred right 
 of property in land is use and cultivation. If 
 the right of freehold property in land can be justi- 
 fied, it can only be justified on the ground of the 
 expediency of turning it to the best and most 
 productive account. If it could be proved to be 
 true in any country that freehold ownership led 
 to the greatest productivity, it would be a justifi- 
 cation in that country for permitting private pro- 
 perty in land. That there are districts, both in 
 America, South Africa, and Australia, where
 
 150 PROGRESS OF PRODUCTION 
 
 freehold land is made as productive as perpetual 
 leasehold cannot be denied ; but, unlike leasehold, 
 it induces speculative values beyond those which 
 cultivators can afford to pay ; and as soon as all 
 prairie land is sold, the rise in value enables the 
 owners to live on the cultivators, who are reduced 
 to extra hard labour and to extra poor fare. In 
 proposing to give the Land Commissioners power 
 to lease at the best attainable rent and pay over the 
 proceeds to the owners, we think we are benefiting 
 the community without injuring the landowners. 
 In fact, if land nationalisation is not carried out, 
 we shall be handing over to the latter the unearned 
 increment as it arises ; because under the Land 
 Ordinance the rent has to be appraised every thirty 
 years. We do not, however, intend to allow this 
 unearned increment to pass into the hands of any 
 private persons, as it is the rightful property of the 
 whole community, and we are determined to stand 
 or fall in our effort to nationalise all land, paying 
 the landowners its fair value. But as it will take 
 some time to bring a scheme for nationalising the 
 land into operation, we are only doing our duty for 
 the present in releasing this valuable land from the 
 grasp of a parcel of speculators, so that it may 
 become available for those willing to place it under 
 cultivation." 
 
 Mr. Russell said that the last speaker had charged 
 him with meditated robbery in his effort to encou- 
 rage cultivation by free water. But in this Freehold 
 Leasing Bill they had a case of downright robbery in 
 earnest, and he hoped the Council would not allow 
 itself to be misled by the plausible arguments ad- 
 vanced by the last speaker. Several other members
 
 RAPARA 151 
 
 supported Mr. Russell's views, and Mr. Gray urged 
 that even if the course proposed could be justified, 
 they should wait and see whether the owners would 
 commence cultivation now that the irrigation works 
 were completed. 
 
 Mr. Wilson said that twelve months' notice was 
 to be given the owners, and if cultivation was com- 
 menced within that time the terms of the Bill would 
 not authorise compulsory leasing. Moreover, by the 
 Bill the owners could themselves grant leases with 
 the necessary cultivation conditions, and thereby 
 place the land beyond the purview of the Bill. 
 
 The first reading was carried by a majority of four 
 votes, and the measure was on the third day passed 
 through all its stages, and finally became law by a 
 majority of five votes. 
 
 The Freehold Leasing Act placed uncultivated 
 freehold land, after twelve months' notice, under the 
 provisions of the Land Ordinance of 1850, except : 
 That the rent was not limited to the maximum 
 in that Act ; that the rent, less 5 per cent for ex- 
 penses of collection, was to be paid over by the 
 Commissioners to the owners of the land ; that the 
 owner had a preferential claim to a lease under the 
 provision of the Land Ordinance ; that owners of 
 freehold land could, at any time previous to a lease 
 being granted by the Commissioners, lease to a 
 tenant any portion of their land, not exceeding 
 eighty acres, at such rent as they might think fit 
 that the Land Commissioners should specify by 
 advertisement such freehold land as they desired to 
 lease, and solicit tenders for the renting of the same, 
 the highest tender to be accepted. The Freehold 
 Leasing Act further provided that the Land Com-
 
 152 PROGRESS OF PRODUCTION 
 
 missioners should advertise for one month in both 
 of the Rapara newspapers a list of the lands coming 
 within the provisions of the Act. 
 
 A census was taken in 1863, and showed that 
 the entire population of Rapara amounted to 38,670. 
 Of this number 34,846 were of European origin, in- 
 cluding 320 half-castes living with Europeans. Of 
 the total population 19,764 were males and 18,906 
 females. The Maoris and others of Polynesian 
 race numbered 3,824, of whom 1,830 were males and 
 1,994 females. The town of Raoto contained 2,948 
 inhabitants, and the population of the other four 
 towns amounted to 3,694. About 2,740 resided in 
 the various villages, and the rest of the population 
 (29,288) resided on farms in the rural parish lands. 
 Out of the entire European population 11,814 were 
 male adults, and 9,102 female adults. Of the 3,824 
 Maoris there were 986 adult males and 1,016 adult 
 females. 
 
 The total area of land selected in Easterland at 
 the end of 1862 amounted to 504,040 acres, of which 
 14,730 acres had been surrendered to the State so as 
 to avoid paying rent on land not required. 50,260 
 acres of leasehold land had been turned into free- 
 hold, leaving 493,050 under lease, of which 243,410 
 acres were under cultivation. The Maoris had 4,124 
 acres of land under cultivation, and nearly the same 
 quantity occupied for residential and other purposes. 
 
 The revenue in 1862 amounted to .£106,894 4 s -> of 
 which rent of land furnished .£62,957 J customs and 
 excise ,£21,129 4 s - > pasturage £3,074; and land 
 sales ^19,734. The total expenditure amounted to 
 ,£81,641 4s. ; and liabilities to the amount of .£2,428 
 16s. remained unpaid at the end of the year ; the sur-
 
 RAPARA 153 
 
 plus was thus .£22,824 4s. The rents of the Maoris' 
 land were all used for local expenses, to which also 
 was devoted a sum of ^3,072 8s. from the general 
 revenue. 
 
 The imports in 1862 amounted to .£93,242 8s., 
 and consisted of drapery, ironmongery and iron, 
 chemicals, spirits, tea, &c, &c. The value of the 
 exports amounted to .£90,522 8s., of which coffee, 
 rice, and sugar formed the largest items. Maize, 
 wheat, and oil were also exported, but to a smaller 
 extent than in the years 1853 to 1859. In this posi- 
 tion great hopes were entertained that the completion 
 of the irrigation works would largely increase the 
 export of rice and sugar. The irrigation works were 
 completed at the end of 1865 and opened with great 
 rejoicing. The jubilation was natural : for the 
 undertaking was a large one for such a small com- 
 munity and merits a brief description. Opara Lake 
 is situated about forty miles to the south of Raoto 
 and stands 260 feet above sea level. It is evidently a 
 subsided volcanic crater of great extent, covering 
 an area of about nine square mile. It is surrounded 
 by steep banks, and has forced a narrow passage 
 through basalt rock. A solid stone and concrete 
 wall across this narrow outlet raises the water 
 fifty-four feet above its former level, so that its 
 storage capacity is very great. The conduit is an 
 open cutting for about thirty-six miles, in which 
 is an aqueduct four hundred feet long and an 
 inverted syphon crossing the Koran River about a 
 quarter of a mile long. The remaining four and a 
 half miles is a pipe conduit for the supply of Raoto. 
 Instead of each stream of irrigation water being 
 taken from the main channel, a small subsidiary
 
 154 PROGRESS OF PRODUCTION 
 
 channel runs alongside the main one for a consider- 
 able distance ; from this the distributing channels 
 are fed and their flow gauged. The cost of the work 
 was estimated at .£63,000 ; but .£70,840 was required 
 to complete it up to the end of the pipe-line about 
 half a mile from the town of Raoto. The reticula- 
 tion to supply Raoto cost ^4,420 and that of Koran 
 .£1,080, so that the entire cost of the whole scheme 
 amounted to £76,340. Of this amount .£42,000 was 
 advanced by the State bank in virtue of its charter, 
 and the sum of ^2,000 from the Savings Bank 
 department. The general revenue fund contributed 
 to the extent of .£30,800, leaving a small balance of 
 .£1,540 unpaid at the end of 1866. The deficit was 
 met from advance on notes by the State bank in 
 1867. In June of that year the total issue of State 
 notes amounted to -£90,000, an amount which was 
 evidently absorbed for internal currency, as no 
 depreciation in their value as compared with coin 
 was perceptible, nor had they been returned by 
 either of the two banks, although both had 
 borrowed them from the State bank to a con- 
 siderable amount. 
 
 For some years past many Maori women and 
 children had been left destitute through Europeans 
 married to or living with Maori women leaving the 
 country without making proper provisions for their 
 support. To remedy this state of things a Bill 
 was brought before the Council in 1869 and passed, 
 which provided that before those having Maori wives 
 or Maori housekeepers and children could leave 
 Rapara they must be provided with a permit, 
 which permit was only granted to those who had 
 made due provision for such Maori women and
 
 RAPARA 155 
 
 children as the law compelled them to support. 
 The result of this was that many intending 
 passengers were compelled to hand over the 
 greater part, and in some cases the whole, of their 
 property to the Government, whilst some had not 
 sufficient means to make the necessary provision 
 and were thereby compelled to remain in Rapara. 
 This proved, after a trial of two years, to put an end 
 to the difficulty as far a Maori women and children 
 were concerned ; but it inflicted great hardships on 
 those possessed of property who wanted to visit 
 either Chili, Australia, or California, as the form in 
 which the law stood compelled them to assign over 
 the whole or a part of their property to the Govern- 
 ment as trustees for those left behind. The law was 
 therefore amended in 1871, and security of two 
 bondsmen substituted for assignment of property 
 at the option of the intending passenger. At the 
 same time the law was extended to European wives 
 and children, as numbers of them had been left 
 destitute.
 
 CHAPTER XI 
 
 LEGACY AND SUCCESSION DUTIES 
 
 Progression in amount — Progression on classes — Husbands, 
 wives, and charities Free — Discussion thereon. 
 
 In the session of 1872 the Government brought 
 
 ia a Bill to impose legacy and succession duties. 
 
 These duties should have been introduced in 1863 
 
 as one means of providing funds for the intended 
 
 irrigation works ; but owing to the defeat of the 
 
 Radical party in 1862, the Conservatives came into 
 
 power, and the legacy duties were, for the time, 
 
 abandoned. But now, although the cost of the 
 
 irrigation works have been met, another reason for 
 
 increased revenue had arisen. The greater portion 
 
 of the roads had been imperfectly made, and now 
 
 caused great expense and delay in the traffic ; so 
 
 much so that meetings had been held and petitions 
 
 presented to the Government praying for improved 
 
 roads. Under these circumstances the Government 
 
 deemed it advisable to increase the revenue by a 
 
 duty on bequests and succession to property from 
 
 deceased persons. The Bill was framed on the 
 
 principle of equalising the tax as far as possible, 
 
 156
 
 RAPARA 157 
 
 while at the same time recognising the claims of 
 consanguinity. In this recognition they held that 
 the practice followed in other countries in making 
 wives pay duties on property derived from their 
 husbands and vice versd was impolitic and unjust, 
 and they therefore made such transmission free from 
 duty, as also all bequests for charity and educa- 
 tion. As this Act is framed on somewhat novel 
 lines we herewith insert a copy for the information 
 of those who feel an interest in this important 
 question — a question that must become more 
 important from year to year now that wealth in 
 European countries is being drawn so largely into 
 the hands of a few to the injury of the many. The 
 following is a copy of the Bill as it passed the 
 Council : — 
 
 AN ACT 
 
 To impose Legacy and Succession Duties 
 in the State of Rapara. 
 
 Whereas it is expedient and just that beneficiaries 
 from bequests and successions of deceased persons 
 should pay a portion of the same towards the 
 support of the State, 
 
 Be it therefore enacted by the State Council with 
 the consent of the State President and the electors 
 of Rapara as follows — 
 
 I. The scale of duties as set out in clause vii. and 
 Schedule A of this Act shall be charged to the several 
 class of beneficiaries therein stated, on the value 
 of all kinds of bequests and successions to which 
 they may become entitled through the death of any 
 person. 
 
 II. When any person becomes entitled either by
 
 158 LEGACY AND SUCCESSION DUTIES 
 
 bequest or succession to any annuity or property of 
 any kind such beneficiary shall within one month 
 send particulars of the same to the State Treasurer. 
 
 III. On receipt of any notice from a beneficiary 
 of any deceased person the State Treasurer shall 
 have the property valued by competent persons, and 
 their valuation, if agreed to by the State Treasurer, 
 shall be final unless the beneficiary gives notice of 
 appeal — within one month — to the State Court. 
 
 IV. Before granting probate of the will of any 
 deceased person or appointing an administrator in 
 an intestate estate, the Judge of the State Court shall 
 have proof that the State Treasurer has been duly 
 notified of the persons claiming or entitled to the 
 effects or any share of the effects of such deceased 
 person. 
 
 V. The duty shall be payable within three months 
 after the valuation is made and agreed upon ; but 
 should the valuation be appealed against and decided 
 by the State Court, the duty shall be payable within 
 one month from date of decision. 
 
 VI. Any person found guilty of concealment of 
 property or of aiding and abetting in such conceal- 
 ment shall be subject to a penalty of not less than 
 .£20 nor more than .£40, together with not less than 
 six months' imprisonment. 
 
 VII. For the purposes of this Act all beneficiaries 
 are divided into four classes : First, when the 
 bequest is derived from husband, or wife, or from 
 any other person if for charitable or educational 
 purposes, and when the bequest is under .£20 no 
 duty is chargeable. Second, when derived from 
 father, mother, children, grandfather, brother or 
 sister, the duties set out in Schedule A shall be
 
 R A PARA 159 
 
 charged. Third, when derived from uncle, aunt, 
 nephew, niece, cousin — in lineal descent — double 
 the duties set out in Schedule A shall be charged. 
 Fourth, when derived from persons not included in 
 either of the three preceding classes treble the duties 
 set out in Schedule A shall be charged. 
 
 
 
 SCHEDULE 
 
 A. 
 
 
 
 
 
 
 £ 
 
 
 
 
 
 £ 
 
 |d. per £ 
 
 when under 
 
 200 
 
 4jd. 
 
 per. 
 
 when under 51,200 
 
 id. 
 
 ?! 
 
 400 
 
 5d. 
 
 
 i) 
 
 11 
 
 102,400 
 
 ijd. .. 
 
 11 
 
 800 
 
 5^d. 
 
 
 11 
 
 ii 
 
 204,800 
 
 ->d 
 
 i> 
 
 1,600 
 
 6d. 
 
 
 ji 
 
 11 
 
 409,600 
 
 2jd. „ 
 
 11 
 
 3,200 
 
 6Jd. 
 
 
 11 
 
 11 
 
 819,200 
 
 3d. 
 
 M 
 
 6,400 
 
 7d. 
 
 
 11 
 
 11 
 
 1,638,400 
 
 3jd- .. 
 
 II 
 
 12,800 
 
 7£d. 
 
 
 11 
 
 11 
 
 3,276,800 
 
 4d. 
 
 |l 
 
 25,600 
 
 8d. 
 
 
 ii 
 
 ii 
 
 6,553,600 
 
 Mr. Wilson, in moving the first reading of the Bill, 
 said that he thought no one would dispute the 
 necessity for increased revenue nor the justice of 
 imposing such a tax. As to increased revenue, they 
 all knew how strong the claim of the farmers was 
 for better roads, nor could these be made without 
 raising the money to defray the expense. As to the 
 justice of the State claiming a portion of the property 
 of deceased persons, no one, he thought, could say 
 that such a course was inequitable. No doubt 
 exception could and would be taken to the pro- 
 gressive -character of the duties imposed. This 
 point could be more effectually discussed in Com- 
 mittee, and he would now only state that even under 
 the progressive rate of duty in the Bill the largest 
 beneficiaries would be less heavily taxed than the 
 small ones. 
 
 Mr. Russell said he was not opposed to Legacy
 
 160 LEGACY AND SUCCESSION DUTIES 
 
 duties but he could not agree with Mr. Wilson's 
 statement "that the large beneficiaries would be 
 less heavily taxed under the Bill than the small 
 ones." They were all aware, or should be, of the 
 great difference that existed between the usual 
 standard of living of a wealthy farmer, merchant, or 
 storekeeper and that of the poorest ones; and a 
 greater difference still existed between the wealthy 
 farmers and their employees. If a farm labourer 
 received a bequest of ^200 he could in the majority 
 of cases as easily pay a tax of £2 as the farmer 
 could pay a tax of ^20 on a bequest of ^2,000; 
 while under the rates in the Bill the latter would 
 have to pay £80, and if a distant relative he would 
 have to pay ^160, and if not a blood relation he 
 would have to pay ^240, which, so far from being 
 an equalised tax, was the very height of inequality. 
 
 Mr. Petresen said that most people must sympa- 
 thise with the unfortunate person who only got 
 £1,760 out of .£2,000, while the fortunate working 
 man got ^198 out of .£200 left him, perhaps, by his 
 father, mother, or sister. For his part he thought, 
 if any sympathy were due to either, it was to the 
 person who only got ^198 from a near relation, 
 while the other got ^1,760 from a quarter from 
 which — perhaps — he had expected nothing. 
 
 The first reading was carried without a division, 
 and on the following day the Council went into 
 Committee to consider the various clauses of the 
 Bill. 
 
 When the first clause was proposed in Committee, 
 a point was submitted to the Chairman that the first 
 clause, the seventh clause, and the schedule must be 
 all taken together ; because, if the first clause was
 
 RAPARA 161 
 
 carried, the seventh clause and the schedule could 
 not be altered. The Chairman ruled in favour of 
 the point raised, and all three came before the 
 Council for consideration at the same time. 
 
 Mr. Wilson said, " he was glad that the point 
 had been taken, as the principle and details of the 
 Bill could thus be discussed together ; and if the 
 grouped clauses were carried, that would virtually 
 settle the Bill, as the other clauses were merely the 
 conditions under which the principle of the Act was 
 to be carried out. When the first reading was under 
 consideration Mr. Russell had said that he did not 
 believe in the progressive duties proposed in the Bill, 
 as he thought a tax of £2 on a bequest of ^200 was 
 much more easily borne by a poor man than a tax 
 of ^80 on ^2,000 by a rich man. Of course he 
 (Mr. Wilson) was willing to admit that progressive 
 duties could be rendered too progressive to make a 
 tax an equal sacrifice ; but he thought it could easily 
 be shown that those here proposed were not of that 
 character. He did not dispute that the difference 
 in the standard of living in the case of even mode- 
 rately wealthy men and in that of the average working 
 man was very great ; but it was certainly not greater 
 than the difference in the proposed duties. They 
 could all recognise this difference up to the point 
 of full, substantial comfort ; but beyond that point 
 the difference was unworthy of consideration, and 
 no one, he thought, who had more than good sub- 
 stantial comfort could complain of a high duty while 
 those who had only the bare necessaries of life paid 
 any. If it were within the power of legislation to 
 vary the duties according to the circumstances of 
 the beneficiaries, such a method would be fairer 
 
 12
 
 162 LEGACY AND SUCCESSION DUTIES 
 
 than the present proposals. But as this could not be 
 done, they had to be satisfied with the next best plan. 
 Taken on the whole the duties would press less heavily 
 on wealthy than on poor people, and if they were to 
 be altered, the alteration should be to make them more 
 progressive. There had been as yet no complaint as 
 to the progression applied to the different classes. 
 Every one must, he thought, consider that children 
 and grand-children had stronger claims on their 
 parents than more distant relations, and that distant 
 relations had stronger claims on such blood relations 
 than friends and acquaintances. He held that the last 
 mentioned had no cause to complain that they were 
 charged higher duties than blood relations having 
 both claims and expectations on the testator, whilst 
 they themselves perhaps never expected to receive 
 anything. His own opinion was that the duty on 
 bequests coming to friends and acquaintances should 
 have been proportionately higher. As to exempting 
 property derived from husband or wife, bequests to 
 charities and hospitals, and sums under £20, he 
 thought no reasonable objection could be raised. 
 The Bill might not give that measure of justice 
 which they all desired ; but it was, he thought, the 
 nearest approach to true justice that could be made 
 at this stage of our civilisation." 
 
 Mr. Gray said that he did not believe in such 
 new-fangled notions. He was not opposed to 
 legacy duties, but he considered that, whatever the 
 rate might be, it should be the same for all amounts. 
 Surely if one man paid £2 on £200 and another 
 .£20 on £2,000 they were both paying at the same 
 rate ; but to make the latter pay £80 was inequitable, 
 and a course which should not be sanctioned by 
 that Council.
 
 RAPARA 163 
 
 Mr. Holland said, "the old fashioned views ex- 
 pressed by Mr. Gray could well be left to stand or 
 fall on their merits, without comment ; but there 
 were some important aspects of the question that 
 had up to the present been overlooked. It had been 
 assumed that bequests and inheritance arising from 
 deceased persons conferred on the beneficiaries 
 an absolute right to the property. The claims of 
 children on the savings of their deceased parents 
 for their support had always been recognised ; but 
 this recognition extended to no other class of 
 relations. Both ancient and modern nations have 
 recognised inheritance and bequests to a certain 
 extent ; but this was entirely a question of expe- 
 diency, as the property of deceased persons vested in 
 the State and states had always exercised control 
 over its disposal. This view accepted ; the State 
 had a perfect right to retain such proportion as it 
 thought fit and to control bequests in the general 
 interests of the community, disregarding the sup- 
 posed rights of individuals. In the exercise of this 
 power it was justified in retaining a larger proportion 
 of large bequests and a smaller proportion of small 
 bequests, so as to prevent, as far as possible, the 
 stream of wealth from flowing into useless channels, 
 and to induce a more equitable distribution of the 
 necessaries of life. If the State, in the interests of 
 the community, thought fit to take a twentieth from 
 small beneficiaries and a fourth, a third, or even a 
 half, from large ones, individuals had no right to 
 complain, seeing that the amount was a gift from the 
 State — except in the case of husbands and wives who 
 were joint owners of their property. The property 
 of deceased persons — when provision had been
 
 1 64 LEGACY AND SUCCESSION DUTIES 
 
 made for their children — belonged inherently, he 
 repeated, to the State, and it was for the State to say 
 how far the wishes of testators should or should not 
 be complied with. For these reasons he believed that 
 only Mr. Gray and a few other of his Conservative 
 friends would vote against the proposed duties." 
 
 Mr. Kemp said, " the peculiar rights of the State 
 in the property of deceased persons might justify the 
 imposition of progressive duties on bequests, but 
 that was a dangerous principle to bring into practice 
 in this young country. Supposing some ultra- 
 radical, in order to displace the present leader, 
 proposed that a progressive income tax should be 
 imposed — with an exemption for incomes of ^400- 
 .£600 — beginning at 2 per cent, and running up to 
 40 or 50, there was no doubt that, as the majority 
 would escape such a tax, the same majority would 
 sanction its imposition and support it by a referen- 
 dum vote. If you admit," said Mr. Kemp, "the 
 principle of progressive duties, to what extent will 
 progression be fair and who shall fix the limit ? 
 Opposition is no doubt useless, as the Government 
 have secured a majority. But the time may come 
 when the Government will be devoured by a 
 monster of its own creation, and I feel it my duty 
 to ask it to call a halt and to give the subject more 
 careful consideration than it has evidently received 
 hitherto." 
 
 Mr. Wilson said, "while recognising the danger 
 of progressive duties on ordinary taxation, he saw no 
 danger in the application of the principle to legacy 
 duties. Moreover, the danger in ordinary taxation 
 was less than appeared on the surface, as according 
 to their Constitution, the initiation of taxation was
 
 RAPARA 165 
 
 placed in the hands of the Executive, and the Execu- 
 tive was the creation of the Council. He had too high 
 an opinion of the electors of Rapara to believe that 
 they would elect a Council which would sanction 
 unjust and class legislation." 
 
 On being put, the rate of duty as proposed was 
 carried, and the remaining clauses were passed with 
 little discussion. The report was adopted, and the 
 second reading was carried on the following day by 
 a majority of sixteen against twelve.
 
 CHAPTER XII 
 
 EVENTS AND DEVELOPMENT, 1870-1873 
 
 Rice, sugar, and taro on irrigated land — Freehold land speculations 
 — Freehold Leasing Bill results — Employment and rates of 
 wages — Coin for internal currency — Census 1873 — Revenue 
 and expenditure —Imports and exports — State borrowing and 
 non-borrowing policy discussed. 
 
 The Opara irrigation land was opened at the latter 
 end of 1865, when the preparation of rice fields 
 commenced ; but no great quantity was grown for 
 the first three years. This was partly due to the 
 fact that a large portion of the land was too uneven 
 to allow the whole field to remain covered with 
 water, whence great delay and expense was caused 
 to the first rice cultivators. The land on the east 
 side of the valley appeared level ; but when tested a 
 large portion was found to have a gradual slope 
 towards the river. Along the river, however, there 
 was a considerable breadth of land that required 
 little preparation. By 1870 a large portion of this 
 level land was under rice cultivation, and two crops 
 could be reaped from it in the year. The sloping 
 land which was unsuitable for rice, or rather which 
 it was too expensive to level, was admirably suited
 
 RAPARA 167 
 
 for the growth of sugar-cane, as the slope of the land 
 carried off all superfluous water, and the crops were 
 doubled as compared with those on non-irrigated 
 land. Taro had been cultivated in small patches by 
 Europeans from the first settlement ; it was now 
 found that on the rich soil of the valley under 
 irrigation it yielded the most profitable crop that 
 could be raised. It was grown in such abundance 
 that, in addition to its use as a vegetable, large 
 quantities of it were employed for feeding pigs and 
 even cattle; and in 1870 a mill was started to make 
 taro flour, which was largely used for puddings and 
 other dishes. Indeed, taro now promised to become 
 an article of export. Notwithstanding the large 
 amount of cultivation in the valley, the greater 
 portion of the freehold land remained uncultivated. 
 When the freehold land was taken up, it was con- 
 sidered that the low, swampy land nearer the river 
 would be too wet even for rice ; and most of the 
 land which was taken up to be turned into freehold 
 was on the sloping part of the plain. This land 
 required too much preparation to fit it for rice ; but 
 this disadvantage did not apply to sugar, and 
 although it was the most productive sugar land in 
 Rapara only a small proportion of it was under 
 sugar cultivation up to 1873. The reason, as before 
 stated, was that most of it belonged to speculators 
 who demanded very high prices and very high rents, 
 and these could not be obtained while there were 
 any State lands open to selection. About 2,500 acres 
 had been taken up under the provisions of the 
 Freehold Leasing Act at rents ranging up to 3s. 2d. 
 per acre. No doubt in a few years most of it will 
 be taken up under this Act. When this is accom-
 
 168 EVENTS AND DEVELOPMENT 
 
 plished the export of both sugar and rice will 
 be very large. Coffee had been steadily gaining 
 ground, and in 1873 there were four coffee-preparing 
 factories in operation. The Maoris have devoted 
 themselves to its cultivation with such zeal that they 
 produce about one-fourth of the entire crop, and the 
 area of the land occupied by them has greatly 
 increased. But this increase is all on State lands — 
 to the great displeasure of the Tiras and other native 
 landowners who would, but for the repressive 
 measures taken in 1870, have started a civil war. 
 
 During the early stages of settlement it was 
 thought that to grow artificial grass for the feeding 
 of stock would be a profitable undertaking ; but 
 after eight to ten years' trial it was found that the 
 climate was unsuitable, and when the expense was 
 taken into account, artificial grass showed no better 
 results than indigenous. This failure doubtless 
 tended to prevent the increase of stock to any great 
 extent. Still the farmers keep a fair number of 
 horses, cattle, sheep, and pigs, fed for the most part 
 on various kinds of cultivated fodder plants, green 
 maize, barley, sorghum, lucerne, and latterly large 
 quantities of yams. Beetroot and taro are also used 
 for feeding live stock. 
 
 For the last four years there has been a large 
 influx of immigrants, mostly of the labouring class, 
 and it was at one time feared that the supply would 
 exceed the demand. Up to the present, however, 
 that has not been the case. Rates of wages have 
 fallen greatly since i860 ; still every kind of food is 
 so cheap that the great bulk of the working men 
 are able to save a fair proportion of their earnings. 
 Tradesmen's wages run from 6s. to 8s. per day, and
 
 RAPARA 169 
 
 labourers' from 12s. to 16s. per week, with board. 
 These payments seem low ; yet a large number of 
 workmen take up selections every year and appear 
 to be successful. The European coffee planters 
 have been mainly dependent on the Maoris for 
 labour, but since the latter have taken so largely to 
 coffee cultivation their wages have nearly risen to 
 European rates, and the coffee planters are urging 
 the Government to repeal the ordinance which 
 prohibits the influx of Indian coolies. The planters 
 are likewise talking about sending vessels to the 
 neighbouring islands in search of labour. Of late 
 a small number of Chinamen have found their way 
 to Rapara, and are in great demand on the coffee 
 and sugar plantations. 
 
 At this date (1873) Rapara appears to be in 
 a prosperous state, and no difficulty is found in 
 want of exports to pay for imported goods. When 
 the State bank was established with power to issue 
 State notes up to ^90,000, it was predicted that the 
 notes would fall below their nominal value and that 
 coin of all kinds would, to a large extent, be dis- 
 placed by notes. As yet, however, there are no 
 symptoms of this change. On the contrary, ship- 
 ments of coin frequently arrive from Australia, 
 England, and Chili in settlement of international 
 exchange operations ; and it seems that there is now 
 more coin in Rapara than is required for currency 
 purposes. Whether any action will be taken to 
 counteract this influx of coin is not known. At the 
 same time a large stock of coin is an unprofitable 
 asset for any country that can do with a smaller 
 stock. This will be looked upon by bankers as a 
 startling and doubtful doctrine ; nevertheless it is
 
 170 EVENTS AND DEVELOPMENT 
 
 true that the smaller the amount of coin used in 
 any particular country for currency the larger will 
 be the amount of wealth which that country can 
 employ in productive industries. No doubt all 
 countries carrying on an extensive foreign trade 
 must keep sufficient coin to meet all possible 
 exchange demands, but the expense of maintaining 
 this large supply of coin and bullion is incidental to 
 and forms a portion of the capital employed in such 
 foreign trade. The case, however, is altogether 
 different as respects internal currency, for the 
 greater the amount of gold and silver in use for this 
 purpose the smaller will be the amount of profit- 
 producing investments. A country sufficiently 
 wealthy to be in a position to lend gold and silver 
 to some other country is turning its capital to a pro- 
 fitable use. A country that permits the issue of private 
 bank-notes on a gold basis payable on demand is not 
 only answerable for such gold being unproductive, 
 but is guilty of sanctioning a system of finance 
 which brings on monetary panics to the ruin of thou- 
 sands and tens of thousands of its own people. On 
 the other hand, inconvertible State notes based on 
 the wealth and good faith of the nation would be 
 absolutely free from all such risks, and therefore 
 could have no effect in producing monetary panics. 
 Rather would they be the means of making note 
 panics impossible, while the State would have the 
 use of the amount of State notes issued, free of 
 interest, and the gold previously kept as a reserve 
 to meet private bank-notes could be employed in 
 productive investments. There are some cases in 
 South America in which State notes have been 
 depreciated to less than half their value ; but in
 
 RAPARA 171 
 
 every such case the notes were issued in the form of 
 a forced loan, and no one can wonder at their 
 depreciation under such circumstances. 
 
 Many people express doubts as to whether incon- 
 vertible State notes would be freely accepted, 
 England borrowed some eight hundred millions on 
 a paper promise to pay, and has since turned most 
 of these promises into interminable debts with the 
 full sanction of her creditors. Financiers are par- 
 ticularly conservative, and look upon all novel 
 proposals as utterly bad ; but there can be no doubt 
 that State notes payable only at the option of a 
 Government of any settled and civilised nation are 
 the very best and safest form of internal currency. 
 It is not claimed that State notes in Rapara have 
 had any effect on the plentiful supply of coin, as 
 this is clearly due to excess of exports over im- 
 ports ; and as Rapara is a non-borrowing country 
 this excess comes in the form of coin. By late 
 statistics New South Wales is shown to have bor- 
 rowed money up to 1870 to the extent of ^10,200,000 
 in seventeen years. This money may be a good 
 investment, but State borrowing is of such a seduc- 
 tive and delusive nature that it will be found impos- 
 sible to discontinue the practice until a monetary 
 crash compels its abandonment. To cease borrowing 
 is in itself sufficient to bring on a financial collapse. 
 Rapara has acted wisely in not relying on borrowed 
 money, and is now reaping the fruits of abstinence 
 from a habit which is as pernicious as it is alluring. 
 
 According to the census of 1873 the total popula- 
 tion of Rapara amounted to 75,226, of which number 
 43,920 were males and 31,306 females. The Euro- 
 peans numbered 70,794, including 570 Maori women
 
 172 EVENTS AND DEVELOPMENT 
 
 and half-caste men and children residing in Wes- 
 terland. The Maoris numbered 4,432, including 
 Polynesians and half-castes. The five European 
 towns had a population of 7,965, of which Raoto 
 had 3,434 ; the remaining 62,829 inhabitants resided 
 in the small townships and villages, and on rural 
 farms. Of the European population 27,752 were 
 adult males, and 21,042 adult females over eighteen 
 years of age. 
 
 The total area of land taken up amounted to 
 984,345 acres, of which 27,220 acres had been 
 surrendered to the State and 136,410 acres had been 
 turned into freehold. The total area under cultiva- 
 tion was about 426,400 acres in Easterland. The 
 Maoris occupied about 11,000 acres, of which 8,140 
 had been adjudged to be freehold ; about 5,200 
 acres of the land they held were under cultivation. 
 
 The revenue for 1872 amounted to .£165,090, of 
 which ^105,471 4s. came from rent of land, ^3,934 
 from pastures, ^8,692 from land sales, and -£46,994 
 from customs and excise. The total expenditure 
 amounted to -£162,442, with unpaid liabilities 
 amounting to ^1,452 16s., making a total charge 
 against the year of ;£ 163,894 i6s. ; and leaving a 
 surplus of ^1,195 4s. 
 
 The imports in 1873 totalled ;£i 75,301 12s., and 
 consisted of drapery, ironmongery, chemicals, iron, 
 spirits, tea, and coin. The value of the exports 
 amounted to -£171,681 4s., coffee, rice, and sugar 
 forming the principal articles, more than three- 
 fourths of the whole in value. 
 
 It will be observed that the exports are again less 
 than the imports, and this has been the case for 
 some years past, whence it might be inferred
 
 RAPARA 173 
 
 that Rapara was becoming indebted to foreign 
 countries. But the explanation is to be found in 
 the fact that the export value does not include 
 freight or charges, while the import value includes 
 both, and very often some of the profits expected 
 from the goods when sold. If the Rapara exports 
 were valued at the import end, the value would 
 include freight and charges and perhaps part of the 
 expected profit, making it appear that the value of 
 imports from Rapara was greater than the exports 
 sent to Rapara. This is owing to the fact that 
 Rapara is neither a debtor nor a creditor of foreign 
 countries, and that the exports and imports so nearly 
 balance each other ; whereas creditor nations, like 
 England, as a rule import from debtor countries 
 more than they export. But even to this rule there 
 are exceptions, for during the period when the debt 
 is being incurred the exports to the debtor country 
 are greater than the imports from it, and therefore 
 imports from and exports to any particular country 
 are of themselves no index to the actual position of 
 the two countries. But when we are aware that one 
 country is piling up a debt in its transactions with 
 another, the excess of imports over exports into the 
 debtor country approximately indicates the additions 
 to the debt. On the other hand, when we know that 
 a particular country has reached the limit of its 
 credit and is hard set to pay the interest, its excess 
 of exports over imports is an index to the amount of 
 its debt. 
 
 These facts bring out very clearly the danger of 
 State borrowing. When a colony or country has 
 borrowed to the full extent of its ability to pay 
 the interest, the temptation to continue borrowing
 
 174 EVENTS AND DEVELOPMENT 
 
 becomes stronger, as the difficulty in paying the 
 interest increases ; and from present indications 
 several of the Australian colonies will be involved 
 in difficulties in less than thirty years. 1 While 
 within that time Rapara, if she continues her 
 present policy, must become a model State, and 
 show the way to solve the great problem of the 
 age — how to enable all industrious people to 
 provide themselves with the necessaries of life. 
 
 1 The public debt of New South Wales, as given in "The 
 Seven Colonies of Australasia," was in 1861, £4,617,630 ; in 1871, 
 £10,614,330 ; in 1881, £16,924,019 ; in 1895-6, £62,263,473 ; and her 
 total indebtedness to other countries, £102,096,000, involving an 
 annual payment of £4,949,000 to people residing outside the Colony ; 
 and there is every reason to believe that this increase will continue 
 as long as England is willing to lend. At present a halt might be 
 called with little loss or danger. If continued heavy losses are 
 inevitable. The other Australasian colonies are in a nearly similar 
 financial position.
 
 CHAPTER XIII 
 
 TEST ELECTION ON LAND NATIONALISATION 
 
 Death and election of President — Necessity for land nationali- 
 sation — A reply — A counter reply — Conservative manifesto — 
 Radical appeal to the electors. 
 
 The State Council expired by effluxion of time in 
 1874, and the preparations for a new contest showed 
 that both parties meant to have a hard fight. While 
 every one was busy with election matters President 
 Tira died, and a special meeting of the State Council 
 had to be called to fill the vacancy. This duty re- 
 quired careful consideration. Tira had a son thirty 
 years of age, who aspired to the position previously 
 filled by his father, and it was known that a large 
 number both of European and of Maori members 
 favoured his appointment. It was equally well 
 known that Temba had set his heart on the 
 office, and that the Executive would do their best 
 to elect him. In this position many influential 
 politicians were for meeting the difficulty by elect- 
 ing a European, but the parties could not agree 
 who was to be the favoured person. A caucus 
 meeting of the Radicals was called to consider the 
 
 question. Temba, Maliatto (Tira's son), and two 
 
 175
 
 176 LAND NATIONALISATION 
 
 Europeans were proposed, and their claims and 
 fitness discussed. Many supported the election of 
 Maliatto out of respect for his father. Tira was not 
 an able man, but he possessed good judgment and 
 a well-balanced mind, and could be relied upon 
 to do what was right or what proved to be right ; 
 moreover, he had all along been the true friend of 
 the Europeans, and had smoothed down several 
 difficulties that had arisen with the Maoris, particu- 
 larly with regard to the ratiras and the Maori Land 
 Act. The Europeans were now so much superior 
 to the Maoris in numbers and means, backed up by 
 a disciplined and trained company of volunteers 
 some four hundred strong, that fear was not one of 
 the elements that entered into the question of who 
 was to be elected. All the leading men of both 
 parties were in favour of giving the Maoris justice 
 and fair treatment. At the same time they were 
 fully aware that a revolt from any cause, although 
 it would eventually be put down, might prove to be 
 an expensive and protracted affair. However, on 
 considering the matter, they agreed that an outbreak 
 would be more likely to be caused by Temba's 
 followers if Maliatto were elected than by Maliatto's 
 if Temba were chosen. The question of electing a 
 European was considered ; but even had that been 
 deemed advisable the idea was not feasible, as three 
 candidates were named. Apart from this difficulty 
 it was considered a perilous step to have Rapara 
 openly made a republic. No doubt it was a 
 republic pure and simple ; at the same time it 
 was thought European nations would be less likely 
 to interfere with a black prince than a white re- 
 public : for Tira was more often called by Europeans
 
 RAPARA 177 
 
 the King than the President of Rapara, and the 
 Maoris continued to entitle him Ariki Sui, the 
 equivalent of king. 
 
 After protracted negotiation it was found that 
 Temba, having a good majority, a number of 
 Maliatto's supporters who could not be prevailed 
 upon to vote for Temba consented to abstain, 
 so that when the Council met Temba was unani- 
 mously elected to the position of President for seven 
 years, and Maliatto was mollified by being appointed 
 Steward of Westerland. In this position he used 
 his influence to keep his offended followers quiet. 
 
 Soon after the election of President an article 
 appeared in the Weekly Times on " The Necessity for 
 Land Nationalisation," which stirred up both parties 
 to fever heat, and the whole country became in- 
 volved in the turmoil of a general election with the 
 clear-cut issue of — for or against the nationalisation 
 of land. The following is a copy of the article 
 referred to : — 
 
 "NECESSITY FOR LAND NATIONALISATION. 
 
 " For several years past it has become apparent to 
 all thoughtful people that the law which allows land 
 to lie idle to the exclusion of those willing to turn 
 it to proper use is a bad one, and should not be 
 tolerated in any intelligent community. Some 
 years back an Act was passed empowering the 
 Land Commissioners to let unoccupied freehold 
 land by public tender. That Act has, to a slight 
 extent, mitigated the evil ; but the large proportion 
 of freehold land to be seen in all parts of the 
 country lying idle and unproductive, side by side 
 
 13
 
 178 LAND NATIONALISATION 
 
 with leasehold land in a high state of cultivation, 
 shows that a more drastic remedy is required to cure 
 this evil. Freehold land is now recognised here as a 
 great national evil, and a great national effort must 
 be made to provide a full and just remedy, not 
 merely for the present, but for all time ; nor will 
 anything short of the complete nationalisation of 
 all land secure this object. Various plans have in 
 the past been proposed for nationalising land. One 
 plan proposes that the State should purchase the 
 land at its fair value, and pay the landowners with 
 interminable debentures at ruling rates of interest. 
 This might prevent rack-renting, and save the land 
 from being kept idle ; but it would not avoid the 
 mischief of saddling the community with this annual 
 interest charge to maintain men in idleness. It would, 
 in fact, be equivalent to State borrowing, and have 
 the same evil effect on the community. When indi- 
 viduals suffer through borrowing they have to bear 
 the penalty themselves. When the State borrows 
 the effect is to compel every one to become a 
 borrower and bear a share of any loss that may 
 arise. But the greatest objection to this plan is that 
 such a measure tends, like rent on land, to bring 
 into existence a class of people who do nothing 
 towards the production of the necessaries which 
 they consume. Another project mooted is to enact 
 a law by which the rights of freehold land should 
 only extend to all persons living at the time the Act 
 is passed who have any successory rights under 
 existing law, so that the successory right of people 
 born after the passing of the Act would come to an 
 end. And to this it has been proposed to add a 
 proviso that succession rights shall not be estopped
 
 RAPARA 179 
 
 until after the third succession has taken place, 
 whether the inheritor was born before or after the 
 passing of the Act. But even this proposal — although 
 many things may be said in its favour ; for instance, 
 that rights can only attach to persons who are in 
 existence, and cannot attach to non-existence, so 
 that unborn people can surfer no wrong — is only 
 less unjust than taking land at the owner's death, 
 land perhaps required to support and rear a young 
 family. Another plan suggested, if not actually pro- 
 posed, is to take the whole value of the rent in a 
 land tax ; but to us this plan, even if made applicable 
 to the ratiras' land or the land in England, or other 
 land for which the State received no valuable con- 
 sideration, would not come up to a full measure of 
 justice. To apply such a plan to the freeholds of 
 Rapara, or any country where land is alienated under 
 sanction of law, would be nothing short of legalised 
 robbery. 
 
 " The plan which we wish to see, and which we 
 believe we will see, carried out here cannot be 
 attacked on the score of injustice. This plan is that 
 an assessment be made of all forms of wealth, free- 
 hold land included, and a rate struck sufficient to 
 pay all landowners a fair value for their land ; and a 
 fair value we hold to be the price at which it was 
 purchased. That such a valuation will not satisfy 
 our speculators we are fully aware. Several of them 
 have, through the columns of the Herald, contended 
 that they are entitled to interest from the date of 
 purchase. This is surely adding insult to injury with 
 a vengeance. They have inflicted great injury on 
 the country by leaving the land unfilled, and now 
 they have the effrontery to demand payment for
 
 180 LAND NATIONALISATION 
 
 doing what the law should have treated as an 
 offence subject to a penalty. Surely it was no fault 
 of the State that the owner did not cultivate and 
 thereby secure interest. A few weeks ago the 
 Herald, in an article on this question, said : ' As to 
 nationalising freehold land by paying the owners for 
 its value, the proposal on the face of it is an impossi- 
 bility. Such a scheme would swallow up all the 
 money in the country, but how is the Government 
 to get possession of this money, for taxation has 
 already been imposed on every revenue-producing 
 source ? The scheme is altogether impracticable, 
 but this may not deter a visionary Government from 
 attempting to carry it into practice, to the great loss 
 and detriment of the State. It is, therefore, the duty 
 of all those who have a stake in the country and 
 who have its prosperity at heart to rise up and 
 protect their interest as they did in 1862, when its 
 proposer and supporters were routed and turned out 
 of office.' Our answer is that the Herald has had 
 several severe lessons not to engage in economic 
 questions. No doubt it is as much to be pitied as 
 blamed, for with its lack of knowledge on economic 
 questions it is strange that it does not sometimes by 
 chance stumble on the right view. Now, as to 
 'swallowing up all the money in the country,' we 
 should like to ask the Herald where will all the 
 swallowed money go to ? Stomachs could not re- 
 tain it to their own injury. Self-interest will induce 
 its employment, like that of other money, in what 
 appears to be the best paying investments. As to 
 the inability of Government to find productive 
 revenue sources on which to raise the money, the 
 Government will neither receive nor pay any portion
 
 RAPARA 181 
 
 of the compensation money, and the operation of 
 the Act will take none from, nor add any to, the 
 present stock of money in the country, except such 
 inconsiderable sums as are required to pay absentee 
 landowners, which cannot amount to more than 
 .£8,000, or at most -£io,ooo. No doubt the operation 
 of the Act will take money from all classes and pay 
 it over to one class, the landowners. But it would 
 be unreasonable to suppose the latter would bury it 
 so as to keep it out of circulation, while it is only 
 reasonable to expect that it will be used as other 
 money, and be available through loan operations, 
 very likely to assist in the payment of the assessment 
 rate, which will be levied on all classes alike. Those 
 who own or favour freehold land will doubtless 
 appeal to the selfish side of human nature to resist 
 the proposed measure, which will call upon all 
 classes to pay an assessment rate which will doubt- 
 less be largely magnified. It is time enough to answer 
 such allegations when they are made. This duty 
 we will not fail to perform ; and in doing so we feel 
 assured that we will be able to show to all but the 
 supremely selfish that the rate will be money well 
 spent in preventing this country in future years from 
 drifting into the same position with regard to land 
 as England and other old settled countries, where 
 the cultivators of the soil are compelled to pay away 
 such a large proportion of their earnings in rent for 
 the support of a useless class that there is not enough 
 left for ordinary necessaries. This applies to fully 
 three-fourths of those actually engaged in the culti- 
 vation of the land in England, Ireland, Scotland, 
 Egypt, Bengal, and a dozen other countries in 
 various parts of the world."
 
 182 LAND NATIONALISATION 
 
 This article was taken to be an authoritative one, 
 and it formed the text of election speeches and 
 articles on land nationalisation. 
 
 A correspondent in the Herald said : " Be- 
 yond dispute the leasehold system of land tenure 
 here has answered its purpose very well, but intelli- 
 gent people cannot be expected to accept this small 
 measure of land nationalisation as sufficient proof 
 of its superiority over freehold land tenure. On 
 this question New South Wales should form a better 
 field of observation for proof, or disproof, of the 
 alleged superiority of national over privately owned 
 land. At the present time New South Wales has 
 about 130,000,000 acres leased out to State tenants, 
 with the result that only about three-eighths 
 of a penny per acre rent is paid to the State, while 
 freehold land sells readily at 20s. per acre, being 
 equivalent to is. per acre rental. This shows the 
 relative estimation in which the two systems are 
 held in that colony. During the past decade 
 frequent quarrels and strife, lawsuits and appeals 
 to the legislature, have followed each other over this 
 leased land ; and any one who has taken any interest 
 in the management of the State lands in New South 
 Wales must have great doubts as to the ability of a 
 State to manage State lands except by getting rid of 
 them by sale as soon as possible." 
 
 Another correspondent in the Herald said there 
 was no doubt that the Crown lands in Australia, and 
 particularly in New South Wales, had been woefully 
 mismanaged — mismanaged to such an extent as 
 should go a long way towards making residents of 
 that country opposed to State-managed lands. As 
 to the difference between the rent of Crown land
 
 RAPARA 183 
 
 and the rent equivalent to the purchase-money of 
 freeholds, this difference was no indication of 
 preference for either system. In the first place the 
 purchased land was the choicest part of the country, 
 and most of it was better worth three shillings an 
 acre rent than the great bulk of the leased land was 
 worth one halfpenny per acre. Portions of this 
 purchased land were let at high rentals ; but the 
 chief inducement to purchase was either to pick the 
 eyes out of the holding, and so secure the whole, or 
 to hold such purchased land as an investment until 
 a rise in value came owing to increase of population. 
 At the present time only about one-fiftieth part of 
 the freehold land was cultivated, and farmers were 
 forced to take up inferior land far removed from a 
 market. No doubt the great bulk of the land was only 
 suited for grazing, and a cultivation condition could 
 only be applied to a small portion. Various attempts 
 had been made to encourage settlement and cultiva- 
 tion ; and all had been great failures, because no 
 adequate provision has been made to invite settle- 
 ment. If the Freehold Leasing Act of that 
 country (Rapara) or a similar Act were brought into 
 force in Australia it would settle the land difficulty 
 throughout the Australian colonies. There was no 
 doubt that when land was used for grazing in 
 Australia, four-fifths of it was applied to its most 
 profitable use, but this was no reason why the other 
 fifth should not be available for those who were 
 willing to turn the soil to a higher use by cultiva- 
 tion. This a Freehold Leasing Act would accom- 
 plish without injuring the owner, while benefiting 
 the community. 
 
 Innumerable speeches were made and newspaper
 
 184 LAND NATIONALISATION 
 
 articles written for and against " land nationalisa- 
 tion." The Conservative party published and circu- 
 lated all over the country a manifesto addressed to 
 the electors, of which the following is a copy : — 
 
 " Fellow Electors of Rapara, — The Radicals 
 have proclaimed with no uncertain sound their 
 intention, if returned to power, of passing an Act 
 to repurchase all freehold land, and of levying an 
 assessment on all classes, not even exempting those 
 dependent for their living on daily labour, so as to 
 raise the necessary funds to pay for the land they 
 propose to purchase. 
 
 " We cannot pay the assessment required unless 
 we ruin half the people in Opara. This may be a 
 small matter in Radical eyes, but we trust you will 
 see the danger threatened by this mad proposal. 
 
 " The sum involved cannot be less than .£2,000,000, 
 or something like an average of ^40 for every person 
 who by industry and thrift has saved a portion of 
 his earnings. 
 
 " The Radicals are loud in their protestations of 
 honesty, yet propose to tax landowners to raise 
 funds to pay for their own land. 
 
 " By the present Land Ordinance every person 
 occupying land is at liberty to occupy on leasehold 
 or freehold tenure, as he thinks best. This liberty 
 the Radicals propose to destroy, under the pretence 
 of benefiting the community, but really to take 
 from those who have to give to those who have not. 
 
 " If the right to hold freehold land is abolished 
 we ask you — How can you find a safe investment 
 for your savings ? Nearly all civilised countries 
 grant the right of private property in land to in-
 
 RAPARA 185 
 
 dividuals. Will you allow this privilege to be cut 
 off by supporting a party who are nothing less 
 than disguised Socialists ? 
 
 " If you are determined to maintain this privilege 
 and put a stop to bleeding the rich for the benefit of 
 the poor, the time is come when you must assert 
 your intelligence at the polls, and hurl this band of 
 visionaries from office, as you did in 1866, and 
 thereby preserve your liberties for yourselves and 
 your children. 
 
 " Henry Russell, 
 " Chairman of the Liberal Committee." 
 
 This manifesto was answered in an article in the 
 Weekly Times, which was copiously distributed 
 through the various electorates. The following is 
 a copy : — 
 
 "THE CONSERVATIVE MANIFESTO. 
 
 " Yes ! Electors of Rapara, the Conservatives are 
 alarmed for their privileges, and well they may be 
 alarmed, for their privileges are the penalties which 
 farmers and workmen will have to pay to them in 
 the form of rack-rents, should they succeed in their 
 object. But we have too high an opinion of the 
 electors of Rapara to believe that they can be mis- 
 led by the Conservative manifesto, even though 
 signed by the leader of the Conservatives as ' Chair- 
 man of the Liberal Committee.' 
 
 " You are told in this manifesto that nearly all 
 civilised countries grant the right of private property 
 in land to individuals. This is no doubt true, and 
 it is the deplorable effects arising from this so-called 
 right in nearly every civilised country that raises up
 
 186 LAND NATIONALISATION 
 
 a feeling of just indignation against such a system, 
 and encourages us to fight for a law of justice and 
 reason, regulating the use and occupancy of land, 
 so that no one will be deprived of a share of its 
 benefits. 
 
 " Under our present system we see some men 
 comparatively poor, and others comparatively 
 wealthy. These differences in wealth arise from 
 differences in men. Some have great physical 
 strength, energy, and foresight ; others have these 
 qualities in a lesser degree, and have perhaps 
 extravagant habits to boot. The inequality in the 
 distribution of wealth is thus accounted for ; but we 
 see no one willing and able to work reduced to 
 either poverty or pauperism. What, we ask, is the 
 cause of this desirable state of things as compared 
 with the insufficient food, starvation, and pauperism 
 so general in Europe, and particularly in England, 
 Ireland, and Scotland ? The answer is that in 
 Rapara the people have all a share in the benefits 
 arising from the use of land, whilst in Europe these 
 benefits are monopolised by a few, and their use 
 is let out to the many at rents which do not afford a 
 comfortable living even to the strong and indus- 
 trious, while the weaklings are reduced to semi- 
 starvation or to absolute pauperism. The same 
 conditions will in time produce the same effects 
 here. Many of us are striving to amass sufficient 
 wealth to place our children beyond the reach of 
 land monopolists ; but it must not be overlooked 
 that even if such a position is attained, life is full of 
 reverses and changes that turn the land monopolist 
 of one year into the victim of land monopoly in the 
 next. Surely the state of things in Rapara, which
 
 KAPARA 187 
 
 secures to every industrious person at least a 
 comfortable living, is preferable to the uncertainty 
 that prevails in Europe, where one in a hundred 
 lives luxuriously on the labour of the other ninety- 
 nine. 
 
 "The Socialist bogey has again been raised from 
 the grave to which it was consigned at the last 
 election ; but the grounds of its condemnation may 
 be re-stated for the benefit of those who have not as 
 yet been able to distinguish the great difference 
 between natural and produced wealth. Remember 
 that by natural wealth we mean the raw material of 
 the earth together with all that Nature's law gene- 
 rates therefrom. Communistic Socialism claims 
 both natural and produced wealth as common 
 property — a claim which, if granted, would violate 
 the natural rights of producers. Monopolistic 
 Individualism has already sanctioned the seizure of 
 natural wealth by individuals, thereby violating the 
 natural rights of the community. Equalistic In- 
 dividualism holds that all natural wealth should be 
 common property, whilst produced wealth should be 
 the property of the producer. We are as much 
 opposed to Communistic Socialism as to Monopolistic 
 Individualism, because neither conforms to human 
 wants, rights, or reason. In fact, there is no more 
 justification in granting private property in land to 
 individuals than there would be in granting private 
 property in the air and the water, and there is no 
 doubt that this would have been done had there 
 been any means of compelling the masses to pay for 
 their use. 
 
 " That the Conservatives are prepared to use foul 
 as well as fair means is proved by their statement
 
 i88„ LAND NATIONALISATION 
 
 that the average charge to each person will amount 
 to £40. No one is in a position to state what the 
 average assessment rate will be, but it may be safely 
 stated that it will not amount to more than one- 
 fourth of their estimate. Not satisfied with this 
 exaggeration, they go on to state that ' such a pay- 
 ment is beyond our means unless we ruin half the 
 people in Opara.' This statement is made in face of 
 the fact that the deposits in the Savings Bank 
 amount to more than one-half of the probable 
 amount required for payment of freehold land. 
 Had all the land now under occupation been free- 
 hold land, the amount required to repurchase would 
 have been a great strain on the community. Hence 
 we see the necessity of using every effort now to put 
 an end to the evil while it is comparatively easy. 
 Otherwise we shall have to face the enormous sum 
 named in the Conservative manifesto. 
 
 " We are fully aware that in order to carry this 
 measure we have to fight against self-interest, selfish- 
 ness, and ignorance, but we enter on the battle 
 under a firm belief that the intelligence and 
 patriotism of the electors of Rapara will secure a 
 glorious victory, which will prevent this fair island 
 from breeding either millionaires or paupers." 
 
 To quote further arguments for or against land 
 nationalisation would be mainly repetitions of those 
 already given. The election was hotly contested, 
 both parties sparing neither time, trouble, nor 
 expense to secure a majority. When all the returns 
 came in it was found that the Radicals had secured 
 a small majority of the members. This election 
 showed a weak spot in the electoral law in requiring
 
 RAPARA 189 
 
 all the elections to be held on one day. Mr. Holland 
 was defeated in Koran, and Mr. Russell in Raoto, so 
 that the country was deprived of the services of two 
 of its most intelligent citizens. As was the case 
 with many other defeated candidates, their defeat 
 was occasioned by their strength. Had there been 
 another batch of elections to follow, both these 
 gentlemen would have had no difficulty in finding 
 seats. Their defeat, at all events, showed the 
 necessity of amending the Electoral Act, and 
 opinions were freely expressed to that effect.
 
 CHAPTER XIV 
 
 LAND REPURCHASE ACT 
 
 Epitome of Act and explanations — Discussion thereon — Act passed 
 — Assessment on all forms of wealth — Certificates of land values 
 used in payment of assessment rate. 
 
 The Council met in October under circumstances 
 of great uncertainty, for although the Radicals had 
 secured a small majority on their general policy it 
 was doubtful how they stood on the Land Purchase 
 question. The Government therefore determined 
 to deal with several unimportant measures, including 
 expenditure for 1 874-1 875, and postpone the con- 
 sideration of the Land Purchase Bill to the following 
 year. The Council, therefore, was adjourned to May, 
 1875. During this interval great pressure was brought 
 to bear by both parties on several members of the 
 Council whose opinions on the Land Purchase Bill 
 were wavering or uncertain. These inquiries con- 
 vinced the Government that to carry it a great effort 
 would have to be made, not so much in the Council 
 as throughout the country. It appeared certain that 
 it would be subjected to a referendum vote, which 
 
 190
 
 RAPARA 191 
 
 would offer great temptation to the more selfish part 
 of the electors. It was well known that there was 
 a large majority in favour of leasehold tenure, but a 
 great part of that majority was unwilling to pay an 
 assessment rate to repurchase the freehold land, and 
 many electors and a few members of the Council 
 openly professed their preference for an Act that 
 would prevent any more land being purchased. A 
 caucus meeting of the Radical party was held, at 
 which the position was fully considered. It was 
 seen that in the event of the defeat of the measure 
 either in the Council or bv referendum that to 
 resign would be handing over to the Conservatives 
 full power to facilitate the purchase of land in 
 various ways. It was therefore determined, should 
 the Land Purchase Bill be defeated, to continue in 
 office and fall back on the next best measure, viz., 
 the repeal of the section in the Land Ordinance, 
 empowering persons to purchase their leasehold 
 land. 
 
 The Council met in May, and at once proceeded 
 with the Land Purchase Bill, which was amended 
 in several particulars. The following is a copy of 
 the Act as it passed the Council : — 
 
 AN ACT 
 To Repurchase Freehold Land in Rapara. 
 
 Whereas it is expedient in the interests of the 
 community to purchase the rights and immunities 
 attached to freehold land, and to provide the neces- 
 sary funds for payment of such freehold land by a 
 general assessment,
 
 192 LAND REPURCHASE ACT 
 
 i. Be it therefore enacted by the State Council of 
 Rapara, with the consent of the State President and 
 Electors of Rapara as follows : 
 
 2. This Act shall come into force on the First day 
 of August, 1875, and shall be administered by a 
 Board, to be called the " Land Purchase Board," 
 which shall consist of the State President (Mr. 
 O. Temba), the Chairman of the Council (Mr. W. 
 Walker), and the Chairman of the Executive 
 Council (Mr. J. Wilson) — provided always that the 
 President shall have power to appoint a deputy to 
 act on his behalf. 
 
 3. The Land Purchase Board shall, within one 
 month from the passing of the Act or consent by 
 referendum, issue a proclamation — which shall be 
 advertised in the Weekly Herald and Weekly Times — 
 requiring every person who holds or owns property 
 in his own right or jointly as partners, or as agents, 
 administrators, or trustees for others, to make out 
 a true balance sheet of their assets and liabilities 
 as they stand on the first day of August, 1875. 
 
 4. Every person shall state in his balance sheet — 
 
 (a) The town, village, or parish in which he 
 
 resides, and the numbered lots and sections 
 of all land in his occupation. 
 
 (b) The name and address of each debtor and 
 
 creditor, with the amount receivable and 
 payable to each, including bank de- 
 posits. 
 
 (c) The number of houses and buildings with 
 
 the value of each. 
 
 (d) The area of cultivated land with the value 
 
 of clearing and reclaiming the same, and 
 the length and value of fences.
 
 RAPARA 193 
 
 (c) The particulars of standing crops with their 
 values, including fruit, coffee, and other 
 producing trees. 
 
 (/) The particulars of all live stock, with their 
 value. 
 
 (g) Particulars of machinery, implements, tools, 
 vehicles, household furniture, and other 
 kinds of plant, with their respective 
 values. 
 
 (h) Particulars of ships, boats, and other vessels, 
 with their respective values. 
 
 (/) The amount of money in hand. 
 
 (j) Particulars of all goods, produce, merchan- 
 dise, and effects not included in above 
 particulars ; except those persons whose 
 effects do not exceed £5 in value. 
 The debts receivable and the credits payable in- 
 clude all sums due or becoming due, but are not to 
 include contingent liabilities. 
 
 5. Every person shall sign his respective balance 
 sheet before an attesting witness. 
 
 6. The Land Purchase Board is empowered to 
 accept any balance sheet which it considers fairly 
 made out and containing true valuation, without 
 submitting it to appraisement, and to demand further 
 particulars and information respecting any balance 
 sheet which it may consider unsatisfactory, and to 
 name a date on which all balance sheets or amended 
 balance sheets shall be delivered, subject to a penalty 
 of £1 per day for every day in which default is 
 made. 
 
 7. The Land Purchase Board shall appoint two 
 competent persons for each parish and each town, 
 who together with the Parish or Town Steward or
 
 194 LAND REPURCHASE ACT 
 
 Mayor, as the case may be, shall appraise the value 
 of the several items of assets, and make inquiries as 
 to the correctness of such balance sheets as the 
 Land Purchase Board may submit to them, and 
 send in their report on such balance sheets to the 
 Land Board on or before the date fixed by the 
 Board. 
 
 8. On receipt of the appraisements the Land 
 Purchase Board shall notify all balance sheet 
 senders either that their balances have been ac- 
 cepted or increased as the case may be, and state 
 the date on or before which notice of appeal is to 
 be given. 
 
 9. All appeals of which due notice has been given 
 by Europeans shall be heard and determined by the 
 State Court at Raoto, and all appeals of which due 
 notice has been given by Maoris shall be heard and 
 determined by the Ariki Court at Meroo. 
 
 10. The value of cultivated freehold land and the 
 value of the land granted to the pioneers shall be 
 determined by appraisement, and the value of all 
 other freehold land shall be twenty times the 
 annual rent. 
 
 11. The Land Commissioners shall furnish the 
 Land Purchase Board with particulars of all freehold 
 land, the names of the owners, and the rent on 
 which the purchase money was based together with 
 the appraised value of the cultivated freehold land 
 and the land granted to the pioneers. On this 
 information the Land Purchase Board shall forth- 
 with issue to all freehold land owners certificates of 
 the value of their respective lands in £4, £10, £io, 
 or £100 certificates, as may be required. 
 
 12. The certificates issued by the Land Purchase
 
 RAPARA 195 
 
 Board shall, when tendered, be accepted in payment 
 of the assessment rates, and the balance shall be 
 paid in cash on day of settlement. 
 
 13. The owners of freehold land shall have a 
 preferential right to a lease, under the Land 
 Ordinance, of eighty acres, if so much remains 
 unleased. 
 
 14. The manager of every company and the 
 principal partner in every firm shall be responsible 
 for the due delivery of the balance sheet of such 
 company or firm, and shall therein state the value 
 of the interest that each shareholder or partner holds 
 in such company or firm. 
 
 15. All persons, companies, or firms shall give full 
 information to and answer all questions — within 
 their knowledge — asked by the Land Purchase 
 Board, and shall upon default be subject to a 
 penalty of not less than £10 and not exceeding 
 
 16. When all appeals are decided the Land 
 Purchase Board shall make up the aggregate amount 
 of the assessments and shall strike a rate sufficient 
 to pay the aggregate value of all freehold land, and 
 shall inform all assessees by letter the amount of 
 their respective rates. 
 
 17. The Land Purchase Board shall at the time 
 the assessment rate is struck determine on a date 
 for final settlement, on or before which all rates 
 shall be paid, which date shall not be more than 
 six months from the date on which the assessment 
 rate is struck, and they shall advertise the same in 
 the two weekly newspapers. 
 
 18. All assessment rates not paid on or before 
 the due date shall be subject to a money penalty
 
 196 LAND REPURCHASE ACT 
 
 of 5d. in the pound per day for every day that rates 
 remain unpaid. 
 
 19. In the case of any freehold land for which no 
 owner or trustee can be found the purchase money 
 of such land shall be paid over to the State Bank as 
 trustee for the owner, and be so held for a period 
 of seven years, after which date it shall become the 
 property of the State. 
 
 20. The Land Purchase Board is authorised to 
 draw on the State Treasurer for any sum required 
 for expenses of administration, not exceeding in the 
 whole ,£4,000. 
 
 21. All persons whose effects are under the value 
 of .£5 shall not be liable to pay any assessment rate, 
 but shall in lieu of a balance sheet send in to the 
 Land Purchase Board a declaration that their effects 
 are under the value of £5. 
 
 22. Any person or persons found guilty of con- 
 cealment of property or effects of any kind, or any 
 person or persons aiding or abetting such conceal- 
 ment, whether such property or effects is within or 
 outside the boundaries of Rapara, shall incur a 
 penalty of .£30, together with six months' imprison- 
 ment. Provided that clothing and articles of 
 personal use shall be free from assessment rate and 
 need not be included in the balance sheet of any 
 person. 
 
 23. Should the Act be subjected to a referendum 
 vote, and not negatived,the date on which the Act 
 shall come into force shall be the date on which 
 the referendum vote was taken. 
 
 24. On and after the day of settlement all tenants 
 and occupiers of expropriated land shall become the 
 tenants of the Government up to the extent of eighty
 
 RAPARA 197 
 
 acres at a yearly rental equal to one-twentieth of the 
 appraised value of such land, and any excess over 
 eighty acres shall be open to be taken up by other 
 persons on payment to the owners of the appraised 
 value of the improvements, provided that no 
 person shall take up or become the lessee of 
 more than eighty acres, including other land under 
 lease. 
 
 25. Should any portion of the expropriated land 
 remain unoccupied twelve months after the date of 
 settlement, the Land Commissioners are empowered 
 to pay to the late owners the appraised value of the 
 improvements, and in their discretion to reduce the 
 annual rent in accordance with the provisions of the 
 Land Ordinance. 
 
 26. All liens and advances made on the security 
 of freehold land shall be a first charge on the com- 
 pensation money. 
 
 In proposing the first reading of the Land 
 Purchase Bill, Mr. Wilson said " it was not his in- 
 tention to repeat the arguments in favour of the 
 Bill or to answer those used against it — all had been 
 fully thrashed out during the election — except in so far 
 as was necessary to explain the details of the Bill 
 now laid before them. He was willing to admit at 
 once that the evils arising from freehold land had 
 been considerably mitigated by the passing of the 
 Freehold Leasing Bill, which made uncultivated 
 freehold land available for those willing to cultivate 
 it. But this Bill still left it open to capitalists to 
 make investments in land and receive rents which 
 should by right go into the revenue of the State. He 
 did not share in the views of those who advocated
 
 198 LAND REPURCHASE ACT 
 
 the nationalisation of capital. On the contrary, he 
 held that the accumulation and maintenance of 
 capital was dependent on the recognition of the 
 right of individuals to the ownership of what they 
 produced either personally or by the employment of 
 others ; and there was no doubt that capital so 
 obtained, when invested in any kind of productive 
 works, tended to increase the rate of wages and the 
 volume of employment. But if capital was allowed 
 to be invested in land, there would be so much the 
 less available for productive industries. The worst 
 feature, however, of private appropriation of land was, 
 that it enabled one generation to hand over the gifts 
 of nature to a fraction of the next, thereby depriving 
 the greater number of their natural right to a share 
 of that from which all production had to be derived, 
 with the result that the many had to purchase from 
 the few liberty to use the land, to use the raw 
 material of the earth. 
 
 " This is the main consideration," he continued, 
 " that has urged us on to put an end to this 
 iniquitous private appropriation of land, which 
 really includes all kinds of natural wealth, and the 
 Bill which we now propose should be read the first 
 time is the means by which we think to effect this 
 object. 
 
 " The Bill proposes to place the administration of 
 the Act under a Board, consisting of the President, 
 the Chairman of this Council, and the Chairman of 
 the Executive Government, who are charged with 
 the duty of levying a general assessment on the net 
 wealth — freehold land included — of every person 
 possessed of effects exceeding ^5 in value, but not 
 including clothing and articles of personal use.
 
 RAPARA 199 
 
 Freehold land is to be valued at the price at which 
 it was originally purchased, and the value of the 
 pioneers' land is to be ascertained by appraise- 
 ment. 
 
 " On ascertaining from the Land Commissioners 
 the names of the owners of all freehold land, and the 
 area and price paid for their respective holdings, the 
 Land Purchase Board are to issue forthwith certifi- 
 cates of the value to all landowners' such certificates 
 to be in -£4, ^10, .£20, and ^100, as may be required 
 by the various owners. These certificates are to 
 be received in payment of the assessment rate from 
 every person who presents them and the balance of 
 certificates not so presented is to be paid in cash to 
 the holders immediately after the date fixed for pay- 
 ment of the assessment rate. 
 
 " It has been urged against this measure that the 
 payment of so vast a sum as the value of all freehold 
 land would cause such a monetary disturbance as 
 would be likely to imperil our industries and trade. 
 Others have gone the length of asserting that the 
 payment would absorb all the money in the country, 
 and others again have expressed the opinion that 
 such a payment is beyond our means. As to this 
 last objection, the Savings Bank returns show that the 
 savings amount to more than one-half the entire sum 
 to be raised ; and if to this we add the share of assess- 
 ment rates that landowners have to pay and the 
 amount of money lodged in the trading banks, the 
 aggregate is more than double the amount to be paid. 
 The other two objections can best be answered by 
 taking them together, as they really constitute one 
 objection, that is, that the payment would absorb all 
 the money in the country and thereby imperil our
 
 200 LAND REPURCHASE ACT 
 
 industries and trade. Now I should like to ask some 
 of these objectors to tell us what will become of this 
 money. Will the owners lock it up in vaults, or 
 bury it in the ground ? Are they not more likely to 
 put it into the most promising investment ? Can 
 any reasonable person doubt that they will do so ? 
 The amount of capital, therefore, will be neither 
 increased nor diminished except to the extent of the 
 value of land owned by absentee landholders, which 
 cannot amount to more than .£16,000 or ^18,000. 
 Now I wish to draw the attention of members par- 
 ticularly to the provision in the Bill directing the 
 Land Purchase Board, when they have ascertained 
 the value of all freehold land, to issue certificates of 
 value to the owners in such amounts as the latter 
 may require ; directing too that these certificates are 
 to be received in payment of the assessment rate from 
 every person who presents them. These provisions 
 are made expressly for the purpose of enabling land- 
 owners to lend out on security such portion of the 
 compensation money as may be required by the 
 public for the payment of the assessment rate. 
 This will enable those who are not in a position 
 to pay the whole of the assessment rate in one 
 year to spread it over several years ; and as the 
 rate cannot amount to more than 7 or 8 per 
 cent, on the net wealth, there will be ample security 
 for any money that may be required to pay this 
 rate. 
 
 " There seems to be a general misunderstanding 
 with regard to improvements on both state and 
 freehold land. The Government do not in any 
 way interfere with improvements. They remain the 
 property of the owners, and those taking up freehold
 
 RAPARA 201 
 
 or leasehold land have to pay to the owner or 
 occupier the appraised value of the improvements. 
 In short, by the provisions of the Bill the Govern- 
 ment is to pay the expense of administration of 
 the Act to the extent of .£4,000, if incurred. 
 Any expenditure over this sum has to come out of 
 assessment rates and nothing more. The compensa- 
 tion money and the assessment rate have to balance 
 each other. 
 
 " The power given to the Land Purchase Board 
 may be considered too great and the prescribed 
 penalties too harsh ; but as we desire an honest 
 assessment we do not think that dishonesty is too 
 severely punished under the provisions of the 
 Bill. 
 
 " We are aware that even amongst those hostile to 
 freehold land there are many opposed to the necessary 
 levy of funds to put an end to land appropriation. 
 Now this can arise from nothing but sheer selfish- 
 ness ; and it should be borne in mind that the 
 longer land appropriation is allowed the greater will 
 be the amount of money required to eradicate the 
 evil. No doubt if the whole of the land in Rapara 
 were private property, it would not be beyond the 
 means of the State to expropriate the present pro- 
 prietors ; but it would require a great effort and bear 
 hard on individuals in a country circumstanced as 
 Rapara is at the moment, as it would take something 
 like 25 per cent, of the entire wealth of the country 
 to carry out such a scheme. All the lands in 
 England, Ireland, and Scotland are private pro- 
 perty ; but the wealth there is so great that probably 
 not more than 15 per cent, would be required to pay 
 for the unimproved value of all land. We are not
 
 202 LAND REPURCHASE ACT 
 
 likely to attain to such wealth, nor to have experience 
 of the useless channels into which it flows." 
 
 The motion was seconded by Mr. Miller, who had 
 been appointed to the position of State Secretary in 
 place of Mr. Holland. The latter had been defeated 
 at the General Election and refused to continue in 
 office, although eligible under the Constitution Act. 
 Mr. Miller said that his chief had gone so fully into 
 an explanation of the Bill that nothing was left for 
 him to say except a few words of advice to his 
 Maori friends in the Council. During the elections 
 the Conservatives sent paid agents all through the 
 Maori districts, who stated that the assessment rate 
 would amount to one-half the value of their effects, 
 while in all probability it would not amount to more 
 than one-fourteenth, or at most one-twelfth part, and 
 that for this payment they (the cultivators) would 
 be entirely relieved from the exactions of the ratiras. 
 Even the few representatives of the chiefs and 
 ratiras must not forget that the Bill proposed to pay 
 them the full value of their land in money, which 
 they could employ in the cultivation of coffee, or 
 even sugar, with a better result and in a more hon- 
 ourable way than by living on the labour of their 
 poor tribesmen. He hoped, he said, that the Maori 
 members would show by their votes that they were 
 not so easily deceived as the Conservative party 
 seemed to expect. 
 
 Several members said they would reserve a state- 
 ment of their objections until the Bill was dealt with 
 in Committee, and the first reading was carried with- 
 out a division. 
 
 On the consideration of the Bill in Committee, 
 Mr. Wilson said that having accepted the principle
 
 RAPARA 203 
 
 of the Bill by carrying the first reading, they had 
 really nothing to debate but the provisions for 
 carrying it into effect ; for he (Mr. Wilson) had 
 already stated that the Board should be composed 
 of the President, the Chairman of the Council, 
 and the Chairman of the Executive Government. 
 Moreover, with regard to the exempting of persons 
 whose effects did not exceed .£10, this exemption 
 was doubtless an arbitrary one, as it rested on no 
 recognised principle ; in fact it was opposed to the 
 principle that should regulate a measure of this 
 character, namely, that every one should contri- 
 bute to the fund in proportion to his means. But 
 it should be manifest that to carry out this 
 doctrine to the letter would entail more expense 
 than the amount it would bring in, and they 
 thought ^ioa reasonable minimum. With regard 
 to exempting clothing and articles used on the 
 person, no one, he thought, was likely to object ; 
 nor did he believe that any reasonable argument 
 could be adduced against the remaining provisions 
 of the Bill. 
 
 Mr. Kemp said that the preamble of the Bill stated 
 that landowners were to be paid the fair value of their 
 land, but by the clause under consideration the 
 assessment was to be levied on the value of freehold 
 land. Thus the owners, instead of getting a fair 
 value for their land, would be mulcted to the extent 
 of the rate. He therefore begged to move that the 
 words " including freehold land" be struck out of 
 the clause. His motion was seconded and sup- 
 ported by others, who said it was unfair to 
 compel people to find funds to pay for their own 
 land.
 
 204 LAND REPURCHASE ACT 
 
 This amendment was opposed by several speakers. 
 Mr. Miller said that the amendment was a most 
 preposterous one, and unworthy of serious con- 
 sideration. Why, he asked, should landed pro- 
 perty, or the money with which it was purchased, 
 be exempted from assessment more than any other 
 form of property ? They had justified the assess- 
 ment on the first reading, and he defied any person 
 to show a tittle of reason why freehold land values 
 should be exempted. On being put, the amend- 
 ment was lost and the clause passed. 
 
 When the clause declaring that the value of free- 
 hold land should be the price at which it was 
 originally purchased was proposed, Mr. Gray said 
 that such a valuation was very unfair. Many of the 
 present owners had taken up land in the Opara 
 Valley two, and in some cases three, years before 
 the irrigation works were commenced, and by that 
 means assisted to provide the funds for their con- 
 struction. " Surely," he said, "you are not going to 
 defraud these people of that interest on their outlay 
 to which they are so justly entitled ?" 
 
 Mr. H olden said that he could not support Mr. 
 Gray's claim for interest, but he maintained that all 
 the land in the Opara Valley had risen in value since 
 it was purchased, and that the owners were justly 
 entitled to have the value determined by appraise- 
 ment. He, for his part, had no personal interest in 
 freehold land, but felt a keen desire to see justice 
 done and to prevent the Council taking any step 
 owing to which its honesty and honour could be 
 called in question. He therefore moved that 
 clause 10 be amended by striking out all the words 
 after "the value of" and inserting in their place
 
 RAPARA 205 
 
 " freehold land and the land granted to the pioneers 
 shall be determined by appraisement, and the value 
 of all other freehold land shall be the capitalised 
 rental of twenty years." 
 
 Mr. Wilson said that there was no doubt that the 
 value of all freehold land had increased, but to 
 consent to a general appraisement of all freehold 
 land would be giving defaulting owners a premium 
 for the injury they had done the State in not 
 bringing their land under cultivation. In order, 
 however, to render the fullest justice to landowners 
 who had done their duty to the State, the Govern- 
 ment would agree to have all freehold land now 
 under cultivation appraised at its unimproved value, 
 the improvements remaining the property of the 
 improvers. The clause was amended, and in pro- 
 posing it Mr. Petresen said that the Government 
 were pleased that those who had purchased land 
 and put it under cultivation would have justice 
 done in the appraisement, and those who had 
 injured the State by not cultivating their land 
 would have more than justice done in being repaid 
 the original purchase price — for the State only was 
 entitled to the unearned increment of land. 
 
 The remaining clauses were passed with little 
 discussion, and the report was adopted by a 
 majority of three. The second reading was carried 
 by a similar majority. Had it not been for the 
 Maori members the measure would have been lost, 
 as six supported it and four voted against it. But it 
 had to undergo a second ordeal in the shape of a 
 referendum vote by the electors, as it was certain 
 that a requisition to refer it to the electors would be 
 duly presented.
 
 206 LAND REPURCHASE ACT 
 
 The demand for a referendum was duly put 
 forward, and all necessary arrangements made for 
 the poll to be taken on the first day of August. Had 
 the conditions of the referendum provided for the 
 decision to be by a majority of votes only, it was felt 
 that the Land Purchase Act was likely to be defeated ; 
 but by the Constitution a negative vote of a majority 
 of all enrolled electors was required to invalidate an 
 Act duly passed by the Council. This provision was 
 denounced by many as an unfair test, making it 
 almost impossible, they said, for the electors to 
 reject any Act. But the wisdom of the condition 
 was upheld by others, who maintained that to go 
 through the cost and trouble of perhaps a critical 
 election, and to spend the time necessary for carrying 
 through the Council an Act that could be negatived 
 by less than a majority of the enrolled electors, would 
 be a waste of time and effort, apart from the fact that 
 the measure so carried might be contrary to the views 
 of the majority. Surely, they said, if a strong, popular 
 objection was entertained to any Act there could be 
 no fear entertained that one-half of the enrolled 
 electors would not record their votes against it. To 
 allow an Act to be defeated by a majority of those 
 who voted would make the referendum not only 
 useless, but a most dangerous element in legisla- 
 tion. 
 
 The referendum occasioned nearly as much can- 
 vassing and aroused nearly as much interest as a 
 general election ; and although it was fully explained 
 that it was not necessary for supporters of the Act 
 to vote, a large number went to the poll. When the 
 returns came in it was found that only about three- 
 fourths of the required number of negative votes had
 
 RAPARA 207 
 
 been polled, and the Act became law as from the 
 first day of August. 
 
 As soon as the referendum returns were officially 
 declared, the Land Purchase Board Issued the pro- 
 clamation required by the Act, and appointed the 
 15th of November as the date on or before which all 
 balance sheets must be sent in to the Board. As 
 some doubts existed whether the Maoris could fill 
 up their balance sheets in the prescribed form, the 
 Board appointed several competent persons to attend 
 at the arikis' courts to advise and assist those who 
 asked their aid. On the first of October all land- 
 owners were notified to attend at the Board and 
 receive certificates of the value of their respective 
 portions of land. All the balance sheets, with a very 
 few exceptions, were sent in at the prescribed date, 
 and nearly two-thirds of them were, after some 
 inquiries, accepted by the Board. The remainder 
 were submitted to the various Appraisement Boards 
 with instructions to send in the balance sheets 
 referred to them on or before the 15th of January, 
 1876. 
 
 A considerable number of the balance sheets were 
 altered by increasing the net balances, and on notifi- 
 cation only a 166 notices of appeal were lodged. Of 
 this number only ninety appeared in support of 
 their respective appeals, all of which were decided 
 by the end of February ; and notifications were 
 sent by letter to all assessees of the amount of 
 the rate payable by each, fixing the 30th day of 
 May as the date on or before which all rates had to 
 be paid, subject on default to the prescribed penalty. 
 
 The following table shows the value of the various 
 classes of property and assets, and the amounts of
 
 208 
 
 LAND REPURCHASE ACT 
 
 the aggregate assets and liabilities and the net value 
 of the aggregate wealth, and the per centage rate 
 required to pay the aggregate value of freehold 
 land : — 
 
 Summary of the Value of Property and Effects in 
 Rapara as at ist October, 1875. 
 
 152,460 acres of freehold land 
 
 Houses, buildings, and fences on all land 
 
 Improvements on 445,670 acres cleared and culti- 
 vated land 
 
 Standing crops, including coffee, fruit, and other 
 productive trees and plants ... 
 
 Machinery, implements, tools, utensils, furniture, 
 vehicles, and plant 
 
 Ships, lighters, boats, &c 
 
 Money in banks and private hands, including notes 
 
 Merchandise, goods, stores, and other effects not 
 included in above... 
 
 Less balance of foreign liabilities ... 
 
 Gross value of property £0,154,885, rated at 5J per cent. 
 Value of freehold land deducted 
 
 Margin to cover contingencies 
 
 £ 
 
 322,072 
 
 1,775.361 
 1,382,507 
 
 576,853 
 
 945,028 
 
 83,635 
 662,452 
 
 932,018 
 
 6,679,926 
 525,041 
 
 £6,154,885 
 
 323,081 
 322,072 
 
 £1,009 
 
 By the above summary the net wealth is shown 
 to be ^6,154,885. On this a rate of 5^ per cent, 
 was required to pay for the freehold land, so that 
 the Act was easily carried into effect. But it 
 was said by opponents of the measure that had all 
 the land been freehold it would have been beyond 
 the financial ability of Rapara to carry out its pro- 
 visions, as it would have taken a 35 to 40 per cent, 
 rate. These assertions were denied by the Weekly 
 Times, which said : " We find that the total quantity 
 of leasehold and freehold land amounts to 957,120
 
 RAPARA 209 
 
 acres; the capital value at twenty years' rental 
 amounts to .£1, 951,392. The late assessment, 
 exclusive of freehold land, amounted to ^5,832,813, 
 to which would have to be added the total value of 
 the freehold land amounting to ^1,951,392, making 
 the total wealth .£7,784,205, on which an assessment 
 rate of 25 per cent, would be needed to pay the value 
 of the freehold land. But we have to congratulate 
 the people of Rapara that they had the good sense 
 and courage to undertake the expense of killing this 
 infant monster of Monopoly before it had attained to 
 full growth. At the same time we believe that in ten 
 years' time Rapara would be in a position to expro- 
 priate by purchase the owners of all freehold land 
 without experiencing any great financial disturbance. 
 With regard to England, her great wealth would, we 
 believe, enable her to nationalise all English, Irish, 
 and Scotch lands on an assessment rate not exceed- 
 ing 12 or 14 per centum. Such a work would be a 
 great, a glorious, and a patriotic undertaking, and 
 certainly less difficult and more effectual than the 
 chaotic measure now advocated to relieve the culti- 
 vators from the destructive grip of the English land- 
 lords." 
 
 During the last week of May the Treasury office 
 in Meroo, Koran, Koona, and Raoto were fully 
 occupied in receiving assessment rates, and by the 
 end of May about three-fourths of the land certifi- 
 cates were used in payment of the rates. It was 
 anticipated that many of the poorer class of Maoris 
 would be unable to pay their rates when due. To 
 assist in this payment the State bank made it known 
 that it would, under the cash credit provision, be 
 prepared to make advances. Those who were not 
 
 15
 
 210 LAND REPURCHASE ACT 
 
 in a position to pay readily got bondsmen, and the 
 State bank advanced the necessary funds. The two 
 trading banks likewise made advances on the security 
 of buildings and other improvements on land, but 
 the land certificates played the most important part 
 in assisting those who had not ready-money to meet 
 the rate. These certificates were lent in a few T cases 
 by the owners personally ; but the great bulk of them 
 was paid into the two trading banks which made 
 advances to their customers on the usual terms, with 
 the result that the rates were all paid on the due date ; 
 and within the following week the whole of the 
 certificates not used for payment of rates were paid 
 in cash to the landowners. The Act came into force 
 on the ist of August, 1875, and on the 7th of June, 
 1876, all the landowners had received payment 
 in full, and the lands of Rapara had become the pro- 
 perty of the nation.
 
 CHAPTER XV 
 
 AMENDMENT OF ACTS 
 
 Rent Appraisement Act — Divorce Act — Electoral Act amended 
 
 When the State Council met in May, 1876, it pro- 
 ceeded to pass a Bill dealing with the general land 
 rent appraisement, which had to be carried out this 
 year. Mr. Ross, the chairman of the Land Com- 
 missioners had applied for power to increase the 
 maximum rent to 2s. 5d. and to decrease the 
 minimum rent to is. 3d. per acre. In their report 
 the Commissioners stated that there were consider- 
 able areas of land, particularly in Opara Valley, 
 worth the maximum rental recommended ; and that 
 in the districts of Akitiki and Koona there was a 
 good deal of land inside selection areas being left 
 for better land further removed from roads and a 
 market. This land, they said, would be selected if 
 the rents were lowered. The Commissioners like- 
 wise asked to be empowered to lease out one-half 
 of the reserved section adjoining the town of Raoto 
 for suburban settlement. The Government there- 
 fore brought in a Bill dealing with these questions 
 and several minor matters connected with land 
 administration. In discussing this Bill the question
 
 212 AMENDMENT OF ACTS 
 
 of the rent appraisements of the land under lease was 
 freely discussed. Mr. Kemp said, "the Com- 
 missioners were fully competent to appraise the 
 relative rental values of the different classes of land ; 
 but there was a larger question to settle, which he 
 considered was outside the functions of the Land 
 Commissioners and which could only be dealt with 
 by this Council, namely, the policy of increasing, 
 decreasing, or letting rentals remain as at present. 
 If anything of this character was to be done it 
 should not be left to the Commissioners, but should 
 be determined by this Council, and the Commis- 
 sioners instructed accordingly. You are all aware," 
 he said, "of what is taking place in the country 
 districts and know that the farmers will resist any 
 general increase in rentals, though the general 
 opinion is that the rents should be increased. The 
 Government is silent on this question, feeling, no 
 doubt, that it is the weak spot in perpetual leasehold 
 tenure." 
 
 Mr. Wilson said that he was quite conscious of 
 what was being said both by the farmers and the 
 general public, and it was not for want of considera- 
 tion that the Government did not propose in the 
 Bill to make any alteration. " We have fully con- 
 sidered the subject," he continued, "and have 
 arrived at the opinion that as two-thirds of the 
 State lands are still unoccupied, there is no good 
 reason why rents should be generally increased. 
 The power which the Commissioners have asked for 
 — and which we have included in the Bill — to im- 
 pose, namely, a rental at a maximum of 2S. 5d. and 
 a minimum of is. 3d. per acre extends to land now 
 under lease as well as to unleased land, and this will
 
 RAPARA 213 
 
 enable the Commissioners to increase the rents of 
 good land lying along good roads and adjacent to a 
 market, and at the same time to lower the rents on 
 poor land, not having the advantage of cheap trans- 
 port. In this way the mean rent need neither be 
 increased or lowered. We have therefore not dealt 
 with it in the Bill. 
 
 "Mr. Kemp, in his speech, stated that the inclusion 
 of rent appraisement in perpetual leases was the 
 weak spot in State-owned land. Many thoughtful 
 people as well as Mr. Kemp have expressed the 
 same opinion, and I am willing to admit," he said, 
 "that there is an element of clanger in leaseholders 
 resisting the imposition of increased rents ; but this 
 danger is as great in regard to freehold as to lease- 
 hold land, because if a majority of leaseholders 
 are likely to resist increase in rent, a majority of 
 freeholders are as likely to resist increase in taxation. 
 This would be the position in any country mainly 
 occupied in agricultural production to such an 
 extent as to constitute the farmers a majority of the 
 electors. But the danger is greatly diminished in 
 any country possessed of the various industries 
 appropriate to a civilised community. Under such 
 industrial development the manufacturing, profes- 
 sional, and distributing classes would outnumber 
 the farming class, when the danger might be the 
 other way and rents might be raised too high. But 
 let us not overlook the real position of a country 
 where the farmers are in a majority with power to 
 resist a just increase in rent or taxation. In this 
 position, being a majority, are they not entitled to 
 study the interest of the majority rather than the 
 interests of the minority ? But this situation
 
 214 AMENDMENT OF ACTS 
 
 changes when the country becomes a manufacturing 
 one, even if only to the extent of supplying the bulk 
 of its own requirements. This is our position now, 
 or at all events will be in a few years, and we have 
 no cause to fear any danger to our National Land 
 System." 
 
 Several speakers joined in the discussion, and one 
 pointed out how the cost of transport of produce 
 should not to any great extent affect the rent of land, 
 because, he said, districts having bad roads, or no 
 roads at all at present, will, within a few years, in all 
 probability, have good roads. Akitiki district had 
 been mentioned as one in which the cost of trans- 
 port was very high. Now if the railway — so much 
 talked about — were made to Akitiki, the transport of 
 produce would be effected as cheaply as to Koran, 
 where rents were higher than in the Akitiki district. 
 
 In answer to these criticisms Mr. Petresen said 
 that doubtless the Land Commissioners would in 
 their appraisement consider all these circumstances, 
 and although absolute perfection could not be 
 reached they might rely that justice would be done 
 as between the various classes of land ; and that the 
 Commissioners in the absence of infraction would 
 grade the rental so as to produce the same average 
 per acre as at present. 
 
 The first reading was carried by a majority of 
 nine. The measure was dealt with in Committee, 
 and the report adopted. The second reading was 
 passed by a majority of ten. 
 
 Divorces Act. 
 
 The English law of divorce had been with minor 
 alterations followed since 1852 ; but during the past
 
 RAPARA 215 
 
 decade great dissatisfaction had been expressed, not 
 merely at its provisions, but at the main principle 
 on which it was based. When a wife or husband 
 petitioned the court for a divorce on alleged offence 
 recognised as grounds for a divorce, if the defendant 
 took no steps to oppose the petition or contest the 
 truth of the evidence, or did, or omitted to do, any- 
 thing by which it could reasonably be inferred that 
 the defendant was not averse from the granting of 
 the divorce, this was treated as collusion between 
 the parties and a sufficient ground on which to 
 refuse granting a divorce. Several prominent cases 
 of this character had come before the Rapara court, 
 and divorce had been refused on the supposition 
 that both parties were desirous to be divorced from 
 each other, although it was well known that through 
 incompatibility of temper, violations of marital 
 rights and duties, and general dislike leading to 
 quarrels, and in some cases to violent assaults, the 
 parties had become unable to live together. The 
 observance of these facts led to the formation of a 
 society called the " Rational Divorce Association," 
 which started an agitation to have the divorce law 
 amended so as to conform to reasonable require- 
 ments. The Association, while recognising adultery, 
 felony, desertion, and drunkenness, coupled with 
 cruelty, as grounds for divorce or judicial separation, 
 extended these grounds to " habitual quarrelling," 
 "habitual drunkenness," "habitual cruelty," and 
 "separation extending over a period of not less 
 than two years." It held that on any of these 
 extended grounds being proved, the mutual consent 
 of the parties should entitle them to a divorce or 
 judicial separation, subject only to satisfying the
 
 216 AMENDMENT OF ACTS 
 
 court as to the custody and maintenance of the 
 children, if any. But in the absence of mutual 
 consent the granting or refusing the prayer of a 
 petition should be at the discretion of the judge. 
 
 The Association held meetings and distributed 
 leaflets amongst all the electors, and every elector 
 was visited by a member of the Association. This 
 resulted in securing a majority of electors pledged 
 to support only candidates in favour of the proposed 
 reform. The proposed reform did not form part 
 of the Radical platform at the last general election, 
 as it was considered advisable to confine the issue to 
 the great question of land nationalisation. At the 
 same time a large majority of the members that 
 were elected had declared in its favour. 
 
 Under these circumstances the Government con- 
 sidered it its duty to bring in a Bill to carry out 
 the proposed reform. In introducing the Bill 
 Mr. Wilson said that he could never understand 
 why the law should so readily grant a divorce when 
 it was opposed by the respondent, and so often 
 refuse it when the respondent offered no opposition. 
 No doubt, he said, there were many cases in 
 which the wronged sought relief from the wrong- 
 doer — a relief which the latter opposed, being 
 satisfied to act the tyrant, regardless of the wrong 
 and misery inflicted on his or her victim. In such 
 cases the law rightly relieved the latter. But surely 
 the victim should not be denied relief when the 
 wrongdoer offers no opposition. The law assumed 
 that all the offences which constitute grounds for 
 divorce are committed by one party, whereas our 
 worldly experience and the proceedings in divorce 
 courts proved that such offences were often com-
 
 RAPARA 217 
 
 mitted by both parties ; and when this was the 
 case the law held that neither party was entitled to 
 relief, whereas mutual offences against marital right 
 should strengthen the claim for separation. "Look," 
 said he, " at the position of a married couple whose 
 tastes, habits, sympathy, and temper are utterly at 
 variance. Bitter quarrels ensue ; children are 
 demoralised ; domestic duties are neglected ; co- 
 habitation ceases, often with the result that adultery 
 is committed by one or other of the parties. This 
 is a state of things more deserving of redress than 
 any afforded by the present grounds for divorce. 
 Yet the law holds that neither of the parties is 
 entitled to be relieved from this misery and trouble. 
 It is not intended in this measure to grant a divorce 
 to couples who have had occasional quarrels, as in 
 many such cases the grief and distress occasioned 
 thereby teaches mutual forbearance, leading in 
 many cases to comparative peace. But when it 
 is proved to the Court that these quarrels and 
 offences have continued for a period of two years, 
 we hold that a good case for relief is made out, 
 subject to due provision for the care and main- 
 tenance of children. To guard as far as possible 
 against application for relief without due and 
 deliberate consideration, the Bill provides that no 
 petition for divorce or judicial separation shall 
 be dealt with until a period of six months has 
 elapsed, and then only on the condition that a 
 second petition to the same effect is presented to 
 the Court not less than six months, nor more than 
 twelve months, after the date of the first petition. 
 This is a brief statement of the evils which the 
 Bill is intended to rectify; and although objections
 
 218 AMENDMENT OF ACTS 
 
 may be taken to some of its provisions, careful 
 consideration should convince all not dominated 
 by religious prejudices that as large a measure of 
 relief is given to ill-mated couples as can be safely 
 afforded without encouraging the disruption of 
 families on frivolous quarrels that can be easier 
 endured than cured by divorce." 
 
 Considerable discussion then ensued both on 
 the first reading and in Committee ; but the measure 
 passed through all its stages without any important 
 amendment, and became law without submission to 
 a referendum vote. 
 
 The following is a brief epitome of the provisions 
 of the Divorce Act : — 
 
 The offences which constitute grounds for divorce 
 or judicial separation on the petition of either 
 husband or wife are : adultery, bigamy, desertion 
 for two years or more, imprisonment for three 
 years or more, habitual cruelty for two years or 
 more, and habitual drunkenness for two years or 
 more. 
 
 On the joint petition of husband and wife, habitual 
 quarrelling for two years or more, and living apart 
 for two years or more, shall constitute grounds for 
 a divorce or judicial separation. Provided that a 
 second petition to the same effect be presented to 
 the Court not less than six months, nor more 
 than twelve months, after the first. 
 
 All evidence is to be heard before the presiding 
 judge and two accessors, who shall decide the 
 matter of proof by majority. But the presiding 
 judge shall alone determine whether a divorce or 
 judicial separation shall be given, and he is charged 
 with the duty of directing as to the custody and
 
 R A PARA 219 
 
 maintenance of the children, and is empowered to 
 order a husband to contribute such sum annually 
 as he considers fair and just to the support of 
 his children placed under the custody of their 
 mother or other guardian as he may appoint, and 
 to order a wife possessed of means in money or 
 property to contribute such portion of it as he 
 considers just and fair for the support of children 
 placed under the control of their father or other 
 guardian as he may appoint. To make such orders 
 as to costs and alimony as the question of each 
 case may demand, and to determine the nature 
 and amount of security to be given to secure the 
 due performance of these orders. 
 
 Neither the absence of the respondent nor evidence 
 that the respondent is not opposed to the granting of 
 the petition shall weaken the claim of the petitioner 
 to the relief prayed for ; and in the case of joint 
 petitions when the offences charged are proved a 
 judicial separation at least is to be granted. But 
 the judge is empowered to grant a divorce if prayed 
 for in the petition, should he think it best for both 
 parties. 
 
 Petitioners may appeal against decisions of the 
 Divorce Court if notice of appeal is given within 
 three months after date of judgment. 
 
 Electoral Amendment Act. 
 
 The result of the last general election in excluding 
 two of the most intelligent men in the country from 
 the National Council, had convinced the electors 
 that the provision to hold all the elections in one 
 day was not a wise one, and required to be amended. 
 In 1874 a league was formed which advocated the
 
 220 AMENDMENT OF ACTS 
 
 giving of increased voting power to electors who 
 had attained the age of forty-five years. This 
 question was not brought forward at the previous 
 general election, as it was agreed between the league 
 and the Rational Divorce Association not to bring 
 these topics forward, but to allow the issue to be 
 solely on the question of land nationalisation. But, 
 as in the divorce question, it was known that a 
 majority of the Council was in favour of giving 
 increased voting power to electors whose experience 
 and matured intelligence placed them in a position 
 to use their franchise for the general benefit in a 
 higher degree than could be expected from young 
 and inexperienced men. Owing to the land settle- 
 ment in the south-eastern district having extended 
 beyond the boundaries of the existing electorates, 
 it was considered necessary to form another elec- 
 torate partly out of the electorates of Koona and 
 Koran, and partly out of the land to the south and 
 east of these electorates. The new electorate was 
 to be named Oraki. 
 
 Under these circumstances the Government con- 
 sidered it their duty to bring in a Bill to amend 
 the Electoral Act so as to give effect to the general 
 desire of the voters. This Bill proposed to form 
 a sixth electorate in the south-eastern portion of 
 Rapara, to be called Oraki, and that each of the 
 six electorates should return four members, so that 
 European electorates returned twenty-four members, 
 while the Maori electorates returned ten members 
 as before. The Bill provided that elections should 
 be held in three batches, with four days intervening 
 between each ; and that nominations might be made 
 two clear days before date of election, but that no
 
 RAPARA 221 
 
 elected member could be nominated, nor could the 
 same candidate be nominated for two electorates at 
 the same time. The third amendment provided 
 that any person who had been an elector con- 
 tinuously for three years should, on attaining the 
 age of forty-five years, be entitled to two votes 
 on his residential qualification, and two votes on 
 his property qualification. 
 
 Mr. Petresen in -introducing the Bill said "he 
 thought no one was likely to object to creating an 
 additional electorate, as it was manifest that this 
 must be done unless all the boundaries of existing 
 electorates were altered ; and as to increasing the 
 number of European members, he thought his 
 Maori friends would not raise any protest, as their 
 representation would still be larger than that of 
 the Europeans. With regard to the proposal to 
 hold the elections in three batches instead of on 
 one day, no advantage appertained to holding them 
 all on one day, whilst a decided gain would be 
 secured by holding them on three separate days. 
 You are all aware," said he, " that at the last 
 general election Mr. Holland and Mr. Russell, two 
 of the most intelligent gentlemen in Rapara, failed 
 to obtain seats. This was not owing to their 
 political opinions, as their respective electorates 
 returned a majority of members in favour of the 
 policy advocated by each. In fact, their defeat was 
 owing to their strength. Their popularity was so 
 great in their respective electorates that defeat was 
 considered impossible, and many votes were given 
 to personal friends which but for this feeling of 
 security would have been recorded in their favour. 
 The same fate was experienced by other intelligent
 
 222 AMENDMENT OF ACTS 
 
 candidates at other elections. If we extend our 
 observations to elections in other countries the 
 results show another good reason why elections 
 should not be held in one day. Innumerable cases 
 occur when some sudden cry is raised for some 
 particular measure which is taken up with such 
 fervour as to become contagious in particular 
 electorates. But this contagion is often powerless 
 to affect some strong and intelligent candidate, 
 who thereby gets defeated. But with other elec- 
 tions to follow such a candidate can appeal to 
 another constituency which is more in harmony 
 with his views or perhaps considers him too good 
 a man to be left out of Parliament even though his 
 political opinions on all questions should not accord 
 with the views of the electors. As to the proposal 
 to give increased voting power to electors of 
 matured age, the Government are diffident on the 
 subject, and they have placed the amendment in 
 the Bill under the belief that a majority of the 
 electors as well as a majority of the Council con- 
 sider it calculated to promote good and prevent 
 bad legislation. There may be some difference 
 of opinion as to whether this increased voting 
 power should be given on both the residential and 
 property qualification, but this can be decided in 
 Committee. The fourth and last amendment pro- 
 posed to the Bill is that voting at all elections shall 
 be carried out by secret ballot, to which I feel sure 
 there will be no opposition. I thus cherish the 
 hope that the second reading will be carried 
 unanimously." 
 
 The first reading on being put was carried without 
 a division.
 
 RAPARA 223 
 
 In Committee the creation of the new electorate, 
 the holding the elections in three batches, the voting 
 by ballot, were all carried without amendment ; but 
 the clause giving increased representation to electors 
 who had attained the age of forty-five years was 
 fully discussed and amended in one important par- 
 ticular. 
 
 The clause as drafted simply doubled the votes 
 of all classes of electors who had been electors for 
 a period of three years, and who had attained the 
 age of forty-five years. To this provision a number 
 of members strongly objected, principally on the 
 alleged ground that it would place those holding 
 property qualifications in a majority. To meet 
 this objection Mr. White proposed to amend the 
 clause by striking out the words " and property," 
 thereby limiting the increased voting power to 
 electors holding residential qualifications only. 
 
 In supporting this amendment Mr. White said 
 surely the Government had not fully considered the 
 effect of this clause. Complaints were frequently 
 heard that the votes based on a property qualifica- 
 tion were so nearly equal to those that had one vote 
 only on a residential qualification that too much 
 power was placed in the hands of the former. If 
 the clause as it now stood were passed the 8,944 
 electors qualified by residence would have 17,888 
 votes, while the 4,384 electors with two votes each, 
 when these were doubled, would have 17,536. Was 
 it consistent with Radical principles, he asked, to 
 continue this inequality, more particularly as the 
 rapid rate of settlement and increase in building 
 must in a few years place the property-qualified 
 electors in possession of a majority of votes ?
 
 224 AMENDMENT OF ACTS 
 
 What was the answer of so staunch a Radical as 
 Mr. Wilson ? 
 
 Mr. Wilson replied that in the first place Mr. 
 White's estimate of the respective number of votes 
 was an erroneous one. The number of electors 
 having a residential qualification and the number 
 of electors having a combined residential and 
 property qualification was correctly given, but Mr. 
 White had assumed that every elector had attained 
 the age of forty-five years. Now he (Mr. Wilson) 
 was not in a position to state the exact number that 
 had reached this age, but he felt pretty sure that not 
 more than -two-fifths of those having a property 
 qualification had -done so. Under this estimate the 
 former would have 14,906 votes and the latter 11,396. 
 So that the operation of the Act would decrease 
 the relative voting power of the latter, and increase 
 that of the former. When the Electoral Act was 
 under consideration the dual vote was proposed 
 on the strict understanding that progressive voting 
 was the complement of progressive taxation. This 
 being the case the principle was in no way inter- 
 fered with by giving progressive votes to progressive 
 ages. " If we are right," said he, "in assuming that 
 age and experience make the elector a more trust- 
 worthy and more valuable voter than a young man 
 these qualities will not be weakened by his being 
 in addition the owner of property. But, as stated 
 by my colleague, Mr. Petresen, the Government is 
 both diffident and divided on the subject as to 
 whether the increase of voting power should be 
 given to all electors alike, or be confined to the 
 votes derived from a residential qualification. 
 Surely Mr. [ White does not mean to grant an extra
 
 RAPARA 225 
 
 vote to residentially qualified electors and withhold 
 it from the same class because they have an extra 
 vote on a property qualification. If his amend- 
 ment proposed to give one extra vote to all 
 electors who have attained the age of forty-five 
 years, it would have my support, but to give an 
 extra vote to one portion of the electors and deny 
 it to another must be the height of injustice." 
 
 Mr. White said he must confess that his amend- 
 ment was contrary to his intention, and he would 
 ask leave to withdraw it and propose in its place the 
 following : " That all qualified electors who have been 
 on the electoral roll for at least three years, and who 
 have attained the age of forty-five years, shall have 
 one extra vote ; provided that no single elector shall 
 be entitled to more than three votes." " This," he 
 said, "makes it quite clear that no extra vote is to 
 be given to electors on account of the property 
 qualification." 
 
 Several speeches were made for and against the 
 amendment, which on being put to the vote was 
 carried by a majority of three. The clause as 
 amended on being put was carried by a majority 
 of nine. The report was adopted by a majority 
 of twelve, and the second reading was carried 
 without a division. 
 
 16
 
 CHAPTER XVI 
 
 PROGRESSIVE WEALTH TAX OF 1883 
 
 Articles for and against a wealth tax — Discussion on uniform and 
 progressive rates — An equal sacrifice in taxation discussed — 
 Provisions of Act. 
 
 In 1883 a very important measure was discussed 
 and passed into law. For several years past the 
 financial position of Rapara made it evident to the 
 leading men of both parties that resort must be had 
 to some form of direct taxation so as to provide 
 funds for carrying out a number of necessary 
 works. A poll tax, a house tax, and an income 
 tax had all been suggested and discussed in the 
 press and on the platform ; but in 1879 the Weekly 
 Tunes took up the question of direct taxation and 
 insisted that such a tax could be more equitably 
 applied in the form of a wealth tax. In its opening 
 article it said, " We have fully examined the relative 
 merits of the various forms of direct taxation which 
 have been proposed during the last five years, and 
 this examination has led us to give the preference 
 to an income tax, notwithstanding the two great 
 defects with which it is chargeable. The first of 
 
 these defects is that no method has been discovered 
 
 226
 
 RAPARA 
 
 227 
 
 by which the incomes of certain classes can be 
 ascertained. The incomes of joint-stock companies, 
 landowners, merchants, large manufacturers and 
 distributors, and of those dependent solely on 
 salaries are easily discovered ; while the declared 
 incomes of nearly all other classes are dependent 
 upon the honesty and generosity of the returners, 
 and although very ingenious checks have been 
 devised, these are powerless to check dishonest 
 returns. Thus some pay on their entire incomes, 
 others on 10, 30, or 50 per cent, less than their 
 actual incomes, and a few escape without paying 
 at all. The second defect is that the tax entirely 
 ignores the financial position of the payee. The 
 man with a large family and the man with no 
 family are both charged the same amount on equal 
 incomes, and the man with ^2,000 is charged at 
 no higher a rate than the man with ^200. If it 
 is held by many that taxation should be based 
 upon the principle of 'equal sacrifice,' a general 
 poundage rate is a great injustice. In advocating 
 the imposition of taxes on the basis of an "equal 
 sacrifice " we are fully aware that the principle is 
 liable to misuse and abuse. Take an extreme case. 
 A has an income (after deducting the exemption) 
 of, say, ;£6oo ; and after he has paid an income tax 
 of i\ per cent., amounting to £15, the sum of ^585 
 remains, on which he has to support a family of 
 nine. B has an income (after deducting the 
 exemption) of, say, /6,ooo, and after he has paid 
 an income tax of i\ per cent., amounting to ^150, 
 the sum of ,£5,850 remains as B's net income. Now 
 whether B has or has not a family to support, it is 
 manifest that the tax is very far from involving
 
 228 PROGRESSIVE WEALTH TAX OF 1883 
 
 an equal sacrifice. What amount of tax should 
 be paid by B to make it an ' equal sacrifice ' to A's 
 we will leave it for each of you to determine. We 
 will, however, keep within the lines of safety when 
 we say that B would sacrifice less in paying .£2,000 
 than A in paying ^15. We have stated this to show 
 the difficulty of applying the ' equal sacrifice ' prin- 
 ciple in taxation. We believe in progressive taxation 
 within limits which we cannot at present define, but 
 the 'equal sacrifice' principle we hesitate at present 
 to support, notwithstanding the high authorities that 
 have sanctioned the doctrine. 
 
 In theory an income tax is the fairest of all taxes, 
 but unfortunately it cannot be fairly assessed ; and 
 although provision might be made for the more 
 effectual disclosure of incomes, we should still fail 
 in imposing taxation on individuals in proportion to 
 their ability to pay ; we therefore have no hesitation 
 in proposing a wealth tax in preference to an income 
 tax, because it is free from the inherent defects of the 
 latter. Most of you are doubtless familiar with the 
 assessment levied for the nationalisation of the land, 
 and are aware how effectual it proved in ascertaining 
 the wealth of individuals. We propose to apply the 
 provisions of that Act to raise such funds as are 
 required for the present necessities of the State ; and 
 in using the method we have no doubt with the 
 experience gained during the land assessment the 
 Government could greatly simplify and reduce the 
 expense of carrying it out. We shall take an early 
 opportunity of showing in what respect the wealth 
 tax is superior to the income tax." 
 
 An article in the Herald said: "The Times, in 
 advocating a wealth tax in preference to an income
 
 RAPARA 229 
 
 tax, is only carrying out its past procedure in con- 
 demning all well-tried measures and seeking to 
 replace them by novel ones. We have on several 
 occasions expressed our opinion that some form of 
 direct taxation should be introduced in preference 
 to the imposition of import duties on merchandise. 
 Now, although we are willing to admit that no 
 effectual provisions have been discovered to detect 
 false returns and compel true and honest ones to be 
 made, we still hold that an income tax is the best 
 form of direct taxation. In regard to the second 
 defect stated by the Times, * That the tax ignores 
 the financial position of individuals,' we maintain 
 that this is a matter with which the State has nothing 
 to do. If A for his own satisfaction gets married 
 and becomes the father of a large family, surely 
 this is no reason why he should be freed from the 
 obligation of paying his fair share of taxation. We 
 are rather surprised that the Times opposes pro- 
 gressive taxation up to the point of ' equal sacrifice,' 
 but we are sorry to see that it is prepared to support 
 progressive taxation up to some limit which it is 
 unable to define. We hold that if the principle of 
 progression is admitted there is no means of fixing 
 a limit other than the point of extinction ; in fact, a 
 number of prominent Socialists have already pro- 
 posed that progression shall proceed to this point. 
 How the Times can condemn progressive taxation 
 to the point of ' equal sacrifice,' and support it to 
 the point of extinction is to us an insoluble problem. 
 If the doctrine of 'equal sacrifice' be applied a 
 millionaire would retain an income at least equal to 
 that of the poorest taxpayer, while under a progres- 
 sive income or wealth tax his whole income or
 
 230 PROGRESSIVE WEALTH TAX OF 1883 
 
 wealth might be taken by the State. We therefore 
 hold that no limit or condition can be placed on pro- 
 gressive taxation to make it acceptable to a reasonable 
 and intelligent community. With regard to the 
 relative merits of the income and wealth tax we are 
 willing to admit that it is easier to discover a man's 
 wealth than his income ; but this advantage will be 
 more than counterbalanced in other directions. 
 Under the wealth tax the extravagant ispendthrift 
 who squanders the whole of his income will alto- 
 gether escape the tax, the bulk of which will have to 
 be paid by the careful and provident. Another 
 weak point in the wealth tax is that it will offer great 
 temptation to selfish people to hoard and conceal 
 money beyond the reach of discovery. Another 
 disadvantage is that the value of property does not 
 always yield proportionate incomes to the owners. 
 We therefore hold that if direct taxation is to be 
 imposed a non-progressive income tax is the fairest 
 and best for this country." 
 
 Both the Times and the Herald articles were fairly 
 commented on and discussed by correspondents in 
 both papers and likewise at public meetings in the 
 various centres of population ; but as the substance 
 of these arguments is contained in the newspaper 
 articles they need not be quoted here. 
 
 Soon after the appearance of the Herald's article the 
 Times published a second article on the wealth tax, 
 in which it answered the objections urged by the 
 Herald. It said : " In a former article on the wealth 
 tax we stated that the provisions regulating the im- 
 position of a tax on incomes entirely disregarded 
 the financial position of individuals ; but on looking 
 over the history of the income tax we find that
 
 RAPARA 231 
 
 attempts have been made to rectify this evil by 
 making certain exemptions according to the number 
 of children in a family. But while that course 
 relieved one injustice it created others, and the 
 exemptions for children were given up. And when 
 we take into consideration the variety in income, in 
 the number of the family, and in the standard of 
 living, it is all but impossible to grade income 
 taxation according to the ability to pay. On this 
 point the Herald, true to its Conservative instincts, 
 boldly asserts that the State in imposing direct taxa- 
 tion has nothing to do with the ability of the taxed 
 person to pay the tax. If one has a large family it 
 asks, ' Why should this excuse him from paying his 
 fair share ? ' Now without doubt any form of 
 direct taxation that does not discriminate between 
 the rich man and the poor is an unjust one. We 
 freely admit that it is impossible to fix the degree 
 of progressiveness in any direct tax according to 
 scientific principles. The gradation must be left as 
 heretofore to the judgment of the legislature and 
 varied in different countries to suit the circumstances 
 of each. No doubt under a wealth tax money could 
 and would be concealed to a limited extent. But 
 this power of concealment is much greater in 
 respect to incomes than wealth, as the latter is 
 visible, while more than one-half of all incomes are 
 invisible and unknown. Under a wealth tax the 
 reckless and extravagant will doubtless escape ; but 
 on the other hand the tax will grade itself according 
 to the financial position of each individual. The 
 man whose circumstances will not enable him to 
 accumulate property, or only to a limited extent, will 
 pay accordingly. Of course we may be met with
 
 232 PROGRESSIVE WEALTH TAX OF 1883 
 
 the argument that this will discourage saving and 
 thrift. But can we suppose that any sane man will 
 give up trying to save because such savings will be 
 subject to a tax of 1, 2, or 3 per cent. — an amount 
 which in any case he will probably have to pay in 
 some form or other. 
 
 " At this stage it may be advisable to call attention 
 to some of the main provisions in the Land Re- 
 purchase Act. By this Act every person had to 
 make out a balance sheet, in which all property, 
 money, and debts had to be entered, particulars of 
 such property and money given, the situation of the 
 property set forth, as also the names and addresses 
 of debtors, with the detailed values or amounts set 
 opposite each entry. On the other side had to be 
 entered the names and addresses of all creditors 
 with the amounts due to each. This deduction 
 from the aggregate assets gave the net balance on 
 which the tax was levied. 
 
 These balance sheets had to be examined by three 
 valuators, one of whom was the steward of the 
 parish or parish clerk of a municipality, and their 
 valuation was final unless appealed against, in which 
 case the decision of the law courts determined 
 the amount subject to taxation. It will thus be 
 seen that each debtor was a check on his creditor's 
 return and each creditor was a check on his debtor's 
 return, so that every one had to pay on the actual 
 balance which he possessed. Heavy penalties by 
 fine and imprisonment were imposed for conceal- 
 ment of assets or for aiding others in such dis- 
 honesty. We feel sure that a wealth tax is fairer in 
 all respects than an income tax, and we ask every 
 elector to give the subject serious consideration, so
 
 RAPARA 233 
 
 as to be in a position to use his vote in furtherance 
 of this reform." 
 
 The questions of the wealth tax continued to be 
 discussed in the press and at public meetings in the 
 various centres of population down to the year 1883, 
 when it came up for determination by the State 
 Council. The first reading was carried with little 
 discussion by a small majority. In Committee most 
 of the provisions of the Bill regulating the tax were 
 passed without division ; but on the question of 
 exemptions and to whether the rate should be 
 general or progressive considerable debate ensued. 
 The exemption was ultimately fixed at .£50, and 
 applied to all estates ; so that only wealth in excess 
 of this amount was made subject to taxation. Mr. 
 Holland, who took charge of the Bill, in moving the 
 clause dealing with the rates of duty said that he 
 was fully aware that a progressive duty was strongly 
 opposed by a large number of people, who had 
 backed up their opposition by arguments that could 
 not be disregarded in determining this question. 
 The doctrine of "equal sacrifice" in taxation had 
 been preached and adopted by some of the most 
 eminent economists, statesmen, and sociologists 
 during the past century. But, notwithstanding this 
 array of authorities, he could not accept the principle 
 as an ordinary measure of legislation for controlling 
 the principles of taxation. At the same time he 
 could conceive that circumstances might place a 
 community in a position that would justify on high 
 ethical grounds the application of the principle. 
 But it should be applied only when all other reme- 
 dies were powerless to put an end to the evil. He 
 was fully aware that taxation on the principle of
 
 234 PROGRESSIVE WEALTH TAX OF 1883 
 
 " equal sacrifice " placed a limit on progression, as 
 under it a millionaire must at least be left with an 
 income equal to that of the middle class taxpayer, 
 and when the standard of living of the rich, the very 
 rich, and millionaires was taken into account an 
 " equal sacrifice " might leave them with incomes 
 three, six, and ten times greater than those of poorer 
 taxpayers ; while the principle of progression without 
 " equal sacrifice " might go on to the point of extin- 
 guishing all income. Now here in Rapara, where 
 the gifts of Nature were equally open to all, there 
 were varying degrees of wealth. The weak, indolent, 
 and extravagant were comparatively poor, while 
 the strong, industrious, and provident were com- 
 paratively wealthy. This was a good position to 
 occupy — a position that would be endangered by a 
 progressive tax if unlimited. On the other hand, if 
 the rate of duty were made the same on small estates 
 as on large ones, the poorer classes would have to pay 
 more than their fair share — more than their circum- 
 stances would allow. This view was conceded in 
 making an exemption of ^50, as nearly all the 
 speakers considered that persons only possessed of 
 this amount of property could not be justly charged 
 with the tax. Now, though he admitted that a pro- 
 gressive tax, even if limited to equal sacrifice, could 
 be made an instrument of great injustice, a uniform 
 rate on large and small estates would be an actual 
 act of injustice, and they had therefore to rely on the 
 intelligence and sense of injustice in the electors and 
 legislators to keep progressive taxation within fair 
 and just bounds. He thought the following schedule, 
 which he begged to propose, conformed to this 
 condition.
 
 RAPARA 235 
 
 Schedules oe Duties — Subject to £50 Exemption- — ox 
 the Credit Balances of all Estates. 
 
 On all balances not exceeding 
 
 £ 
 
 
 
 
 500 .. 
 
 • lof 
 
 a penny 
 
 in the £ 
 
 1,500 .. 
 
 •3 
 
 s 
 
 n 
 
 n 
 
 4,500 .. 
 
 .'i 
 
 H 
 
 n 
 
 13,500 .. 
 
 4 
 
 11 
 
 1! 
 
 40.500 .. 
 
 
 i) 
 
 II 
 
 121,500 .. 
 
 1: 
 
 11 
 
 II 
 
 364,500 .. 
 
 i 
 
 11 
 
 '1 
 
 1,093,500 ... I „ „ 
 
 And larger sums in like progression, provided that 
 the tax shall not exceed 2d. in the £ of value in 
 any estate. 
 
 A long discussion followed, mainly on the pro- 
 gressive principle of the tax. Mr. Walker said they 
 had agreed to an exemption of ^50 to meet cases in 
 which the assessed person would be unable to pay 
 the tax. Under a uniform rate the person possessed 
 of property valued at, say, .£4,000, would pay four 
 times as much as one whose property amounted to 
 .£1,000. Surely this was difference enough without 
 a progressive rate. No doubt the progression in the 
 rate was moderate ; but if the principle was once 
 admitted the progression might be increased to any 
 extent. With regard to the relative merits of an 
 income tax and a wealth tax, the latter would 
 doubtless be more to the advantage of those with 
 large families than the former. But they have 
 nothing to do with large families, as the respon- 
 sibility for their maintenance must rest with their 
 parents. He endorsed the statement made by Mr. 
 Gray, that large families should not release parents 
 from paying their fair share of taxation.
 
 236 PROGRESSIVE WEALTH TAX OF 1883 
 
 Mr. Grant said he was not surprised at the speech 
 of Mr. Walker, who always opposed every new 
 measure because it was new. If he had his way 
 all progress in civilisation must cease. As to his 
 contention that no discrimination should be made 
 between the rich man and the poor in the imposition 
 of direct taxes, it required no answer. Several even 
 of his own supporters expressed both dissent and 
 disgust at his statement. He was not surprised at 
 Mr. Walker's speech, but he could not say as much 
 for Mr. Holland's speech. The latter based his Bill 
 on a principle in which he evidently did not himself 
 believe. Now there was no doubt that if progres- 
 sive taxation could not be supported on principle, it 
 was nothing short of injustice. If progression was 
 not to be limited by the principle of " equal sacri- 
 fice " no measure of progression could be applied 
 short of taking the whole. If the principle were a 
 sound one on ethical considerations, nothing short 
 of taxation to the point of equal sacrifice could be 
 justified. Now, while there could be no doubt about 
 the justice of the principle, it was indisputable that 
 great care would have to be exercised in grading the 
 rates of taxation so as to exact an equal sacrifice 
 from all classes. This would be utterly impossible 
 as between individuals ; but it must be evident that 
 it was much easier to grade taxation to the point of 
 equal sacrifice in the case of a wealth tax than in 
 that of an income tax. Let us suppose that A and 
 B have equal incomes. A has only a small family, 
 simple tastes, and inexpensive habits ; B has a large 
 and expensive family, and finds it hard to make his 
 accounts balance at the end of the year. Under such 
 circumstances a general rate on each pound of income
 
 R A PARA 237 
 
 would produce very unequal sacrifices. But in the 
 case of a wealth tax each would be taxed on the 
 amount he had been able to save, while in the case 
 of two persons possessed of equal wealth this equality 
 would indicate equal ability to save, and they would 
 be equally taxed and make approximately an equal 
 sacrifice. " Having these considerations in view," 
 said the speaker, " I shall vote for the Bill, as I 
 believe that the schedule of duties proposed is suffi- 
 ciently progressive to impose an equal sacrifice on 
 all classes. At the same time the tenor of Mr. 
 Holland's speech leads us to believe that he does 
 not consider the degree of progression involves an 
 equal sacrifice, and that if it did he would not 
 support it. We have looked upon him as the 
 standard-bearer of the Radical flag, but unless he 
 changes his mind we shall have to look out for 
 another standard-bearer who is not ashamed to 
 carry the flag fully unfurled, whether the Times 
 likes it or not." 
 
 Mr. Holland closed the debate by declaring that 
 the common sense of the community and the mem- 
 bers of that Council clearly perceived that the large 
 property holders could better afford to pay double 
 the scheduled rates than the small property holders 
 could afford to pay the rate charged in the schedule. 
 
 The clause, on being put, was carried by a majority 
 of six votes. The remaining clauses were passed with 
 little discussion. The report was adopted, and the 
 second reading was carried by a majority of seven 
 votes ; but as notice had been given that a requisition 
 would be presented to submit the Bill to a referendum 
 vote, it was held in suspense. In canvassing for 
 signatures to the requisition, it was found so difficult
 
 238 PROGRESSIVE WEALTH TAX OF 1883 
 
 to get electors to sign, that the referendum was 
 abandoned, and the Act came into force in 1883. 
 The balance sheets were all finally settled by June, 
 1884. These balance sheets showed that the total 
 wealth, exclusive of exemptions, land and State 
 property, amounted to .£5,548,027, yielding £15,420, 
 or 4s. id. per head of population. If the exemptions 
 were included, it would bring up the total private 
 wealth to about £8,400,000, or £91 12s. per head. 
 
 Whether the tax will prove a better and fairer 
 mode of raising revenue than the income tax of 
 England remains to be proved. In any case it will 
 relieve those having large families from payments 
 they cannot afford except by the sacrifice of articles 
 of necessity, and it will offer greater facilities for 
 checking the balance sheets, and thereby compel all 
 to pay on their actual wealth.
 
 CHAPTER XVII 
 
 PROGRESS AND DEVELOPMENT, 1873-1884 
 
 Discussion on electoral reform — Industrial progress — Protective 
 duties and ironworks discussed — Railway to Akitiki — Census — 
 Land under cultivation — Revenue and expenditure — Imports 
 and exports for 1883 — Local Government — Code of laws — 
 Education, religion, and amusements — The State bank and 
 land administration. 
 
 The passage of the Land Appraisement Act, Divorce 
 
 Act, and Electoral Act amendment in the session 
 
 of 1876, and the carrying of the wealth tax in 1883 
 
 seem to have filled up the required measure of 
 
 Radical reforms, as only a few unimportant measures, 
 
 together with provisions for State expenditure, 
 
 were dealt with up to 1883. In 1879 a motion 
 
 having for its object a reform in the Electoral Act, 
 
 or rather the substitution of a new Electoral Act 
 
 based on single electorates, adult suffrage, payment 
 
 of members, and triennial parliaments, was brought 
 
 before the Council and discussed. This motion was 
 
 proposed by Mr. Ottard, who took up the position 
 
 of leader of the extreme Democratic Socialistic party. 
 
 Mr. Ottard, in support of his resolution, said, " this 
 
 being a Radical State whose chief aim and object 
 
 239
 
 240 PROGRESS AND DEVELOPMENT, 1884 
 
 was to equalise the conditions whereby wealth was 
 attained by individuals for all classes of the com- 
 munity, it was altogether inconsistent to give people 
 votes in virtue of the possession of property. " To 
 enable us to attain a state of equality," he observed, 
 " a preponderance of the votes and power should be 
 in the hands of the poorest classes, so as to enable 
 them to pass such enactments as would tend to 
 make the poor richer, even if it made the rich 
 poorer, and thereby get nearer to that state of 
 equality which a Radical policy aims at securing. 
 This measure I regard as only the means to an end. 
 We have nationalised the land, but until we have 
 nationalised capital as well we cannot expect that 
 equality which is the birthright of all. The national- 
 isation of land is doubtless a step in the right 
 direction ; but the most just and beneficial measure 
 can be nullified by other legislative enactments, 
 such, for instance, as our Land Ordinance. By this 
 ordinance individuals are permitted to take up and 
 hold eighty acres of land, while every one must 
 admit that no person can unaided cultivate even a 
 fourth part of this quantity. To enable a man to 
 do so he hires the labour of others, and is thereby 
 in a position to turn a large proportion of the people 
 into slaves. This is a state of things which I hope 
 will not be tolerated for many years in this free 
 country. By our present Electoral Act owners of 
 a certain amount of property have an additional 
 vote. Now I contend that it would be fairer and 
 juster to give an additional vote to all those who 
 have less than the average amount of property. I do 
 not say that this would be absolutely just, and there- 
 fore I do not propose it ; but I maintain that it
 
 R A PAR A 
 
 241 
 
 would be j uster than the present law, which gives 
 the greatest voting power to the wealthiest classes, 
 thereby enabling them to increase the inequality 
 which all right-thinking men deplore. We have 
 already freed women from many of the unjust dis- 
 abilities to which they are still subject in Europe and 
 elsewhere ; and I am surprised that the right to the 
 franchise — the absence of which constitutes their 
 greatest disability — should still be denied them. 
 They have to pay taxes as well as men, and we all 
 hold that taxation without representation is the 
 height of injustice. This disability will no doubt 
 be defended on the ground that women are too 
 emotional and too ignorant on political questions 
 to be entrusted with the franchise, and that they are 
 represented by their fathers, brothers, or husbands. 
 But there never yet was any great reform carried with- 
 out arguments being used and relied upon which were 
 subsequently admitted to be worthless. We have 
 passed several measures far in advance of European 
 legislation, and have no cause to regret our action. 
 It may be advanced as a plea against this measure 
 that women as an organised body have not peti- 
 tioned for or demanded the franchise. This is 
 doubtless true ; at the same time it is equally true 
 that a large majority of women look upon the 
 refusal of enfranchisement as a denial of justice. 
 There is some doubt whether the Council will 
 accept the whole of the provisions in this resolution ; 
 but I claim the vote of every Radical in favour of 
 granting adult suffrage and repealing the property 
 qualification." 
 
 Mr. Dawson, in seconding the resolution, said 
 "he considered the non-enfranchisement of women 
 
 17
 
 242 PROGRESS AND DEVELOPMENT, 1884 
 
 a disgrace to the community, and no one who 
 voted against conferring the suffrage on them 
 could any longer claim to be a Radical ; for its 
 denial rested entirely upon Conservatism of the 
 worst type. The lack of intelligence might have 
 been a good argument in other lands and other 
 times ; but here in Rapara, where women were as 
 well educated as men, the argument was absurd ; 
 and, as pointed out by Mr. Ottard, taxation without 
 representation was the height of injustice. As to 
 women being more emotional than men, if it was 
 true it was likewise true that in their emotions they 
 lean more to justice than men did ; and although 
 most political questions were better understood by 
 men than by women, there were several political 
 matters still to be dealt with which women could 
 understand better than their husbands, fathers, or 
 brothers. They were thus better qualified to select 
 representatives to legislate on such questions. A 
 Conservative feeling against change might actuate 
 Radicals to vote with Conservatives to defeat this 
 measure ; but the young Radicalism of Rapara 
 yearly gaining the franchise would not long deny 
 their sisters, mothers, or wives the privilege of 
 representation." 
 
 Mr. Holland said that on behalf of the Govern- 
 ment he opposed the resolution. Personally he was 
 not opposed to giving votes to women ; but he 
 thought that their enfranchisement must be carried 
 to a logical conclusion by granting them the right 
 to be elected to the Council. At present, however, 
 the proposal was premature, and would be in good 
 time ten years hence. In the meanwhile let women 
 prepare themselves for the change by taking an
 
 RAPAKA 
 
 243 
 
 interest in politics, so as to be sufficiently informed 
 to advise their fathers, brothers, or husbands which 
 candidates they should vote for, and to give the 
 reasons for their preferences ; thus the franchise 
 and the right to be elected members of the Council 
 might be granted to them without fear of the 
 consequences. The mover of the resolution said 
 nothing against the dual vote which accrues when 
 the age of forty-five years was attained. Yet his 
 resolution proposes to repeal this qualification. He 
 said nothing against the four-member electorates, 
 and nothing in favour of the single electorates. 
 When the four-cornered electorates were proposed 
 he (Mr. Holland) voted for them as a temporary 
 institution, to be replaced by single electorates. But 
 now, having had ample time and opportunity to 
 consider the question fully, he thought that the 
 four-cornered electorates were preferable to the 
 single ones. In the single electorates minorities 
 however large could secure no representation in the 
 single constituencies, while in the four-cornered 
 ones candidates holding dissimilar views on different 
 questions were frequently returned. Of course it 
 might be urged that with single electorates all 
 electorates would not hold the same views on any 
 particular question, and therefore minorities will 
 find representation. This to a certain extent was 
 doubtless the case ; but there is a danger when 
 a great and important question is made a test one 
 and has to be decided by single electorates, that 
 the minority, though nearly equal to the majority, 
 might fail to be represented. On the other handi 
 when a test question was decided by four-cornered 
 electorates, as a rule members of both parties,
 
 244 PROGRESS AND DEVELOPMENT, 1884 
 
 were returned — a result which secured full dis- 
 cussion for any measure of importance. " On this 
 ground," continued the speaker, " I am opposed to 
 Mr. Ottard's resolution. We now come to the 
 main reason why Mr. Ottard is opposed to the pro- 
 perty qualification vote. He said, 'This being a 
 Radical state whose chief aim and object is to 
 equalise the conditions whereby wealth is attained 
 by individuals for all classes of the community, it is 
 altogether inconsistent to give people votes in virtue 
 of the possession of property. To enable us to 
 attain to a state of equality a preponderance of the 
 vote and power should be given to the poorest 
 classes so as to enable them to pass such enactments 
 as would tend to make the poor richer, even if it 
 made the rich poorer, and thereby get nearer to that 
 state of equality which a Radical party aims at 
 securing.' Now I am free to confess that our exist- 
 ing laws have failed to confer equal wealth on all 
 the members of the community, because some are 
 industrious and thrifty, while others are indolent 
 and extravagant in varying degrees. But it is 
 equally certain that, character apart, all means 
 to the attainment of wealth by individuals are 
 equally open to every one. The Radical doctrine is 
 that all natural wealth belongs to the community, 
 and all produced wealth belongs to the producer, 
 but Mr. Ottard would seize the private capital, 
 which is produced wealth of individuals, and make 
 it common property, thereby robbing individuals 
 of the fruits of their labour. He objects to indi- 
 viduals being permitted to take up and hold eighty 
 acres of State land, for which they pay the state a 
 yearly rent. But surely this objection cannot be
 
 RAPARA 245 
 
 made on the plea of inequality, as the opportunity 
 is equally open to all. He appears to rest his objec- 
 tion on the fact that one man cannot by his own 
 labour cultivate eighty acres of land, but has to hire 
 others to assist him, and thereby turns them, as he 
 says, into slaves. Such a statement might be 
 uttered before his Socialistic friends, but made 
 before this Council it subjects him to the con- 
 tempt of every intelligent member. If Mr. 
 Ottard's views were carried out, very youth and 
 man without sufficient means to enter upon the 
 cultivation of land would be deprived of employ- 
 ment, and consequently of the necessaries of 
 life. Many fathers will be doubtless able to start 
 their sons as farmers ; but the greater proportion 
 will find that the rearing and educating of a family 
 absorbs their savings to such an extent that nothing 
 is left to allow them to establish their sons on farms. 
 Those who intend to make farming their business 
 have therefore to depend on the employment offered 
 by such farmers as have the necessary capital to 
 farm forty, sixty, or eighty acres of land, until theii 
 savings enable them to take up land on their own 
 account, and so enable others to do as they have 
 done. As regards the quantity of land which can 
 be taken up and held by one person by fulfilling the 
 cultivation conditions, it was clearly shown during 
 the passage of the Land Ordinance that to compel 
 every one to take up the same quantity of land 
 would compel some to take up more land than they 
 could cultivate and deprive others of the area which 
 they required. It can be safely asserted that no 
 country in the world gives such facilities to intending 
 cultivators of acquiring land on the easiest possible
 
 246 PROGRESS AND DEVELOPMENT, 1884 
 
 terms. In North and South America, South Africa, 
 and Australia, the settler has to part with a large 
 part of his capital in purchasing the necessary land, 
 whilst here the whole of his capital is left intact, to 
 purchase implements, erect fences and houses, and 
 carry out the operations that precede any return. 
 Moreover, in the countries named, the land in the 
 best position and of the best quality is largely secured 
 by speculators, not for cultivation, but to await a 
 rise in rent or selling value, while the actual culti- 
 vators are forced to take up inferior land further from 
 a market for their produce, to reach which roads 
 have to be made at great expense through the 
 uncultivated lands. Now we fully endorse the 
 statement made by Mr. Ottard in preparing his 
 resolution, ' that the chief aim of this Radical state 
 is to equalise for every class the conditions whereby 
 wealth is obtained by individuals.' Let Mr. Ottard 
 or any other person point out a single law or con- 
 dition that is not beneficial for all, or indicate any 
 new measure that would increase equality, and the 
 Government will at once take steps to carry it into 
 effect. I am afraid that I have trespassed on the 
 time and patience of the Council in answering Mr. 
 Ottard's absurd argument — argument which I think 
 would waste the time of any debating club." 
 
 Other speeches, similar in tenor to those reported, 
 were made for and against the resolution. Mr. 
 Ottard replied, and merely repeated his former 
 contentions. The resolution on being put was 
 lost, only four voting in its favour and twenty-two 
 against it.
 
 RAPARA 247 
 
 Industrial Department. 
 
 During the decade under review the country had 
 steadily progressed in regard to the production of 
 various commodities, with the exception of sugar, 
 the yield of which failed to increase in proportion 
 to the population. The growth and export of coffee 
 increased by 30 per cent. Mutton and beef showed 
 little advance ; but the rearing and fattening of pigs 
 on the taro, and their conversion into bacon, ham, 
 and pickled pork, became an important industry 
 both for home comsumption and export, and was 
 the means of preventing a rise in the price of beef 
 and mutton. The production of grain was confined 
 almost entirely to the demands for home con- 
 sumption. Maize was occasionally exported to 
 Australia and Chili ; as also were preserved fruits, 
 jams, and jellies of various kinds. Spirits still 
 continued to be imported in small quantities, but 
 the yield of rum from molasses made the export 
 of spirits largely exceed the import. 
 
 The production of manufactured articles had 
 slowly but steadily developed with the increase in 
 population. Boots, shoes, clothing for men and 
 women, candles, soap, house furniture, buggies, 
 carts and waggons, several kinds of machinery, 
 woollen tweed, kip, and sole leather, were all pro- 
 duced in such quantities as to meet the demand 
 for home consumption. But cotton, linen, woollen 
 cloth, haberdashery, hosiery, kerosene, printed 
 books, coin, iron, steel and other metals, had to 
 be imported to the value of the exports. In 1881 
 a motion was brought forward to repeal all the 
 duties of a protective character, on the ground that 
 the labour engaged in the protected industries could
 
 248 PROGRESS AND DEVELOPMENT, 1884 
 
 be more profitably employed in the production of 
 coffee, sugar, and other exportable articles. But the 
 Protectionists contended that this was not the case, 
 as the whole of those engaged in the protected 
 industries resided in the towns and were members 
 of families engaged in a variety of occupations, 
 and that many of them had taken to this light work 
 because their physical strength was insufficient to 
 allow their engaging in farming work. They 
 further contended that 15 to 20 per cent, of the 
 inhabitants of Europe were physically unfit to 
 undertake the hard work involved in the production 
 of raw material. But their greatest objection to the 
 repeal of the protective duties, they said, was the 
 fact that history showed that all nations and com- 
 munities dependent on the production of raw 
 material for export were poor, ignorant, and 
 oppressed; and they instanced India, Egypt, 
 Southern Russia, Southern Italy, and Ireland. 
 Taking these facts into account, they said it was 
 their duty in the interests of Rapara to extend Pro- 
 tection to every industry which promised success 
 under a moderate protective duty, so as to increase 
 the volume of production and thereby furnish 
 employment, and prevent a further fall in the rate 
 of wages. 
 
 In the following year a resolution was brought 
 before the Council to give a bounty of £1 5s. per 
 ton for a period of ten years upon all iron made in 
 Rapara. The mover said that they had all been 
 aware during the last fifteen years that they possessed 
 mines of iron-stone, and now that coal of a good 
 quality had been found, it was their duty to establish 
 ironworks to supply their own requirements.
 
 RAPARA 249 
 
 To this it was answered that no doubt they had 
 ample material for the manufacture of iron ; but 
 even if its consumption were doubled, the quantity 
 consumed would not warrant them in giving a 
 bounty for the initiation of the manufacture. Were 
 they in the position of countries having a large 
 amount of unemployed labour, they might then 
 have been justified in giving such a bounty as would 
 enable the iron produced to be exported, thereby 
 providing work and wages for those who other- 
 wise would have had to be supported at the public 
 expense. But that was not the case. On the 
 contrary, all their people were fully employed at 
 rates of wages which enabled them to save a portion 
 annually ; they thus became enabled to undertake 
 some kind of production on their own account, and 
 eventually reached a position in which they could 
 give employment to others. It would, therefore, be 
 madness under such circumstances to incur a large 
 expenditure to establish works that would result 
 in a loss. 
 
 The resolution was lost, and this shows that while 
 the country was prepared to extend protection to 
 promising industries they would not do so to 
 unpromising ones. 
 
 In 1879 the railway between Raoto and Akitiki 
 was begun, and it was opened in 1882. It is a single 
 line eighteen miles in length, having a three-feet 
 six-inch gauge, and cost £36,600. Efforts were 
 made to induce the Government to extend the 
 railway ten miles further, but the Government 
 replied that it was not required, nor were funds 
 available for that purpose. Those interested in the 
 district, in combination with Raoto capitalists,
 
 250 PROGRESS AND DEVELOPMENT, 1884 
 
 offered to lend funds to the extent of two-thirds 
 of the cost at 4 per cent, interest ; but to this the 
 Government answered that the policy of Rapara 
 was a non-borrowing one, and the Government 
 would not violate such a policy if the whole of 
 the funds were advanced at 1 per cent. : they were 
 fully aware of the danger of even making a com- 
 mencement in borrowing. The Australian Colonies 
 began by borrowing moderately for necessary- 
 works, now they are borrowing extravagantly to 
 construct unremunerative and unnecessary works, 
 merely in order to find employment for labourers ; 
 and the further they went in this direction, the 
 greater the temptation would be to go on at an 
 increasing rate ; then when they were hard pressed to 
 pay the interest the temptation would be infinitely 
 stronger. No, they would have nothing to do with 
 borrowed funds ; those who could lend could pay in 
 increased taxes, and this was the means which the 
 Government would use when more revenue was 
 required for the construction of necessary and 
 reproductive works. 
 
 Census of 1883. 
 The census of 1883 showed a total population 
 of 92,466 — 49,204 males, and 43,262 females. The 
 Maori population, including other Polynesians, 
 numbered 5,162, leaving 87,304 Europeans, includ- 
 ing half-castes. Of this number 31,360 were adult 
 males, and 24,244 adult females. The population of 
 Raoto, with its suburbs had increased to 4,246, and 
 the other four towns to 7,382, showing that 11,628 
 resided in the towns and 75,676 in the villages and 
 country districts.
 
 RAPARA 251 
 
 The total area under lease amounted to 1,436,000 
 acres. The area under cultivation was 736,320 acres. 
 Of this acreage 35,840 acres was irrigated land, used 
 chiefly for the cultivation of sugar, rice, and taro, 
 and about 1,600 acres were devoted to the cultivation 
 of coffee. Included in the 1,600 acres was the land 
 used for growing coffee by the Maoris. Some 7,000 
 acres were under cotton, 92 per cent, being in the 
 hands of the Europeans and 8 per cent, in those 
 of the Maoris. The remainder was employed in the 
 growing of fruit, vegetables, fodder, grass and grain 
 of various kinds. 
 
 Revenue and Expenditure. 
 
 The total revenue for 1883 amounted to -£269,214, 
 of which land contributed .£172,881 ; pasturage, 
 ^5,550 ; customs and excise, £76,508 ; water rates, 
 
 ;£5>735 J state bank > £ 8 >54 , bein g e q ual to £3 IIS - 
 per head of population. 
 
 The expenditure amounted to -£276,881, leaving a 
 
 deficit of £7,667 on the year, but this deficit was 
 
 principally accounted for by the expenditure on the 
 
 Akitiki Railway and other permanent public works, 
 
 which amounted to -£48,000. 
 
 Imports and Exports. 
 
 The total imports, including railway material and 
 coin, amounted to £^253,536, and the exports to 
 ■£248,681, thus the imports exceeded the exports 
 by £^4,253, a sum which is fully accounted for by 
 freights and charges being included in the import 
 value and not in the value of exports.
 
 252 PROGRESS AND DEVELOPMENT, 1884 
 
 Local Government. 
 The local government of towns and parishes was 
 carried on, up to 1863, under the joint provisions 
 of the general code of laws and the Land Ordinance. 
 Under these provisions each town and parish elected 
 a steward, who used his discretion in carrying out 
 all ordinary repairs, alterations, and improvements, 
 but submitted all important works to the approval 
 of the parishioners. He likewise made out all 
 assessments, and collected the rates and licenses 
 for grazing, timber, &c. This system worked well 
 in the rural parishes, but was not equally adapted 
 for the town and urban parishes. To meet the 
 difficulty a municipal Act was passed in 1863, pro- 
 viding for the election of councils, with full power 
 to deal with all parish business. The councillors 
 were elected on a rate qualification, by which those 
 holding 320 acres of freehold land, which was legal 
 at that time, had four votes. This method of voting, 
 however, was repealed at the time when the Land 
 Nationalisation Scheme, under which eighty acres of 
 land became the maximum that could be held by 
 one person, was carried. The votes were then 
 graded in proportion to the rates paid, three votes 
 being the maximum. This act was not compulsory, 
 each town and parish being at liberty to come under 
 the Act or continue under the old provisions. Five 
 towns and thirteen parishes put themselves under 
 its provisions ; but four of the latter withdrew and 
 went back to the old system, so as to simplify 
 administration and decrease the expenses. Efforts 
 had been made at various times to induce the 
 Government to supplement the local rates by a 
 subsidy from the State revenue ; likewise to con-
 
 RAPARA 253 
 
 struct certain roads and works. But these requests 
 the Government firmly refused. In a few cases the 
 Government bore a portion of the cost of certain 
 roads and water-channels, which were partly of a 
 national character, but for all local roads and works 
 each town and parish had to bear the whole expense 
 or do without them. With a few exceptions the 
 municipalities did not hesitate to impose the rates 
 required to carry out necessary works and obliga- 
 tions, including the provision of parish libraries and 
 reading-rooms, and, in some places, several muni- 
 cipalities joined in the expense of starting and 
 maintaining hospitals. On the whole, municipal 
 government was very effective, and this was mainly 
 clue to the fact that the Act left each municipality 
 free to manage its own affairs in its own way. It 
 was said at the time it was passed that, as there was 
 no compulsion to levy rates in the act, it would 
 prove a failure. But these fears were groundless, 
 for it proved more effective and gave greater satis- 
 faction than any of the cast-iron Acts in force in 
 other countries. 
 
 Code of Laws. 
 
 The code of laws, both civil and criminal, was in 
 several cases defective, and many held that a more 
 elaborate one was required. But as the present 
 code was a simple one, easily understood, and did 
 not afford opportunities for lawyers to twist its 
 meaning, and so prolong litigation, the bulk of the 
 people were satisfied to put up with the rough form 
 of justice which it dealt out, rather than be handed 
 over to the tender mercies of lawyers.
 
 254 PROGRESS AND DEVELOPMENT, 1884 
 
 Education, Religion, and Amusements. 
 Primary education, which included reading, writ- 
 ing, English grammar, geography, and arithmetic, 
 was free, compulsory, and secular ; higher educa- 
 tion could be obtained by the payment of fees. 
 The masters of each school having not less than 
 forty pupils were empowered, in conjunction with 
 the school committee, to recommend to the State 
 Secretary one scholar annually who showed dis- 
 tinguished ability, to be educated in the higher 
 branches, free of charge, for a period of three 
 years. These recommendations were invariably 
 adopted, except in cases where the parents of the 
 nominee had ample means to pay for such higher 
 education. Religion was neither assisted nor inter- 
 fered with by the State. It was supported entirely by 
 voluntary contributions. Every parish had one or 
 more places of worship, to which, in most cases, all 
 sects of Protestants resorted, but the Roman Catho- 
 lics only attended their own places of worship. 
 Some of the Protestant churches had paid ministers ; 
 but the greater number depended on the voluntary 
 ministrations of members of the congregation. 
 Sabbath observance partook more of the continental 
 than the English character. People could attend 
 religious service— which was held in the morning — 
 or absent themselves, without being subject to 
 remark or insult. After noon all classes spent the 
 remainder of the day in such amusements as gave 
 them the greatest pleasure, and the evenings were 
 mostly filled up with social parties, debating clubs, 
 or public concerts. Though no law existed against 
 Sunday labour, none except such as was absolutely 
 necessary was ever performed.
 
 RAPARA 255 
 
 The State Bank and Land Administration. 
 
 The State bank had more than fulfilled what its 
 founders predicted. Under the original Act the 
 Commissioners were empowered to grant overdrafts 
 or cash credits on the security of two bondsmen. 
 On the recommendations of the Commissioners, this 
 power was withdrawn, and they were authorised to 
 make advances on the security of improvements on 
 land, on ships, and other kind of movable property, 
 likewise on bills of lading, acceptances, and other 
 negotiable documents, on condition that due pay- 
 ment was guaranteed by two approved sureties. 
 This was found to work well, but gave great offence 
 to the trading banks, which, as a measure of retalia- 
 tion, returned the State notes which they had bor- 
 rowed at interest. As, however, it was found that the 
 State bank could circulate their notes to the full 
 extent of the authorised issue through the Treasury, 
 they resorted to the previous plan of borrowing 
 State notes so as to secure the profit arising from 
 the difference between the borrowing rate from the 
 State bank and the lending rate to the public. The 
 State bank, for the past eight years, had paid to the 
 Treasury, out of profits and issue of notes, on an 
 average, £8,000 per annum. The total issue of State 
 notes now amounted to £190,000, or in round 
 numbers to £2 per head of population, and they 
 never fell below par ; in fact, for internal currency, 
 they were preferred to coin, though they never went 
 to a premium. In this position the country was 
 enabled to have £190,000 in State notes in circula- 
 tion which in their absence would have had to be 
 kept in coin, thereby enabling capital to this extent
 
 256 PROGRESS AND DEVELOPMENT, 1884 
 
 to be employed in reproductive industries and in 
 public works. 
 
 Rapara had now obtained such full measure of 
 equitable laws and institutions, that no demands 
 were made for new measures. The people were 
 generally prosperous and contented. They were 
 gradually increasing in material wealth, comfort, 
 and intelligence ; but it must not be supposed there 
 was no poverty in the land. Indolence, extrava- 
 gance, and misfortune had their victims as in other 
 countries ; and industry, enterprise, and thrift se- 
 cured comparative wealth, but not to the extent that 
 would be considered a fortune in Europe. The 
 gifts of nature were equally open to all according to 
 their capacities ; and all had channels of employ- 
 ment that yielded a comfortable subsistence and 
 provision for old age. We fully believe this will 
 continue while the present polity is adhered to in 
 its integrity. This will end our history of Rapara, 
 but we will in the following chapters inquire how 
 far the polity of Rapara is suited to eradicate the 
 poverty and starvation which obtains in Europe and 
 other countries following the polity of monopolistic 
 individualism.
 
 CHAPTER XVIII 
 
 INQUIRY INTO LAND TENURES 
 
 Rapara Compulsory Leasing Act and Land Nationalisation Act. 
 Are they applicable to England and Australasia ? 
 
 We have traced out the history of legislation and 
 material development of Rapara, from its first settle- 
 ment in 1842, to its completed settlement in 1884, 
 when it attained to the position of a self-sustaining 
 community with most of the various industries ap- 
 propriate to a civilised state. These laws produced 
 neither great riches nor poverty. Natural wealth 
 was equally open to all, and produced wealth was 
 secured by individuals in proportion to their enter- 
 prise, industry, and thrift. Under these circumstances 
 it becomes a question worthy of inquiry, To what 
 extent are these laws calculated to ameliorate the 
 condition of the " submerged tenth " in other coun- 
 tries, but, more particularly, in the United Kingdom 
 and Australia ? 
 
 The first law meriting consideration is the law 
 regulating the occupation of land. By the law of 
 Rapara, State land after survey is open to selection 
 on perpetual lease in lots of ten acres, up to eight 
 
 18 257
 
 258 INQUIRY INTO LAND TENURES 
 
 allotments. The occupation of land is made en- 
 tirely dependent on cultivation to the extent of 
 three-fifths of the area occupied. Neglect to fulfil 
 this condition does not subject the occupier to fine, 
 nor the land to forfeiture to the State ; but it entitles 
 others who are prepared to carry out the cultivation 
 condition to be put in possession of as much of 
 such land as is not protected by cultivation, on pay- 
 ment to the existing lessees of the appraised value of 
 improvements. Subsequently to the passing of the 
 Land Ordinance, an amendment was carried, giving 
 lessees the option of turning their leaseholds into 
 freeholds at twenty years' purchase on the rentals. 
 Afterwards this right was extended so as to enable 
 areas up to 320 acres to be converted into freeholds, 
 exempt from any cultivation conditions, with the 
 result that extensive tracts of land were turned into 
 freehold by speculators who had no intention to 
 cultivate, but relied on an increase of population to 
 raise rents and prices. This had the effect of keep- 
 ing the best land out of cultivation and forcing new 
 settlers on to poor soils, and on to land further 
 removed from roads and markets. To meet this 
 state of things, a Compulsory Leasing Act was 
 passed, giving the Land Commissioners power after 
 twelve months' notice to owners to grant perpetual 
 leases on this uncultivated land on payment to the 
 owners of the value of any improvements, the rents, 
 less 5 per cent, for expenses, being handed over to 
 the owners. This had the effect of opening up 
 this freehold land to settlement on the same culti- 
 vation condition as State lands. Now when we 
 consider the present deplorable condition of the 
 agricultural industry in England, Ireland, and Scot-
 
 RAPARA 259 
 
 land, it appears that a compulsory leasing law, either 
 on terminable or interminable leases, on a cultivation 
 condition at the highest rent that cultivation can 
 afford to give, would soon bring the bulk of agri- 
 cultural land into cultivation, and thereby supply 
 employment to at least a portion of the " submerged 
 tenth." There has been a number of specious 
 reasons advanced as to the cause of the decline in 
 English agriculture. Foreign competition, excessive 
 local taxation, and change in climate, have all been 
 stated as the cause of this decline ; whereas, most 
 undoubtedly, the real cause is that the land has been 
 handed over to a class of people who perform no 
 useful function in the production of the necessaries 
 of life, yet are empowered by law to charge the 
 people of the United Kingdom ^60,000,000 per 
 annum for liberty to cultivate their own land. No 
 doubt farmers should pay rent under any system of 
 land tenure ; but if the tenure is a freehold one the 
 rent should be fixed by the State, and at rates at 
 which farmers could carry out cultivation, while 
 paying their labourers sufficient wages to live upon. 
 Grazing may be more profitable than cultivation, but 
 it is undoubtedly a great loss to the community, as ten 
 acres under cultivation will yield more in value, and 
 afford more employment, than thirty acres under 
 grass. As, then, the lands of England, Ireland, and 
 Scotland undoubtedly belong to the community, 
 they should be used so as to yield the largest 
 amount of produce and employment. This would 
 in a large measure be effected by a Compulsory 
 Leasing Act, like that passed in Rapara. Some five 
 years ago a similar Act was introduced in New 
 Zealand, empowering the public trustees to lease
 
 260 INQUIRY INTO LAND TENURES 
 
 out the Maoris land in the Taranaki district in ter- 
 minable or interminable leases, with the result that 
 some 300,000 acres of land which was covered with 
 gorse is now under cultivation, and affords homes 
 for industrious families. Landlords, their friends 
 and paid writers, ascribe the decline in English 
 agriculture to foreign competition, in the face of 
 the fact that statistics show that the yield of grain 
 per acre in England is more than double that of the 
 competing countries, while, as a rule, wages are 
 higher in the latter than in the former. The differ- 
 ence is that English produce is handicapped owing 
 to a heavy rent-charge, while the foreign producer's 
 rent, as a rule, only amounts to the interest on 10s., 
 20s., or 30s. per acre paid to the State ; so that the 
 rent-charge in the competing countries would range 
 from is. to 3s. per acre, while the English rent- 
 charge ranges from 20s. to 60s. per acre. If the 
 decline in agriculture in England is not due to the 
 rent-charge it is for landowners and their friends to 
 show what the true cause is. In this position the 
 landlords and their friends have the audacity to 
 propose protective duties on grain, under the pre- 
 tence of benefiting the farmer, but really to increase 
 their rents at the expense of consumers. Now, if 
 Protection is to be used for the benefit of agricul- 
 turists the national lands must first be resumed by 
 the State ; so that the community and the individuals 
 comprising it may reap the benefit instead of the 
 landlords. 
 
 Under the pretext of assisting farmers to meet 
 foreign competition, the English Parliament last year 
 passed an Act appropriating -£100,000 to relieve 
 landowners of a portion of the land tax, and
 
 RAPARA 261 
 
 ^2,000,000 per annum to pay a portion of the rates 
 on agricultural land. That this iniquitous measure 
 is not intended for the benefit of farmers is proved 
 by the fact that an amendment to exclude from the 
 Act all land bearing a rental of 25s. per acre and 
 upwards, and another to prevent the imposition of 
 increased rent during the currency of the Act, were 
 both negatived by a Conservative landowning ma- 
 jority. No doubt can be entertained that the Agri- 
 cultural Rating Act is the most iniquitous measure 
 ever passed by the British Parliament. The confis- 
 cation of the rents of land as proposed by Mr. 
 Henry George only differs in degree ; in principle 
 they both amount to unmitigated robbery, and who 
 knows but the one may pave the way for the intro- 
 duction of the other, and the sins of the fathers be 
 visited on the children ? 
 
 Under a Compulsory Leasing Act, rents of land 
 would doubtless be largely reduced, but this would 
 not be introducing any new principle into British 
 legislation, as rents have been reduced by State 
 action on several occasions, both in Ireland and 
 Scotland. Such an Act would doubtless largely 
 increase cultivation and employment, but could 
 only be looked upon as a measure of temporary 
 relief, as the rental would still go to the support 
 of a useless class instead of into the coffers of the 
 State. We call landlords a useless class advisedly, 
 as only one-seventh of the cultivated land in the 
 United Kingdom is cultivated by the owners, and 
 half of this is under the control and management 
 of stewards, so that only one-fourteenth is cultivated 
 under the management and direction of the owners. 
 All the remainder is owned by landlords who pass
 
 262 INQUIRY INTO LAND TENURES 
 
 their time in hunting, feasting, visiting, or idleness, 
 and do nothing towards the production of the 
 necessaries and luxuries they consume, yet can 
 legally compel the people of the United Kingdom 
 to pay them some -£54,000,000 per annum for liberty 
 to cultivate the lands of the nation. No doubt 
 some of them in the capacity of legislators and 
 magistrates render a little service to the State while 
 mainly looking after their own interests. To free 
 the community from this payment to a useless class 
 nothing short of land nationalisation, either by 
 cutting of all inheritance in land from unborn 
 generations, children of owners excepted, or com- 
 pensating the owners from a fund raised by an 
 assessment on all forms of wealth, land included, 
 will place land in its proper position so that it 
 may be used to the greatest public benefit. 
 
 A large portion of the best land in Australia is 
 likewise kept out of cultivation, though principally 
 owing to a different cause from that in England. 
 The greater part of the freehold land in Australia is 
 used for grazing, and much of it is only fit for this 
 purpose ; but there is a large portion of it suitable, 
 from its richness of soil and the favourable climate, 
 for successful cultivation. Now, while grazing is a 
 proper and legitimate use of land, this should not 
 debar those who are willing to turn portions of it to 
 a higher use by cultivation from doing so. It may 
 be urged that private interest will induce large land- 
 owners to cultivate or let out such land to farmers ; 
 but this opinion is not supported by practice, as the 
 owners require a higher price or a higher rent than 
 cultivators can afford to pay. But even should 
 grazing pay better than the rent that farmers can
 
 RAPARA 263 
 
 afford to pay, this we hold is no good reason why 
 the interests of the individual should prevail over 
 those of the State, as cultivation will yield three 
 times as much in produce and employment as 
 grazing, and it is the undoubted right of the State 
 to see " that State lands are open to be used for the 
 most productive purposes." But here a very strong 
 argument crops up against the State's owning and 
 controlling State land. On the introduction of Re- 
 sponsible Government, all the Crown lands were 
 handed over to the several Colonies with full power 
 of management and control. This power resulted 
 in such mismanagement that every candid person 
 acquainted with the facts must come to the con- 
 clusion that State-managed land in Australia has 
 been a great failure. But, fortunately, there are 
 other countries owning State lands in which the 
 management has proved highly successful. In the 
 Madras and Bombay Presidencies and in portions 
 of the North-West Provinces of India the rents are 
 paid direct to the Government, and the tenants, 
 having fixity of tenure, are well off compared with 
 those in Bengal, where rents are much higher, and 
 are paid over to the Zemindars or landlords, who 
 retain over one-half and pay the other over to 
 the Government in the form of a land tax. Nine- 
 tenths of the land in Japan is owned by the State ; 
 the rents are collected by the Government direct and 
 are re-appraised periodically. These rents form by 
 far the largest portion of the revenue ; at the same 
 time they are not oppressive, the farmers being the 
 wealthiest class in Japan. The occupants of the 
 land seldom change, though the tenants can sell 
 their leases with the improvements. High farming
 
 264 INQUIRY INTO LAND TENURES 
 
 is carried on probably to a greater extent than in 
 any other country, one-fourth the value of crops 
 being expended in manure every year. This, com- 
 bined with a plentiful supply of water for irrigation, 
 and a hot, moist climate, makes Japan in proportion 
 to the area of cultivated land the most fertile coun- 
 try in the world. A stock argument of freeholders 
 is that it requires the stimulus of ownership to reach 
 the highest point of productiveness, but, contrasting 
 England with Japan, we observe that under lease- 
 hold tenure the land of Japan— in proportion to 
 area — produces double the value of the freehold 
 lands of England. 
 
 To return to the main question under considera- 
 tion — the lands of Australia. No doubt the nature 
 of the country made it necessary that the grazing 
 land, until required for permanent settlement, should 
 be let out on terminable leases. But instead of 
 giving perpetual leases on cultivation conditions, 
 nearly all waste lands were sold unconditionally. 
 Latterly conditions of residence and fencing have 
 been imposed, with the result that the former has 
 been evaded, while the latter has absorbed most of 
 the settler's means, and thereby acted as a bar to 
 cultivation. In this position the capitalist had 
 sufficient interest with the Government to have 
 special surveys legalised. Under these special 
 surveys blocks of 40,000 acres and upwards of the 
 choicest part of the country were purchased in fee 
 simple at 20s. per acre. This land could remain idle 
 or be used for grazing while awaiting a rise in its 
 value ; actual settlers had to go further afield to 
 secure inferior soil. Large areas of the best soil 
 were likewise purchased in fee simple and devoted
 
 RAPARA 265 
 
 to grazing under the pre-emptive right granted to 
 pastoralists. Almost the whole of this rich soil 
 is still used for pastoral purposes, although urgently 
 required for cultivation. There have been various 
 attempts made to remedy this evil both in New 
 Zealand and Victoria. What is called a " bursting- 
 up land tax" was resorted to, which failed in its 
 intended object. There were large areas of land 
 taken up by pastoralists in Victoria and New 
 South Wales under pressure of the " free-selec- 
 tion " clause, which are only fit for grazing 
 purposes. To burst up such land would serve 
 no useful purpose, as grazing can be best 
 carried out on large areas. A bursting-up tax, 
 therefore — if advisable — should be confined to 
 tracts of land suitable for cultivation. Now the 
 difficulty of discriminating in taxation between 
 good and bad land is so great that a bursting- 
 up tax must not only prove a failure, but a 
 positive evil. Another measure for compelling 
 landowners to cultivate is the tax on the unim- 
 proved value of land. This tax is levied in South 
 Australia, Tasmania, and New South Wales. Its 
 passage was mainly due to the advocacy of the 
 Socialistic Labour Party, and is considered by 
 that party as a first instalment of George's " single 
 tax." The arguments which they use in its favour 
 are that the tax will compel landowners either to 
 cultivate themselves or sell or lease to others 
 willing to do so. But when we recognise the 
 fact that a tax on cultivated or even pastoral 
 lands amounts to an excise duty on its produce, 
 thereby adding to the cost of production, it seems 
 that the remedy must increase the evil it was
 
 266 INQUIRY INTO LAND TENURES 
 
 intended to cure, and observation of its actual 
 effect shows that, instead of increasing, it has 
 retarded cultivation. If the land tax had been 
 imposed upon uncultivated land only, it would 
 have done good in this direction, but would have 
 inflicted great injury upon pastoralists, and utterly 
 ruined many of them. Every one must admit 
 the great annual loss which Australia is sustaining 
 through cultivators being forced on to poor tracts 
 of country, while large areas of good land is only 
 used for grazing. All attempts to remedy this 
 have proved failures, and the time has now arrived 
 for trying a Compulsory Leasing Act on just and 
 well-considered lines, including a cultivation con- 
 dition, so as to make good land available for cultiva- 
 tion with as little disturbance to the owners as 
 possible. There is no doubt that such an Act 
 could be applied to England, Ireland, Scotland, 
 and Australia with beneficial results to each of 
 them, besides paving the way for the occupation 
 of land under State ownership. 
 
 The evil effects of private ownership in land, 
 particularly in England, Ireland, and Scotland, 
 have been seen and deplored by nearly all in- 
 telligent patriotic people during the last century. 
 Various remedies have been proposed and dis- 
 cussed. One proposed that the State should take 
 over all land at its appraised value, and pay the 
 owners with Government debentures at fair rates of 
 interest. Now a little consideration should show 
 that such a plan would not relieve the community 
 from the heavy burden which it has to bear in 
 supporting a useless class by payment of rent for 
 the use of its own land, as they would have to
 
 RAPARA 267 
 
 pay the Government in taxes not less, and pro- 
 bably more, than they now pay landlords in rent. 
 Bad as such a plan is, it would be an improve- 
 ment upon the present system, as we cannot 
 conceive a Government so stupid or unpatriotic 
 as to impose higher rates than cultivators can 
 afford to pay except by paying agricultural labourers 
 wages insufficient to purchase the bare necessaries 
 of life. A second method proposed and discussed 
 is to pass an Act giving all persons living at the 
 date of the passing of the Act the right of inherit- 
 ance as at present, but cutting off all right of in- 
 heritance from those born after that date. In 
 support of this proposal, it is contended that injustice 
 can only be done to persons in existence, and that 
 what has no existence cannot be wronged or un- 
 justly treated, as no right can have accrued. Doubt- 
 less the law of entail goes as far as possible to secure 
 property in land to future generations, but such a 
 right is opposed to the welfare of society and 
 violates the ethical grounds on which the law of 
 inheritance rests. Unborn generations have doubt- 
 less a right to inherit ordinary produced wealth, but 
 assuredly no such right of inheritance can justly 
 extend to land and the raw material of the earth, 
 and no injustice would be done in cutting off in- 
 heritance of natural wealth from unborn generations, 
 children of the owners excepted. This would be 
 the fairest and simplest method by which to 
 nationalise all minerals, leaving the surface to be 
 nationalised by payment of compensation to the 
 owners of the land. 
 
 While these proposals and others of a like kind 
 were being discussed, Land Nationalisation came
 
 268 INQUIRY INTO LAND TENURES 
 
 nearly within the lines of practical politics — 
 when Henry George came on the scene, and 
 showed more fully and clearly the evil effects 
 of private property in land than any previous 
 writer. The movement for a time gained many 
 adherents and made distinct progress, but after 
 time and consideration had been given to his pro- 
 posed remedy of confiscation, a reaction set in, 
 not merely against a tax on land to the full value 
 of the rent, but against any form of Land Nationali- 
 sation, with the result that Land Nationalisation 
 has been thrust back more than half a century. 
 Had Henry George proposed to confine the applica- 
 tion of his proposal to England and other European 
 countries which had parted with their land without 
 valuable consideration, the question would have 
 been one open to discussion. But to propose to 
 tax land to its full annual value in America, Aus- 
 tralia, and other countries selling land under 
 direct sanction of law, without compensation, is 
 surely the height of iniquity — an iniquity which 
 the moral sense of the community has refused to 
 sanction. It seems, therefore, that the land must 
 either be left in the hands of the landlords, nationalised 
 on the plan proposed by Mr. A. R. Wallace, or 
 resumed by the State with compensation to the 
 owners. To pay the compensation by Govern- 
 ment debentures would still leave the maintenance 
 of the landlords a dead weight on the community. 
 Land in the hands of a non-cultivating class is a 
 great national calamity, which can only be rectified 
 by a great national effort to raise sufficient funds to 
 compensate the owners. This can best be effected 
 by a general assessment on all forms of wealth, land
 
 RAPARA 269 
 
 included, on the same lines as those followed in the 
 Rapara Repurchase Act, to which we direct special 
 attention. 
 
 Objections have been raised, and will doubtless 
 continue to be raised, to such an assessment on 
 various grounds. The main grounds of objection 
 urged are — that the payment of such a large sum 
 would exceed the amount of our currency, and 
 would cause great monetary and financial disturb- 
 ance ; and that the assessment would reach a great 
 number of persons possessed of property who had 
 no spare funds wherewith to pay the assessment. 
 Now in considering this question it must be dis- 
 tinctly recognised that in such a transaction we 
 neither add to nor take from our store of money 
 and wealth. It is simply a transfer of a small 
 portion from one class to another. The objectors 
 are doubtless labouring under the mistake that 
 the whole of the compensation fund would have 
 to be collected and paid over in money to the 
 landowners ; whereas by the issue of certificates 
 to the owners equal to the appraised value of the 
 land to be resumed, these certificates, being good 
 for the payment of the assessment, could be bor- 
 rowed from the holders on the security of their 
 property by those who had not sufficient funds 
 to pay their respective assessments. That such 
 certificates could and would be used in this 
 manner is certain, unless we are to suppose that 
 those receiving compensation would allow their 
 capital to lie idle and unproductive, which is 
 an altogether unwarranted assumption. If we 
 assume that one-fifth of the contributors are 
 able to pay and that four-fifths have to borrow
 
 270 INQUIRY INTO LAND TENURES 
 
 from certificate-holders, it would follow that at 
 the date of settlement four-fifths of the assess- 
 ment would be paid in land certificates and 
 one-fifth in bank bills and current money. 
 Whether the sum amounts to two-thirds, three- 
 fourths, four-fifths, or five-sixths is of little im- 
 portance, as the transaction does not diminish the 
 volume of money, and therefore the transfer can 
 be carried out with little monetary or financial 
 disturbance. Of course, it will be said that an 
 Act that compels people to borrow and pay in- 
 terest on the loan is oppressive and unjust. But 
 there is no greater injustice in being compelled 
 to pay interest than taxes to a similar amount, 
 which latter would be the case had the compensa- 
 tion been paid in Government debentures. 
 
 In carrying out Land Nationalisation great care 
 would have to be exercised in appraising the 
 value of land containing minerals. No doubt 
 corrupt judges declared that the minerals, silver 
 and gold excepted, belonged to the owner of the 
 land, and corrupt Parliaments passed Acts to the 
 same effect under which landlords have levied 
 royalties on the minerals which were removed for 
 public use. But the growing intelligence of the 
 age cannot be expected to tolerate this misuse of 
 public property much longer. Redress can only be 
 effected by passing an Act whereby all royalties 
 shall in future be secured to the State. To grant 
 compensation for the resumption of all minerals 
 would be an act of greater injustice to the public 
 than the Acts by which the minerals were handed 
 over to the landlords in defiance of all right and 
 reason. If the monopoly of coal and other minerals
 
 RAPARA 271 
 
 appeared right to past generations, it seems utterly 
 unrighteous to the present generation, and it is 
 therefore its duty to end the evils as early as 
 possible, and this could be best done, as before 
 stated, on Mr. A. R. Wallace's proposed plan. But 
 as such a measure would fall on a number of 
 innocent mine-owners who purchased coal and 
 coal lands under faith of the existing laws unless 
 provisions are made to deal with each case on its 
 merits, so that it would be necessary to appoint a 
 Commission to take into account the price paid for 
 such mineral land, the amount of capital expended, 
 and the profits derived from the output, allowing a 
 fair rate of interest on the original purchase money 
 and capital expended, so as to ascertain who are 
 entitled to compensation and what is the amount 
 fairly due to each. These statements are equally 
 applicable to Australia except that minerals were 
 purchased with the land, and the owners of mineral 
 lands are entitled to compensation at fair market 
 value on the resumption of their land or minerals. 
 
 As under any system of Land Nationalisation it 
 would be both unwise and unjust to dispossess 
 existing tenants, the Act will have to discriminate 
 between the buildings and other improvements 
 made by the tenant and those made at the expense 
 of the landlord. The former must be treated as the 
 property of the tenant, on which he will be charge- 
 able with the assessment. The latter should be treated 
 — to the extent of expenditure — as the property of 
 the landowner, on which he will be chargeable with 
 the assessment rate. As respects land let out on 
 building leases in London and other centres of 
 population, such buildings should be regarded as
 
 272 INQUIRY INTO LAND TENURES 
 
 the property of the lessees — anything in the con- 
 tract to the contrary notwithstanding. And as 
 respects leases which have fallen in and been 
 renewed on an extension fine, such fine should be 
 treated as the purchase money of the buildings 
 and improvements. When Land Nationalisation is 
 effected, the lessees of rural, urban, and town lands 
 should become the tenants of the Government at 
 rates based on the appraised unimproved value of 
 the land, and under perpetual leasehold tenure 
 subject to periodical re-appraisement and right of 
 sale. But the power to transfer portions of lease- 
 holds must be subject to Government regulation 
 and consent, so as to prevent too minute divisions 
 on the one hand and too large aggregations on the 
 other. The appraised value of improvements ad- 
 judged to be the property of the landowner must 
 be paid over to him or security given for due pay- 
 ment by the tenant. The cost of Land Nationalisa- 
 tion under a system of compensation is held by 
 many to be above our means, but we think this 
 opinion is an erroneous one, when the aggregate 
 wealth and the unimproved value of land is fully 
 considered. We are all agreed that the best 
 statistics can only be taken as an approximation ; 
 but as the errors in such a number of items are 
 likely to counteract each other, our statistical 
 information may be accepted as a fair approxima- 
 tion. According to Mulhall, the total wealth of 
 the United Kingdom in 1888 amounted to 
 .£9,400,000,000, and the value of land to 
 ■£1,544,000,000 ; but as this value is evidently 
 based on the annual rental, a rental charge- 
 able with tithes and land tax, which together
 
 RAPARA 273 
 
 approximately amounts to .£8,070,000 annually, 
 which capitalised at twenty years' purchase, amounts 
 to ^161,400,000, which sum deducted from 
 the gross value of land, reduces its value to 
 ■£1,382,600,000. No doubt tithes is as objection- 
 able a burden on land as rent, but so long as the 
 public consider it advisable to support religion from 
 this source it will have to be continued. When a 
 majority consider that religion should be supported 
 by voluntary contributions, the change could be 
 easily and justly effected by a modification of 
 Mr. A. R. Wallace's proposed method of Land 
 Nationalisation ; that is, that incomes from tithes 
 cease on the death of each beneficiary. To raise 
 the amount required for compensation on a value 
 of .£1,382,600,000, 12^ per cent, on the total wealth 
 would be required, but if minerals and rights of 
 fishing were nationalised on Mr. A. R. Wallace's 
 method the rate would be reduced to 10 per 
 cent. This would be doubtless a heavy charge on 
 individuals (but would cost the community as a 
 whole nothing), but surely it is not too great a price 
 to pay for the removal of the gigantic rent incubus, 
 owing to which a large proportion of the land in the 
 United Kingdom is kept out of cultivation and a large 
 number of industrious people out of employment. 
 
 With respect to Land Nationalisation in Austra- 
 lasia, although less than one-fourth of the total 
 area of State land has been alienated, the 
 borrowing mania has so demoralised the com- 
 munity and impoverished the finances of the 
 Government, that no measure of Land Nationalisa- 
 tion can be expected for many generations. But 
 it is within the power of the Government to stop 
 
 19
 
 274 INQUIRY INTO LAND TENURES 
 
 the further alienation of the public lands and 
 supply the demand for settlement on perpetual 
 leasehold tenure, subject to a cultivation condition. 
 It is likewise in their power to amend the Land Act so 
 as to enable the free selectors who have taken up 
 land on conditional purchase, subject to the pay- 
 ment of annual instalments on account of the 
 principal, to convert their holdings on equitable 
 terms into perpetual leaseholds. It is within their 
 power, too, to pass a compulsory leasing Act so 
 as to open up to farmers large tracts of rich free- 
 hold land now used for grazing, and pay the rent 
 over to the owner of the land. Such an amendment 
 in the land laws would largely increase the area 
 of cultivated land, find employment for tens of 
 thousands now employed on unproductive relief 
 works (carried out with borrowed funds), or living 
 on charity, and thereby assist to lift the Austra- 
 lian colonies out of their present stagnation and 
 financial embarrassment, while at the same time 
 paving the way for a scheme of Land Nationalisa- 
 tion. 
 
 In drawing this picture we are aware that its 
 realisation is entirely dependent on the stoppage 
 of the borrowing policy which is rapidly under- 
 mining private enterprise in Australia, and straining 
 the ability to pay the interest to such an extent that 
 the Australians are forced to continue borrowing to 
 meet their obligations. That such a policy must 
 come to an end some time with disastrous results 
 is certain. How long it can be continued is 
 dependent on the amount of money which 
 English capitalists are willing to throw into the 
 Australian melting-pot.
 
 RAPARA 
 
 2 75 
 
 It is said that Land Nationalisation is outside the 
 line of practical politics. But all great reforms 
 were at one time in the same position. If this 
 humble effort shall assist in bringing this important 
 question within the range of practical politics the 
 writer will be amply rewarded.
 
 CHAPTER XIX 
 
 INQUIRY INTO INTERNAL CURRENCY 
 
 A State bank of issue — Legal tender inconvertible — State notes — 
 Current accounts in trading banks considered. 
 
 The State of Rapara is too small, and its financial 
 transactions are on too limited a scale, to afford 
 a fair illustration of a State bank or of inconvertible 
 State notes. But so far as the experience of Rapara 
 goes, it shows that a State bank under wise con- 
 ditions may be safely entrusted with the issue of 
 legal tender inconvertible State notes. We are all 
 agreed that the issue of notes by trading banks 
 must be convertible into money on demand, and 
 that each issuing bank shall hold a certain pro- 
 portion of specie in reserve to meet such conver- 
 sion ; but State notes stand on a different form of 
 security, as they are issued on the good faith and 
 honour of the entire community, and stand on the 
 same footing as other kind of Government inter- 
 minable securities. We shall endeavour to show 
 that, treated in this manner, legal tender incon- 
 vertible State notes, payable at the option of 
 
 Government, would furnish a large portion of 
 
 276
 
 RAPARA 277 
 
 internal currency, thereby releasing a large amount 
 of coin or capital to be employed in reproductive 
 industries. 
 
 During the past decade the question of a State 
 bank and State notes has received a considerable 
 amount of attention. A State Bank Commission 
 was appointed from members of the legislature in 
 Sydney, and one in Melbourne, at both of which a 
 great amount of evidence from banks and financial 
 authorities was taken, but little benefit resulted 
 therefrom. Bills founded on these reports were 
 laid before the legislatures of New South Wales 
 and Victoria by their respective Governments, both 
 of which had to be withdrawn, as the report of 
 both Commissions recommended that ordinary 
 banking business should be undertaken by the State 
 bank, including overdrafts and current accounts. 
 A conference of Australian bank managers was held 
 in 1894, at which the issue of notes formed the 
 principal subject of consideration, with the result 
 that they recommended that all notes should be 
 issued by the Government. But before this the 
 Government of Queensland had taken the issue of 
 notes into their own hands and suppressed the 
 issue of bank-notes by a heavy tax. The note issue 
 of Canada is likewise in the hands of the Govern- 
 ment, with satisfactory results. In South Africa 
 all notes are legal tender, and are issued and 
 guaranteed by the Government. In the various 
 nations of Europe both convertible and incon- 
 vertible legal tender and optional notes are issued 
 by trading banks controlled by Government. 
 Nearly every European nation has a so-called 
 national bank trading for the benefit of its share-
 
 278 INQUIRY INTO INTERNAL CURRENCY 
 
 holders, but none has a real State bank working 
 for the profit of the State. Under this European 
 system of issue a large amount of specie is locked 
 up as security for the due payment of the notes. 
 According to Mulhall, the issue and specie reserves 
 of the banks of all nations in 1889 were as follows : 
 Issue, -£616,000,000 ; specie in safe, ^368,000,000. 
 In another table for 1887 it is stated that the United 
 Kingdom had an issue of .£38,600,000, and specie 
 .£28,000,000. It is difficult to ascertain the ratio 
 of reserved specie held exclusively against notes 
 alone ; but if we take it at 40 per cent, of the total 
 issue, we have .£15,440,000 of specie impounded to 
 guarantee notes. Even legal tender inconvertible 
 State notes would require a small proportion of 
 specie to be held, and used if required to prevent 
 depreciation, but 15 per cent, on the amount of 
 notes issued should be ample. This would reduce 
 the specie reserve from ^15,440,000 to .£5,790,000, 
 thereby realising .£9,650,000 to be employed in 
 commerce or production ; but the benefit would 
 not end here, for as .£38,600,000 of bank-notes are 
 kept afloat with all their attendant risks, fifty or 
 sixty millions of State notes, being free from all 
 risks, would be a moderate estimate. Even at the 
 lower estimate of fifty millions, this would release 
 .£20,000,000 in specie, which, invested or used at 
 3 per cent, interest, would be a saving of -£600,000 
 per annum. The increased employment of notes 
 for internal currency throughout Europe would 
 largely increase the volume of currency, and thereby 
 help to check the increasing appreciation of gold. 
 
 With respect to inconvertible notes, their issue 
 even by the Government will be opposed by bankers,
 
 RAPARA 279 
 
 although they are glad to reap the benefit whenever 
 the Government, to mitigate or arrest a monetary 
 crisis, suspends the bank charter, and thereby makes 
 bank-notes inconvertible. Now, as the history of 
 banking clearly shows, that the action of the 
 Government in suspending the bank charter — 
 thereby relieving, and in some cases prohibiting, 
 the bank from paying their notes in specie, that is, 
 making notes inconvertible — has on a number of 
 occasions averted or mitigated monetary panics, and 
 that inconvertible notes guaranteed by Government 
 have stood the test during financial difficulties and 
 monetary panics, we infer that there should be no 
 doubt of their suitability for internal currency 
 during normal financial conditions. That this truth 
 has not been publicly recognised is doubtless due 
 to the conservative tendency of bankers and to the 
 advantage supposed to attach to the issue of notes. 
 We say supposed advisedly, as there can be no 
 doubt that banks could use State notes lent out to 
 them at moderate rates of interest with greater 
 profit than their own notes. Many intelligent 
 people hold that Governments, particularly Colonial 
 Governments, could not be entrusted with the 
 issue of State notes. Now there is no doubt that 
 if the issue is left in the hands of the Ministries 
 these fears are well grounded. But if the issue 
 and control is handed over to an independent and 
 non-political board, just as independent as the 
 judicial bench, these apprehensions are without 
 foundation. And if the Act of incorporation 
 authorise such board to retain in specie a per- 
 centage of the amount of notes issued, to be used 
 in maintaining the notes at par, and provide that
 
 280 INQUIRY INTO INTERNAL CURRENCY 
 
 notes lent out at interest to banks shall be return- 
 able to the board at the option of such banks, then, 
 subject to these and other necessary provisions, the 
 issue of legal tender inconvertible State notes is 
 calculated to confer great benefits on the Colonies. 
 England has, to a certain extent, secured this advan- 
 tage through the Bank of England. But in the 
 British colonies there is a large amount of specie 
 employed as backing for bank-notes, and a much 
 larger amount of gold and silver used for internal 
 currency, which could be safely and profitably 
 replaced by State notes. The change will doubtless 
 be opposed by bankers ; but we must hope that the 
 advancing intelligence of the age will enable this 
 valuable reform to become law in the near future. 
 
 During the last fifty years cheques or orders on 
 bankers have played an important part in supple- 
 menting internal currency, but the law respecting 
 current banking accounts tends to greatly detract 
 from their usefulness. The law treats current 
 account depositors as creditors of the bank. When 
 a fixed deposit at interest is made the money is lent 
 for the time named to the bank, but when a deposit 
 is made under current account the depositor neither 
 sells nor lends it to the bank, but simply places it 
 in the bank until wanted. But should a bank stop 
 payment, the law holds the depositors to be not 
 only creditors, but concurrent creditors, with fixed 
 depositors. Now, it should be evident that money 
 lodged with a bank at interest on fixed deposit 
 represents savings, and in the event of the bank 
 having to reconstruct extension of the time of pay- 
 ment occasions little inconvenience to depositors. 
 But it is otherwise with the owners of current
 
 RAPARA 281 
 
 accounts, as turning such deposits into fixed ones 
 prevents their receiving or making payments, thereby 
 paralysing trade and ruining individuals. This was 
 clearly shown in the late Australian bank failures, 
 and had the letter of the law been strictly followed 
 general bankruptcy must have ensued. It is there- 
 fore necessary, to avoid such a catastrophe, to make 
 current accounts not only a preferent claim, but 
 in the event of failure providing by law that the 
 funds in banks shall continue to be used to duly 
 meet the cheques drawn against balances in current 
 accounts. Under such a provision and with State 
 notes, or notes guaranteed by the State, runs on 
 banks would be a thing of the past.
 
 CHAPTER XX 
 
 AUSTRALASIAN BORROWINGS 
 
 Its continuance must eventuate in default — Aggregate debts of 
 Australasia — Debts of the several colonies — Annual liability 
 to non-residents — Pro rata amount for the United Kingdom. 
 
 We have endeavoured in the last two chapters to 
 show that the legal system of Rapara with respect 
 to the occupation of land and the use of State notes 
 for internal currency would be a valuable reform 
 for England, Ireland, Scotland, and the various 
 colonies of Australasia. Several laws have recently 
 been borrowed from Rapara by the Australasian 
 colonies with beneficial results ; but there is a great 
 unwritten law, or, rather, a recognised policy, of 
 non-borrowing firmly established in Rapara, which 
 has been entirely disregarded in all the colonies of 
 Australasia, with results that threaten in the near 
 future to make the colonists mere hewers of wood 
 and drawers of water for English capitalists. To 
 contract a foreign debt to obtain funds wherewith 
 to construct necessary public works in a new 
 country under settlement where capital is not avail- 
 able, is doubtless a wise and justifiable course ; and 
 had Australian borrowing conformed to the above 
 
 conditions, it would have enabled the country to 
 
 282
 
 RAPARA 283 
 
 progress at a more rapid rate than by waiting for 
 the accumulation of domestic capital. But in 
 Australasia large sums of money have been borrowed 
 to construct unnecessary works, and foreign capital 
 has been borrowed when plenty existed in the 
 country, only requiring taxation to make it avail- 
 able for the construction of useful and necessary 
 works. The great indebtedness of Australasia is 
 shown in the following statement of the public and 
 private debt taken from the statistical account of 
 the seven colonies of Australasia by Mr. T. A. 
 Coghlan, Government Statistician of New South 
 Wales : — 
 
 £ 
 
 Public debt, 185 1 11,899,000 
 
 1871 39.040,871 
 
 1881 95,965,582 
 
 1895-6 222,795,865 
 
 But this latter sum has been reduced from several 
 causes to -£217,136,000. The private debts at the 
 same time amounted to ^132,500,000, making a 
 total debt of -£349,686,000, or .£83 per inhabitant 
 due to people resident outside Australasia, on which 
 the sum of .£15,411,000 was paid in interest, divi- 
 dends, and profits in 1895-6. 
 
 This sum, when adjusted between the several 
 colonies, shows the following indebtedness : — 
 
 £ 
 
 New South Wales 102,096,000 
 
 Victoria 85,779,000 
 
 Queensland 53,239,000 
 
 South Australia 21,012,000 
 
 Westralia 7,807,000 
 
 Tasmania 11,700,000 
 
 New Zealand ., 68,053,000 
 
 £349,686,000
 
 284 AUSTRALASIAN BORROWINGS 
 
 In order fairly to realise the severity of this 
 enormous burden of £349,686,000 on a population 
 of 4,339,000, it is necessary to see what it would 
 amount to on the population of the United King- 
 dom. But as .£151,876,000 has been spent on 
 railways, telegraphs, water, and sewerage, to which 
 must be added the expenditure from loans on 
 harbours and rivers and other works which are 
 constructed in the United Kingdom by joint-stock 
 companies and private persons, this will be fully 
 covered by estimating it at .£21,000,000. The debt 
 would thus be reduced to .£177,686,000, which, on 
 a population basis, would amount to a debt of 
 .£1,599,000,000 for the United Kingdom. But this 
 is not the worst aspect of the case, as the total 
 payments for 1895 amounted to .£15,411,000, paid 
 to people resident outside Australasia for interest, 
 dividends, and profits. This is equal to £1 38,700,000 
 for the United Kingdom. This annual payment, it 
 must be borne in mind, would have to be paid, not 
 to residents in the United Kingdom, as is done with 
 interest on the National Debt, but to people residing 
 outside the United Kingdom ; and, further, to realise 
 fairly the severity of the burden of this gigantic 
 debt, we must suppose England to be in the same 
 financial position as the Australasian colonies, having 
 no foreign debtors, and therefore have to pay this 
 -£138,700,000 annually out of her own resources, 
 or, in other words, out of her commerce and 
 industrial productions. Now, this was the position 
 of the Australasian colonies at the end of 1895, 
 and as some .£5,500,000 has been since added to 
 the debt, it now amounts in round figures to 
 £355,000,000, and the interest will amount to the sum
 
 RAPARA 285 
 
 of ^3,113,000,000 for the United Kingdom. Now, 
 large as this Australasian debt is, its most alarming 
 feature is its rapid increase from year to year. Not- 
 withstanding the heavy payments on account of 
 interest, if future borrowings were confined to the 
 redemption of old loans, an increase in population 
 should in a few years enable the Colonies to pay 
 the interest out of revenue. Victoria and New 
 Zealand have nearly ceased to borrow, except for 
 redemption purposes ; but Queensland, New South 
 Wales, and Westralia keep on adding to their debts, 
 and it goes without saying that this must come to 
 an end, it is to be feared, with disastrous results, 
 for although there is not even a whisper heard of 
 repudiation, the increasing amount of interest, with 
 two or three bad seasons, will render the payment 
 of it impossible. When this position is reached 
 capitalists will refuse to lend, and a crash must 
 follow. 
 
 It may be asked why the Colonies continue this 
 mania for borrowing funds in excess of profitable 
 investment. Now it must not be overlooked that 
 the profit derived from loan expenditure is as great 
 in useless and unproductive works as in real works 
 of utility. Another very active cause in support 
 of loan expenditure is that entire sections of the 
 working classes see that the expenditure of borrowed 
 funds raises wages and increases employment on 
 public works ; but they do not perceive that this 
 rise in wages decreases the amount of employment 
 in private reproductive industries, and therefore 
 every effort is made to elect members to the Legis- 
 lative Assembly who are in favour of increasing 
 borrowed funds wherewith to find employment.
 
 286 AUSTRALASIAN BORROWINGS 
 
 In this connection it is always asserted that every 
 work about to be undertaken with borrowed money 
 is of a reproductive character. Paving streets, 
 repairing and enlarging buildings, cutting scrub on 
 public lands, levelling sand hills, building wooden 
 bridges, punts, and houses, paying the passages of 
 immigrants, repurchasing land, and even erecting 
 a statue to a governor, are all declared to be repro- 
 ductive works. As loans cannot be contracted 
 except by the Ministry, it may be asked why they 
 consent to borrow for such purposes. Now there 
 can be no doubt that nearly all the members of 
 Australian Ministries sanction loans which they 
 know to be detrimental to the interests of their 
 respective Colonies, so as to retain political power 
 and pay, regardless of the evil which they inflict on 
 the community. All the Australasian colonies in 
 varying degrees are now using a large amount of 
 borrowed funds in payment for works and services 
 clearly chargeable to the annual revenue, and they 
 are using this portion of it for the payment of 
 interest on loans. If English capitalists supply them 
 with funds, this form of finance will be continued 
 until the inevitable crash comes. It may be said 
 that the internal loans lately floated in Melbourne 
 and Sydney show that the residents of these cities, 
 who subscribed these loans, being on the spot, 
 should be fully aware of any approaching danger 
 if it could be foreseen ; but it may be safely asserted 
 that not one in twenty take the trouble to inquire 
 into the financial position into which the Colonies 
 have drifted. There is no doubt that a considerable 
 portion of these loans were taken up by residents ; 
 at the same time it is well known that more than
 
 RAPARA 287 
 
 one-half were subscribed by residents as agents of 
 English capitalists. 
 
 There is a very pertinent question likely to be 
 asked as to the object and motive of the statements 
 and opinions herein made, that is : If the financial 
 position of the Australian colonies is as bad as the 
 writer alleges, is the statement not calculated to 
 precipitate the anticipated crash ? We have, in a 
 former part of this article, expressed the opinion that 
 if future borrowings are confined to what is required 
 for the redemption of loans as they become due, 
 the anticipated increase in population should in a 
 few years enable the Colonies to pay the interest out 
 of revenue. My object is, therefore, to endeavour 
 to show colonists the dangerous position into which 
 their borrowing mania has placed them, and that 
 although loan funds are required to find employ- 
 ment, every addition to the debt will increase the 
 necessity for another loan. It is likewise my object 
 to warn English capitalists of the danger they run 
 in granting further loans, as every fresh loan is 
 endangering the payment of interest on the loans 
 already granted. No doubt there is sufficient wealth 
 in the Colonies to pay the interest on the national 
 debts, even should we have two or three bad 
 seasons ; but this wealth is in the hands of a small 
 number, and as taxation is now higher than in any 
 country in Europe, an increase sufficient to pay the 
 whole of the interest out of revenue will be resisted 
 unless a stop is at once placed on further loans. 
 It has been frequently asserted that Australian tele- 
 graphs and railways would sell for a sum sufficient 
 to pay the public debt. Such a sale might provide 
 funds to pay the cost of railways and telegraphs, but
 
 288 AUSTRALASIAN BORROWINGS 
 
 this would leave the interest on some .£200,000,000 
 to be paid from taxation. 
 
 In performing what I believe to be a public and 
 patriotic duty, I will most likely be denounced by 
 borrowers in Australasia and lenders in England as 
 a political assassin ; but if this warning is the means 
 of stopping borrowing I shall be fully satisfied. 
 Should it fail, the heavy payments in interest will 
 turn thousands into vindicators of my action in 
 this matter.
 
 CHAPTER XXI 
 
 THE NEW EVIL THREATENING SOCIETY 
 
 Modern investments — Rapid concentration of capital and wealth — 
 Decrease in rate of interest with increase in amount — Threatens 
 to absorb all wealth in excess of a bare subsistence for pro- 
 ducers — Taxation to the point of equal sacrifice the only avail- 
 able remedy — Extremes of poverty and riches in London. 
 
 Invested capital may be said to be a modern 
 economic institution conferring present benefits and 
 threatening dire future evils. At the beginning of 
 this century, if national debts are excluded, the 
 amount of investments — that is, investments on loan, 
 joint-stock companies, and mortgages on property, 
 &c. — was so small compared with the present volume 
 that it is no figure of speech to term invested capital 
 a modern economic institution. It would be outside 
 the limits of this work to make a full inquiry into 
 its working, but the question is such a momentous 
 one from a sociological point of view that it merits 
 at least brief consideration. 
 
 We are all fully aware of the great advantage 
 which joint-stock companies afford to professional 
 men and to the middle class generally for the pro- 
 ductive investment of their savings, the interest and 
 
 20 28 9
 
 290 NEW EVIL THREATENING SOCIETY 
 
 dividends being used for the support of their families. 
 Another class of investors consists of capitalists 
 whose dividends, interests, and profits largely exceed 
 the amount which they spend on themselves and 
 families, and are therefore seeking fresh investments 
 annually. According to Mulhall's statistics of the 
 distribution of wealth in the United Kingdom, 
 158,600 families, comprising millionaires, very rich, 
 and rich men, own property to the value of 
 .£6,361,000,000 ; 730,500 middle-class families own 
 ^2,336,000,000, and 5,924,900 struggling and poor 
 families own .£680,000,000. Now the first or rich 
 class are doubtless in a position to increase their 
 investments annually ; the second or middle class 
 to increase their incomes and perhaps their invest- 
 ments to a small extent ; the third, or struggling 
 and poor class as a whole, are unable to increase the 
 volume of their property. The larger proportion of 
 the population, probably two-thirds, have during 
 the last fifty years secured a better standard of living 
 and more leisure ; but the remaining third have had 
 to submit to greater poverty and privation. And 
 when we bear in mind that this third numbers no 
 less than 12,160,000 persons — men, women, and 
 children — the conviction is forced upon us that the 
 great increase in the production of wealth resulting 
 from improved machinery, the application of steam 
 to ships, railways, and machinery, and other scien- 
 tific discoveries, is being directed into useless 
 channels, making the very rich richer without on 
 the whole benefiting the very poor, it is evident that 
 the laws of distribution are radically wrong and 
 require radical amendment. In this connection let 
 us briefly examine the millionaire, very rich, and
 
 RAPARA 291 
 
 rich classes, comprising 158,600 families, owning 
 ^6,361,000,000 of property and an annual income 
 (at 4 per cent.) of -£254,000,000. If .£184,000,000, 
 is spent in maintenance, .£70,000,000 will represent 
 savings which, invested at 4 per cent, compound 
 interest, would double every nineteen years, and 
 would in 190 years be increased to ^71, 680,000,000, 
 if the aggregate wealth reached this amount ; if not, 
 its increase would be stopped when it had swallowed 
 up all available wealth ; for a portion must remain 
 in the hands of the masses, sufficient, at least, to 
 yield a bare subsistence to producers. Before it 
 reaches this point, there will be a line separating 
 those who pay from those who receive interest. 
 Doubtless some of the receivers will from extrava- 
 gance or misfortune occasionally drop below the 
 line ; while some of the interest payers may through 
 enterprise and good fortune manage to rise above 
 the line. But the line will remain until some 
 effectual measure based on high ethical justice is 
 brought into force that will prevent wealth from 
 flowing into useless channels, while there are a 
 number of people who cannot obtain sufficient food 
 to satisfy the demands of nature. A ray of hope is 
 afforded by the fall in the rate of interest, but care- 
 ful consideration shows that this is caused not by 
 the increased wealth in the hands of the masses, but 
 by the enormous wealth acquired during the last 
 thirty years by the very rich classes. Rates of 
 interest will doubtless continue to fall, but this will 
 be of little benefit to the community, as the amount 
 of interest is bound to increase under the operation 
 of joint-stock companies, consols, debenture bonds, 
 and other forms of investment. Now it is plain to
 
 292 NEW EVIL THREATENING SOCIETY 
 
 any intelligent person that a large number of people 
 have more wealth than they can use after indulging 
 in every kind of luxury, and that a much larger 
 number of people have insufficient wealth to provide 
 them with the bare necessaries of life, while others 
 are subjected to semi or actual starvation. This, 
 I repeat, is evident to every intelligent person not 
 blinded by party, bias, and prejudice. Yet many 
 public writers, some for pay and others from class 
 prejudice, either deny that wealth is misdirected, or 
 endeavour to prove that our modern legislation is 
 guiding it into more useful channels than heretofore. 
 They quote statistics which prove that the condition 
 of the majority of the working classes has improved 
 during the past forty years, and on this base a claim 
 that they have proved their point that the rich are 
 not getting richer and the poor poorer ; whereas 
 our statistics clearly prove that while the wealth 
 of the middle class is undergoing moderate increase, 
 the wealth of the very rich is increasing at a rapid 
 and alarming rate, while the position of the poor is 
 growing more terrible at an equally rapid and 
 alarming rate. 
 
 Mulhall gives the amount spent in England and 
 Wales in maintaining paupers in 1714 at -£910,000, 
 which sum gradually increased up to 1888 to 
 -£8,400,000 ; and if Ireland and Scotland are added, 
 the cost for the latter period amounts to .£10,700,000. 
 Even this enormous sum does not represent the full 
 cost of maintaining those unable to support them- 
 selves, as large amounts in money or goods are 
 given away in casual relief or by charitable insti- 
 stution and by private charity. These sources of 
 maintenance together cannot amount to less than
 
 KAPAKA 293 
 
 five million pounds, making a total of .£15,000,000 
 per annum for the latter period. Contrasted with 
 other European nations, the rate of pauperism in 
 the United Kingdom is more than three times that 
 of France, Germany, Russia, Austria, or Italy, which 
 is doubtless mainly due to the greater amount of 
 money which the people of the United Kingdom 
 have to pay in rent for liberty to cultivate the land 
 than in the other countries named, where a large 
 proportion is cultivated by owners who pay no rent, 
 while six-sevenths of the land in the United Kingdom 
 is subject to such high rents that cultivators can 
 only afford to pay their labourers at rates which 
 do not afford them the ordinary necessaries of life. 
 We have previously expressed the opinion that 
 taxation to the point of " equal sacrifice " cannot be 
 justified as an ordinary measure of legislation for 
 controlling the conditions of a civilised community ; 
 but should our present legislation permit or direct 
 the great mass of wealth to accumulate in the hands 
 of a class to an extent that deprives another class of 
 the means of subsistence, then we think we should 
 be justified in applying the principle of " equal 
 sacrifice " to correct the evil : for what cannot be 
 endured must be cured, and this appears to be the 
 only cure short of repudiation, which we hold could 
 only be justified as a last resort when all legislative 
 measures had proved ineffectual. The Australasian 
 banks during the late crisis adopted this latter 
 method. They had borrowed largely at rates of 
 interest which they were unable to pay. In this con- 
 dition they said to their creditors, we are unable to 
 pay the rate of interest which we agreed to pay, and 
 you must either reduce this rate of interest or we
 
 294 NEW EVIL THREATENING SOCIETY 
 
 will be forced to liquidate, our assets will be wasted, 
 and you will get next to nothing. The remedy by 
 equal sacrifice is perhaps a hard one from the 
 monopolistic individualist point of view ; but it is 
 better than repudiation. Let us hope that Radical 
 legislation will stop this flow of wealth into useless 
 channels. A commencement has already been made 
 in the reduction of rents in Ireland, Scotland, and 
 Bengal ; and the Finance Act of 1894, if it does not 
 arrest this useless accumulation, claims a portion for 
 public use. 
 
 The City of London is famed for its benevolent 
 and charitable institutions, and visitors from other 
 countries cannot find words with which to express 
 their admiration of the generosity and bounty of its 
 citizens ; but amidst this generosity and bounty 
 strangers are shocked at the appalling misery and 
 destitution that confronts them in nearly every part 
 of London. London, and in fact England, is now 
 in a more than average state of prosperity, but this 
 prosperity has not bettered the position of the very 
 poor in the slightest degree. The extremes of riches 
 and poverty in the United Kingdom, and particularly 
 in London, is nothing less than a national disgrace. 
 Charitable institutions to help them are not lacking, 
 but the strong Conservative instinct to let things 
 remain as they are prevents any remedial measures 
 from being applied to the seat of the evil. 
 
 In this position we would expect that the working 
 classes would join hands with Liberals to have bad 
 laws replaced by good ones ; but so far from this 
 being the case, we find them either supporting Con- 
 servative action, thwarting Liberal measures, or 
 advocating wild and visionary measures of reform
 
 RAPARA 295 
 
 which stand no chance of adoption, with the result 
 that the very poor are left in their misery. 
 
 Many members of the working classes have, 
 during late years, come to the conclusion that a 
 " Living Wage " would benefit them, and a resolu- 
 tion in its favour was carried at the late Labour 
 Conference held at Birmingham. That it is desir- 
 able that wages should afford a comfortable living 
 every fair-minded man must acknowledge. At the 
 same time its accomplishment is beset with several 
 difficulties. There would be little danger in applying 
 it to all those in State and municipal employment, 
 as such services do not come into competition with 
 foreign countries ; and although it would be attended 
 with some danger if applied to those engaged in 
 road-making, house-building, and other work that 
 does not come into competition with foreign work- 
 men, there is danger from an influx of working 
 men from other countries unless accompanied by 
 some measure of exclusion. But it is otherwise 
 with all those engaged in the production of all 
 kinds of goods which have to compete with the 
 productions of foreign countries, because any in- 
 crease in a living wage over the present competition 
 rate would be calculated to increase the importation 
 of foreign-made goods, and to that extent decrease 
 the demand for home-made goods and consequently 
 for labour to an extent that might reduce the aggre- 
 gate earning under the higher living wage rate to 
 less than the aggregate earnings under the lower 
 competitive wage rate. 
 
 Nearly all civilised countries are able to prevent 
 this destructive competition arising from impor- 
 tation of foreign goods by protective duties ; but
 
 296 NEW EVIL THREATENING SOCIETY 
 
 this remedy is not open to England, as she is de- 
 pendent for employment for her people in being 
 able to export a large portion of her manufactured 
 goods to other countries. 
 
 It is therefore evident from the above circum- 
 stances that however desirable it is to secure a 
 living wage, it can only be safely granted to people 
 in State and municipal employment, even if the 
 British Parliament consented to limit the influx of 
 foreign workmen. But this objection does not 
 apply to an equally desirable measure of justice — 
 Old Age Pensions, which can be easily and justly 
 granted, and paid out of the general revenue. 
 
 Under all the circumstances it is apparent that 
 the introduction of a living wage would be attended 
 with great difficulty and would tend to increase the 
 number of strikes in order to secure what each 
 trade considered a living wage. 
 
 It is therefore evident that a living wage would 
 fail to mitigate or remove the evils under which the 
 producing classes in England are suffering. To 
 remedy these evils the working classes must unite 
 and attack the real seat of the evils, which lies in 
 Land Monopoly, Hereditary Legislators and Pen- 
 sions, Sinecure Offices and unjust Taxation, by 
 which the masses have to pay more and the classes 
 less than their fair share. 
 
 THE END. 
 
 UNW1N BROTHERS, THE GRESHAM PKKSS, WOKING AND LONDON.
 
 A 000 095 485