Mr Pharazyn puts what he conceives to bo Mr Waterhouse’s meaning in the words, “ After spending many millions in the development of this fine country, wo find that it has no re sources to develop,” and adds, for him self, that after seeing the greater part of Europe, he is confirmed in the opinion that we have enormously exaggerated the resources of Now Zealand ; and ha con cludes that the only escape from our serious, if not hopeless, position Is to atop borrowing ; and, like a sound Con servative, finds corcroto wisdom in tho recommendation to “leave things alone.” The public and private debts of Now Zealand aro largo, but ‘a now country can only bo opened up with roads and rail ways by borrowing, and surely wo have good value in such works, and in tho in creased valuo thus given to property ; and although it would bo more satis factory if settlers and business men all traded on their own capital; still, men of fortune do not usually seek a colonial career, and New kjealand colonists are probably not moro involved ilian their compeers elsewhere. As an indication of this, I might point to tho hundreds of our people—Mr Pharazyn himself, as an example—who, year after year, leave On the European tour, a propor tion to tho population probably in excess of that of any other country. I remember tho stato of tho country when the first three million loan was raised, and am acquainted with all addi

limiK to our taxation ; but, on looking round, I sco no class or industry that is suffering by any burden sinco imposed. Tho population in tho interior has mere than doubled, and while there are indi vidual cases of distress, such are not more mmurous hero than in any city of Aus tralia, or to bo mentioned alongside that of older countries. 