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The Pamphlet Collection of Sir Robert Stout: Rare Volume

Chapter IV

page 25

Chapter IV.

The subject requiring the primary attention of the legislative council was finance. At the beginning of this year (1844) the local government was twenty-four thousand pounds in debt: the revenue being then estimated at about twenty thousand pounds. All salaries and ordinary current payments were several months in arrear: there was no prospect of the revenue amounting even to two-thirds of the estimated indispensable expenditure: the establishment was reduced to that which was authorised by the Secretary of State in a despatch received just at the close of the previous year (1843): the governor was strictly prohibited from drawing on the British treasury: and no loan could be raised.*

By reducing the establishment of government to an extreme much below what was absolutely necessary for carrying on the daily public business, a less expenditure might have been ensured, but, not only at a loss of efficiency, almost to the disabling of the local government, but to the extreme distress of many official persons who had been induced to leave their public situations elsewhere to form part of the establishment at New Zealand, where they had been obliged to build houses and settle their families, at no small expense.

In order to carry on the government until assistance and directions could be received from England: to relieve the creditors of government from distress: and to keep numerous families from extreme privation, some from actually starving: it was decided to issue notes, or debentures, bearing five per cent. interest after the expiration of one year; and as these debentures were at first refused by several speculators, and therefore seemed likely to be much depreciated, they were

* This prohibition against drawing bills being known publicly, none could be negociated: and the credit of government being destroyed, no loan could be raised.

Materials and labour being then extremely dear.

page 26 made a legal tender. It should be noticed that this paper currency was not intended to be permanent; it was intended to serve instead of coin, during a very limited period, not exceeding two years,—before which it was probable that some arrangement would be made by the home government for their withdrawal from circulation. These debentures enabled the government to carry on its functions, and saved an extremity of disorder and distress which can hardly be appreciated by persons in an old country. Their principle has been much condemned by some theorists, (who reason about a young struggling colony without capital, as if it were really circumstanced like any portion of the parent state—supported by banks and capitalists); but since their beneficial effects were practically felt, and fully appreciated by those who might have been actually starved without them, the objections of theorists may be less regarded. As there were then no exports—the colony was drained of its small stock of specie by payments for goods and the usual necessaries of life: and scarcely any circulating medium remained except notes of the Union Bank of Australia.

But as the issue of paper money was in direct contravention of the governor's instructions; of course he was prepared to bear the consequences. There have been many occasions, it will not be denied, on which deviations from instructions have been productive of public benefit, however indefensible according to a general rule which must he maintained, Whether this was one of such occasions, the wretched state of the colonists in New Zealand may shew. Impending ruin, and actual starvation, threatened the greater number of the working classes, and many others, at Auckland, who depended on the government expenditure. No assistance from England could be expected in less than a year,—No money could be obtained by the government, in the Colony, or from Sydney, because no person would accept bills drawn by the governor without the express sanction of the Secretary of State.

The practical effect of these debentures was not only the removal of all actual want, but the promotion of much industry, and general improvement. Instead of a complete stagnation, as at the beginning of 1844, activity and abundant employment soon prevailed. Auckland and its vicinity improved rapidly, and an export trade began.

The necessity under which the principal holders of debentures lay to employ them in the colony, and as speedily as possible, lest there should be any deterioration of value, induced those persons to buy up gum, flax, timber, or copper, or other native produce—to be exported as remittances to page 27 their correspondents instead of money. Some built small vessels; others improved their landed property by fences and better buildings. The results were conspicuously beneficial.*

How to raise additional revenue amidst such general poverty and distress, was most perplexing; various methods were suggested, but strongly opposed by the non-official members of council; who wished to reduce the expenditure to the revenue actually raised, however small that sum might be. At last an increase of the customs' duties was deeided on,—not as a good measure, but as the only one that seemed practicable.

The governor deemed it to be his duty to endeavour to raise a revenue adequate to maintain the establishment ordered by the home government, and necessary for the public affairs of the colony. The non-official members of council considered the establishment and expenditure too large, and tried to effect such reductions as would, if made, have prevented the local government from executing the duties demanded from it, not only by the wants of the colony, hut for the information of the home government, which requires numerous and voluminous documents to be prepared and transmitted in duplicate. In an old country there are so many ways of raising revenue that a selection can be made. In New Zealand, a young colony, there are very few, and it is a great object to adopt such methods as may be least open to evasion, while executed with the smallest expense. Land, if taxed, yields but little, as so little is cultivated, and the tenure of wild land has been too uncertain to admit of its being taxed. Houses, animals, imports, exports, sales, licenses, deeds, and the individual members of the community, were the only objects available for taxation.

As much censure has been cast on the propositions of the governor to tax houses, cattle, and dogs, it may not be irrelevant here to remind the reader that there were no "rates" of any kind in New Zealand, such as are paid for houses in

* It may be fairly doubted whether a metallic currency is indispensable for a young country. Some authorities think it not only unnecessary but prejudicial. A convenient medium of exchange that cannot be sent out of the country, appears to be practically sufficient for such a condition of society. Gold and silver, if required for exportation, may be bought or sold like any other property of which money is merely the representative.

page 28 other countries:—that a house is an object easily rated of taxed, without the possibility of any evasion: and that the number of rooms in it may form an easy scale for taxing.* To say, as has been asserted, that such a tax would induce people to alter the construction of houses,—when it was only to be levied for a temporary purpose, during two years at most,—was obviously incorrect.

It was proposed to levy an impost on imported cattle, because a large importation was expected, which could not be smuggled. Their number, it was considered, would not be affected by a moderate duty. Besides which, at that time the importers of cattle could afford to pay a tax better than most people. They were chiefly persons living in New South Wales. The tax on dogs (also much blamed) was intended solely as a means of diminishing their number, which had become a nuisance. It has been said that this tax would affect sheep-feeders. There were not then half-a-dozen shepherds' dogs in New Zealand; but had there been more, it would not have signified, because the proposed tax was to affect those dogs only which were found in or about the towns: dogs used in the country being specially exempted.

Very incorrect accounts of proceedings in that legislative council appeared in newspapers, and possibly they may have been thought true, however strange, by persons accustomed to the correct reporting of public proceedings in England. They were, however, very incorrect, being the results of notes in common writing (not short hand) taken by the editors or composers of the Auckland newspapers, who trusted much to memory, and frequently colored their statements so as to suit the taste of their readers. One of these editors who used to write and publish a notoriously virulent paper, called "The Auckland Times," was an unhappy man, whose existence was lately brought to an untimely close by hard drinking. That such a man, utterly regardless of truth or character, should have been countenanced, was a lamentable proof of a very low tone of moral feeling in the colony.

Indeed, one of the most melancholy features of the growing society in New Zealand is a disregard for honorable and virtuous conduct. Truthfulness and sincerity are not cherished. The very few persons who are not (to use the current expression) "colonial" in their ideas and conduct, are neither under-

* In a young country where property is very fluctuating, and valuation is difficult.

page 29 stood, nor estimated as they deserve to be, and as they would be in old countries.

The business of the council was just finished, at the beginning of July, when intelligence arrived that very serious disturbances had taken place at New Plymouth, where the latid commissioner's premature promulgation of his decision against the natives, in favor of the New Zealand Company, had caused such great excitement and alarm among the settlers, that hostilities seemed inevitable. Almost at the same time information was received that the chief Heke had cut down the flag-staff at Russell, (Kororareka), in the Bay of Islands, and that his followers had insulted and provoked the settlers in a manner that could not be passed over by the government without serious notice. It was necessary to check this chief without delay, as his object was known to be resistance to British authority at that place; but the means of doing so effectually were neither at hand, nor to be expected within many months. Application was forthwith made to the Governor* of New South Wales for troops, and a small detachment from Auckland was sent to Russell.

Meanwhile H. M, S, Hazard, which had just arrived in New Zealand, conveyed the governor to New Plymouth, where he was met by the bishop, who had travelled overland from Auckland in only seven days, to assist in quieting the disturbances.

It appeared so clear to the governor that the view taken by the land commissioner could not be adopted by the government without causing bloodshed, and the probable ruin of the settlement,—because the injustice of awarding land to the New Zealand Company, which was well known not to have been purchased by them, was apparent to every native,—that information was made known publicly at a large meeting of the settlers and natives, that the commissioner's award would not be confirmed by the governor.

Arrangements were then commenced for securing the actual settlers in quiet possession of sufficient land; the natives being desirous that they should not quit the place, but determined not to sell them certain favourite localities. The substance of the case was this: the New Zealand Company's agents had endeavoured to buy a large tract of land from a few persons who owned about a thirtieth part of it, the great majority of the proprietors being then absent. When the

* Sir George Gipps.

Thirty men.

The usual time being a fortnight.

page 30 absentees returned to their own places, after a few years, they found white men settled there and cultivating. Of course the few (about forty)* who professed to sell to the Company's agents could not dispose of that which belonged to the absentees (many hundreds in number), therefore their land was forthwith demanded by them. However much this case may have been complicated or mystified by appeals to other laws than those of the New Zealanders themselves, the above will be found the simple fact. It may be asked what English man would give up his land under analogous circumstances, if sold without his authority during his absence. But, say some persons, these natives who returned to claim land occupied by settlers, were or had been slaves, and therefore they had no right to this land. Strange doctrine this to be held by Englishmen! These men had been made prisoners of war,—captives rather than slaves,—by the Waikato tribe, who, at the instigation of Christian teachers, gave them their liberty—and permission to return to their own land.

Would an Englishman, after some years confinement in a French prison, or being enslaved by Africans, admit that he had forfeited his estate in England? But even the New Zealand usages, which in this case are more to the purpose, do Not prevent a man who has been captured (or a slave) from owning and retaining land.

Before losing sight of New Plymouth it may be remarked here that if disappointment and sorrow were caused by the first sight of such ill chosen sites for large settlements as Port Nicholson and Blind Bay, what must have been the feelings excited by finding New Plymouth in a position that almost debars it from free communication with other places, either by land or water. The grievous error of landing a large body of very respectable settlers at a place, however fertile and pleasing, without a port, without even a safe roadstead for shipping, and so far from any other settlement that land carriage is at present and must long be impracticable,—is self evident, but now almost irremediable.

The manner in which the New Plymouth district was supposed to have been purchased was not a little remarkable, and merits attention.

Certain persons went in a vessel to the roadstead off New

* This number forty, is inclusive of women and children who signed the deed of conveyance, or in whose names marks were made.

Messrs. Wakefield and Dorset.

page 31 Plymouth, and landed an illiterate whaling master, who had a mere smattering of the native language, to negociate the purchase of the whole adjoining district.

With about forty men, women and children, an arrangement was made, and goods were given to them, in exchange for the whole district—as the Company 's agents said; but in exchange for those natives' lands, or parts of them only, in the nearest district alone—as the natives understood. The interpreter was incapable of explaining correctly what the natives meant. They were asked the names of places where they had lands, and the names of all the principal points and hills then in sight; these were written down, as the places purchased for the New Zealand Company: the deed, a document quite unintelligible to the natives, was signed by them because they were told to do so before they could receive the goods, and thus, on a small rocky islet,* or on board a vessel, was a nominal purchase of more than sixty thousand acres of land assumed to have been made in a few days.

Leaving New Plymouth perfectly quiet, the governor and the bishop went to Wellington and thence sailed to Auckland.

Being very anxious to reach the Bay of Islands in time to meet the troops then daily expected from Sydney, the governor hastened on from Auckland as soon as the necessary arrangements were made. One hundred and fifty men had arrived, and disembarked at Russell; fifty were added from the detachment at Auckland, and H. M. S, Hazard had fifty seamen and marines ready to land,—making the force but two hundred and fifty in all; yet at that time,—(so much undervalued were the natives)—most of the officers and men thought themselves fully able to give Heke and his followers a severe chastisement, even at his own stronghold in the interior.

The governor, the officer commanding the troops,§ and the engineer officer| thought differently; and the former relied on assistance from many natives well affected to the government.

Previous to making a decided movement from Russell towards Kaikohe (Heke's place) several meetings with other natives were held by the governor in various parts of the Bay of Islands; and it was then so obvious that the main cause of their discontent was the deserted state of the port—owing to

* Outer Sugar Loaf.

"Guide" Brig.

H. M's. 99th Regiment.

§ Lieut. Col, Hulme, 96th Regiment.

| Captain Bennett.

page 32 the obnoxious customs' regulations—and that they had indeed reason to complain with justice of their ruined trade, that the governor determined to remove this root of evil, and forthwith took on himself the responsibility of closing the custom house. This was the commencement of a measure which he had always thought advisable for New Zealand, and had already brought under the notice of the legislative council, and the secretary of state for the colonies, with the hope of proposing it formally at a suitable period. This seemed to him a moment when such a change would be very beneficial, and he did not shrink from the decision: although unauthorised.

It was probable that such an alteration would be earnestly sought for by the chiefs, (urged on by white men) and he could not avoid foreseeing the facility with which the collection of customs1 duties might be evaded, or openly resisted. It was on all accounts advisable not to risk coming to a trial of strength during the then powerless state of the local government.

The governor thought it right as well as expedient, to do that as a matter of justice and good feeling which he conscientiously believed ought to be done, and which, if not done spontaneously, might be extorted by force at a subsequent and not distant time. He had then no hopes of any support from England that would enable him to carry out English law efficiently among the natives.

As Heke remained at a distance, and evinced no wish to atone for his outrages, the troops were moved to the Kerikeri river, and preparations were made for marching inland towards Kaikohe, when the chief protector of Aborigines* arrived from Waimate, (where a large concourse of chiefs had assembled in consultation with the missionaries) to make known to the governor the general and anxious desire of a large majority of the principal men that the troops should not be landed at Kerikeri, but that those chiefs themselves should make acknowledgment of Heke's delinquency, and undertake to prevent any farther outrage in future. Further, the chiefs expressed great anxiety to confer with the governor on various subjects, chiefly concerning their land, about which they were in much doubt and difficulty.

Knowing his real weakness, and the impossibility of acting efficiently against the turbulent natives without having the

* Mr. Clarke.

Heke being their relative and much their inferior in rank and influence.

page 33 support of those who were well disposed,—the governor acceded to the chiefs1 wishes and directed the ships to return to Russell, while he went, with the senior military and naval officers,* to the missionary station at Waimate, where were assembled the bishop, several of the clergy and missionaries, the chief protector, and a large concourse of natives.

A formal meeting was held, opinions and intentions were freely expressed in public by all parties; and the result was a general decision on the part of the chiefs that the flag staff at Kororareka should be replaced, and should not be again cut down; that they themselves should be responsible for its security—for the tranquillity of the settlement at the Bay of Islands,—and for Heke's future conduct. As an acknowledgment of his delinquency, they offered to give up land, or property, to the government; but the governor would accept only a few muskets, and even those he returned to show that there was no desire to punish the well disposed for the faults of their relative, or even to deprive them of their weapons. In consequence of these arrangements the governor promised to withdraw the troops, and make trial of the chiefs1 will and power to act up to their strong and public professions.

Subsequent events have shown how happily that affair was terminated by this arrangement. Had the wishes of the principal chiefs been slighted at that time, and had that handful of soldiers been employed hostilely against Heke, it is now almost certain that not one would have returned from Kaikohe, and that the consequences would have been most disastrous to the colony.

It happened that several of the oldest missionaries in the land were then assembled at Waimate on important business, and the governor had therefore an opportunity of availing himself of the opinions of those persons who knew most of the natives, and were very capable of forming a correct judgment as to their real feelings and intentions. The bishop, though not so long a resident in New Zealand, might be as able as any man in the country to form judicious conclusions from the statements of others; but in extent of intimate and general knowledge of the natives, the chief protector of aborigines, who had been twenty-three years in the island, was the best authority, All these however were of one opinion : and with that opinion the governor and his officers fully concurred.

* Lieut Col Hulme, and Commander Robertson.

Captain Bennett, the engineer officer, considered the country between Waimate and Kaikohe impracticable for the troops then in New Zealand.

page 34

Early in September the governor returned to Auckland, having thus succeeded in successively averting hostilities which had threatened each of the settlements: but anticipating greater difficulties in a short period, as his dispatches of September and October 1844 fully shew.

The legislative council assembled and unanimously agreed to pass a local ordinance establishing free trade throughout the colony, and substituting a method of direct taxation instead of raising a revenue by means of customs duties. The council was also unanimous in opinion that this change, however great, should take place as soon as possible in the following month,* the governor being willing to take on himself the grave responsibility of assenting to these steps, without waiting for the sanction of the home government; because he believed that not only the welfare, but the actual safety of the colony, demanded such a measure. Without any real power, though surrounded by a turbulent white population, and numerous tribes of almost savage natives on the eve of open resistance to his authority, the only prudent course was this painful one of temporising.

At this time the prevailing opinion in New Zealand was strongly in favor of free trade and direct taxation, instead of customs1 duties. It was considered that in such a woody country, intersected by rivers and creeks, with a coast line of more than three thousand miles in extent, and abounding in harbours, smuggling might be carried on with impunity; while jealousies between native tribes, on account of ports of entry,—and irritation caused by interference with their vessels or canoes, would tend to embroil the local government. The expense of collecting the customs duties amounted to nearly one-third of the gross amount; while the interference with shipping, required by the regulations, operated so vexa-tiously as to deter the greater number of whalers from seeking their supplies and refreshments in New Zealand,—inducing them rather to go among more dangerous islands in the Pacific where there was no custom house.

As a means of raising revenue better adapted to the circumstances of the country, it was thought that a tax on income and property, taken together, would prove adequate to the wants of the colony, in the course of two years, if not sooner. But a practical trial has since proved that direct taxation cannot yet be carried into effect, under the peculiar circum-

* On the 10th of October.

Vessels usually frequent ports of entry solely.

A serious source of disagreement.

page 35 stances of New Zealend, the local impediments being insuperable,—without employing more expensive machinery for collection than even that of the customs. The plan failed in the southern settlements, although it answered expectation in the north,—and after a trial it was abandoned; a return to the custom house system having become imperative,—partly owing to the failure just described,—but chiefly because of the altered state of the colony.*

Early in October the decisive step was taken of allowing natives to sell land direct to settlers, without any concurrent fee to government, (except an almost nominal one to cover the expenses of legal documents): and perhaps no measure emanating from the government, since it was established, gave so much real satisfaction to the native people.

Under the existing circumstances of New Zealand, it is desirable that all the land in the vicinity of settlements, excepting native reserves, should pass into the hands of settlers. Many sources of quarrel may be thus removed, and the natives themselves kept farther from continual temptation.

Much sensation has been caused in the colony by thus allowing natives to sell land to private persons; some residents fearing that it will lose much of its value, others dreading that the total deprivation of the natives may be caused: but in reply to these it may be stated that the more land becomes the valid and available property of settlers, the sooner will all land rise in value. Doubtful neighbours now prevent much that is claimed by settlers from being valuable. Neither the mission property, nor any other lands in the interior now surrounded by native possessions, will be worth anything considerable until they have civilised and industrious neighbours. The natives are not disposed to sell land which they really want for themselves, though they do not usually regard their children's interest. The sooner all disposable districts, near our settlements, are sold,—the sooner will the natives apply themselves to industrious pursuits on other lands.

The Cotter system, although deprecated by modern theorists, appears to be much suited to this country, if encouraged on a large scale, in the more thinly peopled districts. Working men may make their way and thrive on a few acres of land.

* More ships of war, and military force; concentration of settlers, and fewer settlements.

While the natives have anything to sell which costs them no labour, they will not become industrious. When their land is nearly all sold, they will betake themselves less unsteadily to raising produce on the remainder, and to working for wages. They are an acquisitive race, and will seek the means of obtaining those foreign articles which are now become necessaries : such as clothing, seeds, tools, arms, ammunition, tobacco, &c.

page 36 New Zealand is not yet, and cannot be for many years, a country suitable for those who require the convenience and comforts which are found in many other parts of the world* ; but to the hardy labouring man, who uses his tools himself with steady industry, it is even now a place in which a large family can be well maintained : partly upon the produce of a few acres of land: partly by keeping cattle and sheep, which increase and thrive greatly. Those who have no cattle, or means of buying any, usually keep the stock of some neighbour, on condition of receiving a proportion of the increase; and in this manner soon obtain a few animals of their own. The more any tract of land is frequented by cattle, the more it improves; and as there is "bush" feeding all the year round, the means of maintaining a family, brought up to work in the fields for their living, are certain and sufficient.

In November the governor again visited New Plymouth, completed an amicable adjustment of the land question sufficient for the resident settlers, and left them, as well as their neighbouring natives, peaceable and contented.

These repeated voyages to other settlements caused serious interruption to the progress of public business at the seat of government, especially correspondence, but they were indispensable duties. The usual passage to or from Cook's Strait is nearly a fortnight; to visit each settlement in succession requires about a month, in a man-of-war. Quicker passages are frequently made; but, on the other hand, sometimes three weeks are spent in going from Wellington to Auckland.

* In New Holland the country is open and accessible-Horses may be used almost anywhere, and there are few districts inaccessible to strong wheel carriages.

In New Zealand, the colonists generally travel on foot, wheel carriages are useless except near the settlements, where there are a few very bad roads. Strong bullock drays are employed in some parts but they require powerful teams of oxen.

Browsing and pasturage combined, in the woods, or swamps.

At his first visit to New Plymouth, the governor could only direct preparations to be made for the settlement which he effected at his second visit.