338 REPORT— 1891. 



edifice of progress has been reared during little more than a 

 century ? Certainly by means of co-operation, of which up to 

 now money — i.e., capital — has been the only efficient agent. 

 The despotism of a single mind could build a pyramid or found 

 an empire. This power having passed away, on its ruins has 

 arisen capitalism — that is, the concentration of the results of 

 other men's labour in the hands of a few. This oligarchy by 

 the use of the lever of wages has exacted from the labourer a 

 large proportion of the reward of his work. Then, if capital 

 ceases to be the bond for co-operation of labour, some power 

 must take its place. Economists look to the combined action 

 of a State bank of issue and the organization of labour to 

 replace the iron hand of the taskmasters' wage-power. The 

 progress will be slow ; but the reason why a Government 

 which is said to be of the people, for the people, and by the 

 people should not begin to be welded into a great co-operative 

 power, by the aid of a State bank of issue, it is difficult to 

 pronounce. Because the management of State finance falls 

 into the power of money-forgers like the late President Celman 

 of Argentina, the robbery perpetrated, or the financial ruin 

 brought about, though not peculiar to paper money, is laid at 

 its door. The supposed reserve of gold in the Bank of Amster- 

 dam, when looked for, was found to have been spirited away ; 

 and, when the disturbing ideas attaching to the importance of 

 gold and silver coinage are banished for good and all, we may 

 expect to have a currency founded on a true basis, and one 

 that, as knowledge extends, will be " understanded of the 

 people." 



Eeferring again to paper money, because its excessive issue 

 brought about financial disaster, we might as well repudiate 

 the use of either fire or water because of the destruction 

 wrought by a conflagration, or the devastation caused by an 

 extensive inundation. Then, what of the constant practice of 

 these colonies borrowing foreign capital ? Mr. Bagehot averred 

 that what will be the effect on incipient civilisations by the 

 facility wdth which these loans are asked for and granted "no 

 untutored mind can say." There are not wanting men of 

 great political insight in these colonies who say that the 

 refusal of loans from outside capitalists would be one of the 

 best things that could happen to the public ; but, then, what 

 would become of the money-brokers at Home and abroad ? 

 Why the Australian Colonies, unlike most other countries, 

 should have no internal debt of their own, whose bonds should 

 be a convenient mode of investment and opportunity for mild 

 speculation, it is difficult to divine. The Chief Justice of 

 South Australia the other day, in a State correspondence, re- 

 cognised the want of a " local market for Government stock." 

 If the insatiable bent for borrowing outside capital were 



