AGRICULTURAL CREDIT. DAVIDSON. 



yet the usual way is to regard a government as an external 

 benefactor who favours us, or our district, at the expense of 

 others. It is true that it is our own money that constructs our 

 roads and our bridges, builds our railwa)s and executes our pub- 

 lic work, yet when some protesting writer or some opposition 

 candidate points this very fact out to us, we feel instantly that 

 he is talking not of things as they are. As a matter of fact, we 

 do not regard government aid as a highly organised form of self- 

 help, but rather as a highly organised form of helping ourselves 

 at the general expense. And it is not well that we should come 

 to look too much for government aid in the management of our 

 business.' There is already too much leliance upon government 

 and too little individual initiative. There are, for instance, too 

 many men wasting time looking for government jobs, and too 

 many people who think that five dollars of government money 

 is worth ten dollars offered by any one else. There is some dan- 

 ger to national character in too great a reliance upon government 

 assistance. 



Nor can we regard the resources of a government as illimit- 

 able. A state can borrow cheaply because it borrows moder- 

 ately and with discretion. It is true that a government may 

 borrow at three per cent, or a little more, while the private 

 borrower has to pay six or a little more. Why should not the 

 government of Canada or the government of New Brunswick 

 fend again to the fanner ? For the very good reason that, if it 

 did to any extent, it would not long be able to borrow at three 

 per cent, and the whole community would be burdened. New 

 Zealand's experience is riot quite conclusive, because it has not 

 continued long enough. We have had in our history some 

 experience of lending the state's credit. The legislature of 

 Canada passed in 1849 a guarantee act, guaranteeing the interest 

 on railway bonds, as Manitoba is doing to-day, and the result 

 was that the credit of the colony was quick to show the effects, 

 and the guarantee system had to be withdrawn. New Zealand, 

 during the first depression of trade, may have an even more 

 disastrous experience. 



