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Art. LXVIII. — O71 the Political Economy of Railways. 

 By H. S. Chapman, One of the Judges of tlie Supreme Court of New Zealand. 



[Lecture delivered before the Ofago Institute, August 24, 1870.] 



The su.bject upon which I propose to address you h'^.a been brought promi- 

 nently under public notice of late, by what is jmmonly known as the 

 financial policy of the Government. Of that \'Olicy generally it would be 

 unbecoming in me to speak, nor is it, indeed, a fitting subject for discussion in 

 this place. One part of that policy, however, consists of a proposal to establish 

 an extensive system of railways throughout the colony by means of a loan, 

 raised in England ; and as that proposal involves certain principles of 

 economical science, I connect those principles with my subject by the title 

 which I have given to this paper, and I think you will find that the obser- 

 vations, and the calculations, which I am aboiit to present to you, will 

 fully bear out the title which I have chosen. I may here observe that it is 

 only a limited portion of the results and consequences of railway enterpi-ise 

 which I jjropose to discuss, namely, the efiect upon the public wealth. In thus 

 confining myself within narrow boundaries, I am sensible that I leave out much 

 more than I embrace. Railways are the ofispring of an advanced civilization. 

 They also react upon and tend to develop the very civilization of which they are 

 the fruit. Thus they assume the characteristics of both cause and consequence. 

 They are fraught with important social and political results. United with the 

 electric telegraph, the steamship, and a free press — the operations of which 

 they tend to facilitate — they aid in promoting peace among nations, and the 

 interchange of the best thoughts current throughout the world. These social 

 and political advantages, however tempting they may be, I must leave entirely 

 untouched for the present, and I shall only permit glimpses of them, to appear 

 when I think it necessary to remind you of the limits which I have chosen. 

 You will understand, therefore, that I intend to confine myself to an investi- 

 gation of the modes in which railways tend to augment and distribute the 

 wealth of the country. As I had some share in carrying into operation an 

 extensive railway system in a neighbouring colony, I Lave necessarily turned 

 my thoughts a great deal to that which I have ventured to call " the political 

 economy of railways ;" and it is to the Colony of Victoria that I shall turn for 

 the facts and illustrations to which I am about to direct your attention. 



The Colony of "Victoria has now in operation about 2.52 miles of Government 

 railways, namely, from Melbourne to Geelong and Ballaarat, about 100 miles, 

 and from Melbourne to Castlemaine, Sandhurst, and Echuca, on the River 

 Murray, about 152 miles. There are also short railways radiating from 

 Melbourne to the port and subiirban districts, making about 20 miles more. 

 Thus Victoria has now completed about 272 miles of railway. I do not 



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