Although the suddenness of the withdrawal of large sums from circulation did, no doubt, cause a great shock to public credit, yet was it the extent to which speculation had been previously carried, particularly in the purchase of land, which was in my mind the real original evil. I can therefore by no means acquiesce in the proposition so broadly put forward by the committee on the sale of crown lands, and adopted by that on immigration, which I shall give in the no measured terms adopted by the former:—
"But the greatest, the most fatal error connected with the sale of the waste lands of this colony was committed in the appropriation of the revenue derived from thence to the purposes of immigration. A million sterling has in some shape or other been appropriated to this purpose. It was forgotten that capital and labour, as elements of colonization, should exist in a new country in proportion to each other; and it was a fatal mistake to send the one out to bring the other in. The circulating medium, which, like the blood in the animal system, diffused life and activity through every part, has been withdrawn from use and the colony is now in a state of inanition. What renders the matter worse, is the fact that a large portion of the sum paid for land, and thus applied to the purposes of immigration was borrowed."
I admit the general principle that capital and labour should exist in proportion to each other; but they should also exist in proportion to land. But when was the equilibrium first disturbed? Was it not when land to the amount of a million was purchased from the government? And that disturbance would have continued, if government had held the money in its own hands, or even applied it to general purposes, the only
