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THE MIDDLE ISLAND,
NEW ZEALAND.
THE PROVINCE OF NELSON, which is situated at the Northeast end of the Middle Island, enjoys a mild but humid climate; it was the first European settlement in the island.
The country in the vicinity of the town of Nelson is very mountainous, and more adapted for sheep runs than for agriculture. The present runholders are the owners of the land they occupy--that is to say, of any land that was worth purchasing, as the Government sold the hilly ground in runs at an upset price of 5s. per acre; consequently, there is not any room for investment of capital on any fresh field in that province.
THE PROVINCE OF CANTERBURY, situated about half way between Nelson and Otago, on the East coast of the Middle Island, was made a settlement of in 1849, and the first emigrants went out, as is well known, in 1850. The climate of Canterbury is more bracing than that of Nelson, being much drier but more windy.
The north-west is a warm wind, but very boisterous at times, and, to new comers (until they become accustomed to it), it is not pleasant. It is a curious fact, that the highest winds are during the summer months, and that, except an occasional south-wester, the winter months are free from wind,
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to which may be attributed the peculiar equability of the New Zealand climate; as there is no part of the world in the same latitude, be it continent or island, that enjoys a more temperate climate. Having been resident sixteen years in the Middle Island, I never experienced during the whole of the time, such intense heat as was felt in May, 1864, in England. At the same time, the frost, during the whole winter, anywhere near the coast (excepting slight frosts in spring) never continues more than three days, and many winters are altogether free from frost; snow will not lie, except in the mountains; and as a further proof of the mildness of the climate, all the trees and shrubs are evergreens of every shade.
Canterbury is separated from the Nelson Province by the Huranui; the hills terminate abruptly on the sea. In travelling south the country becomes tamer, and undulating limestone hills are met with, until you come to Double Corner, where the higher range of hills begins to recede from the coast towards the south-west.
There are some fine slopes of fertile land of great extent underneath Mount Grey, which extend to the Ashley River, and up to its gorge.
South of the Ashley the well-known Canterbury plains commence. The land is invariably, on one side or the other of these snow rivers, very fertile for a considerable width from their banks, but a large portion of the vast plains in the vicinity of Christchurch is stoney, though the grass is very sweet, and sheep thrive best where it is so.
There is good land between the Ashley and the Waimakariri, a much larger river, and in summer, during the warm winds, it is much flooded. The beds of these rivers are very wide, sometimes a mile or more in width, fordable in winter, but swollen in summer by the melting of the snow on the mountain ranges.
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South of the Waimakariri the best land is at the foot of the mountains, which are here, about thirty miles from the sea; there is also some good land, although swampy, near the coast, but the general character of these plains is shingley (or covered with small pebbles). Christchurch is situated about seven miles from the coast, in the south-east corner of this plain. At a circle of six miles round Christchurch the land is pretty free from stones, and the country is all fenced in, and there are some fine farms on it.
The position of the town is anything but picturesque, as it lies low; the Port hills, or the range forming Banks' peninsula, are about four miles distant, and the range due west fully thirty-five miles distant. When the tunnel through the Port hills is finished, and railway communication with Lyttleton complete, the province of Canterbury will be second to none as an agricultural country. South of Christchurch the plains extend to Timaru, intersected by the Rivers Rakaia, Ashburton, Rangitata, and Arawenua. Timaru is a rising township, situated 150 miles south of Christchurch, being the only outlet for wool and other produce from all the country situated between the Rangitata and Waitaki rivers.
Coaches run three times a week to and from Christchurch, and will soon be connected with those running south of the river Waitaki. Land in this district is becoming very valuable.
But there is one great want, viz., wood, it having been destroyed in former years by large fires, to which agency also may be attributed the complete extinction of the Moa. The bones of this wonderful bird are quite common all over the country, even on the surface of the ground. Of course more perfect specimens are found in landslips on the banks of the rivers. 1
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Sheep-farming is the most remunerative investment for money, but all available country, for sheep runs, is already taken up. The Government allow all persons to purchase land wherever they may please, and to any extent (except a pre-emptive right of 250 acres granted to each run-holder), at a fixed price of £2 per acre. All the run-holders are striving to purchase the freehold of the land fit for agriculture on their runs, but those who have runs inland (not having any land valuable for agricultural purposes on them), are quite safe from being disturbed during their present leases, which expire within seven years from the present time. It is not generally known, but in the settlements of Nelson, Canterbury, and Otago, fully two-thirds of the land are unfit for agriculture, being too mountainous; and yearly large purchases of land are made, so that in a few years all the most valuable part of the country will have been bought up.
The population of the middle island is increasing rapidly, owing to the productiveness of the Gold Fields. 2 For which reason (and, as before stated, the limited amount of agricultural land) land is the safest and surest source of profit on the outlay of capital, and, when purchased at the Government price, is worth fully fifty per cent, more at the end of a year.
I have seen 10,000 acres bought from the Government at £2 per acre, and a good part of it realize, within eighteen months, £10 an acre, without a single fraction laid out on it. 3
THE OTAGO PROVINCE is situated in latitude 45° 53' S., about 300 miles south of the Canterbury settlement, on the east coast.
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The northern part of this province, viz., the Waitaki district, adjoins the Canterbury province, and is enclosed by the same leading range of hills that runs south from the Rikaia river and parallel to the sea, at an average of about twenty miles from it, when it gradually nears the coast, until it abuts on the sea about thirty miles north of the town of Dunedin, the capital of Otago.
This portion of the Otago province has a similar climate to that of Canterbury, but with less wind. Fogs are unknown; some summers are perhaps too dry 4 for vegetation, but it only affects the second growth of grass in the month of February, where the land has been overstocked.
The Otago Government was at first very much opposed to capitalists, and greatly injured the original runholders by passing laws detrimental to their interest, and also in the case of the sale of lands, it has endeavoured to keep out capitalists by limiting the amount of land sold to one purchaser. But I am glad to state that it has found reason to repeal the laws formerly in existence, and that the land is now thrown open for sale in large blocks, a surveyed district being on sale about once every four months, containing 3,000 to 4,000 acres.
The principal Otago diggings are situated within 100 miles of the Waitaki district. The land is, in the whole district, superior to any other in the province of Otago; this in connection with its peculiarly salubrious climate, makes any property there very valuable.
Moreover, there is a very promising township in this district called Oamaru, containing more than 1,000 inhabitants; a coach runs three times a week to Dunedin, and one will shortly run to Timaru to join the Christchurch coach.
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The electric telegraph is nearly completed between the two settlements.
A steamer plies twice a week to Dunedin, and once a week between Lyttleton, Timaru, Oamaru, and Dunedin, besides numerous coasting craft; it is the only shipping port for wool and other produce for the whole Waitaki Valley and the inland lakes.
Sheep farming, as in Canterbury, would be the most remunerative employment for capital, but for the uncertain tenure of leasehold runs (where they contain any land fit for agriculture) as such land may be bought by capitalists. It is generally out of the power of private individuals to purchase anything like so large an amount of land as would secure their runs; but the case of a Company would be very different; having large means at their command they could buy out present runholders at a moderate rate; the runholder would be too glad to sell the goodwill of the lease of his run, when a Company had purchased (as a freehold) the most valuable part of it.
Taking the average of runs, one-fifth purchased as a freehold 5 would secure the remainder of the run until the end of the lease.
A Company starting just now would have this advantage in addition to the above, namely, that leases of runs are at a low price, more than half of the term of the leases having expired. At the same time an ample period of tenure would remain, to enable a Company to raise a purchasing fund during so profitable an occupation of the country, quite adequate for purchasing, at the expiration of its leases, all those portions of the runs of which the freeholds were not already in the Company's possession. 6 Without any hesita-
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tion I would say that lands bought, as I have now stated, at the Government price would realise (even without improvements) more than five times the cost price within as many years. In the mean time care should be taken to put sufficient sheep on the runs, so that the nett return from increase, fat stock, and wool, will yield a good dividend each year on the capital laid out, and also a large purchasing sinking fund.
I would here mention a very common mistake made by the New Zealand settlers, that of taking up large runs (in some cases 100,000 acres) and not stocking them, even at the end of seven years to their full extent. They have consequently thousands of acres unoccupied, except by stray sheep, of which in rough country, large numbers are lost yearly either by wild dogs in districts far inland, or by straying and joining their neighbours' flocks.
Hence, it has been found by experience that comparatively small runs of 10,000 to 15,000 acres each in Canterbury, when fully stocked have paid bettor than the vast runs taken up far inland, only one quarter stocked; and, for the following reason, when the run was stocked, the runholder was able to sell the surplus stock, equivalent to 70 per cent, per annum, and re-invest in the freehold of the land, which trebled itself in value in a few years, whereas, the owner of a large run never sold any of his increase, hoping first to stock every acre of his run; in the meantime capitalists came in and purchased the most valuable part of it, the runholder only having a pre-emptive right of 250 acres.
I have endeavoured to show the advantages that a company --on an adequate scale--would possess in the present state of New Zealand, and that there is not the same opportunity for persons of small capital to get on as formerly.
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Below are calculations for the investments of a company, supposing it to start with only £55,000, though the same result would be arrived at, increased proportionately to the amount of capital laid out by a larger Company.
Upon £55,000 invested as above, a clear profit will be seen in these tables of £36,573, realized in three years' time, besides good annual dividends free from all deductions.
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AN APPROXIMATE OUTLAY OF A NEW ZEALAND LAND AND STOCK INVESTMENT COMPANY FOR THE FIRST YEAR.
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THE ACTUAL RETURN OR PROFIT ARISING FROM THE OUTLAY OF THE COMPANY AT THE END OF THE FIRST YEAR.
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THE PROPERTY OF THE COMPANY, IF VALUED AT END OF FIRST TEAR WOULD BE AS FOLLOWS:--
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THE PRODUCE RETURN OF SECOND YEAR.
1 N.B.--4s. per head is a low average for New Zealand bred sheep, as 6 lbs. is not uncommon for a hoggett's fleece, and as the best English breeds will be introduced, even 6s. per head might be safely calculated on after the first year. 2 Owing to the vicinity of the Otago gold fields, there is an unlimited and ready sale for fat sheep, especially as pleuro-pneumonia (which does not affect sheep), has decimated the cattle. 3 No wool allowed for these.
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THE PRODUCE RETURN OR THE THIRD YEAR.
N.B.--By introducing the pure English breed of sheep, and from the proposed system of growing artificial food, the wool from the flocks of the Company (at the third year will equal, if not excel, in quality and lustre, the best English grown wool, and thus command the highest prices in the London market.
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THE PROPERTY OF THE COMPANY IF VALUED AT THE END OF THE THIRD YEAR.
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If any confirmation were wanted of the fact the present is a highly favorable opportunity for the investments of a Land Company, in the Southern Provinces of New Zealand, it would be afforded by the avidity with which shrewd Australians are purchasing lands in Canterbury at £2 per acre in blocks of 10,000 acres, who are doubtless aware that in a few years, it will be worth £10 an acre.
An additional and very profitable field for investment, is offered in the breeding pure English breeds of sheep, on enclosed land, thereby trebling the amount of wool per sheep, and getting large carcases for fat stock. 7
The average weight of New Zealand bred merino sheep, is not more than 55 lbs. per carcass, whereas the Lincoln or Cotswold would be double that weight.
The climate of New Zealand allows the grass to grow during the whole year, saving a few weeks in winter, and with judicious care, quite sufficient feed will be got, on fenced-in lands to keep 2 to 3 sheep per acre, but if the land is laid down in permanent pasture (English grasses) fully 6 to 7 sheep per acre. I have myself tried it, and found that the above result can be obtained.
I presume it does not require any further explanation to show the advantages a company would have in starting in Canterbury or Otago. Let any one consider for a moment, that in England farmers have to pay as much rent per acre every year as would purchase the freehold of the land in New Zealand, and that it would be free from the taxes which encumber land here. Moreover, the farmers in England have to contend with a rigorous climate, and stall-feed all their stock in winter, but in New Zealand there is nothing of the kind required.
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Since there are many persons in England who have a very indistinct idea of the islands of New Zealand. I would, in conclusion, just state that the northern part of the north island is where nearly all the natives are.
The Middle Island is divided from the north by straits nearly twenty miles across, and the number of the natives, in comparison to the European population, is fifty Europeans to one native; and I know for a fact that many settlers rarely see a Maori, and some ladies never have.
In fine, a Company investing its capital on the sound principles, and the practical development of them here set forth, and through an agency thoroughly reliable as to local experience, judgment, and integrity, cannot fail to succeed.
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