The Long Depression “The Hungry 80’s”

The Hungry 80s Read H/out and add notes In 1878, the Bank of G___ went B___ and credit to NZ was cut by ____ Prices for our ___ fell in G__ B__ due to over ___ & c___ between ___ Farmers did not buy which had flow on effects - eg_____ this led to increased bankr___ By 1886 the d___ had spread to the NI and between ___ people left NZ

What Caused the Long Depresssion- Historiography Vogel was made scapegoat for the depression by his contemporaries and by some historians – eg Condiffe (1959) and W Sutch (1966)- assumed that b____ got ___ and created the d R___ D___ (1986) disputes this, she argues that Vogel was just fulfilling the expectations of the settlers Gary Hawke (1985) agreed with Dalziel and argues that Vogel didn’t create a catastrophe, but instead created an ec__ Infr__ __ ___ opportunities Vogel’ borrowing may have made it worse, but there was a world wide depression N Z Suffered because it was vulnerable to___ & dependent on BR Major trigger City of G___ co___ Bankers also to blame

Symptoms of the Long Depression p 68 and List the immediate effects and copy the diagram Read the swaggers account

Was it Really and Economic Depression Hawke says- p68 Income was st___ rather than a decline We would now see it more as a recession rather than a depression Hawke argues that 19 th c writers used the word depression to refer toa fall in prices or exports rather than a the modern sense of a decline in real incomes Today we may even view such an event as a period of economic restructuring

How Long was the Long Depression? It is usually considered that it lasted from 1879 – 1896, however there were regional variations. The South Is was hit hardest because of the collapse of wool prices and the major lenders to the wool farming sector. However the Nth Is timber helped to boost the Auckland economy through demand for timber for building in Auck and Well. Quartz mining offered employment and long term economic growth Some areas such as Taranaki and Waikato were depressed anyway-as a result of war so they didn’t notice a downturn The Nth Is responded readily to opportunities refrigerated shipping presented in meat and milk products could be transported to markets in Grt Britain.

Abolition of the Provinces 1876 Despite their influence in politics the provinces were gradually losing their reason for existence Examples- –Central govt took over immigration and public works –Communications had improved –- others –add from h-out

Abolition of Provinces- Context Six autonomous federal units set up in 1852 were failing to thrive- 3 SI, 3 NI Vogel scheme- increased immigration and signif development of infrastructure & communications Economic depression in 1860’s – esp in North I- result of the wars

Factors Contributing to Abolition Provinces too small to raise sufficient $ to develop the colony as a whole Provinces failed to deliver on the promises of the Wakefield scheme, public works, immigation etc Provinces became obstructive of cental govt- e.g. plantations for investment It was thought that a united country would be able to raise loans than provinces Vogel scheme depended on united effort to encourage investment and immigration Gold had run out timber was disappearing, wool prices were low. Central Govt input was necessary to inject money and labour into the economy

Forest Conservation Scheme What did this have to do with the abolition of the provinces?- See H-out- make notes

Consequences of the Decision Improved economy Central govt now dominated all aspects of NZ life, economics, social and political Increased borrowing overseas enabled land buying, surveying and development Increased immigration addressed gender imbalance Trade business, landholding and mining became more regulated Transport and communication infrastructure improved (roads, bridges harbours and railways) Franchise was extended to all Pakeha men 1879

Contemporary and Historians Views Major Harry Atkinson of Taranaki was critical of Vogel’s public works policy Sir George Grey came of retirement to fight for the 1852 Constitution- a staunch opponent of centralised government The southern towns opposed centalisation believing the north would live off the fruits of the labour of the SI Atkinson’s government decentralised expenditure but centralised borrowing- thus encouraging ‘porkbarrel politics’ (Bassett 1975)

The impact of the ‘Long Depression’ from 1879 to The nature of the situation Depression resulted from the overproduction of wheat in North America and Australia, which affected British agriculture, and then in turn the New Zealand economy because of its dependence on Britain. Bankruptcy, especially amongst big businesses, and Auckland merchants once the effects of the depression reached the north Drying up of investment capital as investors moved money to South America Suffered particularly because of heavy borrowing in 1870s

Did not take up real opportunities of refrigerated shipping until the 1890s Unemployment rose to at least %10 of male workforce; lead to despondency, migration and probably an increase in the crime rate Migration to Australia exceeded immigration Poverty and poor housing ‘Larrikinism’/juvenile delinquency Drunkenness Prostitution

Ways in which the situation changed over time and influenced people Government responses were minimalist apart from retrenchment (public expenditure was slashed), introduction of a low tariff to encourage manufacturing, experiments with Village homestead settlements and providing easier access to small runs. These efforts were brought about by the ‘conservative’ Hall and Atkinson governments. Pensions, national insurance and assistance to small settlers were considered by Atkinson but little was achieved. Stout-Vogel government overhauled welfare policy in 1885 providing limited state assistance The Liberals attempted to do much more, especially for small farmers Breaking up of the great estates

Department of Agriculture set up in 1892 to regulate agricultural practice Advance to Settlers Act (1894) provided cheap credit to family farmers Department of Labour increased control of working conditions and aimed to reduce unemployment Resumed borrowing in 1893 to try to stimulate economic borrowing Improved the legal rights of women eg fairer divorce laws and franchise bills introduced in the 1880s Responses to social issues came more from individuals, such as Robert Stout’s attempts to deal with Larrikinism, or from organisations such as the Salvation Army and Women’s Christian Temperance Union (WCTU).