Received 18-4-92
Answered 16-5-92
Lancing
26 February 1892
My dear Chris
I am just recovering from a six weeks’ illness – influenza in its worst form. I hope to throw off its ill effects by care in the course of a few weeks. My lungs were severely affected but are now almost right again.
I have told Balchin he must draw on you in future for the shipment he sends you in your last letter of 4 January. You speak of sending money in small sums. I hope you won’t make this venture. You could not make a greater mistake in every sense and again I counsel you to keep to the ready money business and not risk credits. Your colony is in a very unsafe condition in its finance.
Your wise voters begin to see the folly of their actions in killing the sugar industry and would fain woo it back again, which cannot be done for some years if ever. Investors will wont some better security than formerly before taking up an expensive industry that may be blocked at any time by the silly ???? of a would be law maker.
I see the Government are offering blocks of 5000 acres for sale. Where will they find buyers at the present time? They would probably have an income tax imposed on the land soon after buying.
You may remember what the government of New Zealand some few years since in their necessity imposed a considerable income tax, but also on the money a man or woman had to their credit at bank. So that men coming to the colony with some capital had to pay a tax on it immediately it was deposited.
JAE
???? ???? and source the others. But Queensland is rather worse than the others, and all are but starving of the time of when the crash must come. That conceited fool McIlwraith has broken with the Bank of England – the only connection that could have saved you from absolute bankruptcy. Your banks are rotten to the core and before the end of this year I quite expect to see the Royal National and possibly others shut their doors. Don’t lend money, don’t give credit, and don’t keep more money in the country than you are obliged. As for land or house property in your district, it is not worth holding.
I will probably write you next week
Your affectionate Father
Jas. A. Elmslie