[land, value of – economic recession – Willis J., views of]

Marquis of Ailsa v. Watson

Supreme Court of New South Wales, Port Phillip District

Willis J., April 1843

Source: Hobart Town Advertiser, 25 April 1843

            We request the attention of our readers to several important points, implicated in the following case before Judge Willis. These are the real value of property; its price or nominal value - and the position that government should lend money on the land to half its value, so as to relieve the present difficulties and give a little time to recover. The case occurred at Port Philip but it is equally applicable here. Property will no more bring its value in Van Diemen's Land than in Port Philip, and if the same forbearance is not shown here which appears to prevail in that colony, we shall be even worse off. There they seem to acknowledge the necessity of forbearance. The judge talks of it familiarly when a case is brought before him; the other parties acknowledge it and the Judge's mediation has often done much to prevail on a creditor to pursue the course which a proper attention to his own interest would dictate.

            The Macquis of Ailsa, &c. v. Watson, &c. - Mr. Cuninghame applied for leave to amend the bill filed in this case, without prejudice to the injunction; a small slip had been made in applying formerly for a similar order, which as it had neither been drawn up nor acted upon, he prayed he might be discharged and the order now applied for substituted.

            His Honor. - The first granted order may be discharged with prejudice to the injunction. Mr. Barry mentioned the other day, that a person could be found to pay £10,000 for the estate and pay off all the debts due upon it. I should say, take his offer by all means.

            Mr. Williams said, such a handsome offer made his teeth water, but he was much afraid it was easier said than done.

            His Honor. - The receiver had tried on Saturday last to sell a number of sheep belonging to the estate, for the purpose of paying the men's wages employed on the stations, but the utmost offer he could get was 2s. per head; and from that circumstance you may judge whether there be enough to pay your costs. I really do not know whether it may not be better to sell off the estate at once and secure what it will release. What is the amount, Mr. Cunningham, of Lord Ailsa's claim upon the estate?

Mr. Cunningham - £5,0000.

His Honor. - The Marquis is a very old man, I believe, about seventy-eight years of age, and his son may not think it worth his pains under the circumstances to proceed further in the matter. Could it not be arranged in some way?

Mr. Cunningham was afraid not, as Mr. Mason was absent.

His Honor endeavoured to do all he could, and even more than a judge could have been expected to do, in selling these sheep, but the receiver could not get £1,000 without paying on the most moderate terms £250.

Mr. Williams. - There can be no doubt the property must be sold.

His Honor. - But how can sheep be sold at 2s per head? - This could not be selling them; I am really puzzled what to do.

Mr. Williams. - I dare say the receiver is puzzled to.

His Honor. - I believe the receiver could not get more than £1 per head for fat cattle.

Mr. Ross mentioned a late instance of six hundred cattle being sold at 25s per head, with 500 calves and station given in.

His Honor. - I really do not know what to do; where is the money to come from?

Mr. Williams. - There is plenty of money locked up in the banks.

His Honor - The notes in circulation in the province may amount £27,000, and the specie to £8000 more, making altogether £35,000 afloat at the present time, without reference to the deposits in the banks. If the government would advance 10s per acre on the land to the occupiers for a few years, it would certainly relieve the district from a great portion of the present distress; and I apprehend there would not be much difficulty in effecting this arrangement, as Lord Stanley had fixed the minimum price at 20s per acre. It is alarming to think what the colony was coming to.

Mr. Williams. - The people will starve before the government would accede to such an arrangement.

His Honor. - The government has done something similar for South Australia. We export wool to a large amount, and other things, and something should certainly be done to prevent the colony from coming to a dead lock, which is not a very elegant expression but nevertheless one of Sir George Gipp's. What is wool selling at at home, Mr. Were! (who was in court)

Mr. Were. - One shilling per lb can be got for wool at home, and 10 advanced on it here, which is so small as to leave the grower in debt.

His Honor. - It might not do so if wages were only £20 instead of £25 and £30. - Port Phillip Herald.