19 th Century NZ. The NZ economy underwent significant development over the course of the century. A number of specific developments as well as general.

Economic Developments

19th Century NZ

Overview

The NZ economy underwent significant development over the course of the century.

A number of specific developments as well as general trends and land issues shaped economic change in the nation.

The economic relationship between Maori and Pakeha also changed significantly.

The Maori/Pakeha Economic Relationship

Beginning of the Century

When Europeans first arrived in NZ they were relatively dependent on Maori for survival. What developed was a system of complementary exploitation (c-/ Claudia Orange’s ‘Workable Accord’)

Pakeha exploited NZ’s natural resources and Maori were able to exploit Pakeha for new resources and skills.

Causes of Change

Land was a central issue in the economic relationship between Maori and Pakeha, as it was the main economic commodity in NZ.

Over time, Maori recognised the maintenance of their culture authority relied on economic independence, which in turn required possession of land.

Maori thus became more determined to retain control of land.

The Changed Relationship

The implementation of Raupatu (land confiscation) and the Native Land Courts, as well as the NZ Wars which were fought in the North Island meant that Maori control of land was significantly compromised.

This resulted in Maori becoming more reliant on Pakeha economically.

Trends in Economic Change

General Economic Trends Exploitation of renewable resources

(whales, seals, timber) was usually so great that these industries were not sustainable in a single location.

Extractive industries were based on non-renewable resources so were important, but unsustainable long-term.

This dependence on depletive resources resulted in the development of a ‘boom and bust’ or cyclical economy.

Economic View- End of the Century

By the end of the century it was evident that long-term economic viability depended on the land and what could be grown on it- crops, grass, animals and trees.

Technological developments such as steam and refrigeration also played an important role.

Specific Economic Developments

Flax

Flax was primarily used by Pakeha to make rope, sailcloth and paper.

It was a commonly traded product from the 1820s- usually for muskets.

The boom of the trade was in 1831. After this, the demand for muskets was not so high.

Production of flax fibre grew again in the 1860s, stimulated by a shortage of manila due to the American Civil War.

Timber

There was overseas interest in this resource since Cook’s early voyages to NZ.

The first commercial logging took place in the Firth of Thames in the 1790s, and large-scale exploitation began in the Hokianga in the 1820s.

Timber was required domestically, for the building of houses, wharves, fences, shipbuilding, cooking, heating and fuel for steam.

Timber was also exported, predominantly to Australia.

The Nature of the Timber Industry

Timber was very much a boom and bust industry.

When the trees in an area were exhausted, the industry went into local or regional decline.

The pressure to provide land for settlement, led to the extensive milling and burning of timber in the later 19th century.

Gold Mining

The search for gold began with Pakeha settlement- it was encouraged by the government.

Gold was portable and valuable- it played into hopes of individual wealth and produced vast profits.

The discovery of gold helped open the country to more permanent settlement and led to extensive male migration- many migrants had adaptable skills and sound work ethic.

Exploitation of gold was done by private enterprise but regulated by the government.

The capital flowed through to national economic expansion.

It was a boom and bust industry, exploiting a non-renewable resource.

Prominent Gold Rushes

Coromandel 1852-3

Golden Bay 1856-9

Otago 1861-4

West Coast 1864-7

Thames/Coromandel 1867-8

Economic Impact of Gold

The South Island gained an economic and population advantage over the North in the 1860s.

The significant influx of migrants brought rapid establishment of transport routes.

Gold production continued after 1870 at an influential, but diminished level.

Ultimately, the NZ economy was boosted by the gold industry. Its profits helped to pay for imports and development.

Arable Farming

This is the cultivation of land for crops. Arable farming was practised in NZ on

both small and large scales. Large-scale cropping of wheat, first

developed in Waikato in the 1840s/50s by Maori but this was outstripped by Pakeha farming operations by the late 1850s.

Wheat and oats were the primary exports to Australia, but the volume fluctuated greatly due to NZ’s erratic weather patterns which affected crop growth.

Pastoral Farming Overview

Pastoral farming refers to the raising of animals on pasture- a renewable resource.

The nature of pastoral farming changed over the course of the century. From large scale To small scale.

Large Scale Pastoralism

Pastoral farming refers to the raising of animals on pasture- a renewable resource.

The nature of pastoral farming changed over the course of the century.

Initially the pastoral focus was on large-scale sheep stations. The extensive grasslands in NZ were ideal for this.

Sheep were first introduced in 1830, but expanded significantly in the 1850s due to drought in Australia.

Sheep were farmed predominantly for their wool initially. Land could be leased rather than purchased for sheep

runs, so capital could be used for sheep. Profits were made from breeding and sale/export of wool.

The significance large-scale pastoral farming was that by the 1870s, most viable pastoral land was in possession of only a few hundred people.

Small Scale Pastoralism

Small scale pastoral farms often focused on dairy (cows)

Issues with sheep farming such as disease, unsteady wool prices, harsh weather and pasture deterioration as well as the high cost of investment encouraged the development of smaller farms.

Cows were also better suited to wet conditions, on flat land in Taranaki as opposed to hill stations.

Dairy farming was more accessible to ordinary Nzers.

Closer settlement from the 1870s also saw the development of smaller farms.

Refrigeration

The advent of refrigeration in 1882 had a significant impact on the economy and pastoral farming.

It made small scale farming more economically viable- by allowing the export of perishable products such as meat, cheese, milk and butter. This led to the expansion of the dairy industry to cater to wider markets.

Sheep farming was also diversified as their meat as well as wool became viable exports.

Refrigeration also led to the development of secondary processing industries which added to economic expansion.

The Liberal Government and the Economy- 1890s

The Liberal Government also encouraged small scale pastoralism by attempting to put more people on land as farmers.

They tried to help farmers in practical and financial ways.

By the end of the century the economy depended on the staple exports of wool, meat and dairy products.