THE Financial Statement.

Auckland Star, Volume XXVIII, Issue 259, 28 October 1897, Page 6

THE Financial Statement.

THE SURPLUS £354,286. RIGOROUS RAILWAY AND 3LAND SETTLEMENT POLICY CONTEMPLATED. LOAN OF A QUARTER OF A MILLION. Railway extension, £200,000. old age pensions, £120,000. IBs Telegraph.—Parliamentary Reporter.) Uv' WELLINGTON, October 12. piThe Financial Statement was laid jon the table, by leave of the House, Shis afternoon, by the Colonial Treasurer, the Eight Hon. K. J. Seddon, &s follows: — Mr Speaker: In laying before lion. Snembers the financial statement oi fthis Diamond Jubilee year of our Most Gracious Majesty's reign, it is a matter for sincere congratulation and a-eioicing for me to announce that *ye still retain a buoyant revenue |md healthy exchequer, and that the Soundness of practising strict economy and maintaining a strong nnjmce has been abundantly demonstrated I have, however, a word of cauIfcion and warning to give, that we must not, because we are now enjoying fairly prosperous times, rush into & lavish and increasing expenditure, and suddenly become oblivious of past depression and financial difficulties. The lesson taught by past extravagance, followed by hard times, should not be forgotten. Prudence fend strict economy exercised in prosperity will surely obviate the necessity for drastic economies should there fee a recurrence of adversity. In the memorandum which I had the pleajßure of laying on the table of the House during our last short session, I endeavoured to place before members as close and correct an estimate of the financial results of the year gust closed as was possible with the ptime at my disposal. It is satisfactory to find that my estimates were &cry near to the actual figures.

{■ FINANCIAL EESULTS, ISO 6-97

■ I estimated the surplus at £340,000. BThe actual and audited results show ££354,286. We are therefore some £214,000 better off than we anticipated. ffhe figures producing the surplus are as follows: Eeceipts during the year, 5£4,798,708; expenditure, £4,659,980; Receipts in excess of expenditure, subjtotal, £138,728; balance brought foriivard from preceding year, £215,558; Surplus at the end of 1896-97, feE 354,286. I have already remarked [(in my memo.) that the surplus would iiave been still more substantial had it not been for the necessity to charge (three half yearly payments of interest during the last 12 months in respect jof the million and a half advances to Betlers loan. These entries were neciessary in order to make our books jagree with the actual payments made fluxing the financial year.

RECEIPTS DURING 1896-97.

' The Customs duties were estimated lat £1,670,000. The receipts amounted Sip £.1,818,972, or £148,972 over the estimate. A considerable amount of this increase arises, no doubt, from the [fact that stocks had previously been allowed to fall to the lowest possible margin. The revival of prosperity (during the last two years has inspired (confidence in importers, and has resulted in a very largely increased consumption of dutiable goods. From Stamps we have received £38,237 in texcess of the estimate. The amount (estimated to be received from the land itax and income tax jointly was »£ 360,000. The actual receipts amounted to £377,813, giving an increase of {£17,813 over the estimate. Beer duty tehows an excess of £6,787. Kegistrattion, marine, and miscellaneous show im increase totalling to £10,133. The Railways receipts have turned out ftvonderfully well. The estimate, was t£ 1,200,000, while the actual revenue to £1,287,140, or £87,140 in (excess of the estimate, arising from {the large movements of our exports fend imports, and an extraordinary infcrease in the passenger traffic, showIng in a most marked manner the improved condition of the colony. The territorial revenue was very carefully (considered, and I am glad to find that ;our estimate was not only reached, ibut was exceeded by £2,954. Summarising these figures, we find that fell the estimates of revenue have been lexceeded, and that the total excess Amounts to £312,098, including a Small sum of £63 for arrears of property tax. Compared with the actual jreceipts of the preceding year the revenue of 1897 shows an increase of i£ 327,047. fe EXPENDITURE DUKING 1896-97. r Turning now to the expenditure Jside of the account it will be noticed jthat a net saying of £22,198 was effected in the estimated expenditure. fFhis saving would have been increased !by £26,000 had it not been necessary Jo assist the Advances to Settlers Office in the payment of interest upon jfche million and a-half loan borrowed for the purpose of making grants to Bettlers upon mortgage. £1,404 was overspent under special Acts, and (£I9OB was paid over to local authorities in excess of the estimate of the iamount payable in respect of their Sendowments. £11,208 was spent in fexcess of the votes (including £8,313 for railways), and £3,189 without appropriation. £26,000 was also temporarily paid over to the Advances to Settlers Office. As I have already Stated, the amount underspent totals ifco £65,907. Only two items of the iamount underspent call for remark— S£ 11,284 Tinder the head of interest Bud sinking fund represents mainly Recoveries in connection with the conversion operations under the 3% per jcent. inscribed stock; £14,693 under jfche Department of Lands and Survey represents savings effected in native &nd additional surveys, salaries, and jequipments. Comparing the actual of 1896-97 with the prejceding year's figures, it is found that jan additional expenditure of £139,500 Jias taken place. Interest and sinkang fund shows an increase of }£ 25,694, of which £17,500 represents Interest at 2\ per cent, upon the half (million of inscribed stock issued for Jfche purchase of a like amount of IBank of New Zealand preferred fchares. Under the annual appropriations there is an increase of £ 114,246, ibut, eliminating the increased cost of teducation, which is fixed by Act, and [working expenses of our railways, the increase is only £73,195, and of this Bum the services rendered to the public through the Post and Telegraph Department are responsible for \£> 2,124; extraordinary services, such Ibis the census-, £16,400; expenses of

the general election, £13,700; cost of licensing polls, £5,500; preliminary expenses connected with the Government valuation of lands, £2,000; balance of the cost of the new cable steamer Tutanekai, £29,600; expenses connected with the Brunner mine disaster, £1,000; representing a total of £ 68,200, which shows that the ordinary services of the department have been carried on with the g-reatest economy, and even at less expenditure than'in the preceding year. THE MILLION LOAN. Under "The Aid to Public Works and Land Settlement Act, 1896," Parliament having empowered the raisnig of one million pounds to provide the means to assist the development of the country, in order to enable us to carry on certain works, such as continuing and completing our railway system, construction of the main roads and bridges, developing our goldfields, thermal springs, and our wondrous natural scenery, and for the acquisition and survey of native lands, shortdated debentures were issued for £250,000, and were taken up by the Post Office Savings Bank in exchange for Treasury Bills of equal value. This first issue matures in 1902, interest being at 3% per cent. The second issue (£ 500,000) was made on the 21st December last in the shape of debentures having an alternative currency (ten or twenty-five years) and carrying 3A per cent, interest. The advantages of raising money within the colony being generally admitted, tenders restricted to New Zealand were called for. This issue at the minimum par rate, the amount was covered by the public and monetary institutions at a very small margin above par. This in itself was satisfactory, but the anticipation that a large amount of. trust monies and savings of the people would be invested in this way was not realised. The assertion that the Government lending departments had invested in this loan is without foundation. In respect to investments by the Government departments it is worth considering whether or not with our lowest interest loans above par the departments should not invest, and in that way we should keep the interest in the colony, and the thrift of the people would at the same time have a secure and profitable, outlet. The £750,000 raised by these two issues has been placed to the credit of the respective accounts as indicated, and in the proportions authorised by the Act. It will be necessary to raise the balance (£250,000) very shortly, and I am of opinion that the Post Office should take up a portion of the same, particularly seeing that before long the maximum rate on deposits will have to be reduced to 3 per cent., which is the rate ruling at the banks. There is an advantage in the thrift of the people being so invested as to prevent loss, and should the Treasury be able to save through the Postal Department the brokerage and other charges it would be as well to do so. Of the balance which the department is unable to take up, in all probability we shall avail ourselves of the London market to float the amount in the. shape of 3 per cent, inscribed stock". I shall therefore ask Parliament to amend the Loan Act so as to allow any inscribed stock which may be issued under this Act to rank absolutely pari passu with the existing 3 per cent, inscribed stock.

PUBLIC WORKS EUND.

The Public Works Fund, part 1, was credited during the year with £375,000, proportion of the proceeds of debentures issued under "The Aid to Public Works and Land Settlement Act 1896." Released sinking- funds amountius to £12,896 also came to credit. The sum of £150,000 was transferred from the consolidated funds, and some miscellaneous monies amounting- to £2,359 were also credited. These amounts, with the balance brought forward from the 31st March, 1896, namely, £31,150, produced available funds to the amount of £517,425. The expenditure on railways, roads, and other public works amounted to £414,007. A small sum of £55 was also paid to the Waipa County by way of subsidy. These sums deducted from the funds available left a balance at the close of the year of £157.363. NOETH ISLAND MAIN TRUNK RAILWAY. Part 2 had a balance of £13,923 to commence the year with, and this amount was expended on works connected with the North Island main trunk railway. This account is now closed, the expenditure being incorporated with and provided for in part 1. THE LANDS IMPROVEMENT ACCOUNT. This account had a balance of £ 31,425 at the beginning of the year. Proceeds of debentures amounting to £208,700 were credited under the authority of The Lands Improvement and Native Lands Acquisition Act, 1894, and The Aid to Public Works and Lands Settlement Xct, 1596. Some miscellaneous items amounting to £3378 were also credited. The expenditure amounted to £106,930, and the balance at the close of the year was £136,573. NATIVE LANDS PURCHASE ACCOUNT. This account opened with a balance of £5,920, and the proceeds of debentures, amounting to £208,300, issued under the abovementioned acts were duly credited during the year, together with £2 for premium. Purchases of native lands, with the cost of surveys and other expenses, amounted to £129,000, leaving a balance of £95,222 at the end of the year.