NEW ZEALAND FINANCE

Auckland Star, Volume XXXIV, Issue 89, 15 April 1903, Page 6

NEW ZEALAND FINANCE

A SPLENDID SURPLUS

RECORD YEAR FOR TRADE

PROPOSED BANKING

LEGISLATION

GORE, April 4.

The Right Hon. R. J. Seddon, Premier, delivered a political speech last evening in Dalgety's wool and grain store, a very long narrow building, which was brilliantly lighted by electricity and smartened by a decorated platfctrm. Though of great holding capacity, the building proved none too large for the crowd assembled. The chair was taken by Mr Duncan Macfarlane, Mayor of Gore, and sesis on the stage were occupied by Sir Joseph Ward, Hone. Feldwick and Baldey, Messrs McNab, Hanna, and others.

The Premier on rising amid applause said he was present to renew a very pleasant acquaintance. He was present also to do honour to their worthy member Mr Robert McNab. Being present, he intended to improve the shining hour. Mr Seddon congratulated people of the colony on its prosperity. The people found they now had opportunity that in years past were denied to them. There was hope now in the breast of every man and woman of the colony, that the prosperity we now enjoyed might continue, thereby insuring the happiness of the people, was the first desire of those to whom was entrusted the government of the colony. As the financial year had just ended, the audience would expect him to say something about finance, and it would be sufficient to indicate the position generally without wearying people with detailed figures. First he would say that the finance of the Colony was never sounder than now. , There was increased revenue, increase of population, and increase of productiveness. The progressive policy of the past few years _ had enabled people to improve their position and make money, and this state of affairs would continue so long as the present Government was kept in power. People knew that very well. If any who did not know it would cast their minds back to the time when the other party were in power, and compare the position then and now, they would admit that the Colony was better oh" and had brighter* prospects than at any timo before. Politically, socially, and pecuniariy the condition of the people had vastly improved. Taking the approximate' revenue for the year 1902-3, as compared with the actual revenue of 1901-2, the figures stood thus: Revenue. Differences. In- De--1901-2 1902-3. crease, crease ' £ "' £ £ £ Customs ° 334,200 2,201,110 138,034 — *$£%• lIXXUWO 1,869,489 00.311 - Stamps... 976,000 908,671 #T,329 - Land tax, tax 0 ™ 0 .. 497,000 492,832 4,768 — Beer duty 90,300 90,23-1 GG — Registraotherfees a 78,500 76,492 2,008 - Marine .. 32,500 31,456 1,044 — neons .. 130,000 133,761 — S..GI Territorial revenue 230.000 249,619 — 19,019 Totals.. 6,328,500 6,033,070 295.810 23,350 Deducting the £23,380, the Premier continued, the actual increase was £275,430. (Applause.) Coming then to the approximate revenue for As compared with the estimate, he had the following figures to submit: — Appro*. Estimate. Actual Increase £i £ £ Customs 2,334,200 2.200,000 114,200 Railways 1,960.000 1.575.000 55,000 Stamps' 070,000 598.000 78,000 Land and Income Tax 407.000 485,000 12.000 Beei- duty 90.300 02,000 — Registration and Other Fees 78.500 70,000 8,500 Marine 32,r.00 31.000 1.500 Miscellaneous ... 130,000 125,000 5,000 Territorial revenue 230,000 230,000 — Totals 6,328,500 0,026,000 304,200 The only decrease was the beer duty, (£1700), and deducting this the total increase was £302,500. (Applause.) He was not in the colony when the above estimate was framed, but the figures showed that Sir Joseph Ward was on the safe side when he made them. He (Mr Seddon) had not got the statement of the annual expenditure, but the figures given also showed that his estimate of a surplus of between a quarter of a million and £300,000 was not far off the mark, considering the reductions made in taxation, reductions made on railway charges, and the increased conveniences people enjoyed. It was a great thing to have a surplus such as we should have, and word about it ought to go through the length and breadth of the Empire, proving as it did New Zealanders were, he was going to say, the most intelligent—(laughter) —but he could safely say the most energetic people, and blessed with God's own conntry. They had every reason to be con : gratulated upon the satisfactory results of the year. (Applause.) RECORD EXPORTS.

The position of the colony could also be judged by the relation of imports and exports. As it was only the third of the month, the figures were simply approximate, but tin* returns to hand showed the imports to bo £11,484,000, whilst the exports totalled £ 15,083,000. (Applause.) That was a record for the colony, and he was delighted to know there was that difference between our imports and exports, because it meant that the balance was in our favour, and instead of our having to send cash or its equivalent to meet obligations, we paid by produce, and consequently the country wa3 all the better off. He wanted to see our imports come down and the colony to be a self-contained country, able to get on without sending money away. (Applause.) Last year the difference was not sufficient to enable us to meet public and private indebtedness, but nowthat we had a better position he hoped the financial critics would be honest and admit it. Going back to the question of imports and exports, he said that our imports from the United Kingdom last year- were valued at £6,551,452; America, £1,321.956; elsewhere, £3,153,315, a total of £11,376,723. The exports for the same period were: —United Kingdom,

£9,450,045; Australia, £2,684,350; South Africa, £754,059; elsewhere, £755,920: total, £13,G44,977. Since 1895 our importation of goods from America had increased by over £800,000, and on that subject he would say that he. believed in getting all we could from the land of our birth—the Mother Country. (Applause.) BANKING LEGISLATION,

Then, as to the Bank of New Zealand. Criticism was cruel, yet the aiding of the bank had proved a wise measure. Today the bank was sound and flourishing. As the position of the bank was to be reviewed next session, he would say what course it had been thought should be taken. Some cried out for a State bank. Well, in respect to note issue, he saw no harm whatever in giving these notes; in fact, note issue in Queensland was controlled by the Government. Then there was the question of partnership as between Government and bank, and in his opinion it was worth considering whether the colony should place a given sum, a proportion of the amount now given, as guarantee to the bank, and that it should be interest-bearing, and at the same time it woudl give control, which, he thought, was essential. If the bank lapsed into the lines which brought it into trouble before, it would be a serious thing for the colony. It seemed to him better to have the control in safe lines, and keep the Government auditor there. The only alternative would Le for the colony to withdraw its connection as quickly as possible, leaving the bank to shareholders and itself, to go on as it did before. The Government did not ieel disposed to let that course be followed. (Applause.) As the matter was to come before Parliament next session he could only touch upon the fringe of the subject, but he had indicated a policy which he believed would be in the interests of the institution itself, and certainly for the good of the colony. (Applause.)

NAVAL DEFENCE. They in this colony were paying £21,000 a year towards) the Australian and New Zealand naval squadron, with criusers which were not up to date. It was admitted by the greatest authorities on the subject chat the squadron required to be strengthened. When on his recent visit to England, a scheme was submitted that proposed to give an up-to-date squadron, and all that New Zealand was asked to contribute Avas another £ 19,000 (total £40,000) a year. It meant that for £40,----000 they would have an up-to-date squadron. For £21.000 they had a squadron that did not meet the altered conditions existing. He said emphatically they should be strong if they wanted to ensure peace. America had strengthened her navy in the Pacific Ocean, and Germany was in possession of Samoa, and France had decided upon strengthening her fleet in the Pacific, it was better for us to claim the right and protection of the mighty fleet of the Empire than to be fool.'iig away with an attempt to have a fleet of our own. (Applause.) The trade which passed the West Coast of Africa was £140.000.000 per annum, and of this one-fourth was with South African ports and one-third with Australia, and one-fourth with South America. They would therefore see South Africa, Australia and New Zealand were directly interested in maintaining the British squadron on the West Coast of Africa; they were directly interested in that trade route in keeping that highway clear. Wo in New Zealand did not want a navy of our own, but were prepared to pay our fair share to the Australian avid New Zealand squadron, leaving it to those in charge to take the squadron where it would be most useful. (Applause.) LAND SETTLEMENT. As to land for settlement, the total expenditure to 31st March, 1002 was £2,229,128. On that sum. the interest paid last year wae £213,828, and rents received came to £303,106, giving n profit of £89,278. The Department had purchased 71,526 acres since the Act was passed, 184,254 acros were under negotiation, and he now made announcement that the day Cabinet had agreed to the purchase of the Levels Estate in Canterbury at a price satisfactory and profitable to the colony. (Applause.) THE PUBLIC DEBT. Some persons said that the Govern-, ment were unduly increasing the public debt. Nothing of the kind. True the public debt was 52 millions, as against 3 millions when they took office, but the figures met every objection. Buying land from natives had cost £649,700, land for settlement £2,772,710, advances to settlers £2,749,000, loans to local bodies £ 1,419,000, improvements to Government lands £500,000, Bank of New Zealand shares £500,000 loan conversion £644.229. The average borrowing by this Government per year was £309,335, whereas the previous Government borrowed £500.000 a year. Then it had to be remembered the general taxpayer paid no interest on money used in buying native lands, that people who went on the land paid interest on the cost of land for settlement, and settlers also borrowed and paid the cost of advances. Railways must be made, also roads, otherwise the country could not be developed, and people who were now enjoying the benefits had no right to say that the Government were unduly burdening posterity. Through conversion operations the average cost of interest on the public debt had been reduced from £4 10/3 per head in 1891 to £3 15/3 per head in 1902. Against the fact that the public debt of the colony amounted to £65 a head of population, must bo set the other fact that the pub-_ lie and private wealth of the colony'; amounted to £351 per headi

INDUSTRIES. In conclusion he would be doing injustive if he did not refer to the.industries of the colony, and there they would also notice great improvement. In ten years the number of establishments had increased by 009, the number of hands employed by 10,095. wages paid by £1,289,921, horse power by 17.356, value of land by £426,519, value of buildings by £935,901, and value of machinery and plant by £133.538. He wanted to see this country self-contained. It was imperative that they should manufacture their own steel and iron. Locomotives and waggons ought" to be made in the colony, and his colleague, the Minister for Pvailvays, and other colleagues, agreed that they must do this and have no further importations. DUNEDIN, April 4.

The Premier to-day informed -an "Evening Star" representative that all the Treasurer's esimates last session had been realised, and there was still an increasin"' revenue and a considerable increase "in population, while the year's exports constituted a record. On the proposed formation of a separate Australian squadron, the Premier spoke with no uncertain voice. Its ad-

yocates had not calculated the cost, which would run into a capital expenditure of £3,600,000, while to maintain such a squadron, including the payment of interest would mean an annual expenditure of over a million Both Australia and New Zealand, he said, must continue their subsidies under the naval agreement. As to the Judicature, a Bill will be introduced to the effect that no future appointment to the Supreme Court Bench shall be made of any person over 55 years of age, and providing for their compulsory retirement at 70. Provision will also be made for any of the present judges who are over 70, but who have nof. completed 15 years' service allowing them to. retire on half their salary. The Premier was highly pleased with the deyelopment of South African trade. There have recently, he said, been heavy purchases of our butter, cheese and frozen meat for that 'market. Contractors intend putting on a larger steamer than any hitherto engaged in the service. He that it will leave with a full cargo.