FINANCE.

Dominion, Volume 3, Issue 645, 23 October 1909, Page 6

FINANCE.

§j|;; f PRIMER^ ' 7 :;lasti()ugiit .-the:. Prime. out-; FJK77He;sud j-tiat'ftlia;;infojma-tibn which';he'Vas' :~jh' assistance;to*mem-iS*Kjters;:ta.'discr^rig>tb.e-proposed-Loan;Bill;;:>: '•'■ M,*;l^;the;:poatioii'.was:-7j; Si?* ; -^Balanc^t : on ; ?Sp^r ; t'ia)9- ; '^ : ''■'''77 r ''.-'';.'".'■■ :.:: :^ : - ; -. ,; 7; W&iM^Mx'^&.f:^.^ ; 7v."• ; je*34,32i ?S^^j;Sw'i^ ■;.;-.;.;-• :>-'250,000 v/. :-■' :•■ '^i**»32i_ : ;^S';'. ; .'Bec«p&^ fsi'77;s;-Bevehu^ :^aHy;;>fffe;;i^pt3;:, v ;:c^;;.^.;:-: .67444 ', 7 ■";■;.-■ ; 5?«:!iW^&J/:VV.^-^ ; .',;x 7; : 1909, to' September SO,■ 'AWi J -K^— : - : 'S :: -:!:-^ : i^ : -ii\<^-^'-~ :^:y, ''^ '■::.'■'/■■:■-'■ *SS :^WTOn^:v\y;,^^rt:is':379^-: w> .';.;. ■■'■- ;7 £609,380 i<S;|uiS:7SLess .TreasTrry VBUIs;-; J ,f;':;.,;v:K;;,550,000; j'-:fI-*: : vi";S'?Leaving^balance '-:Viic. ! :■■' -'7.7;-' £59,380. ;IS' ri ■'■' «i©5 X^e^p^rion^^regaxd Yto iihe Public, ;Works7 . Ways':aiid7Means,V-April;'.>v : 'v.''•■■■'•■• ■',-■..;.':''...£433,709 uf?:^ ;i *Beceipte^*-'V\-'■.'-'''. ; ;;;:.',;:.-',' '-';'.• -"- ;77;K577yLoan/'rnoiiey v7i. : :77.i; ■JByj0O,0fl0,,::,;' : i ( --; -~,.,.;..' Kf ;Vj-sj»:-.;Otb.er ;Jrecfipte^.y^;"> ; '^ v r;-.:'.;V'_W3.- .;-; ! -"-7'7 '■ '- ffiHitvTbtalialtogotfor^incitidißirrDalaiice■'..'. ■■'■■/. ■■;••. j.i;^l9o9^.;;v;^A;: ■».,:;-»; #M?M 52 77;s*;Expanditufe—;;;7;;>;7-'- '■';',-«■'■''' '-■■ ■• ',•-'-■,:;;.:'-; ; ;- ;p^i^ ; ';iAjiniuil^ r aror^iitiosS;^9(>3,796- ; ' ■■•; .-■.,.;, SsS'Sii^Pthe^^ vM- ; w& '&3^M.i M '0n;,5ep;;.30,: : '09./;;: . •'•" : - ,;£526,719 ;■:■;•.■&_■ i.; :;,-, I?|&B&< Cash' ■■&-i&:15Z?5Z £271,040,''777 - : 7.'■ '■ '.'. gffiiSE^Adyancei?^ |&£s£® £$£>«•>;£s£# .;;;;';' • ■'"" ' r !?;|>; , as 'follows:— €'?;;': v« ;v; 685^758»j ; ii!ff773Lah^nd ; :lrxomb ■^as.-fi.^.i..::^';,; /.27,903v: ;S;n77- Beer~'duty ;'.;.;;;;;..a.:.*ffi.V.i:..5:;.-:V;'' ''51,394 : : S-;&?SBairway^^ Kegiscratibn7;aM -other-fees ;';;;i;,;v;v: 5? 38,781 i i'^S'-'vKiMaiine^^^^ K ; SS,; ! Misceir&ebus;::,';^ g3'f SSNvfeTb?tbtal -iotal/.'-Sir/ Joso^i : : saidj iHad toi-be added Sgfts ■^residue 1 ?;,- of :,'.tha i''>i;~::. Natibnai:;Endowinent'r'FundH mating 'ia'itbtot of ■ 55|;iYi3,8e5,382.;1)e I duct,iiig the^ainqurit,'receiTed.frpui ;,rH;- : ■; thqJNarioiiai';Land;Endowment as. none: H?;f; ; vparisbn;i;it^wbuld^ba; ; found'''that;the" revenue ;S*j'V?wM i ;J3l;ife;leffl'*.lKari.-J(tt , .th , ft.;con , eßpq ;< r 'i''; : ,m6hth'B- , of-1908,;wheri : .th'e ; total revenue,from!all. „'■ S-^'i^■'^H^o^t^^ i^^-}'!: >V" ; ;A'; ' v •"' ys^(r- : Sir in'lCujrtoms S;.i;S;an^;Stamps-^,3od: ; HTrre'falling;6tt , ; .a ; iftl'in\'' , . : :S>:';' loss<fif>Chiriesa'.jloll.tax;, iirconsequepco-of.thb-'JS'r.'intrtfdnitibnVbf"ther'edricatibn test.. Railways,' |,f:v;;:;hWeyer;ishowed:'ari increa'so; of: .£l67,ol6;;'Tbb' '&#:', -needed. ;sW^^ ! np; , e!tpVar<atio^';<as^it7^onld ! . ; .'he' apparent to's?.;ffj menlbers'; that;; stringency 'would p^fe?'affect';the^re'cßipts';'from;^t;hos6. : ;sources;;; The5';:.V;: receipts'-:|rp'm';raUways;;?fibweVer,';'more'.'.than br;; the.; loss;' iS,;- vA'The^amotafc.of;'ffio; reductions in;roveuno ; ; fcr> 'M. ft the -period ■: on threo'' items;; Sir. -Joseph' said, was. ;Wi;i : ;>e33S^oß i <M4,841'-.bn'-"cott6n- piece 'ftiSgooas,'. on /dried; fruiter and/.£235,389 ; 0n / ?^vT-'' : -.?MB^'!->'-T h 9ro-»er^";iWnoti6ri's'- i npm''tho rail;;;':iW.wayß;was! JBl6CVsoo,'ind-.there were concessions m? ;to JE24.6oo,"in';■■ the .Post and Tele--t&x,'. ;;:/':i total \ ; 'concessionY !; of' ft';;-:: ' ; ai : grand /'total in :concessions' of keep oh the safe 1 ■'."i M ; R <S>; h ?. ; F oaH > I( > r -thelpuTpbses of abnunent," :S;,r;^n^rit; : W-that ®{?.WSW : ne>«r,the;mark. > x ln view' of' -VflAv "»*■"« :tnat ?anoh;largo.;con<)essions : bad : 'i<t :;:,;j l^'iaM.i}t;wi!S;the ;worst half;;of"the'year, {:'*;;-; ?°, tbooriit >tne, ; posit»n■ ■wonld on' every hand ;;.-./;;;be 'coasidered ■ satjafactbry.;;.v. •y v' •-■'..-. '- ; :i;K'^!l , :ioseph;said 'it wordd -be seen ; 'rf* n i :, S e % ;he : intended ...to -lay on the table) Bills outstaiding' ~ on September 30.: last year-were -They had been .reducedi% ;-i50,000;-'.-: leaving ; the amount on-Septembor.3o last ; at.^£550,000.■• For , the ;members;-. he '.would pomt put tbrf.''it.was<rissml.;tb' i Bms- in airfi<^ldti()hl■.'!bi^'rev^oe' , and " , in;.', the owurary rereriiie';:accbnh't "for: the. six-:,inbnths. was ;-ae;_against -. X4,002,10i during. the correspohdrng : 'fiii;mbntbß/last'-year, ' ( or:a o!ecrease 'iiThe.'p'ennanent'charges teialied f0r.1909; as for ISOB, an:'increa6e'..of ;je2698, : while'.'.the De-' parauentaiyappropriationsvfor': the liks- period eho*ted a •-5814,479,' the respective totaiJ being 1909, and' ; for 1908 ;.The. total >eit«nded appropriations advanced by were for'; oi-dinary ; Departmental, purposes, of iwhich 'expended.....ln connection Vwith.. th<f. -Public ...Works: wrald toll April-ilj there vas availablb;.'..fbr.- waysy.and ' roeans''.'a' total of ifi433 J 7fl9,'-.^ ; .advances,-;in-respect'of .loans, antborised i during.; the short -session :>81,000,000, * other rccoipts i;j943," --making-a ; ; total; -of ;81,134,652 ;: ; ;Th'e.,-- expenditure ■for'.'.,-;the-:.'.'.sis months was -^907^33,-which kit a-balance-on September ; 30, lot i-^526 t 7lß.'.'~;'As compared. with' tho expendituTe;bn',''pnblic-works -during -the corresponding Uike.y.iperibd,-,: there .'was'i an.-in-creosoof JB7^i4,i ; « the principal '.-itaroe being rail-'. wayß ; pnblio : buildini's.'iei36,44o'; roads £81351, anditelesraphyoxtehsion The, • amount expended, on:■'■ road's' was.i£92,ooo;mora than for thel''corresponding period of''the .'pre-' nous year.i.'On'September 30 there was in the lands tor settlenteht' account 'for .the .acooisitioh of land, casli-.'aTailable -'.£335,000, aiid.'at : 'th'e: present dat©-'^£280,000,-',shoiring ; :. that''.;iss',ooo- - bfen so;spent during the. present;'mb'nth-in that direction. : On.Sep.tember 30, last,'the.cash, balance at-'the credit of.-,the,..publio account in tho Dominion ;wa5,*;4&6,110. 7 In other Government accounts'. there • t was >E509,030,, making a total credit'cash ;balan'ce'; with :.thb .bank here of :'.' In vLbndoii;there was; on the: same dafe a'ljUle;over;'one-'rnillio'ii.''•.'lf members wonld look'.at.th'eppsiHon-.atythe end of. the financial 71807-08,: they would • find there was a'balancb aVailablti of .£767,619,' thus enabling a.'transfer'of \£S00,000:'to. the -Public Works Fnnd''frbm,:ordinary revenue forythe, year.' In Jthe'pksent year: the. small .surplus brought forward"ifrbm-'tho'beginning of the' f'ear r was principally.',dne:to."tne';fact-.'of the argo concession -in:,regar'd to. the :iailways7 - Oh top of trmt.-th'ere was a .'shrinkage in.'revenue" from Customs;'':'.'.;';';:;';'';;'.;-- '■:.■;'■ ':■■■';. 'r'-y'd:' '

;■-., "W/.; ■%. ■ ~',.•'; -Then'again, it' was 'found necessary. to. m-ajn l ' '*■ .tain' public : ;worlcs".'at a hifjher rate than could :'.','hafa ilieerii-anticipated, ■ owing ; to circumstances' ; -'",: that, had,^arisen-, with employ-: '. : .':ment',;and"labour,"'for;:which 'the Government, :i : --i waf.nbti'rcspohsiblo.:; He wished to emphasise; ' -;' 'the.:factV'that' ; rn-,no'"case' had .the Government, *.'. fn ipr'osecution of the ■ works" to which/he bad. ' "alluded employed labour "on. other than' repro!■;,du(!tiv«:works;;The:bush'clearing would prove :-.' to 'be "remunerative,. and .it, could not be gain- '■'.- ;i eaid ; thatAthe and road;, works; would f\- 'be .reproductive.'' 1 '* There was ho probability of v'Vany, supplementary' amount from tho Consoli-,-.-dated.'Fund.-.this -year ..or, if any, only to a ■'.'• Teryismall;extent., -- : H"'.ii ''.'- > ■:'■'•' ■■'-•'-V ;■;.»/- There.was good reas6n, l .he.,thoughi ) why proy Srisioh 'should --.be made for tho. carrying on of g"'' v "' ! üblic ! workslvuhtil, at■'.■ any, rate.i.the.-.and .'of eptomber next.' For. some- time the country : ' and.deliberately, decided to .carry '■:'■ 'on /public -works at an 'onhancedo. rate.;;-.' The bad to make necessary': provision ■ -: ; W'ways anM moans to enable public works to be i''S tarried oil till the.Hbuse next session . consid-. •■ v'ljred .ttoJfeduirtaeSfs'foi''tfh'e .yiiar^lOfeHe '•'•■■ Was' submitting l'u. proposal• for a: million: loan : .''■■"' io ■' ensure ytliat;! there • .avould n'beV'the necessary ■ wdi'3' and- means)-. Some members failed.' to re- ■ i- ®eiiise;that, Parli(unont' ; had. to make;prow«os

'et~Myyear for publio works.expenditure for.a | •pkjwd bbwmd;thb financial;year. If Parhamsnt .iiould bo meeting, again before March 31, it -would be possible to make provision for less than the million until- Parliament met. 'As Parliament ■ did - not - assemble till tho '.end _of "June, and rt. was seldom that the authority for -money iras'granted.:.before September,:'it wa3 only prudent iaV.make. the proposal to secure provision until September, 1910. ' Dealing with' the Puilio Works Fund, Sir Joseph said that the balance brought;forward last year was ,£43l,ooo—and the loan authorised during the short session was £1,250,000, making the total amount.available ,£1,684,000. ,;'..;■' j ' . Probable Expenditure. : The probable expenditure, for', the current financial year included i—Departmental, m■;ovudhig.- 'roads;- £41,500; railways ;.con-: struotion, -.-£800,000;: additions to open-.lines, 7e350,000; total;"£1,150,000. ' -Further' -details ■were: jmJttOi : lighthouses ; £20,000;. tourist and health .£15,U00. immigratiori,-'' £10,000; roads, - f®W> Native-lands;'£2ooo; developing:, gold ration Native lands, £700; contingent' defence, £20,000; sub-. Scl. Works, ■■■&&)■. ;total, .'£2,192,950. ,- The figures: in regard to .the .requirements of .memblrs this .'session were, he Midi'oiormous. He had talked' the- matter, over,with the Muuster 'for'Publio''Works:that-afternoon, and the tcr had'tbld'himthat the totalled about.- 10; millions. - The pruning knife.must,, it .would : be,'seen, be used'freely, and-fully, m. regard-to ,the applications; --;■•■'' , :';;; ■■:■.■'■'■ .';■ ;; ,-7 : . ; ' Iri ; reeard;'to' borrowing 'generally,-;he wouldpointbut that.it-was.not the practice of the. 6overnmeiit'.to issuer.shortdated''. debentures.. In.mbst:cases he-had:-insistea, w.en- .where; it entailed ;futuie convasions, on' a - currency ot seven-years,"ln the case':of Australia the New Zealand loans, had. a.currency.of.l 4. or 15;yearv I while ' recent 'lbansT.raised': in •• London had a -burrency ;tU1;1940.:. In connection with.- matur--ing c lotins,..'he';.was;pleased,.to..be able to teU. ■M'-'HonM'ktfat'.',;^ 'arranged;'""During'the past financial year, debeSufls ambunting,to- iell-due.and-•of 'thatlci'ge sum were renewed by. iLShiers, leaving £984,750.t0.bb provided for. by-the sale of .new-debentures.'.-:.Mr..Massey: What term? _ ; ', .. Sir Joseph:' I have "said-'that recent loans will not expire until 1940., Debentures for over a million,, previously bearing, interest at 4 ipe™cSlvVb.ad'been.;phiced at 3i per- x cent ' »>M 7:' exact 7poation >eing as ioUoivs ; -Ainonnt •.•matured, ;-at; 4, per, centn, per ■■-■' total,. ,-#,133^38, ; renewed;, or' provided-; for- ''>t' i . 'per .cent., 3j325; ?at 31 ;per' cent,7 £2,221,763.;: pntstand■ing,- £650,000.' As .a'Tesult of, these operations,, a saving of £5200 per. annum in lnte.rrat had been effected."7 During ;the present year there ..would, le maturing £2,619,023., ;Of that amount £1'552,650'fbU due during the last six'months. Of-this sum, £684,800 bad been ;the 'holders, 'and had been pail off" without any:.addiFional charge on the Domin on. ' for''' interest.' •':,-' :.Ono - parcel - of r £40,000 bearing •7interest;;'at;7 6 -per cent. _hadbeen:;' at ■; *:■ W ~ & hear.)- ''.In ; 7 April of- this' year £1,500,000 'of debenture had,been;issued at.3J-per cent, tho amount realised; being ?9[ net. It, was not his intention.to' give-away whathe believed to bethe strong-position'of,New .Zealand in the:matterrof'raising loans. ■:'He believed .in giving ; the'right7 , bf''; , cohversion >'at a lower .rate, to .those who"Hv;onld:'.'taKe;; the' debentures for. a; Uonger;period.;.'As' to'lthe' lately, seoured Iri London,-there. Was no; brokerage and ho: discount-oh" that, money. He had. already, 'stated! that' they- had not ; put -that money upon the market. ' The' money was obtained at dh per cent:"at par, without discount or brokerage. . ■ ■-. ' .."■■_• 'The' Prime Minister: I, have, already said. ; that: there, was no -term,;, .'■■'■ ■ '. ', ;„: ;;,. ■, :..Mr;;Massey: 7 Not at -call, surely?.. ■ ~..' , The Prime .Minister :'I; will, not enter, into-details,.-except-to saj'.that it -was in.anticipatlondt '8 loin ! -which"I -arranged. . .What ie' donef'-fihally-.'regarding it'.l.':hope ..will; be ;as miccMsf.ul7as''hasVbeen-; done in connection with other;■loans.'77:;7;7.""■■(■■'.■■•''-.'.•.■ 77'-;. ':,'7'. .,:>:.■ 7''

~'„■'; ; ; :f!cbuld7Nbt;Giya Full Details. '1.-. ' Sir''Josep'li / reiterated- that in his position he; cbuld;nbt give'full de'tailsfas to the -raising, of, loans;,.';Ho had'-'re'ceived7from'tbe:High ComJ missibner a (letter ,which,.madeiit. clear .that; there: should "be.'privacy ;in Regard to rfinancial. operations.'- '•■"';':■<'•'■ 7; •-- ■:•,.•■: .7. ' ...-'•' ■ .iiv.' Eraser: Call 'it reticence, i: The Prime Minister :-Any man who had to deal with .millions, of, money on behalf, of a -country was bound to sit under ..unfair criticisms from time to time when he could-not give; 'information until transaction's: were completed.. Before a loan was completed'the whole of .the debentures might hive to 1 be.put into inscribed §tock,. and they could;hot 'give particulars during that interval. .'.They. were 'bound to -respect the position that thdso.'who: invested in buir: stock in the Old Country, occupied. He wished' '■to'' state that early-in''this.year, we; had. obtained a portion .of oiir monoy:' in London, at. 2> -per; cent;.'. Tliat was not for tho currency of the loan: . -..;;:■,;'"■' ;7'V' ; ''- ', ,'.'-':' i Mr. Massoy: For how'.lo'ng?' '.;■•. ,-.-'■ "; •; The : Prime Minister: JFbr, -.the' time that.we) arranged-to take'the:money.,. ~.-.1 ',' '." Mr..MasseyMt'might be :a. month, ■ -.'■■; 0..-. .i.The Prime Minister-said: that .they were 'onlytemporary, advances'; "butsurely it'showed that the country stood in a good position in the Old: Country. .Whatever! Government was in power, there', must - 'be yloans, from. .time • to, time until, .the railways-were completed; What they had to avoid, vrtifl spending .them* on ;works that would not return, a .'sufficient rate of interest, and there would be. legislation, to. provide .for. that .this session.; .' 7' ■ -■; 7 .-.;..-' Mr. .Massey:;How- can you do that,in ne.w. districts? . .' -"; '■ ■77 ,' .. . • , .'"The Prime.-Minister: "With, certam'reservations I think, we can. ;' Tbe Loan Bill. .The -reason'. why, he; had; brought down; the; ■Loan Bill at - this 'stage'Vras'not 1 because we'; ■were now-in .want,of,,,money--we. were not, They had to make provision' till. the end of. September, at the' present ;rate; of expenditure. He thought it would not be prudent to wait, till the last moment before.he introduced the Loan Bill. There.might, 'he could not say,- be a general election in .the Old Country,'and it was well for them to mate their;arrangements ; In reply to Mr.' Massey, the Prime' Minister said that in the/printed statement to be laid on ■■ the table■ of the House he' would- include the liabilities'of -the; Public; Works IWI at; '.September'.,3B...'.V;'-.\,.v'..-'..-''-.;'. ."'■•: .';;,''