DOMINION FINANCE

Dominion, Volume 11, Issue 41, 12 November 1917, Page 6

DOMINION FINANCE

TREASURY FIGURES

THE POSITION REVIEWED

BY FINANCE MINISTER

Sonio information regarding tho financial position of New Zealand was given to a Dominion reporter yesterday bv tho Minister of Finance (Sir Joseph Ward). Seven months of the 1917-18 financial'year have now elapsed, and tho figures disclose a big decrease in revenuo as compared with last year, and a substantial increase in the expenditure. Sir Joseph Ward said that the Treasury returns for tho soven months ended October 31 showed a total decrease in the public revenue of .£343,401, compared with the corresponding period of lost year. Tho main decreases were in Customs and Railways. The expendituro for the same term showed an increase on that of the corresponding months of last year of .£245,166. The chief items of increased expenditure wero to be found iu interest and sinking fund, Post and Telegraph, Railways, and Education, but it required to be noted that what mteht be termed an abnormal increase was uus in part to a sum of .£128,259 having been expended on the purchase of wheat, and that amount _ would in the ordinary courso of business be recoverable during the year.

The balance on the ordinary revenue account on October 31, 1917, was £5,529,628, as ogainst X 1,809,418 on October 31, 1916. Tho difference was accounted for by the fact that the balance brought forward on April 1 last, tho beginning of tho present financial year, was £6,474.854, whereas on April 1, 1916, it was- £2,166,077.

The returns dealing with the Public Works Fund showed that expendituro for the seven months of this year had decreased by in comparison with tho same period of the previous year, and the balance of cash in hand on October 81 last amounted to £219,217. The unexhausted loan authorities for public works expenditure amounted to £1,395,100, mado up as follows:—

Under tho Finance Act, 1916 Public Works and Land Settle-

ment Act 45,100 Under the Finance Act, 1917 850,000 Tho expenditure of the Public Works Department, the Minister continued, showed a decreaso in nine branches of .£170,906, and increases in four branches of £&W. The decreases wero as follow: —Public Works Departmental, .£7310; j£54,098; publio buildings, lighthouses ana harbour, works, .£1692; tourist and health resorts, .£139; roads and bridges, development of mining, ,£2167; contingent defence, .62946; plant, material, and stores, ,£SG9O: total, ,£170,906. TTio increases wore as follow:—lmmigration,: £1296; lands improvement, .£2009; irrigation and water supply, £706; miscellaneous, £4106. The net decreaso was £162,729, and, the figures demonstrated the continued effect of the' general reduction of the public works expendituro during the 1 past two years. In the Consolidated Fund revenuo, tho interest and sinking fund expenditure for the sevon months had increased by £86,304. Exclusive of the increased expenditure for interest and sinking fund, and the sum of £128,289 provided for purchasing wheat, there wero decreases in tho. following DepartmentsLegislative, .£2550; Native, £199; Justice, £17,724; Mines, <£5586; Finance, £36,552; Customs and Marine, £2940; Labour, £748; Land and Survey, £10,997: total, £77,296. Comparing tho eleven months ending October 31, 1917, with the corresponding terms of 1916, Sir Joseph Ward said there wore the following decreases in revenue:—Customs, £466.226; Btamp and de'ath duties, £8079; railways, £172,004; registration and other fees, £2996; marine, £4320; territorial, £7543: fetal, £661,168.

During tho same eleven months the increases in revenue were:—Post and Telegraph, £39,323; land tax, £1677; income tax, £190,785; beer duty, £16,175; miscellaneous, £47,308; national endowment revenuo. £14,522; other receipts, £7977: total, 2317,767. That sum deducted from £661,168 left a net decrease of revenue for the eleven months of £343,401. There were no Treasury Bills whatever on issue on October 31 last, but on the same date last year there were £300,000 of Treasury Bills standing. They had since been paid off. The Minister of Finance mentioned, in connection with the balance of £5,529,028 to whfifli he "had referred as standing on October 31 last, that a sum of £3,138,830 had been invested reserve for meeting any exceptional conditions that might have to bo provided for during the war or at the end of the war. -In the same' period of last year the sum of £815,351 was invested. In round figures, therefore, £2,300,000 more was invested during the period ending October 31 last than was invested in the same eterm of 1916.

Referring to the position generally, Sir Joseph Ward said he considered that it was exceedingly satisfactory. A continued increase in tho interest and sinking fund charges must necessarily be expected till the end of (he war, and full provision must be made for the expected decreases in the Customs and Railways revenue, and also in tho revenue of some other Departments, whose amounts wero comparatively small. He was pleased to say that the position of the country from the standpoint of ordinary revenue was exceptionally strong, and was in accordance with the policy that he had carried out during tho war. He believed it was the right thing to maintain the strongest possible financial position, since nobody could at this juncture forecast what the country would be called on to do before the end of the war nnd after ttfe conclusion of peace . Verv much depended on the facilities for exports and imports. There was a distinct decrease m the imports coming into the country, and this, with the nbno.rnially freights and the shortage of tonnage, was only to be expected. The quantity of products that couid bo got out of tho country during the next five months would nffect the financial position, and have an important bearin" on the resiiTl of the next loan. Every effort was being made to ensure that the | produce now held in store, and also the produce coming to hand, should bo got away quickly. It was too much to expect that the wtffile of them could go within the year, but he hoped for the best. The dependence of the country on all the money coming baelc' or being available by March .11 for (lie successful floating of the next loan was selfevident.

I mny remark," added Sir Joseph Ward, "that that loan will not be put' on the market till the verv latest posnilile date, Co ensure all moneys possible being back in the hands of those on whom we rely largely to make the next lean as successful as those preceding it have been. The country has done so well up till now as regards loans that ive cansafely say thai, fife future'is, jnd"iT' by Hie past, assured in that respect.' ° "There are evidences everywhere of a bountiful harvest, and while the weather conditions between now and the time of bringing in of the harvest will to a considerable extent decide how we aie going to fare, yet qomiFlng nil ordinary risks and contingencies (here is evcr'v reason to bone that the coming vield o'f this truly wonderful country will bo more than the average results of previous "ood seasons, so that even in times such as ♦ bfi present, and nf; such a cTisis wp liave much to be thankful for" Sir Joseph Ward referred to the successful floating of the last loan 'He said that a large number of people with small means had invested in the loan. He hud not obtained the latest fiir m ., s hut on September ? ln.st the ViH u ] V n,,..,j' from the Post Office Savings Bank ex ceded the deposits by nearly ,£2 000 (100 During the first six months' of the pre sent year the average excess of deposits over withdrawals was £458.000 a month': Tf the excess of withdrawals durin* the. War Loan term was added to .the aver' age excess of deposits during the mouth there, would he a total of .£1 DM fidO That sum might fairly, be taken to Sent the contribution of depositor, j„ the Ravings Rank to Ihe War Loan llie a vera ens were nnproximnte, l,„| m, ' result supplied a reasonable guide t 0 anybody who examined the "eneral posi (ion of investments in War T,oa"s l,v de positors in the Pivinc-s Rnnl,-. Tim arpp ago of tho monthly denosits ims hirgclv in excess of tho monthly withdrawals,