FINANCIAL STATEMENT

Dominion, Volume 18, Issue 256, 24 July 1924, Page 8

FINANCIAL STATEMENT

TAXATION REMISSIONS OVER £1,000,000 ACCELERATION OF DEVELOPMENT WORKS PROVISION FOR ADDITIONAL CRUISER FURTHER CAPITAL FOR STATE ADVANCES The Financial Statement was introduced into the House of Representatives by the Prime Minister and Minister of Finance last night. Mr. Massey congratulated the country on having reached the end of the period of unrest and uncertainty} but issued a warning against an era of extravagance and luxury, the signs of which were already apparent to him. He foreshadowed immediate remissions in taxation, totalling about £1,000,000, and indicated that the Government would accelerate its developmental public works policy. Further capital is to be made available for State advances, ■ which department will in future administer the functions of " repatriation. A sum of £lOO,OOO is also set aside for an additional oil-burning cruiser for naval defence. “The year’s op- " erations,” said Mr. Massey, “are a proof of the industry and energy of the people of New Zealand, especially of its producers. Economy and self-reliance are qualities that should be encouraged and must be observed if the character of the people is to be maintained and the country is to prosper as we hope and believe it will. We are now in a fairly good position. With proper management we should be able to retain our prosperity and keep development going for a long time to come. What we have to avoid is an era of extravagance, of which there are already indications; but I hope the good sense of the great mass of the people will be used to prevent any possibility of the earnings of the community being squandered for unnecessary purposes.”

Mr. Massey, in presenting the Financial Statement, said that the revenue had been equal to expectations, ' and the expenditure had been kept down wherever possible to do so without loss of efficiency, with, the result that there was a substantial surplus of revenue over expenditure. CONSOLIDATED FUND REVENUE 1923-24 He estimated to receive during the rear a total ordinary revenue of £/<>- £>69,000: the actual amount received was £27,960,370, or £8630 short of the estimate, but £3BO 927 in excess of the amount collected during the pre vious financial year. woooq ■■Tho principal increases over IVZZ-.o were £ Customs Railways ••• 234.600 Marine •••■• 40 > 3od Registration and other l .■ fees • ••••• ••••• •••• Territorial revenue ... .. 30,192 The principal decreases .were: — , . Interest on public moneys wo/.Oro Stamp and death duties 237,510 Departmental' and other receipts Land tax Income tax <>0.400 ' "Post and telegraph .... 23,790 The decrease -in interest on public moneys was duo to the fact that the yearly interest due to the Consolidated Fund on the amount advanced to. the Discharged Soldiers’ Settlement Account was outstanding. , The amount actually advanced to discharged soldiers for housing during 1923-24 was £571,000 for 714 homes. EXPENDITURE ' The amount appropriated to meet the expenditure of the year was £27,483,378, but the expenditure was £26,148,005, which, when compared with the expenditure of the previous year, shows a net decrease of £115,755. ’in the departmental expenditure the principal increases over the expenditure of the previous year were: Railways 206,960 Public buildings 14,782 Mines 10,838 Naval defence 74,498 Defence 63,519 Valuation \ 16,609 Education .. .> 89,517 Services not provided for 123,747 The result of the year’s operations was that the end had come to the period of unrest and uncertainty, and that natural causes, if supported , by economical and careful administration, would ensure a speedy recovery. Trade W>i steady and prosperous; there was a balance in favour of import of £7,250,000. Borrowing abroad must lie kept within limits, and care taken that imported capital is strictly applied to productive purposes. ACCUMULATED SURPLUSES HOW THEY WERE APPLIED Accumulated surpluses were applied as follow: —• Discharged soldiers’ settlement account, £13,500,000. Discharged soldiers depreciation fund account, £200,000. Public Works Fund, £1,500',000. Reserve Fund securities, £2,000,000. , Loans redemption, £4,264,712. Education loans account, £lOO,OOO. Balance revenue and expenditure, 1921-22, £279,831. State advances securities, £2,326,150. Bank of Now Zealand shares, £375,000. Sundry securities, £373.187. Balance, March 31, 1924, £1,880,377. Total, £26,799,257. 'Die expenditure of the Consolidated Fund for 1923-24 continued to reflect the policy of systematic economy inaugurated in 1921. the expenditure for the past three vears being: 1921-22, £28,466,838; 1922-23, £26,263,760; 1923-24, £26,148,005. The reduction in expenditure in 192223 over that of the previous year totalled £2,203,078, and this contraction had not only been sustained but a still further reduction of £115,755 was recorded.

ESTIMATES OF REVENUE 1924-25 Mr. Massey estimated the revenue under the main headings of each of the principal Departments at: — £ Customs 7,350,000 Beer dutv ; 630,000 Stamp and death duties .. 3,310,800 Post and telegraph 2,805,000 Land tax 1,400,000 Income tax 3,700.000 Bailways 7,100,000 Registration and other fees 200,000 Marine .. 90,920 Interest on public moneys .. 1,234,000 Local Bodies’ Loans Act, 1908, '• section 76 ■ 23,000 Rents of buildings 26,000 Tourist and/health resorts .. 45.000 Miscellaneous 215,000 Territorial 197,900 Departmental and other receipts 530,000 28.857.620 Less proposed taxation remissions 1,000,000 Net revenue £27,857,620 In order to provide additional cash for the State Advances Office, instead of selling investments held by the ordinary revenue account, advantage was taken of the Dominion’s credit in London to issue Treasury 'bills amounting to £2,250,000, and also £500,000 in anticipation of the 1924 loan for public works. LOAN OPERATIONS He was able recentlv to effect a purchase at a profitable discount of 4 per cent, stock maturing in 1929. An amount of £250,000 was secured for cancellation in terms of section 24 of the Finance Act, 1921-22. The transaction would represent a saving over the period of five years of about £60.000. in premium and interest. Referring to the success of the 1924 loan, he gave a comparison with recent issues of other Dominions, which indicated the high credit of New Zealand in London. The rate of interest return was the lowest of the Dominions. being £4 145.. 9d„ compared with £5 10s. 7d. in the case of Oueenslan.(lpUßLlC WORKS FUND 'Hie expenditure on public works vis practically the same as that for n,„ i-e-ar 1922-23. amounting to £3,749.160, the bulk. being for railway construction, additions to open lines, roads, etc., and telegraph extension. The sum of £1.000.000 would bo transferred to the fund from surplus revenue. The position of the public works fund as at March 31. 1994. showed that the balance on March 31. 1924. was made un as follows: —Cash in public account, £589.417: investments. £150.000- imprests in th" hands of ofUeo'-s of Government, £148.606; total. 023. CUSTOMS AND EXCISE Including £123.568 tire-tax credited to main hiHiwavs account, the Customs and excise duties totalled £7,361.783, or £361.783 over tlm estimate. The main items of Customs revenue were:—Spirits, /V070.7M; tobacco, cio-ars, cigarettes. £1.271.135: apparel and textiles, £1.798.287- ’"O--tor vehicles, fires and narts. £770.130. other goods ad valorem. £1.9'16.ROO : primage. £417.198 : total. £7;977.435. . an increase of £1.206,579. The estimated Customs revenue for 1924-25 was £7.350 000. RAILWAYS Tho gross receipts from the working railways amounted to £6.984,211, an increase of £256,409 on the previous year’s figures. Tho working expenses amounted to £5,403.766. The imt revenue was therefore £1.580,445. which amount represented a return of £3 16s. 6d. per cent, on the capital cost. Mr. Massey reviewed the events of the railway year, and said he expected the recommendations of the commission of English railway experts, shortly arriving, would be of great value. THE POST OFFICE The revenue of tho Post and Telegraph Department during the year was £2,681,240. The principal items were: —Postages, £1,032,347; telegrams, £700,329; and telephone ex-

change receipts, £825,178. Excluding interest charges ou capital, tho expenditure totalled £2,117,952. Deposits in tho Post Office Savings Bank amounted to £29-598,372, and withdrawals to £29,510,321 —an excess of deposits over withdrawals amounting to £88,051. The amount at the credit of 710,157 depositors at March 31, excluding interest for tho year, was £44,448,444. Money-orders and postal notes to tho total value of £5 239,485 were issued, and the payment on the same account amounted to £4,853,224. Wat loan certificates redeemed during the year amounted to £1,293,705, making total redemptions to date of £4,642,779. The cost of concessions in postage brought about by the reductions effected in February and October. 1923, was £600,000 per annum. There was cause for congratulation that revenue from postages last year was only £257,149 less than that derived from tho same source in tho previous year. With a continuance of pros,verity this loss should shortly disappear. The alteration in the method of collection of telephone rates had the effect of inflating the revenue for ths? financial year, a sum of £825.178 being received, as compared with £59?,967 during the . previous months, hut of this amount £149.000 had to be earned in. the current year. Although the present charges were moderate they were designed to earn interest on the capital outlay. EDUCATION The total expenditure on education from public sources was approximately £3 349.900. as compared with £3.286,000 in 1922-23. The total ..expenditure had grown from £1.233.328 in 1911-12 to £3.271,781 in 1923-24, or an increase of 166 per cent., while the total cost of education for the current year was estimated at £3.351.000. In 1911 the average salary of an adult primary school teacher was only £l6O, but the salaries were increased by the 1914 Act, and were subsequently further increased until the average now was £268. or 67 per cent, higher. The large sum of £1.993.985 had heen expended since 1918-19 in meeting the pressing demand for school buildings, and suitable provision was being mado for continued progress in this important connection. DEFENCE The expenditure out of the Consolidated Fund for defence, including ordnance services, aviation, and the maintenance and training of the Territorial Force, for the year ended March 31, 1924, amounted to £348,632, or £27.722 less than the amount appropriated. PUBLIC TRUST The value of estates and funds actually under the control of the Public Trustee on March 31, 1924. was £32,404,724; this represented an increase of £3,499,926 for the financial year. The new estates accepted for administration during the year numbered 2739 with assets of a total value of £3,781.155. The rates of commission were reduced from April 1, 1923, and also made inclusive of certain fees previously charged to the estates, and there was no doubt that the volume of new business had been increased as a result. Tho investments held on March 31. 1924. on behalf of the Common Fund and on behalf of estates and funds, the moneys of which wore specially invested, amounted to £19,895,285. AGRICULTURE The drv summer to some extent reducer! the production of grass, cereals, and fodder crops, and as a consequence the output of butter was somewhat affected, but nevertheless the total, value of the dairy produce of all kinds exported during the year was well ahead of that for the previous year, tho respective figures being £lB 576,474 nqd £l6 207.053. Tho importance to the country of the dairy industry was well illustrated by the fact of its exportable surplus being valued at ore'- 181 millions sterling. The quantity and vplue of the exports of tho clnef produces were as follow the total value under these headings showing an increase of over six miflioni pounds for the year:— £ Beef 844.187 Mutton and lamb 8.615 «19 Other meats RR9 2-19 Tallow 8-59 471 Casings 507.819 Sheen-skins (woolly) and ' pelts 1.904 R 55 Hides and skins 774 10." Rabbit-skins 493.708 Live-stock 106.430 Other miscellaneous items 33R11 Wool 15.905 9/14 Dairy produce 18.576.474 Total £47,747,012 Owing to a reduction in the areas sown. and to unfavourable weather conditions during the growing period, the production of wheat and on+s showed a decrease, and it would he necessary to imnnrt wheat and oats to the value of £1.250.000 before next season’s harvest was ready. NAVAL DEFENCE PROVISION FOR SECOND CRUISER A brief review of naval defence proposals was given bv the Prime Minister, in presenting his Financial Statement. The expenditure on naval defence for the financial year ended March 31, 1924, said Mr. Masscv, amounted to £374,966, made up as follows: — Permanent charges —Naval Defence Act, 1909 (H.M.S. New Zealand), interest £78,995, repayment of funded debt £10.248; vote, naval defen:.., £235,723. Total, £374.966. Tho estimates for the current year had been framed with a view to continuing as far as possible the policy embarked on by the Dominion. The total net expenditure for the naval defence vote, 1924-25, was estimated at £330,465. H.M.S. Chatham was relieved nv H.M.S, Dunedin, a more modern oil burning cruiser; and provision would require to be made for the entry ami training of the young men who even tually would be required to man tho second light cruiser. The sum of £16,500 had been inserted in the Estima* is for the hire and upkeep of the oiler Nucula, which had been provided by the Admiralty, this ship now being a necessity with an oil-burning cruiser on the station. It, was also proposed to proceed with the erection, at a cost of £24,000, ot two oil-fuel tanks, one of which was a improved last year, but on which no money had been expended. The contribution provided for the naval base at Singapore in 1923-24 was not expended, and, owing to tho decision of the Imperial Government to incur no further expenditure on the scheme, an appropriation would not bo required this year for the purpose; hut 1 if Parliament approved a similar. amount might be applied towards tho I cost of the second light cruiser recommended by tho Admiralty. I

MORATORIUM

POST-WAR BOOM EFFECTS WARNING OF OVER-BORROW-ING PRIME MINISTER’S REVIEW The moratorium, the adjustment of mortgages, and the question of borrowing , generally, were subjected to Ia critical review by the Prime Minister in his Financial Statement. “The effects of- the post-war boom have not entirely disappeared,” said Mr. Massey. “A number of people who bought land at prices beyond its value and left a very large proportion of the purchase money on mortgage find, now that prices of most of tlhe primary products have . fallen somewhat, serious difficulties in paying their way and making ends meet. The problem of enabling such people to regain their financial stability ;s one hot easy of solution, though in many deserving cases where the mortgagor is an industrious and energetic man, mortgagees have met the difficulty bv accepting a share of the responsibility and writing off part of the indebtedness. “This is the proper thing to. do. Unfortunately, there are sometimes faults on both sides, and it becomes impossible to make any. arrangement to which Loth parties will agree. The Government has assisted and will assist struggling settlers wherever it is possible to do so. but it cannot enp'nrage broaches of agreements lawfully entered into. There is some satisfaction, however, in knowing that these difficulties are gradually adjusting themselves and that on the whole production is being well maintained. “Many suggestions have lieen made with regard to borrowing a large sum of monev for mortgage purnoses,” he nrblod. after a reference to tho present Bill before the House. “It is my dutv to point out that this is a matter about which we require to be very careful if we are to maintain our orcdit in London. The credit of New Zealand stands hmli at present, but any appearance of recklessness or extravagance in finance would have a very bad effect, and rn-nst be avoided by every means possible. Development is going on steadilv. and our nrodiicers have done wonders during the last two rears. Their industry and energy have made New Zealand th« most prosperous country in the British Emnire hut there are still enormous possibilities in front of ns —new land to he bmuo-ht. into ynltivn.t’on. and that which is already cultivated made more productive still. Rnlnnce has done much for. the primary industries, but I heli«ve it will do a groat deal more in the future.. “I want particularly to strike, a warning note ahmit nvcr-1v"-rowiny. and in doing so I admit that wo cannot go on developing without a certain amount of lean money, but it has to be remembered that everv million borrowed increases the annual charges upon the country, nnd in most cases the burdens upon the taxpayer. This is the case whether the money is borrowed bv tho Genera] Government or the local bodies; the effect is tho same. Care should bo taken, therefore, to sec that borrowed money should, as far as possible, bo used onlv for revenue-earning purposes. “This is the noliev which tho Government have followed since the end o&tho war—that of building up against tbo. nubile debt a collection of assets which . will go a long way towards providing the interest and sinking fund on the borrowed millions; and I am glad to be able to sav that both the values and the earning power of these assets are steadily increasing. That the operations of counfrfaq borrowing are very closely watched bv tho financial authorities in London is quite evident from what took' place quite rocojitlv, when a British country asked for a fairlv large loan at what seemed a reasonable rate ' of interest, nnd the underwriters were left with 85 ner cent, of the proposed amount on their hands. Our credit is a most valuable asset, and it requires to be safeguarded accordingly.” THE PENSIONS BILL BIG ANNUAL LIABILITY An interesting record of the heavy annual liability incurred by New Zealand in pensions was given fay the Prime Minister in 'presenting' the Financial Statement. The following payments were made, said Mr. Massev. during the year ended March 31. 1924 :— £ War pensions 1,306.652 Old-age pensions 765.392 Widows’ pensions 202,364 Miners’ pensions. Maori War pensions 30,326 Epidemic pensions 32,507 Pensions under Civil Service Act. 1908 21,025 Military pensions under Defence Act. 1909 3,146 Pensions under Judicature Act. 1908 2,889 Police pensions 4gg Sundry pensions and annuities 4,374 Total £2,405.221 The total of tho actual . payments made in respect of war pensions to March 1. 1924. was £10,139,996. The annual liability. In respect of each class of war pension at the close of tho vear was shown in the following . return: —Soldiers (permanent), pensions, £6784; annual value, £333,946; average pension, £49; soldiers (temporary), 7731, £407(847, £53; dependants (temporary), .807, £62.916, I £7B: widows and guardians of children. 1977, £203.342. £103: other de- I pendants of deceased soldiers, 5867, £205.075. £35; total, 23,166, £1,213,126. £52. The amended War Pensions Act passed last session provided for a War Pensions Anneal Board and the payment of economic pensions. Of 300 appeals. 144 were dismissed and 121 uphold. tho remainder being in abeyance or otherwise dealt with. There were still some 400 appeals to bo disposed of. Tn regard to economic pensions, 921 claims were established between September 1, 1923, and March 31. 1924. These, with the 1343 cases already in receipt of supplementary pensions when the Act was passed, made n total of 2267 grants under this head, the annual value of v/hich totalled £132.288.

TAXATION

REMISSIONS IN VIEW IN VICINITY OF £1,000,000 MARGIN FOR SAFE FINANCE . I In foreshadowing remissions of taxation in tho vicinity of £1,000,000, Mr. Massey mado some comment on the question of the burden of taxes, on the occasion, of tho presentation of his Financial Statement last night. “The all-important question of tax- ' ation has continued to receive careful and detailed consideration, said Mr. Mnssev “In pursuance of the policy the Government has adopted of gradually reducing taxation as conditions permitted, you will again be asked to approve of further remissions. These will be adjusted in such a. manner as to give the greatest relief to all classes of the community, and, at tho same time, to stimulate the productive powers of the Dominion. “On the present basis of taxation the revenue for the current year would probably produce £28.857 620, whilst the expenditure is estimated at £27,505 060, leaving a credit balance of £1 ‘352,560. The remissions granted last year are valued at £1.200,000, and this year, after providing for interest and debt-reduction charges, as well as for the efficient and economical administration of Departments and services I hope to be able to ask Parliament to reduce the burden of taxation bv about £1,000,000. particulars of which will be supplied in the legislation dealing with the subject. . , “I must, however, again remind those who, indifferent as to the cost and unable to say where the money is to come from, clamour in one voice for increased expenditure and a reduction in taxation, that they cannot have both. I quite recognise that, as the population grows and the national wealth increases, the expenses ■of government, no matter how economically administered, must expand, but that expansion must not be greater than the increase in income. There should lie a sufficient margin to ensure safe finance and to provide some contribution towards reducing the dead weight of our war debt —one of the best means of easing the taxpayer.” Compared with 1922-23 land tax receipts decreased by £115.040, viz., 1922-23. £1,541,502: 1923-24, £1,426,462; decrease, £115,040. This decrease represented portion of the anticipated reduction in revenue following the removal of tho super tax, the balance being compensated for by the increased value of land in some of the districts revised under the provisions of the Valuation of Land Act and the collection of a considerable amount of arrears of tax. The income tax icccipts compared with the year 1922-23 showed a decrease of £50.400, the figures for the respective years being: 1922-23, £3,831,932; 1923-24, £3.781,532: decrease, £50,400. SOLDIER SETTLERS REVIEW OF FINANCES RECORD RECEIPTS A review of tho finances of soldier settlement scheme of the" Government was given by the Prime Minister in presenting his Financial Statement. From the inception of tho scheme of the discharged soldiers settlement in 1915 to the qnd of tho financial year advances had, said Mr. Massey, been made to discharged soldiers as follows Section 6, Discharged Soldiers Settlement Act, 1915 —Advances on current account (including £1,345,000 for the erection of buildings on farms) —4,845 returned soldiers; £4,386,000. Section 2, Discharged Soldiers Settlement Amendment Act, 1917 —Advances towards purchase of farms, market gardens, orchards, and discharge of mortgages—s49B returned soldiers, £8,905,400. Section 2, Discharged Soldiers Settlement Amendment Act, 1917—Advances towards purchase and erection of dwellings and discharge of mortgages thereon in town and suburban areas—ll,B7o returned soldiers, £8,572,100. Totals, 22,213 returned soldiers, £21,863,500. During the period the mortgages had run, receipts from the sale of stock, wool, and other farm produce, and repayment of loans under the instalment system, amount to £2,965,400. The receipts were 13.56 per cent, of the total canital advanced. Tho money received hacl been applied for the purpose of readvances for the purchase of either stock or improving properties, increasing loans on current account, and also to clear off liabilities contracted early in the year towaras the erection or dwellings. The receipts for the year amounted to £1,513,544, being the largest amount received to date iu any one year. Of this sum £792,268 represented repayment of advances, while receipts in respect of interest and sundries total £721,276. ISLAND TERRITORIES COMMERCIAL ACTIVITIES The present position of trade in our island territories was reviewed by Mr. Massey, in presenting tho Financial Statement. The trade of Western Samoa again suffered severely, he said, «ving to the ’continuance of low prices and little demand for tropical products in the world’s markets. One satisfactory | feature, however, had been that, not- : withstanding this depression, the export of copra during the period was tho highest for many years past. It was almost double that of 1920, tho total trade figures for which year constituted a. record for Western Samoa. Since tho beginning of the year prices steadilv rose, nnd were now satisfactory. Tn tho circumstances tho revenue of tho territory, though well maintained, fell short of the expenditure, which hnd boon much increased on account of extended and improved medical nnd educational services. An additional grant of £6OOO was being provided to meet tho deficit of 1923-24. The Administration decided to offer tho Crown estates in sections bv nublic tender, and had now placed them under n Board of Con trot Tim cxnonkl! : inre at Cook Islands and Nine for 1923-24 was £17.446. being loss than the amount voted (£lB.713) by £1267. Tho estimated amount to lx l voted for the year 1924-25 was £20.669. the increase over last year’s appropriation being accounted for bv granfls for hospital nnd odliqation purposes, a new freezing plant, nnd the installation of wlireMss systems at Mananin and Ninn. This year 1-n--dio stations would, be opened on tho islands of Aiti’tald and Manonia. >’n tho Lower Conk Group, nnd n radiotelephone station wnnld ho installed nr i iclaud of Nine. ’llmso s°rvioos would <1 P much to ’•omuyo fl.n oroi’lo'-' b-n-l’C"’' In lb-> Po-01-onw 1 of trade with these Isolated communities. The future for trade and revenue was bright.

STATE ADVANCES

HOW MONEY WAS SPENT PROVISION OF NEW CAPITAL A REVIEW BY THE PRIkE MINISTER A comprehensive review of the whole of the operations of the State Advances was given by the Prime Minister last night, in his Financial Statement. Tho capital of the State Advances Office was, said Mr. Massey, increased by £3,114,750 in 1923-24, and since March 31, 1924, a further £2.300,000 had been borrowed, making tho total capital of the Department at Jure 30. 1924, to be £24.483,525. In all, 7292 applicants received loans amounting to £6,205,686 in 1923-24. This constituted a record since the State Advances Act was passed in 1894, and afforded ample evidence of the assistance ren- ■ dered to settlers and workers. The Amendment Act of last session authorised loans to workers up to £1250 and' to settlers up to £3500. The new business for the year was as follows i— Amount Number £ Loans granted to settlers 6,194 5,416,987 Loans granted to workers 3,260 2,204.410 Loans granted to , local authorities 194 444,805 Totals 9.648 £8,066,202 For the purnose of building houses and acquiring hom»s a large sum was advanced during tho last five years. The following is a table of the loans authorised from April 1, 1919, to March 31, 1924:— Amount. Number £ For housing purposes: To settlers 5.778 3:193.143 To workers 9,037 5,122,944 To release mortgages on house properties: To settlers 2,010 1,033,428 To erect workers’ dwellings: . To local authorities — 5i i ,19a, Totals 16,825 £9,926.710 For the purpose of assisting borrowers to repay mortgages a considerable sum was advanced. Since the month of October. 1922. when it was decided to entertain such applications, loans were grai’b'-'l +n °' T 49 applicants, amounting to £3,584,205. Amounts advanced by Department increased from £568,305 in 1919 to £6,205,686 last year. The total amount of advances to date was £20,904,311. The following advances were made for the three months ended Juno 30, 1924:- £ Settlers 561.350 Workers 475.360 Local authorities 69.920 Total £1,106.635 The housing shortage which prevailed for some years, particularly in those urban areas where the increase in dwellings had not kept pace with the increase in population, has. continued Mr. Massey, received the fullest possible consideration. The following sums of money were made available for the erection and purchase of homes during the financial year 1923-24: — £ Number. Amount. State advances 4481 3,291.609 Discharged soldiers .. 714 571,000 Railways 64 46,110 Totals 5259 £3,908,719 In addition, £66,010 was paid over to forty-one local bodies for housing. A statement showing. State assistance towards the erection . and purchase of dwellings from April 1, 1919, to March 31, 1924, was given by Mr. Massey:— Amount. Houses. £ State advances .....14,815 8,316,087 Discharged soldiers (urban areas) ..11,341 8,253,311 Discharged soldiers (farm properties) 3,863 1,126.000 Railways 276 289,314 Public’ Works Department (State employees) 164 158,099 To local authorities — 577,195 Totals 301459 £18,720,006 f In addition, considerable sums,- approximately £13,000.000, were advanced by way of mortgage during the same period bv Government lending Departments —viz., State Advances, £5,000.000; Public ITustee, £7,000,000: and other lending Departments, £l,ooo.ooo—some proportion of which total was required either to. complete buildings in course of erection or to purchase others recently erected, tho cost of which had been temporarily financed in anticipation of a Government loan. EXCHANGE t The unsolved problem of the exchange rate between the Dominions and Britain, and the possibility of a return to the gold standard were touched in brief review by the Prime Minister in his Financial Statement. “The present cost of transferring money from the United Kingdom to New Zealand is,” said Mr. Massey, “tending to create social and economic difficulties, particularly affecting our producers, who are subject to a heavy impost by the high 'selling' rate in London. The set-off in tho shape of an easjr buying rate is of doubtful utility, as it tends to encourage over-importing 1 and to have a detrimental effect upon our secondary industries.” The matter of exchange was, he added, considered at the recent Imperial Conference, when the highest experts examined proposals for surmountiuf; the difficulties. The danger of adopting palliatives that, however advantageous they might be temporarily, might load to other anomalies, was recognised, and the conference adopted the suggestion that the respective countries should establish central or federal banks, and by clearing and co-opera-tion bring about an easing of the pcs.tion. 'The traders in Great Britain had recently taken the matter up again, and he would bo glad to assist in any step that would lead to an exploration by the Governments concerned as to the actual causes of the abnormal position now obtaining, upon which experts did not seem to agree. The Imperial Economic Conference adopted and endorsed the following resolution submitted to them by the committee on inter-imperial exchanges: —“That, arising as they do from the suspension of an effective gold standard. the difficulties of inter-imperial exchange will disappear when the currencies of Great Britain and the Dominions affected are again made con- ■ yertiblo into gold.”

TEN YEARS’ PROGRESS

REMARKABLE RESULTS DOMINION’S PRODUCTIVITY An interesting review of the progress of the Dominion during the past decade was given by the Prime Minister in his Financial Statement'. “It is now opportune,” said Mr. Massey, “to review, the decade that has just passed, and note the progress made by tho Dominion. The period covers the Great War, on account of which, both during its continuance and since, the ,Dominion has passed through greater economic difficulties than ever before, in its history. Such progress as is evidenced by tho statistics given could not have been achieved without prudent and careful administration. “The population increased by 18 per cent. The trade, which per head of population is the highest in tho world, increased by £50,271,277, or 110 per cent. Export of wool increased in volume 17 per cent., and in value 35 per cent.; frozen meat, 18 per cent, in volume and 103 per cent, in value; butter, by 236 per cent, in volume and 418 per cent, in value; I cheese, by 136 per cent, in volume and 288 per cent, in value. Every assistance was being given to these producers to establish an export market for their commodities. The total exports "for the vear ended March, 31, 1914, were £23.471,246, bub for the year ended March 31, 1924, they were iio less than £51,652.606—an increase of £28.181,360, or 120 per cent. “These figures are-” he said, “a tribute to the productiyitv. of New Zealand, and also an indication of the increasing prosperity of its people. The solicitude of the Government is borro out,.by the great’v increased social services afforded, as evidenced bv the expenditure for edurotion and public health, and in free pensions. The salaries and wages of public employees have increased from an average of £162.40 to £245.744.” Npw Zealand had led in the reintroduction of the penny post. There were now 4174 more miles of telegraph and telephone lines than in. 1914, and telegraph and folonhone wire "used increased bv 156.990 miles. In 1914 there were '37.486 telephone subscribers, as compared with 85,031 in 1924. Th® progressive policy pursued in opening up the country arc! improving the means of communication was confirmed by the expenditure on roads and bridges, which in 1914 was £353,836, while in 1924 it was £749,737 During the deende 229 miles of water-races for irrigation purposes were constructed, representing an increase of 276 per cent, on that in existence in 1914. The area of swamp land drained through the G oyerament drainage operations was increased from 42,220 to 180,335 acres. MIGRATION THE TYPE DESIRED ENGLISH MINISTER’S VIEW “The immigration policy adopted by tho Government has been the means of securing a steady flow of new arrivals into tho Dominion during tho past financial year,” said the Primo Minister, in his Financial. Statement. “The conditions under which assisted passages mav bo secured are in every way favourable to the migrants, and, as the Imperial and New . Zealand Goveirilment.s are working together, the cost of each migrant to the. Dominion is being kept well •within bounds. Immigration of a desirable tvpo of settler or tradesman will assist in the expansion of trade in the primary and secondary products, tending to open up additional markets abroad.” Mr. Massev read the following. extract from the remarks of the Right Hon. L. S. Amery, formerly chairman of the Overseas Settlement Committee, at the Imperial Economic Conference of last year:— “Migration bv Families. —More particularly I should like to lay stress on what I referred to just now in connection with the ex-service free passages—the desirabilitv of making it possible for the man who has a family to go across, because, from the point of view- qf future citizenship, that. is the most valuable element we can send to you. It is true from tho nnint of 'view of the individual employer. a single man is preferred, but from the po'nt of view- of development the man who goes with a family of growing children —the citizens, the creators of the wealth of the future —is the most welcome settler. .1 should like to draw attention to this fact, that New Zealand, in this, res-pect,-has agreed with us on assistedpnssage schemes vevv - substantially ahead of any other Dominion in the very liberal assistance they give to the m-n with n fa'milv—that is In say, that children up to a certain ao-e go entirely free and the '-’ldesons and dono-hters at a very redu''~l rat”. I think to-dav a man with oiiite n large family can get to New Zealand on practically no more than it takes a man and his wifn to go to Australia. I should lilm to press v"rv strongly the (importance of that.” GOLD EMBARGO IS DOMINION HANDICAPPED? In the House of Representatives Mr. T. IV. Rhodes (Thames) .gave notice that he would ask the Prime Minister whether he had had an opportunity.to interview the Imperial authorities with regard to the embargo on the export of'gold. The embargo had been lifted in Australia and elsewhere nine months earlier (February. 1919) than was the case in New Zealand, whereby the gold producers of this Dominion suffered appreciable loss. He wished to know the prospects of their being recompensed. SPEEDING ON PUBLIC ROADS Mr. Rolleston (Waitomo) intends to ask tho Minister of Internal Affairs whether his attention had been drawn to the practice indulged in by some motorists of driving at excessive speeds on the public roads with a view to establishing time-records; and, if so, will ho take steps to have these record-breaking speed contests made an offence punishable by a heavy line? MAGISTRATES’ STIPENDS The Tender of the Opposition, Mr. T. M. Wilford (Hutt) will ask the Minister of Justice whether ho will this session revise the salaries of magistrates; and whether he does not think that a special scheme of superannuation should he devised for magistrates. taking into consideration tlm fact that on the present basis of contributions no adequate retiring allowance is provided?