FINANCIAL POSITION

Evening Post, Volume XCIV, Issue 115, 12 November 1917, Page 7

FINANCIAL POSITION

" EXCEEDINGLY SATISFACTORY '

STATEMENT BY SIB JOSEPH WARD.

Information regarding the financial position of New Zealand was given to a Post reporter to-day by the Minister of Finance (Sir. Joseph Ward). Seven months of the 1917-18 financial year have now elapsed, "and the 'figures, disclose "a big decrease in revenue as compared with last year, and a substantial increase' in the expenditure. .■-

Sir Joseph Ward said that the Treasury returns for the-seven months ended 31st October showed a total'decrease in the public.revenue of £3*0,401, comnared with the -corresponding- period of "■ las* year. The main decreases were in Cus-' toms and Railways. The expenditure for the same term showed,an increase on'that of the corresponding months,of last year ol £245,166. The'chief items of --increased expenditure were to be found in mterest and sinking., fund, , Post and' Telegraph, Railways, and Education, but is required to be noted that what might be termed an abnormal increase was due in part to a sum of £128,259 having been expended on'the pnrebase of wheat, and that amount would in the ordinary course of business be recoverable during the year. ■

The balance on the ordinary revenue account on 31st October,' 1917, was £5,529,628, as against £1,809,418 on 31st October, 1916. The difference was accounted for hy the fact that the balance brought, forward on Ist Aprillast, the beginning of the present financial year, was £6,474,854, whereas on Ist April, 1916, it was £2,166,077. Comparing the eleven months endin? 31st October, 1917, with the corresponding terms of 1916, Sir Joseph Ward said there. were ; the following decreases in revenue: -Customs =£466,226, stamp and deai-n duties £3079, railways, £172 004 .registration and other fees £2896, ma-Skm-^o 320 ' Territ °rial £7=43; total, ib 01.168.

During the same eleven months the increases liirevenue were :—Post and TeleF aP o,£ 39 > 32;3 ' land ta * 51677, income ax £190,785, beer duty £16.175, miscd laneous £47,005, National Endowment revenue £14 522, other receipts £7977; 67 - Th,lt sum deducted from i-001100 left a net decrease of revenue lor the eleven months of £345,401. There were no Treasury -Bills whatever on issue on 51st October last, but on the same aate last year there were £300,000 of Treasury Bills standing. They had since been paid oft.. ... The Minister of Finance mentioned, l A^ Q ' m , e « Cfc A on J l ,* fee .-balance of £5,529,628 to which he had referred as ■ standing on 31st October last, -that a sum of £3,138,830 had been invested as a reserve for, meeting any exceptional conditions that might have to be provided for during the war or at the end of the war. In the same period of last year; the sum of £815,381 was invested. In round ngures, therefore.' £2,300,000 more was invested during the period ending 31st October last than was invested iff the. same term of 1916. _ Referring to the position generally, Sir Joseph Ward said he considered that it was exceedingly satisfactory; A continued, increase in the interest and sinking fund charges must necessarily be expected till the end of the war, and full provision must be made for the expected decreases m the Customs and Railways revenue, and also in the revenue of some otner Departments, whose amounts' were comparatively small. . He was pleased to say that the position of the country from tbe standpoint of ordinary revenue was exceptionally strong, and was in accordance with the policy that he had carried out during the 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 and after the conclusion of peace. Very 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 abnormally high "eights ; and; the shortage of* tonnage was only to be expected. ' r °' "■ The quantity of products that could be got out of the country during -the next five months would affect the financial position, ana have ah important bearing on the result 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 be got away quickly. It was too much to expect that the whole of them could" go within the year, but he hoped for the best; :> The dependence of the coun- ■ try on aft tbe "money' commg'backrbr ' being available by 31sf March for the successful floating of the next loan waa self-evident. :.■■ " I may 1 remark," added Sir? Joseph Ward, " that this lp?.n will not be put on the market till the very latest possible date, to ensure all moneys possible being back in the.hands of those on whom we rely largely to make the next loan as successful as those preceding it have I been. The country has done so well up fill now. as regards loans that we can j safely say that, the future is, judging |by the past, assured in that xiespect.' [ 'There are evidences everywhere of; a i bountiful harvest, and while' weather I conditions between- now and the tima of bringing in-of the harvest.;wili to a' considerable extent decide how we aw "going to fare, yet counting all ordinary/ ; risks and • contingencies there is ewery" reason , to hope that the) coTnihgi.yaeM.cf I this' truly' wonderful country will be mois '■' than the average results of previous gooji seasons, so that evrti in- times«mh aa the present, and at such, a crisis, 'fsm have much,to be thankful foa?*' Sir Joseph Watd referred to ttbet*«aCfc. oesstul floating of the last'. imx. '-'H« said that a large number of people vfetfc): small.means had invested fit tnaTloßife ; He had not obtained tbe latest flgnwfc! but on 7th September - laet tißfi wiftp! '"drawals from the Eost Office SawfensJ Bank exceeded the deposits by nawfaf,! £2,000,000. During tho first aix JnonttS 5 ' of the present year the average exunf of deposits over withdrawals n' £458,000 a month. If- the withdrawals during the War Loan tern* was.added to' the .average excess of deii'V posits,during the month there woulS to a-total of £1,959,600. That Aim aTaM* fairly be taken to represent the conSEnj. tion of depositors in the Savings Baals , to J™. } v . ar L l£an- The averages wane approximate, nbut~%he result"supplied' i reasonable, guide to anybody vSbo examined the general position of investments in War Loans by depositors in the Savings Bank. The average of the monthly deposits was largely in excess of the monthly withdrawals