IMPROVED FARM SETTLEMENTS.

Evening Star, Issue 9772, 31 July 1895, Page 2 (Supplement)

IMPROVED FARM SETTLEMENTS.

A new system of settlement was authorised by the Lands Improvement and Native Lands Acquisition Act, 1891, which is intended to meet the difficulty of providing work for the unemployed, and at the same time make them useful and permanent settlers on the land. The system is termed ‘ Improved farm settlements,” and it is a modification of the village homestead system introduced by the late Hon. J. Ballanco in 1895. Under the provisions of this Act blocks are set aside in suitable localities, to bo occupied by men selected by the Commissioners of Crown Lands, in areas varying from ten to 300 acre<, and assistance is given by the State by way of advances to cover the cost of clearing, house building, and grass seed if required, the clearing, etc,, being limited to 100 acres. The lands are burdened with the amounts advanced by the, Government, on which •the settlers pay 4 per cent, interest in addition to the rental of the land. Up to the present date eighteen settlements have been formed, the area set aside being 21,202 acres, which will be allotted to 193 settlers, but up to the 31st Alarch the actual allotment of 9,730 acres to 107 settlers only had been completed. The area already filled is 4,048 acres, and the area grassed is 1,469 acres. The amount advanced to settlers up to the 31st March was £5 698 4s lid, and the value of the improvements on the land (including the Government advances) was £6,964 19s 3d, It is intended to introduce the “ halftime ” system into all these settlements so soon as it can be arranged. Several are already under it, and it is hoped by this means to find sufficient employment for the settlers to keep them going, whilst at the same time to allow them time to improve their farms. It is believed tliat the system just started will offer to those who are not in a position to secure land otherwise a chance of obtaining a home, and at the same time relieve the labor market from congestion. LAND FOR SETTLEMENTS ACT.

Details under the operation of the above Act have already been furnished to Parliament (section C 5, 1895), and the following summarises them up to the 31st March, 1895 There had been actually purchased eight estates, containing 15,104 a Ir 15p, at a cost for purchase, reading, and , other expenses of £65,257 2s 4d. Arrangements had also been completed at that date for the purchase of five other estates containing 28,819 acres, at an estimated cost "of £102,515, but no payments had been made. Since the 31st March to date arrangements have been Completed for the purchase of five additional estates containing 7,778 acres, at an estimated cost of £27,789. Summarising these figures to date, the estates purchased and arranged to be purchased number eighteen, with a total area of 53,701 acres, at an estimated cost of £195;56l 2s 4d, plus whatever additional coat there may be for survey s and a little reading. The great bulk of the land comprising the estates is of exceptional quality, and will be readily taken up so soon as offered to the public. In the instance in which land had been offered to the public prior to the 31st March a large amount of successful settlement has taken place, and since that date two other estates have been offered for selection, the whole area of which was taken up at once } and for which there were many more applicants than the land would satisfy. On only ono of thoeatates offered for selection up to date was there a resident at the time of purchase by the Crown, but there are now 120 lessees holding these lands, of whom at 31st March sixty-one were resident. The rents of the land leased up to 31st March showed a return of per cent, on the capital invested. At the present time there are several desirable estates under offer, with which the Land Purchase Boards will very soon proceed to deal, *

THE RAILWAYS. Pursuant to an Act of the General Assembly passed last session the management of the railways reverted to the Government on the Ist January, 1895. Considerable reductions have already been made in the rates and charges for colonial products, and in some cases there are already indications of an increased volume of traffic. This makes it imperative that steps should be taken immediately to malm provision for a corresponding increase of rolling stock. We have also endeavored to further the cause of education and at the sarno time to popularise the railways by conveying school children and their parents at nominal rates to both town and country, and in this way a more extended knowledge of the country and its resources has been made known to those who otherwise would have had no such opportunity. Very general satisfaction has been expressed with the arrangeraenta made for this purpose. Owing to the diminished yield of wheat the railway revenue has suffered to a considerable extent. The recent risein the price of grain has, however, been an incentive to farmers to sow much larger areas this year than hitherto. The opening of the Rotorua line was a histone event long looked forward to, and is likely to lead to a great development of our tourist business. Already much larger numbers than heretofore have visited the thermal springs and the thermal wonders, and the resources of the district have been taxed to the utmost. Large additions are being made for the accommodation of tourists and excursionists, who arc certain to take advantage of the through railway communication during the coming season. My colleague, the Minister of Railways, will place more fully before the House the intentions of the Government as to their policy for the future working of the New Zealand railways. OUR TELEGRAPH CABLES.

A new cable, 31 knots in length, across Cook Strait, from Oterangi Bay to White Bay, was laid on the 7th May last by the Terranora. This cable was ordered last year in anticipation of the breakdown of the old three-core one, originally laid in 1866. On the 29th April, a few days before laying the new cable, this old one parted in several places. With the new single conductor, operated by the Wheatstone automatic instruments, which have been introduced since my last Statement, it has been practicable to cope with the telegraph traffic between the North and South Islands, notwithstanding the loss of the three-core cable, which has been abandoned. Another single-core cable lias been ordered from England, and is expected here in time to be laid in December. ohe Wanganui to Wakapuaka cab’e has been permanently duplexed, materially assisting in overtaking the telegraph work between the two islands, as well as that between the North Island and Australia. It is deserving of note that tho cost of the cable steamer Terranora, including the expenses of the purchase of new cables and repairing of old cables, amounts at the present time to £8,253 ; but had the Government adopted during the last year the former system of employing a steamer from outside the colony to do tho work which the Terranora has done, the actual cost would have been £16,(F0, so that by utilising the Terranora the Government have not only saved the cost of the new cables that have been laid, but also the cost of the steamer itself. Then, in addition to this, there was £B,OOO to the good over and above what the expenditure would have been. This is extremely satisfactory. It is not desirable, however, that the Terranora should be used longer than is absolutely necessary for the work connected with the maintenance of our cables. Though the Terranora lias during the last three years done excellent work, the time has now arrived when she should be replaced by a new steamer.

POST AND TELEGRAPH^CONFERBNCE,

The Conference met at Hobart in February last, and was attended by Ministerial representatives from all the colonies. The meeting was to have taken place in Melbourne, but at my instance the other colonies agreed to meet at Hobart, and on a date earlier than that originally fixed, in order that I might on my way to London be able to attend—a consideration for my convenience of which I cannot sufficiently express my appreciation. As my arrangements necessitated my early departure from Hobart, I was unable to remain throughout the meeting, but the colony’s interests were well looked after by the Postmaster-General of Tasmania, who was good enough to consent to act for me in my absence. The principal business affecting New Zealand transacted at the Conference was that relating to the ocean mail and telegraph cable services. The Conference, on a motion submitted by me, reaffirmed the desirableness of establishing a four-weekly mail service between Australia, New Zealand, and Vancouver, alternating with the present San Francisco mail steamers, so as to provide a fortnightly Pacific service. This question is treated of at a greater length in another part of the Statement. The threatened withdrawal of Victoria-now one of the guarantors—of any deficiency in the working of the Eastern and New Zealand-Sydney telegraph cables brought the whole question of cable communication aud cable guarantees very prominently before the Conference, besides reaffirming the desirableness of the construction of tbe Pacific cable. It is gratifying to be able to state that the Conference adopted another motion of mine under which the amounts hitherto guaranteed by the colonies in respect to the New ZealandSydney and Eastern cables were materially reduced, thereby effecting a considerable annual saving to this colony. Not only did the motion secure tbe continued adhesion of Victoria to the cable guarantee agreements, but the reduction of this colony’s liabilities was obtained without increasing the Press rates over the New Zealand-Sydney cable, which at one time seemed inevitable. I feel sure that there is a general consensus of opinion that it is of incalculable advantage to New Zealand to have low cable rates both for the Press and public, and I look forward with confidence to the time when the development of commerce and the growth of the colonies will enable a further reduction to lie made, so as to place the use of the cilfles at the command of all classes. The later negotiations in connection with the construction of the Pacific cable I propose to deal with in another part of the Statement. The interests of the mercantile community were further considered in connection with the proposed obligatory use of the cable code vocabulary recently issued by the international office at Berne, and action was taken by the Conference to enable the matter to be watched and dealt with at the proper time. The question of the renewal of the federal mail service was also debate!, but the result, except that the Conference strongly expressed their disapproval of the employment of colored labor on subsidised steamers, is of little interest to this colony. A uniform ocean penny postage was also d's cussed, but the time was regarded as inopportune for making any alterations in the existing rate. The report of the proceedings has already been laid before Parliament, but I may mention that a large raumber of subjects, principally of a departmental and technical nature, came before the Conference and were fully considered and dealt with, to the common advantage of the colonies. CONCESSION ON THE COST OF MANAGEMENT OF OUR INSCRIBED STOCK.'

On assuming the position I have now the honor to hold my attention was called to the charges made by the Bank of England in connection with the management of our inscribed stock. These charges were originally £6OO per million, but after ten millions had been reached the bank lowered the rate to £550 on the succeeding millions up to fifteen millions, and a further concession was made of £SO per million on the remainder of the amount inscribed in the bank’s books, lam aware that this matter had not been lost sight of by my predecessors, and our present Agent-General had already made strong representations to the bank authorities to have the charges reduced, but without success. Upon my arrival in London I determined that further efforts should be made to reduce the existing charges, then amounting to over £IB,OOO per annum. Our Agent-General, in conjunction with the AgentsGeneral of New South Wales and Queensland, had a few weeks before waited on the governor of the Bank of England, and the Agents-General strongly urged their claims for a reduction of the charges, and they discussed the matter very fully with the bank authorities. No hopes were, however, held out to them by the governor that their application would be favorably considered. Subsequently, the AgentGeneral wrote a formal application to the bank asking for a redaction of the charges. This application was declined. I thereupon determined to personally, urge our claims upon the governor, and, accompanied by the AgentGeneral, I was favored with an interview with the governor and the deputygovernor, who then promised to consider the whole question. At a subsequent meeting the governor informed me that the bank had decided. tomakcayeduction of £looper million peranmun. The rate will now stand at £SOO per million for the first ten millions, £450 per million for the succeeding five millions, and £4OO per million for the amount inscribed above fifteen millions. This reduction, dating from Ist May, 1895, upon a total of upwards of thirty-six millions of inscribed stock, represents a saving of £3,600 per annum-a valuable concession, you will admit. But lam strongly of opinion that the rate is still too high. It is right also to mention that the bank have waived their special charge in connection with the conversion of outstanding Government debentures into inscribed stock, and are prepared to make any further inscriptions of a similar nature free of charge, out-of-pocket expenses excepted.

THE MILLION AND A-HALF LOAN,

As the Government Advances to Settlers Act, 1894, authorised the raising of three millions in sums not exceeding one and a-half

millions in each future ycar-'-subject to a limitation of two yean from the date of the passing of the Act—the Loan Agents appointed under the Act proceeded to issue a prospectus calling for tenders for one million and a-lialf of 3 per cent, inscribed stock, to he lodged at the Bank of England on or liefore Friday, 3rd May, 1895. The price of issue was fixed at 99per cent., and instalments were made payable by 5 per cent, deposit, 25 per cent, on the 13th Slay, 25 per cent, on the Ist July, and 35 per cent on the Ist August, 1895; instalments paid in full on or after the 13th May, 1895. were to be subject to a discount at the rate of £1 per cent, per annum The stock will tie inscribed in the books of the Bank of England after the Ist August next, but scrip paid up in full was to be forthwith inscribed. The nominal amount of stock was to carry six months’ interest, payable on the Ist October, 1895. On opening the tenders at the Bank of England the result was found to be eminently satisfactory. In respect to the one million and a-balf, applications for £5,960,400 at prices varying from £IOO to £9O were sent in, and of these about 33 per cent, of the tenders was £94 8s 9J, and the amount payable was £1,416,601 2s. The full accounts connected with this operation have not yet been received from the Loan Agents, so I am unable to state the exact amount of expenses incurred. I'tnay, however, say that no portion of the loan was underwritten, or any expense incurred in this respect. An offer to underwrite was made and declined. The correspondence relating to this loan operation will shortly be placed before you. Now, hon. gentlemen may think that as the raising of this loan was attended with so much success the operation itself was of a simple character, but I can assure them that such was by no means the case. In the first place, the determination to fix a lower ra e of interest for our new loan caused, as you may imagine, great anxiety, and was only decided upon after the most careful consideration. I shall not, I hope, be accused of divulging matters of a confidential nature when I assure the House that some of the highest financial authorities in London were of opinion that a 3 per cent, loan would not be likely to prove successful. It is my pleasurable duty to state" that our Loan Agents were indefatigable and untiring in their exertions to ensure the success of the loan after we had decided upon the rate of the minimum price of issue. And in connection with the splendid result I am not desirous of taking to myself any credit which properly belongs to them. I have also to thank the governor of toe Bank of England for his valuable advice and assistance. To the general manager of the Bank of New Zealand, who was then in London, and to the local manager, I am also indebted for the courtesy and information they so willingly extended to me. The Queensland and Western Australian Governments came out with 3i per cent, loans immediately before our own 3 per cent, loan was announced, and I have had some calculations made, comparing the result of the average prices of their loans with our own. I may here mention that the Western Australian loan was issued with an alternative currency—namely, twenty or forty years, while the Queensland and our own carry a fifty years’ currency. The average annual charge per £IOO of stock on each of these loans (of course leaving out of consideration the expenses of floating) is as follows

The Queensland loan, which aveiaged £lO2 12s 7d, gives an annual charge of £3 8s 7d per cent. The Western Australian loan, which averaged £lO3 Is 4d, gives an annual charge of £3 7s 2d per cent, for a forty years’ currency, £3 5s lOd for a twenty years’ currency, and £3 7s 4d for a fifty years’ currenc”.

The New Zealand 3 per cents., whicli averaged £94 8s 9d, give an annual charge of £3 4s tkl per cent.

And now applying these figures to our one million and a-half loan, I find that, notwithstanding the prices over par obtained by the 3i per cent, loans of Queensland and Western Australia, the price which our own loan realised, although under |>ar, effects a saving to our taxpayers as compared with Queensland of £3,062 19s per annum, of £153.125 for the full period of fifty years, and compared with Western Australia there is an annual saving of £2,000 on the forty years’ currency, or £BO,OOO for the full term; or a saving of £IO,OOO on the twenty years’ currency, or of £20,0.0 for the full term. But supposing the Western Australian loan had had a fifty years’ currency, then the comparison would show an annual saving of £2,125, or of £10,6250 for the full term. These figures speak for themselves. But I will take one more illustration of the advantage derived from a 3 per cent, loan over a 3j per cent, loan, both having a currency of fifty years. Taking the 3£ per cent, loan at par and the 3 per cent, loan at £94 8s 9d, the annual saving effected on a million and a-half loan would be £4,125, which represents a saving of £206,250 for the full period of fifty years. Furthermore, I can assure you that in the annual charges I have tiken into consideration the amount required to restore the full capital charge by the time the loan falls due. This saving of the taxpayers’ money may be stated in another and even more forcible way. Take, for instance, the £4,125 just referred to. Now, this amount, if invested at 3 per cent, compound interest, would, at the time our loan expires, reach in round figures ho large sum of £466,000, or, if compounded at a J per cent, rate, it would produce over £500,000 during the same period. With these figures before you I am justified in feeling a profound sense of satisfaction at having been in my humble way the associate iu carrying to a successful result what, in my opinion, must be termed a splendid operation—an operation which, in addition to the enormous advantages gained by bringing money down to a level that admits of its being profitably employed by those who require ic to develop the industries and commerce of the country, again enables New Zealand to lead the van of a new atd beneficial undertaking amongst her Continental neighbors.

THE COMMERCIAL POSITION OF THE COUNTRY.

One has become so accustomed to hear pessimists decrying the commercial position of the country that it would seem almost a hop-dess task to attempt to convince these detractors of Now Zealand of their folly. This pessimism has in truth become with some an incurable disca-e. The great difficulty which has in recent years confronted all producing countries has been the steady decrease in the prices of the natural products of the soil. There are many causes assigned for the downward tendency which has taken place in values. Some attribute it to monometallism, others to over-production, and again are to bo found those who believe that the system of assured and rapid transit has bo developed all over the world in our own times that the former position of values, which had been maintained for a continued period at a x-igli level, has for ever disappeared. Whatever may be the cause, it is beyond question that a marvellous transformation has taken place, and that is the duty forced upon statesmen to assist in the solution of what is recognised to be a great and intricate problem in this matter New Zealand has not lagged behind. The Government have endeavored to apply common sense to lengthen the reach of commeicial activity, and 1 take it that it will not be disputed that one of the first essentials for a producing country is not only to create an increased output of its products, but to have new markets to which to send those products. The more outside markets to which we can get access the greater will be the competition for the purchase of our goods. The Government, believing rhat the true policy for this country is to assisr, the settlers to find fresh markets, have, subject to ratification by Parliament, entered into reciprocal tariffs with South Australia and Canada by which the interchange can be effected with them of some of our products.

THE BANK ASSETS COMPANY. I deem it my duty to state that, in my opinion, the present position of the Bank of New Zealand Estates Company is far from satisfactory. Hon. members are aware that this company own large areas of land which, whilst in many cases suitable for settlement, are not now worked to the best advantage. Attached as the company are to the Bank of New Zealand, I am convinced that it would be advisable at an early date to seriously consider in what manner this intimate relation can be modified. At the same time, I may say that no hasty treatment of this important matter should be entertained. In my opinion, the subject is sufficiently important to warrant the special consideration of a Select Committee of both Houses. RECIPROCITY WITH SOUTH AUSTRALIA.

I will first deal with the tariff treaty between South Australia and New Zealand. Since this tariff treaty has been published, some of the highly protective colonies of Australia have taken exception to it, and have gone out of their way to endeavor to prevent New Zealand from sharing in the benefits of intercolonial trade. It does not require much thought to sec that the very strength of the position is to ensure that there should be special concessions for New Zealand, because if the treaty. I have referred to had general application there would be no advantage in having a treaty at all. But it must be borne in mind that the treaty with South Australia does not prevent us from entering into similar arrangements with the other colonies upon such terras as may he agreed upon; in other words, we can send to any other colony every article wo arc agreeing under this treaty to send to South Australia, and South Australia to do likewise. Our concsssions apply only to the articles we each receive. If Victoria has anything outside the four articles we have agreed to accept from South Australia in exchange for goods from this colony, we shall be delighted to consider a proposal from them, and I have no doubt that South Australia would be equally pleased to treat with them. For South Australia or New Zealand to adopt a policy of standing by and letting the highly protective colonies exclude them from the benefits of Australasian trade

would, in ’my opinion, be ntfeUali -t ahull presently rend the memorandtunof agreement between the respective colonics, from which it will be seen, that South Australia agrees to accept free of duty barley, oats, horses, ami hops, and New Zealand likewise agrees to accept free of duty the wine, olive oil, dried and fresh fruits, and,salt of South Australia. There i> an understanding that the admission of wine to this country will cease should Prohibition at any time become the law of this land. In eonsideline the Reciprocity Treaty with South Australia, I would ask hon. members to recognise that this is but the thinendof the wedge, and - what is now being proposed to be done may lead the way to farther desirable concessions between the other Australian colonies. It Is to me difficult to understand the arguments tfra* have been put forth by some Australians and Now Zealanders, that the is adverse to their desire for a Federated Australia—a proposal which, by the way, does not directly oonoem New Zealand, viewing the position from all pointe, it would appear to me that one of the chief difficulties to be overcome in bringing about Federation between the colonies is the shaping of their Customs tariffs to enable them as a whole to maintain their revenue, which isnowlargely obtained through their dependent Customs tariffs they have against each other, so that reciprocal treaties between themselves, gradually paving the way towards the establishment of one common tariff, should assist lather than retard the movement they are advocating My opinion, however, is that a Federated Australia is a far greater distance off than the ardent advocates 6f it believe. There are many and serious difficulties in their way, in the meantime it is surely unwise to continue the policy of catting each other’s throats by maintaining restrictive, and in some cases prohibitive, tariffs against the natural products of the several countries. Instead of regarding South Australia and New Zealand as bars to their movement, I should have thought that we had been Mil«l as conntries who were in a not unimportant degree assisting, by our action, in destroying a system that has proved so injurious to some colonies who have been the greatest sinners in this respect. It is not easy to calculate what trade will be created under the Reciprocal Treaty with South Australia. A year or two’s experience will be necessary to enable a fair comparison to be made on both sides. The articles we now propose to make free have been to a large extent made prohibitory by the duty imposed on them, and the development of trade which will follow the removal of the duty is not easy to estimate. There are those in this colony who will argue that the Treaty is in favor of South Australia, whilst, on the other hand, there are those in South Australia who argue that the Treaty is in favor of New Zealand. I say that those who are desirous of creating a Reciprocal Treaty, as wo are, must be prepared to give and take,'and that upon the broad principle of having a free market for our staple products on both sides we should not be too fastidious in endeavoring to forecast whether the balance of gain will be for or against either country. The question should be: Is it desirable to promote our trade with a great colony like South Australia ? And to that question the answer of a large majority of the people of this colony will be that it is to our advantage. Then, if it is to our advantage, are we prepared to make any temporary sacrifice that may be necessary in order to create a friendly interchange of trade with the neighboring colony ? To that question the answer would undeniably be We certainly should. I have had a careful estimate prepared of the probable loss of revenue to this colony during the first year s operati n of the Treaty, and I think I am within the mark when I state that it .will not exceed £6,000 —an amount I have provided for in tbe Estimates for the year, and have left a considerable margin to . spare in . case my judgment should be at fault. Before leaving this subject I think it is right to draw attention to the_ advantages which may be reasonably anticipated Lorn establishing a trade with South Australia. It will be interesting to hon. members to know that during 1893 South Australia imported from Victoria 23,040 bushels of barley, valued at £5,332, and also 44,991 bushels of oats, valued at £4,949. South Australia imported from New Zealand last year 12,977 bushels of oats, valued at £1,209. In 1886 New Zealand exported to South Australia 33,641 bushels of barley, valued at £6,914, and 200,605 bushels of oats, valued at £20,663. The following year the South Australian Government raised the duty on barley from 9d to Is 6d per bushel and on bats from. 3d per bushel to 2d per cental, and thereby practically shut out New Zealand from the South Australian market. There is also, every possibility of a large timber trade being developed, for South Australia imports annually £174,000 worth of timber, a very Luge proportion of which could be supplied by New Zealand. I can only say that I tiust that hon. members will view impartially the proposed trade arrangements with South Australia. That such arrangements are certain to become the forerunner of other treaties, which, in the ordinary course, must add materially to the wealth of this country, I am firmly persuaded. An agreement made this 2nd of February’, 1895, between the Hon. Joseph George Ward, Treasurer, acting for the Government of New Zealand, of the one part, and the Hon. Charles Cameron Kingston, Attorney-Cieneral, acting for the Government of South Australia, of the other part, whereby it is agreed as follows—that is to say;— I. During the term of this agreement South Australia shall admit duty free the goods referred to in the first schedule, the produce of New Zealand.

2. During the term of this agreement New Zealand shall admit duty free the goods referred to in the second schedule, the product, of South Australia.

.‘l. During the term of this agreement neither New Zealand nor South Australia shall reduce the existing duties leviable on the goods referred to in the said schedule, the produce of any other colony or country.

4. This agreement to commence on the Ist day of May next ensuing, and to continue for seven years from such date, subject to determination by one year’s notice on either side.

5. Schedule 1: Goods to be admitted duty free by South Australia:—Barley, oats, horses. Schedule 2: Goods to be admitted duty free by New Zealand Wine, olive oil, salt. (i. For the purpose of giving affect to this agreement until fully authorised by Act, each colony will refund any duty collected on goods herein agreed to he duty free.

7. Either party to have therightto cancel this agreement by notice to the other any time on or before noon of Wednesday, Oth February inst. J. G. Ward. C. C. Kingston.

It is hereby further agreed, subject to confirmation as per original agreement, that the following commodities shall be included in the arrangement for free interchange between New Zealand and South Australia -namely, New Zealand to admit free of duty South Australian grown fresh and dried fruits, Sohth Australia to admit free New Zealand grown hops; South Australian grapes to be guaranteed free of disease, and, in the event of disease, to lie prohibited until free fo disease. For New Zealand,

J. G. Ward ; For South Australia, J. H. Gordon, Chief Secretary (Continued on inside par/esJ.