FINANCIAL CONDITIONS.

Evening Star, Issue 9774, 2 August 1895, Page 1

FINANCIAL CONDITIONS.

Thk financial condition of the Colony, as set forth in the Treasurer’s Statement in the most favorable light, is by no means reassuring. The revenue from Customs shows a material falling off, and we believe the returns for the first quarter of the current year are still more unfavorable. The Public Debt is increasing year by year, and the Public Works Fund is literally at its last gasp, the liabilities at the eud of 1894-95 far exceeding the balance in hand. It is true that the actual revenue receipts were in the aggregate nearly £47,000 above the Treasurers estimate; but this is accounted for by this estimate having been very low, by the receipts under the head of stamps having been swelled by the payment of heavy succession duties, and by the Income Tax realising considerably more than was expected. The territorial revenue returns were only £3,107 over those of the preceding year, notwithstanding the enormous suras expended in the location of settlers under the policy of Mr John M‘Kknzie. The look out altogether is not promising, and it might have been anticipated that the Treasurer would have declared the determination of the Government to cany out material retrenchment hi the ordinary expenditure. Not a hint, however, is there of such an

intention-, and the word economy is evidently Hot to be found in the Ministerial dictionary. The Treasurer shadows forth schemes, which appear to be well devised, ifbr eventually reducing the annual charges on the ever-increasing indebtedness, but is silent as to the extravagant administration of several departments, which is eating into the very vitals of the Colony. There is a decided opening for a Joseph Heme in the House of Representatives. Such a reformer might at least open the eyes of the country, although he would hardly influence the docile majority, who, in accordance with the precedent of the last few years, will presumably swallow the Estimates whole.

The results of the year 1894-95 show in the ordinary revenue account a surplus of £180,021, which, the Treasurer says, “ must be as gratifying to members as “to himself, and must add materially to “the general stability of the Colony.” Wo do not question the accuracy of the figures, but this favorable statement is somewhat discounted by the fact that the year commenced with a net surplus on March 31, 1894, of £290,238, which proves that in the year 1894-05 the actual expenditure has exceeded the revenue by £110,214, according to the Treasurer’s own showing. Is there, however, any real surplus at all except merely on paper i There is no direct reference in the Statement to the floating debt beyond the “account of Treasury bills ” which immediately follows the revenue account in the table given. This shows that on March 31 there were Treasury bills outstanding to the amount of £BIO,OOO. Of this amount £334,000 was raised “in anticipation of revenue.” We do not pretend to understand the subtleties of colonial finance, but we fail to see how a surplus of £180,024 can be claimed upon the transactions of the year when liabilities to the extent of £BIO,OOO are not taken into account. We very much fear that this vaunted surplus is but the “ fabric of a vision ” —very unsubstantial, indeed. The Treasurer would bo puzzled, we fancy, to produce it in cash or an equivalent. it however presumably serves its purpose in being put down as available for appropriation during the current year. The revenue for 1895-96 is estimated at £4,341,200, the expenditure at £4,231,843, showing an excess of revenue over expenditure of £9,357 —balance to begin the year £180,024 ; total gross surplus at the end of the year £189,321. “From this amount,” says the Treasurer, “we intend “to deduct £150,000 as a contribu- “ tion to the Public Works Fund in aid “of the settlement of the country by road “ making and other public works, leaving “a balance of £39,321, out of which the “ Supplementary Estimates are to be provided.” This looks very like a deficit instead of a surplus on March 31 next, even if the actual revenue, which now does not seem very likelyq comes up to the estimate. The Public Works Fund, as we intimated above, is iu a very bad way, the loan money which formed it having been entirely exhausted. Outside the £250,000 transferred during last year from the Consolidated Fund, the receipts only amounted to £G3,049. The expenditure amounted to £307,182, and £I,OOO was charged to complete the purchase of the Kahn Valley Railway. Entries for £47,000 of the company’s debentures taken over by the Government have also been passed through both sides of the account. Adding the receipts to the balance, £263,658, at the commencement of the year, and deducting the expenditure, there remained on the 3ist March last £268,525, against which £329,076 of liabilities were outstanding. There is, therefore,a deficit of £60,551, which will leave only £89,449 available for appropriation out of the £150,000 which the Treasurer proposes to transfer from the Consolidated Fund. It may be remembered that a special loan of £1,000,000 was authorised in 1882 for the construction of the Main Trunk Railway, North Island, under strict conditions that the money should not be diverted to any other purposes, but kept in a separate account in the Public "Works Fund. This loan money, the "Treasurer states, is fast disappearing. The balance to commence the year 1894-95 was £79,197, to which was added a small recovery of £l2 belonging to the former year’s expenditure. On the other side there has been charged the sum of £52,604, leaving a cash balance at the end of the year of £26,60-1, against which £14,007 of liabilities have been incurred. There remains, therefore, only £12,597, and the line is not nearly completed. In addition to the lines authorised by Parliament to be constructed out of the Public Works Fund, and still far from completion, the Government have now upon their hands the North Island Main Trunk Railway and the Midland Railway, South Island, which they have lately taken possession of, with the intention, as the Premier has asserted, of carrying on the works. Where, we should like to know, is the money to come from. The Otago Central, we apprehend, will have a very poor show. Possibly there may be some as yet unveiled design of recuperating the Public Works Fund, but the Treasurer makes no sign in the Statement.