FINANCIAL STATEMENT.

Grey River Argus, Volume XV, Issue 1850, 22 July 1874, Page 2

FINANCIAL STATEMENT.

[per favor of government.] ,j* Wellington, July 21. Mr Yogel made his ! Financial Statement this evening. The following 'ab- Ci stracfc ■of its amounts are stated in round numbers.-?- :■;; /.■/■••■■. ,-:••-' ■...■<■■■'.,: '.1 ■ :'d.S. Mr Vogeli said that ; the Statement'

would not only be shorter than usual, but! it would be unprecedented on account of: the prosperity which it/ evidenced. Thej Statement was made at an earlier period ■ than had been customary, a result for which he was indebted to the untiring 'exertions of the Treasury officers in pre- v paring the accounts.; Last year Ht was estimated -that the actual results of 1872---73 would leave, a surplus, of L3BOO with which to begin the year, But it proved that there was a. difference of L6OOQ-"as compared with what was anticipated. Thisarbse ; partly through under-estimat" ing outstanding liabilities, .and partly from some assets not being realized, the result being that, instead of a' surplus of L3BOO, there ; was ; a. deficiency of between, L2IQO and L 2200. As to the loan, it would be remembered that, during the last session, an announcement was made, that 5 cent, debentures, to the amount of half a million, had been sold at L2 los premium. In January last the loan agents invited tenders for one million pounds^ -Wty per cent. He had been favorable to the change to 4 per cent., but he - approved of the action of the agents since they had inserted a condition that the debehtures^might be retired at any time: after five years... The half million borrowed at 4^per cept. , interest realised L9B, iqni'akih'g allowance for redeeming the discount; ; This was" taritamount to borrowing at the rate of L 4 12s 6d per cent. . It was originally calculated money for- the Iramigratibn :i -and Public Works policy would have to be borrowed at 5| per cent,:anditiwas gratifying, therefore,' to know: that the average rate of interest on the loans f or tho3e;purpose3 yet negotiated, including; allowance for recovery, and the discount amounted only to L 4 14s lid per cent v ! It was : right that" hfe 'should say that' tfie market for Colonial Loans was iiot- so; favorable last year as seemed to be then promised ; there w.as npwinp;demand -;fo.r. such, debentures in die Colonies. .This arose, through the demand: for . capital for. local enterprise, but'it nad tb'lie borne in mind/ considering the question borrowing powers of the Colony. The aggregate^ amount of ' the public debt, after deducting Sinking Fund accrued, was L 12 ,500 .000, and the annual charge was L 777.000; of; which L554;000 had to be: paid .by .the Colony, /and L 223,000 by the Provinces. After explaining the position of the various loan . accounts, Mr Yogel referred to the Land Fund. This, 'he said j. showed a, remarkably progressive increase. I)uring the year / 1 869-70 the , receipts ] (exclusive -of gold revenue), was L 208,00 6; 1871-72, L 326,000;: 1872-3, ; L 889.642 ; 1873-4, L 1,038,000. . ; ,,,Thej Epst ...Office, Savings Bank account showed an increase of deposits of L 137,000 j.the total: deppsit-s in those Banks being noW L 682,000 ,' The revenue of ;the past year exceeded that of 1872-3 by L 300,600, and it exceeded- the estimated,: amount by; L 239,000.: This result was very large when the proportion it bore to the whole amount of the revenue wa3 considered.-' He ■ could not state accurately the increase that 'had resulted from the substitution^ of ad valorem for measurement 1 duties, asrthere ; had not yet been sufficient time to classify ;the returns, but there coitld' fee nb doubt i that the, new. duties produced more largely i than' the' measurement duties^ , He was {glad of this;' both' : bn account" ,/5f jthe j result, and .on accp,unt T pf .theV.testimpny it ] bore to the honor and-truthftines^pf-.the •commercial classes 6f r .the ; <couhtry.,tiHe [emphatically expressed- the. opinion -that i taxation had , : npt • passed. ; heavily.on) the | bulk of the people, andi :thatv under the jnew system the ihad >been-; more evenly distributed over-articles* of 'luxury than was the- case--formerly^'rA'ftep*de>-i ducting expenditure :and, liabilities, and [allowing L 20,660 for' iiabilities yet to come i n, ~aiid paying pff E4s7OOOipf [Tfea^ sury J Bills, there A was a balance' at' the' end) of 1873-4 available fdr~the service of the* current year_ 'ampjunting y ,t?r L 207,0001' After, , explaining 'at sp,m c ilength . [position of the rail ways, 1 Mr ..V,Qgel, 'said that the revenue/ ! of r the jColdnyj wasVmerely rising so much] simultaneously,^with'ithe introduction of immigrants and the pro[secutiqn'i of -Public -Works ;':•-? that '"there icould no longer be a'ny'doubt'as to the (success of the . policy,".and the ( Oplony jwbuld; be. quite safe in 'taking ; pver ''the jniaiii trunk lines of rail way ;whejae veF \ it ; r4%ht be ' f ound conyenient. to dp'so/and! iiireiie ving the 'Provinces' frpnijall liability^ on account of those" lines. J> Apart from the revenue, which, it /was; certain jwould be derived frprai the railways in jexcess; bf expenses,; m -.the ;'Cbnisolidated revenue .ofii.the Colony had, 'during the last two years, inIcreased , by ! L41 2^000, ;y dr : within. |a v '--fe'w : 'thousand pounds of .the; total 'annual charge which the railways^" when 'completed fromono 1 end of the. Colony to. the-fotherp would :r entail.; lt ! must,'. be ;! ipdi'nted ' i ; ' but, ' ho w evei-, that ' further ; authority for borrowing, to compiefe ) the J ■railways, would have to be given;' : Ho w- ! ever successful 'the — Immigration and Public Works policy might ; be, it .must,fee : i remembered that it .was necessary to meet the' Colonial requirements before strainings the credit of the Colony for other purposes. Consideration ;bf "the fact , of the railways being: pushed, r ' mpre quickly than was originally i*nteridedjian,4:.bf the fact that it waSiiipt^desirable to .encourage too largely the construction of other works', /impelled! lthe td)decide :tiot to i renew; their proposals^of lasb^ year as -vto .Provincial bbrro'wing. Government were prepared -to* ■alidw :I: a c l limited amount 'of assistance to Proyinces,^ but, such, ..assistance ,; tp be , rendered^ throngH the' Cblonial Gdvernment, 'and be charged, either^gainst the -amount for settlement of immigrants, , or upon the consolidated fund ; but with power to the Government to issue Treasury JBillsjC if found necessaryi .to.nieet it. - -As to'ithe assiatauce to be given to separate ; Provinces, Mr Yogel said-^'-'Firat, in regard to Auckland, the Government, dining thb recess, undertook to ask ' Parliament tb allow the Pro vince^to ';ii}f& ■■Mp;oo6, !t^be 'advanced from time;ta'time^ extending^pver a^plßribff'bf fibbut' three, y;ears, fffi works upon 'the' Thames Gdld-fiel'ds. ' ° tlie security in this case, jbesides^that of the Provin9gs^ is v qfi# specific; nature- ; and the importance of the object to bagained ,is Tnpt\to-,be denied;^. Thof Goxetiffi .meni besides agreed,! subject to the approval of Parliament, to advance to Auckland/.-, onxtthe security of i ohe^half oMik revenue^ sto^be'^mpounde'd 1 for'/ the ; .pose, f L 40,0.00 .in of LGOOO^evefy 1 three months. The' Government prop 1 bselio ask Parliament to carry ; 6ut their arrangements. We' )! d6 > 'nbt 1 prop6le't6 Mi aßk for

Auckland any further loan beyond the power to devote some part of the immigration/funds to objects directly promo,.tive Joi the settlement of immigrants. " " Taranaki, with its splendid lands, offers a field for the location of immigrants second to none in the Colony, and we - shall ask-for^.,powsr. : to.,a^ajic^money to aid so essential a work. STmUarly'rwe propose to' 'devote so'ine-f unds to.TCwi3tland and to Nelson. In respect to these • four *Prdvinces/'it^^ is r "t'o Se^'remelSbered that they have f no,t;as;yet enjoyed so much of -the direct benefit from the expendituie on immigration as .they.-, might be supposed to have a direct claim, still, for money expended on J works we propose conditions for repayment. ' I may also add, that, whilst we shall require, jthe ; agprovai of ;the i.'. Provincial '-.Gby^nm'e'nt'/Ci) carry out any work^^ underii^en, we;prppp3e that the-works shaitbe carried^out under the control of and with the approval of the Public Works .Department.; What I have ....said of these other, Provinces ..in. r'especi; to im migration j ' applies 'equaliy',to r • Marlborough. We shall propose 'for • works in connection with {he^'lb'C'ajbi'oh.'.of immigrants advances extending 1 'over two years,. besides loan . : bf L4oo.o {to: bridge the Clarence River. In regard jtb" dV^els lington, hon. members will, no doubt,have observed' frbnr the .-..M that' the Government t d\^^ a deavbred r: to ; reciuceHhe T-timfiuVt 'of dbo'r^ . H rpw.ed money they !.^esireS? r ';^W ''agreed^ ' to.sjibmitfOT^ a; ; pr,opositi6n. i;p'"allaw,, J , , tain an' a'dyance.of M of land to be dpenecl.to the free selection^^ . of small settlers. ■-.•; We ; shall. fasfct that i t]^;,.planf}be;, ( 'cmie4?pati|olrmay also mention' incidentaiiy, that * we propose to i ask authority to construct proper Governmentebuildings in fWelltngtpn-..;'-jNelspn i a i case is the most difficult 7 )it6>fdeali,with« . That Province haa long lagged -behind-in. ; the) race :that r ;Pth.er Prflv|nces\Jha_y^jjini; ■ it requires useful -works, of which it Is ' ; singul:atly:.desbitute,..and..Hre.iTpropo§e to i lend to it on specific-security L 50,000 for w6rks r df l which r theTiiblic*^brkß DeTparti ment approve. From Otago alßs' ! ;th'e° f cr3f , for borro;w,ed 1 mp t neyvhgs:-jcp.me.x We can- ■ • not.segiiour way to at present sanction the s sum -that Province asks for, unless by ! w'ay)of spufchasetofCtheWintMahd Bluff [ lines. If the Provincial Government%ria. : willing, we wilßFeipJpe'pare'dito propose to I the r Assemb]y |o o purchase s .that-,raLlway at „ a i varuati6n'3he payment " to y ße. d [maole in ■ four,. equal instalments, r on"'th'e' Ist of . Februa'iy~ u nex^ [ of ; the,- :thre.eifollowingryear,By' theim'pney • to be devoted to the .^construction of > branch railways. Otherwise, in respect to I Otago, and^inrespect'lo-Cairterbury and Hawke's Bay, I have only, to say that we ,; propose to contrnvJie-'their^teunk railways, i and to aid themiin -locating the immi- • grants they so wbnderfufly%bsorb." The i G.overrime:nt)'prdposed;ln T ot!/t6 : ; iffiideldfiS^ j any l further Jpqld-fields^wprksoinn^sonfe I p&thpseateeadybe^un'h'adbeeneompleWfl^ i :They' ; prop r 6sed' ; tp;' : apptbpnate^a^^^ j tional 'L60,00b- fbr-rdad's iE -'tKe^Nßirtn 1 i Island, and ,qn .she' same,, r plans as • formerly 'by allbcating 'tb" tfie" Middle ; Island a like amount. Out of the. sams'^ I that would thus become payablePWGan^ I terbury uha^Westland it was propdsed'to?' i put the road between- Chrjstchurch and ' Hbkitika : lihfb J go6a f 'b'raer: ori W^o^e ; Provinces, 1p< i nsiMi^ i^ O WtW ' Proyinces, ,ia. not „tp c; , [ b9 oV dealt.. j:) |?;iJh 1 b^™%^ ; Mep^n^ !:It M^ps3f^ • PftfiK^ork^Th^re,^^ ; ; which labor und§r ;I the,gr^at;disadjyanitag^ ! :of;i r c:ontributingalargpiy:.utO) tfie. vpol&ui&l > revenue, for whilst they makeitheiE'Conii 1 tributjgßs, .theyjenjpy.iiout p.Mheir smn > jrevenue, lpcalie^pendiifurje jubutTtheecaaeß s of some Provinces is-simply constant cdni Itribution, f.-a \jjpnstaut;3disheartening .'itife- • |den.cy) jfcp^theTjre§ul^Yß..Oirfamiliarly ex- - jplained,by.iWslaughter.oLthe-bird-which_ . lays the golden eggs/as aymere -matter of i jpolicy. If,it. ( \is w.ise, A hi th^midst^cjf-the Z |imm:ense l iricreSse of the (Jblorifal reven^ue, 1 itoi;sp'eciallyfirememberl;flomei e of thelPfSF? jvinces whichicorjLtribute it, are|at 5 present^af. great ( dw^vantWe^as^comj Ipared with' other Prbyinces,V^t 'is/not' wiset ito let parts otthe Colony lauguKh s und6r a* jsense of wrong,'' to^Uow' r them ° to "feel Ittiey "aire'^still^hecalmed whilat' the favor-ing..cbreleze-Irembve3iirr r btn'':their.i sight the Ivessels^gener^liy^becal^ ]The condition of ths three Provinces of 'Auckland, Westlandy-jJifaiNelson, as com- , pare_d with the other Provinces is lament- ;: able', r .rand )f equ'ires, fromLlKe/ surSlu's^Sfe . !the f consolidated feVenue,^the' }, jof -the vlieglslature. :;!f Au'cfclaffcPs f ; :cas'^ :; is'/ ;far the worst. It will take that Proviiwe^ [some; 1 years" to wcJrk 'i^eir'rpun'd, 3 &j{0.0 lenjoyHtie-fiiture' wKifen'fI I fiVmj^rbeHe\v| c isstm^fpre^^^l^nd^l^es^aaip :J .sympathy'; weighted witli^a^gireat^u^jic^ ;debt, its, : Government' eagerly anxious to Sdevelpp. r it,vfuid themselves hampered in - ievery direction. Westland proved a mine bf wealth' fto>the;fQolo'ny;lieii33f9lly to desert it. The West.Coast of Nelson is ■ somewhat^ similarly ;;placedi;ilSrMlßQnTWilK however, now have] Lthe)' )means, a,s .& J appears) its : rulefs havelthe-iiiclinationitol iuse those Cnieans^tb becomeiiaiprbspefbu^ Province. These considerations'impel'Sts^ I Itb^recommehdi^ha'fc 1 3 ye"ar's t surplus a special allowance in addition&W i !that already proyideTd"". bx-.ihe, scale of capitat{pn;;^llp' waricerbe' made J to Auckland, I ' WeMand, and Nelson at the rate of L25,0PO ;{ tp T the t^.'first,T| LipypgO-^r t^a second,! 'and' '.LBOOO' \ tpjffie^thirav-QjWhjen? honl members' st u ?y "the* wfipleLpf, the circamstan'ces 10 th^y^wiir^aa^ % r think, grudge>thepr6posed aid.>"v7, Passing on?to thej^experiditure i^forljithe Jtcurrenti9ye%rs 1874-5, he said that theesse'n'tial^pritfciple^ ppihik Budget was different fronvtlilfK^og atiy ' previous one^ its great objecT^bjßing 1 to preyent . .the Gqyef nment recruiting the- • ! ' ;: re^6niwk > f T ' ;l i)y iJ resort to bo^ Budget had for. its ,object "to relieve loans at tfie^e^erKie of the con-? soliaa^ecl r reven,ue. He.proppsed this^ yeaatotakeoverand'tobharge upoSconsolida^^ revenue all the cost of interest, inclusive of iti'tere3t> 3 up r oni- ! worl£s f in struction, for which other provision had been made. He^ prbposeif, also, to bear, on the consolidated r half of the 'defence exp¥naAul:e, aiid half tne'^araount ;F.url;her il ;he; proposed tq.jjayj ojffjin addi]tioriarLiqO;ooo""6fTfeasury"Bilis. Taking jintq vcpnsjderatiqnj jUib ! of ith'e Givji. Service wefcecinclined to leave the^Senvicjepiont accbnnfccof opporItunities to benefit -themselves, and the ihardshipsotsmhich ,they_M6rjß&abj«sted through „the. increased, cost. of Jiving-j-the: iGovernmeirthad decided- to ( recornuieni as aJiiSatterpf ; exgeoUe'ricy^o'leks''ima#^ :jua%ei; r &aftlaf ; ,speciAl /aiip^wa^cevshpuldf this year be made, of ten per, cent., ip all . officers whose salaries did not exceed

Llsoa-year ; of 7^ per cent, to all officer whose salaries exceeded Ll5O, but di< not exceeds L3oo ; and of 5 per ; cent to all those whose salaries exceedec L3OO, but did not exceed LSOO. To d< this would absorb L 15,000 of the surplus Adding these various items to the amoun of the Capitation Grant, the special allow ances to the Provinces, as well as tht ordinary •xpenditure, and permanool charges, the total expenditure for the current year would be L 1,630,000., 630,000. This would include L 271,000 to be devoted to the reduction of Treasorj Bills current, and to the payment oi amounts which might, under existing authorities, have been charged to loans, thus justifying the statement he had made that the main feature of the Budget was to relieve loans at the expense of the Consolidated Revenue. He would explain when he made his : Immigration Statement the further votes that would be required for immigration and for railway purposes. His colleague, the Minister for Public Works, would, in a day or two, explain the various circumstances respecting the construction of main trunk lines. He must, however, state that what lie meant to include when he spoke of main trunk lines, which the Colony would be justified in accepting as a Colonial line were those lines which had been already authorised, together with such ether lines as would complete existing between Kaipara and Auckland, Kew Plymouth, Napier, and Wellington, as those necessary to complete communication between Picton, Hokitika, North Canterbury, and Coast. The total revenue for with moderation, was Adding ,to this the surplus the year was commenced, wf&Q would be a total of L 1,704,000, and deducting the total expenditure there would be a surplus of L 66.000. It must be remembered, however, that the surplus was largely, to be trenched on by Supplementary, Estimates. In conclusion, Mr Yogel urged that while the country was confidently pursuing its policy of progress, they should wisely husband its strength, and not have larger recourse to borrowing thamras absolutely necessary for carrying out rare policy which the House and the people had adopted. Progress was reported and leave obtained to sit again. The House was adjourned at half-past nine. .