THE FINANCIAL STATEMENT.

Mataura Ensign, Issue 14, 1 August 1895, Page 2

THE FINANCIAL STATEMENT.

Tbe Hon. J. G. Ward delivered his Financial Statement in Committee of Ways and Means on Tuesday evening. The hon. gentleman commenced by congratulating tbe House and country on the satisfactory resuUs of the year's finance, especially so considering the reduction in the spending power of the people. He bad made some alterations in the form of public accounts with the object of placing the position clearly before the publio, and doing away with the excuse for causeless criticism which had in times past tended to injure and discredit the colony. REVENUE ACCOUNT. Dfspile restriction of trade, receipts bad exceeded his estimate in last Budget, which was placed at L 4 235,000, exclusive of L1_7,800, to be received to provide for the accretions of sinking funds payable during the year. The actual receipts came to L 4.281.995, or L4_,__s in excess of that estimate. The depression had caused hira to reduce his estimate by L 133 538 below the actual receipts of the preceding year, and it was therefore very pleasing to note tbat the revenue, as a whole, exceeded the forecast to the extent of L8G,563 Seven heads to revenue yielded an excess of L 91.561, while three items were less than the estimate by L 47.565 Two out oE the three items ot decrease were : — Oust una duties L.3.,215 and railways L 15 ,251. He allowed for a de ficiency in the Customs receipts ot over L 55.000, which amount was exceeded by the L 30.215 just mentioned. Tha causes were : caution in the face of the adjustment of the tariff, the low and unremunerative prices for produce, and forced sales of large parcels of dry goods owing to two big firms closing their businesses. There was also a considerable shrinkage in the duties derived from the consumption of spirits and wines, but this was not a mitter for regrot, as it went to prove that the people were progressively temperate in their habits. The incidents of trade which affected the Customs duties also operated in thedirection of diminished railway revenue. It was nn news to them that the grain traffic tell off enormously. The exports wore two million bushels less than the previous year, and this coupled with the damage done to the lines by floods, made more marked the falling off in revenue. The chief items on which increases were shown were stamps (L39,2_5), land and income tax (L 20.030), and territorial revenue (L 26.166). EXPENDITURE. As compared with the estimates the amount underspent was L 83..87. Of th : s sum L 27.787 was not required for interest and sinking fund charges. Of the 150,000 set down for interest on Treasury bills only L 38.985 was required, the difference being a saving in consequence of tbe earlier collection of tho land tax rendering it unnecessary to issue so gre it an amount of Treasury bills as originally contemplated, and other classes ot security not boing drawn upon, interest was not payable. Hostile critics who professed to koow mote than he did, committed an error of judgment. Examining the annual appropriations, it would be found that nearly L 14.000 less than the estimate was spent on the Postmaster- General's Department, and LIS 000 less in the Depaitment of Linda and Survey, while in tbe Treasury cla<s there was a saving of over 1.9000. A sura of 1.1592 was over-expended owing to extra contributions on charitable 1 works— subsidies. for amounts privately subscribed for the relief of distress. There was also an over*e_penditure to local bodies owing to tbe impossibility of accurately 1 gauging the probable receipts for " thirds " and " fourths." The"unauthorisede_penditure," as compared with former years, left 1 little to explain and nothing to defend, i BEBULTS OF THE YEAH. On the 31st. M-i-ch 1894, there was a net 1 surplus of L 290 ,238, to which were added ths 1 receipts of the past year, amounting to L 4.406 515, making a total of L 4,696,753, and ' deducting therefrom the ordinary expendi- ■ ture, amounting to L 4.266 729. there re- ; roaincrl a balance of L430 .0240ut of whiah th-y ; had a sqrplus of L18'J,.24 at the close of the i past financial year, a result wh'ch was gratifying, and which would add materially to the L general stability of the country. Treasury bills issued ip anticipation of revenue had ' been p_id paid rff. and the amount outstand- > ing reduced by 14000. The revenue account , for the year now appeared in detail in tbp > body of the Budget, and tha balance at the I end of the year, as shown, represented the I surplus— Llßo.o24. The Treasurer at tbis stage read a lengthy comparative statement '. of accounts for tbis and the preceding year, 1 and went on to deal with ' THE PUBHO WORKS FUND, ; stating that outside the L 250.000, transferred I from the consolidated fund during last year, ; the receipts amounted to L 63.049. The expenditure under the annual votes amounted , to L 307.182. There was a balance of i L 268 525 on the 3lst Mirch last, .gainst i which L 329.076 of liabilities were outstand- > ing. The loan money belonging to the i North {stand Trunk railway line was steadI iiy disappearing, and of the L 79.197 with > which the yeir co-i-jence'd the-e renjained L 26.604, against which L 14.007 of liabilities i hhr 4i r 4 fcoen incurred. PONYEPSJON OBERATJONg , during the year were next detailed : offers for , the conversion of the high-interest bearing , loans were Btiil before the public, but there , was a natural reluctance to part with the giltedged securities, and consequently conver- [ sions are only slowly effected, I LOANS TO LOCAL BODIES Tbe amount granted during the year was L 102.842, Experience tiught that owing to ' absentees.totheindiffwonceof ratepayers and to otber causes, tbe existing laws exhibited 1 defects and difficulties which should be removed, and during the present session an ' attempt would be maiio to consolidate and $mo'_<j th'ejp, 'principally in t'fia diredtiori of clearly explaining in' the IJill the aj.ps re'- | quired to obtain a loan." : ' ' *" • IJEW ZEALAND CONSOig. Tfisre had been 20 deposits inscribed ' amounting to tfie sum pf LJ.SS 025. of 1 which L 158.000 had been invested in secprities yielding a 4 per cent rate of interest. Of this sura LJ.50,000 was ie ; scribed by the Bunk of New Zealand ns a special investment of a portion of the accord 1 giiirante^d million, but, if required, this amount must be transferred to the investing public. He folt suro that it only r. quired to be more thoroughly understood that tho colony was offering a secure investment for 14 years at what might bs called a full rate of interest, to secure a satisfactory flow of deposits properly reprfsenting the thrift of the colonists. The deposit by Government cf Ll5O 000 with tbe Colonial Bink, at 4 ppr cent', «aa businesslike and advantageous, as \he bvnk paid 1 tbo colony 4 per cent, on Ll solooo', and the' colony paid tbe bank 31 per cent, on LIOOTJO.O, which was owih'e ait the time tho transaction took place, an- bad been renewed for 18 months, from 30 .h June, aj (.he rafe named. TJfE J?U_p<3 DEJ«. Qn the 31st March, 1894, the gross public debj; s'ood' at L 39 K B2Q 415,' and on the 31st M-rcb last had been inc'easef! by LgfiO 545), making a total of L4O 3£j6.96| Of' the iri'. crease of L 560.549, tbe laren sum of 1411 000 was thus accounted for ; L 152.000 for Joans to local bodies 1 L 231.000 for land improvement, and tbe purchase of Native lands | and L 25 100 for the purchase of land for settle, ment. This appeared large, but was reasonable enough if the Acts relating to placing people on the land were to be carried out efficiently; and the returns received warranted tfie e-psndjtfire. There was in addition' ths liability 'for Consols Ll(iS,ji)2S, which also p'rdijuc-cj : a profit. Thes'toti. issue of' bonds and of inscribed stock' wab j_i§_._i- and Lls32 363. ftn tbo other side there wpre redeeme.d' or converted tjebep. tures ip all to Ljjgl.-lf, leasing the increase to the gross public debt of 1,560 540. The not debt had increased from L,fß 874 491 to L 39,630,032, or a differerence of L7Q0.541, acoounted for by the increase tothegrossdebt ef L 600.540 by L 334.295 of released sinking fund appropriated according to law, less the naturaijiccretio S amounti: g to L 134.303. fi'iaqe I__l tljere had been an increase in the ■debt of _jl.()su.blt, but of tlds opr4 ijo less tban Ll,33i>i69i ! earned a rate ofsintjbresfi considerably in" excess 'bf the rate which the Treasu.y hs,d to pay, and so the' accusations of " borrowing,''' nsing such a terjn In it's ordinary senpe, fell tp tjie grpunjj. Besides the tlovornnient shop]*} not be b'lampd fqv advancing settlement, tba sole object pf the expenditure: inaction would result in wide, spread damage to all classes, In 1889 the annual charge for interest and sinltintr fund was L1,866,588,whi1e in 1895 it was Lt,656,970, The net indebtedness per head in 1889 was L60 12s 2d. and in 1895 was L 57 9s 9d— a re. duction of 1*329 5d per bead, wbis, oopbW-

3iing the magnitude of woiks undertaken, _ud the comparatively small increase ot population should give general satisfaction. INDUSTRIES AND COMMERCE had received the attention of Government.and trial shipments of timber had been .ent Home, while there were good grounds for ant cipat • ing an extension of tbo produce trade with India. China and J<p_n. The imports to . New Zealand from India in 1893 amounted I to over L 210.500, and return cargoes shonld be arranged for. LAND AND IJfCOME TAX. The revenue collected during tho year was L 370.059, being L 20.079 in excess of ihe estimate, a result obtained by tbe revision of returns. The work ot review. ng land values had just been undertaken. A shrinkage was expected, and he estimated that the combined taxes would not this year produco more than L 350.000. It was proposed to make the law clear regarding the recovery of. tax by European tenants on Native lands. In the past taxes had beon collected at dates to suit tbe requirements of the colony, without the adverse and extraordinary criticism to which his action last year was subjected, but, as these animadversions wero calculated to affect the financial position of the colony, he would introduce a measuie to permanently fix the date, THE DEPARTMENT OF AGRICULTURE continued to do good work. Prices had been most discouraging, however. The grading of butter had resulted in a very marked improvement in tne quality of the lato shipments, and the wisdom of the appointment of competent and impartial mon to inspect the produce prior to shipment was admitted by all who bad the general welfare of the industry at heart, A number of new factories and creameries had been started, and there were now at work 21S, an increase of 40. Tho quantity of butter shipped was 60,656cwt, valued at L 242.387. This showed a decrease for the year of 1844cwt in weight, and of L 23 572 in value. Of cheese there was shipped 51.917.ivt, valued at L 109.157; or au increase of 17,584=wt, valued at L 26 110. The appointment ot Mr McEwan as Chief Dairy Inspector, and tbe establishment of dairy schools, the work of fruit experts, distribution of Icaflsts for farmers, etc., were referred to, and the prospects of the chilled meat trade and tbe co dition of the stock of the colony described as satisfactory. THE POST OFFIOE SAVINGS BANK deposits during the yeir were L 2,252,862 6s lid, and the withdrawals JL2 208.624 8s 4d, but the withdrawals had been during the first quarters, and tbe reduction of the rate oC interest on fixed deposits by the banks and other financial institutions, hid led to largely increased deposits latterly. Tbe Government Life Insurance and Public Trust Department both showed goad r.sults for the year. ADVANCES TO SETTLERS. The general fill in interest more than justified the p.ssiug of the Act, as a low rate of interest encouraged improvement, fostered industries, and mci eased the avenues for employment. The total applications tn June 30 doalt with by the board were 1552 for L 550.855, and of these 965 were granted, for loans amounting to L 354.907. The advances had been authorised with prudence, and a due regard for tbe public safety. Complaints were sure to arise in the administration ot a now measure, but every care was being taken to avoid injustice or friction. THE MINING INDUSTRY would be fostered in every possible way by assisting prospecting parties, and opening up country knowu to bs auriferous. LAND SETTLEMEMT had moved steadily forward. The number of selectors and purchasers of Crown lands during the twblve months was 2631, and deducting these not necessarily forced to occupy, there still remained 1984 permanent settleis, as against 2281 last year. This was satisfactory, as lir.d for settlement became more difficult to obtain each year. In addition, ten associations, numbering 491 members and 86 solectors under tbe improved firm system had since selected land, so that the total would be 2561 setters, mostly holding under the lease in perpetuity, which, next to the lease wiih a purchasing clause, was tbe most popular system. Tho totil territorial revenue for the year on current and new transactions was L 306 166 lis 9d— ran increase on tbat for the previous year of L 3107 4i lOd ; but there was an increase in arrears of LS7BS. no doubt due to the low prices prevailing for stock and produce. Good lands in the Awarua and King country would be thrown open during the year. Tbe Statement proceeded te deal with *' improved farm settlements," telegraphic and cable communication, the reciprocal treaties entered into, and other matters, and then went on to treat oC the finances for 1895 6. The hon. gentleman did not share in tho gloomy, forebodings of the prophets of evil, and submitted the following estimate for the current year : — ESTIMATED EXPENDITURE. Civil list S 25.709 Interest and sinking fund ... 1,694,605 t7n,der special acts ... ... 331.590 Legislatiye departments' ... 17.385 Colonial Secretary's department 70.110 Colonial Treasurer's department 25 550 Justice department ... ... 124,186 Postal and Telegraph department 335,017 Customs and Marine departments 64,186 Stamps and Deeds departments... 20,560 Minister for Education— Educa? tit n department ... „ 416,814 Lunacy and Charitable departmsnt ... „ ... 52 022 Department of Libor 6,260 Mines department ... .. 18,289 Department of Agriculture ... 44.735 Workinp Railways department ... 738,940 Public Buildings, Domains and Machinery department ' ... 505.000 Defence department ... ... 64 419 Police department ... - ... 100,4)1 Lands and Survey department ... 129 631 Rites on Crown Lands ... ... 900 Toj-,1 ... ... ... -_$Mf3 ESTIMATED 'REVENUE. Customs ... £1,560.000. Stamps, including postal cash re? ceipts 644 300 Land and inconje tax .„ .., 3,340.000 Beer duty „ 60 000 Railways 1 155.000 Registration and other fees ... 50,000 Marino .". ... 21,500 Miscellaneous ... ... ... 65,000 Territorial revenue ... ... 290,000 Total £4,195.830 Debentures for sinking fund increases ... ... ... 145,400 Tota". £4,541,200 It would bs noted that 'tjie IJosl aiid T«'e£raph service showed an increase of L3(),251' q,nd the'_s_uca~tipnyote of L2o.sSo— iteiji.tjiat yyould necessarily increase yearly. 'Extra miles, c °n ralways accounted for an increase of Ll- 684 under that head. There would be a material reduction on interest charges amounting to L 22,355. THE ESTIMATED REVENUE had caused hira much conoern. He hid desired to be on the safe side bnt would be disappointed if tie actual results did not oxceed the figures he had submitted. RESULTS NEXT ".EAR, He could not prognosticate such a favorable balance at the close of thi year as on former occasions, but still expected a surplus, submitting the following estimate : — Revenue ... £4,341,200 Estimated OKnenditure ... ... 4.331,843 Excess of revonueove. expenditure ' ';9,_57 "Balance to begin .lie yeir with '... 180,024 Total gross surplus at' the end of the year !..' ... ... 189,381 Erorn this amount it was intended to deduct 150,001)' as a eontributibn to fhe Public WtJrks fund, leavihg a "balance of LSQ.^I, out oj: "which 'the usual ' Supplementary Fstimates'would be provided for. -BE pU&_qijlS 'I'AJUFp. The Treasurer proceeded af; great length t<| de_l with tbe anomalies existing in the present tariff, givin. many instances of these. He acknowledged tbo great assistance rendered by the Royal Commission appointed to inquire into the tariff, and said a reduction had besn made on bulk tea of ld per pound, on fencing-wire and rice, of onehalf, and one-sixth on kerosene. It was proposed to make tho duty on imported boots and shoes %b per oent. j changes with the view 1 of'- preventing frictiob 'between importers and 'customs oij-C-rs'l-Mj" been maae jn Connection with soft-goods ; and witji fey exceptions, 'the lj"j ' per cent a<f tald-jitm rate' had baen inproased to 2Q pp'p cent, with tbe view of obviating difficulty of classification and simplyin? the workin? of tbe tariff. The increase thus obtained had been available for the remission of duties In other direotions. Exemptions had been added to with the view of the further aiding of local industry and production and tbe removal of anorailies. Among other re-l-lasions it would bo found that the duty had been: rcnoov'oj" tropi wooipacks.'buttepaper, tubul_. wov«in bloth used' for meat wra r ps, certain drugs ti-ad in"raan-faot_fe', papers used for making stationary, and \j-_oden harip"loa for tools.* fn course, ho would move a resolution' to'giye effect to the proposed alterations, and meantime might mention that by remission!! and concessions we would lose, about L 45.00 0. of revenue, while on the other hand increased rates and new* impositions would bring us in some "L 55.000. leaving a net increase to the revenue

IN CONCLUSION. the hon. gentleman saui :— I have H___H deivored to place before members S m-_____ matters as aro of interest to the cnuntrv »n3-__i I trust that the proposals of the Governm.St^ Bhouid they be adopted, w.ll prove to be of advantage to New Zealand. There are | '■ am glad to say. evident signs of better prices ' for our chief products, and th . future in ib'. , respect looks more hopeful for our settlers. r ' Wh.le.his is so. it is a matW for most sincere regret, that in portions of the South : Island the unprecedented fall of snow has wrnueht such havoc with the flocks rf s om9 of our farmers and runholders. In expr es»ing my sympathy with them. If del sure it finds irresponsive chord of general regret 'hrou.hout the country, and I can but express the hope that the results may prove less severe than was first fdared. Surveying tbe general . condition of other countries, lam cf opinion tbat Now Zealand comes well out of the comparison. It is not to be expected in tbe difficult task cf fighting tho battle of life that all can be satisfied, but tho evidences of thrift, enterprise, and energy which are observable in all parts of this coun-ry augur well for its future, and though .J^jferseeV a" somewhat difficult period ahead,! 4 0 ok forward with confidence and hope, relying nnon the grit and pluck of our fellow colrimststo overcome any temporary difficulties that may arise. *