PARLIAMENTARY.

Nelson Evening Mail, Volume XVIII, Issue 152, 28 June 1883, Page 5

PARLIAMENTARY.

FINANCIALJTATEBIENT.

■ JBi Telegraph I. The Hon. the Colonial Treasurer delivered the following statement last night :— Mr Hamlin, — It will be within the recollection of the Committee that one of the objects which Parliament had in view in 1879 in making the financial year terminate on the 31st March instead of the 30th June in each year was to 'enable the Financial Statement and the Estimates for the year to be prepared and placed before Parliament as soon after '' its meeting as the convenience of members would permit. In accordance, therefore, with the spirit of that arrangement, I have selected . this . evening as the most convenient . for delivering the annual budget, I ami placing in the hands ,of , Hon. j members the Estimates for the year. In j submitting 1 the hud £ dthus early for the consideration of 3 t J«mmittee. L venture to reiterate the ,h«p< which I expressed last session that, the House. will consent to the appointment of an early 4»y for the discussion of the most important question of finance, .the Go eiiß:<\it-be"ng. most desir'.OUS that* the- sußjeet should receive the early attention of. the H^» se in order that it may be fully; and exhausti;ely diseased while lion ' numbers, ,are fresh anti vigorous. Last year , I Kacl.tae pleasure, of announcing a very.subs{aat£al siirplis upon the.. financial transactions'of the year, and although lam not in a position this year to showso large a surplus for reasoiH , which., I will presently explain, the financial results of the year haye been, satisfactory, {he. surpltts, although' small, fully justifying- the action of the House in red icing taxation for the. financial year which eaded on the 31st March last. H will' not Be necessary, fam happy to : M.y; to trouble b.on. members on the'present oecaaiou . at any great length, as. the form v of'bnr" pumic. accounts, now permits i T :i eleai' stat^&eiifc o! : r our " 'monetary ■ transactions ana* position to Remade wifhin a very reasonable 'compass; but I naust ask for :th6%Mia indulgence of tiat Committee while ."sfabfciHftirig some details'of ipiast 'transactions an'd the proposals of* 'the 1 Government for; thd- present year. I lotlow "tie ysual - *ri4" : co'urse" ih : '^on's'idtr- : ■nig;' first "ihe : exj^naiiuie 1 ""^ tie prdin-y-itcfl' revfeine'' ot'^ the\ L s& 1882—83. " l^btr expenditure for tjie.year'mi^r permanenf'?Acfe- of Parliament &sLs 'ieafimated at £1,627,512, including £1,284,84^ l for interest, - :«ndi£27O,Oofr fdr re4em^tiondf debt, and the amount TrcWj for departmental services' was •d83;066,m' »>Tto total estimated expenditure, therefore^ -sanclioned' -by Parliament wa3 'She total actual expenditure provedtobe£3,63B,4B4, being £^s,B34lesstiian estimated. The only ifem 1 in this expehdi-. tore which calls for special rem,arks'is that of Defence. Hon members : will see, when tbe accounts are clearly laid before them,' that for the first time for seine years the "total eo»t of ■ this Service has been paid ont of the ordinary ' revenue without any contrlbntion m aid from loaa, : Thw "we were enabled to :: do in .' eonsequonee of the large sdrplus ! of £203,683 bronght forward from' the year '188T-S2, bat : the principlo of paying the wlfol& cost^f the. Armed Constabulary dot of Ihe revfenne -his so much io- commend it tha? I hope" we not again consent to charging any part of that cost against loan, while it is possible by any reasonable effort to provide the necessary means . fcozn the ordinary revenueV With "regard io railways, the amount -■ espended. wa"s ■ only slightly in exce«B of the vote, notwithstanding 1 the very considerable increase of traffic during the year. 'Pall particulars of the 'expenditure in connection with the service will be' given by. the Minikter for Public Works when he makes his annual statement. -■■ ; , lAUBJIiHES-OCISIJUiDING-ON- THB -31st MARCH, 1883. The outstanding liabilities of the ordinaryrevenue account on the JJL^^iarch, 1883, were eßtii^te4^^J^l76^f)^p«flticulars of which have be^sr^dieforie^eß^use by tlie Audit Office aoderflection-S^of ~ JIS The Public Bexrenops Acf, lJ sheße liabilities are, as hon members Imow, included in the est|- ... mat€(d expenditure for ihe.eu|r«at year, Tlie Y - liabditils outetanding on" the "31st March, 1882, amounted to £164,394; at the close of the prevkrasvyear they ajtnouated to £165,514. It will thus I>e*Been fh'at "in the ordinary course, of thjngs without either hurrying or delaying' expenditure/' the "liabilities on th^ ~"~*MOBalrinmf year^ttrT^ar-imghir'fa'My be from £160,000 to £1^3,000. The . pr&c&ebegan ia:1880-81 o{ making payments ■ wilhathe financial year. Th|T expendituiie of the year without regard to d|te of service or supply, and so abandoning the method qf —throwing baek'on the- revenue ofthe previous year expenditure made Jn respect pliabilities ; c^utat^nding^on the 3lßt |larcK,gbiis greatly ■ simplified the public accounts^, afl,^ worked satisfactorily. ," ~r, comiirijaY bbvjnub: oy T -7JEAn|IBB2-83. • - --The estimated "revenue for thCyear, Ttfchi- ' are of cash derived £rom land sales.'^wab r; The, actual amount-paid into the ■ phblic account, after deducting refunds, was , being- £767750 in excess of the estimate. A reference to the comparative return of estimated taxi actual receipts, which - trill, be appeaded-to the' Statement when pub> lisEed, .wilLsfiow hon members the extent to yhich several Jicads # receipt exceeded or : felt short of4h> estixgafe. It will be observed "froisii<hait2relilrirfli«t the only class of whwh^eJl jahori of the amount estt "mated; was dnstomrf^.'the receipts heint - £1,494,464as against" last year £1,600,600! „or £5,537 lessjthan the estimate.-' The total "• amonnt yfelded in ex^egs di the estimates by :: other classes of revenue ware £82487. Of tbik gum £23,G99 came from registration and other fees. This large increase is attributed to the tinder estimate of the probably receipts of duty on leases; and conveyance/ of native elands.. . It - \?ill be;^ r^mwnbere*' that thi !Act of 1881 offered" an' alternative o anticipating the annual payments" of thea Tiutjjss^by 9. composition- paid onee for all i been' ; acted: on beyonc luy^sohjecfuraL estimate. From this sonrcl c of revenue; we y receiveds £25,251; during :th«i year. The fevenoe from stomps was £10,381 in excess of. the estimated .amount. Includec . in th^'s c^ass are dpties under the Stamj "Act. For postal revenue fees, and fines, off Jiaw Courts^ Land Tranefe^ • fees, • t^ete' is in6wl only one description of stamps in w and the Treasury ig : consequently unable to Apportion the moneva ; reeaiveifrom salesofetamps in the classes'©^ jwhi&^ey relate. The same! -coujre^ ifiiat of T>«rmiiting one kind of stamps ~i4 l^ B«sd foy all.purpxJsea, has been followed to«ome«xtenHirthe-crther'colOnteß fina*~in England, and jio practical' inconyejijeGce has resulted, while ; io the jrablio ,tfie,,.change has been a great; advantage. The'Telegraph revenue was £81,136 in excess of the estimate, ._. The .receipts from: depasturage 'licences, rents, "4jc, were also in excess £1Cf,073. The railway receipts, notwithstanding the large reductions in the tariff, yielded more than the estimate by • £M»74O V This has been due to a considerable increase in- the passenger traffic and in the tonnage of goods carried, and to an unprecedented increase in the quantities of live stock moved, th# latter result being doubtless due to a large extent to the activity of the new refrigerating industry. The previous bad sea■pn led tp a somewhat diminished grain traffic timing the year, The traffic arising from, the

last grain season chiefly falls in during the current year, so that we have not yet realised the results. land ru.Nl> 1882-83. j The total amount expended during the year out of money derived from sales of land was £107,101, of which £41,758 was expended under permanent Acts of the General Assembly, and £i&>,343 out of the votes for the services of the year. The amount estimated to be expended was £41,500 under permanent Acts, and £105,337 under the Appropriation Act, making together £23(5,837. The actual expenditure was, therefore, £39,736 less than the estimated amount. This result is mainly due to the absence of expenditure out of the vote of £30,000 for rates under the Crown and Native Lands Eating Act of last 3 r ear. The liabilities outstanding on this account on the 31st March, 1883, amounted to £27,140. At the close of the previous year the amount was £25,188. The former amount is exclusive of rates on Crown Lands for [the past year estimated at £20,000, in respect of which no demands • have been yet made in consequence of the valuation rolls, which the Property Tax Commissioner is directed by " The Bating Act, 1882," to return, not being completed. No moneys were transferred to the main roads account during the past year, no demands on the Treasury for payment having been made on Sthat account. The receipts from sales of land amounted to £272,3Q0, consistiug of £225,858 i from sales for cash, and £46,447 from sales on deferred payments. The total amount estimated to be received was £354,000. The receipts, therefore, fall short of the estimate by. £81,695, the receipts of the year having been £272,305, and the expenditure £179,100, the excess of receipts ampunting to £75,204. Adding to this sum the.balance of £11,360 in hand at the beginning of the year, we get a credit balance of £86,564 on this account at the : end of the year 1882 — 83. The whole of this halance being within the sum' of £100,000 authorised by the "Roads and Bridges Construction Act, 1882," to be transferred to the main roads account'; to which I have just now referred will be so transferred in such sums as may from time to time be required. ' ' tTTBLIC WORKS FUND, The appropriations' granted out of the public works fund for the year ended 31st March last ajnountedto £1,727,729, exclusive of .the vote for land purchases, £32,455. The actual expenditure, was, however, only £867,194,.exclusive of £29 ,843 for land purchases. The principal items of this expenditure were as follows:— Railways, £435,529; roads, £210,650; pubiie buildings,. £131,071; and other services £67,989. A good deal of misapprehension appears 'to exist in the country, and it is not altogether absent from the minds of honorable members, as to the reason for the great difference between the .amount voted, and that spent upon public works, the Government often being blamed on the one hand for flaking for votes for very ranch larger sums than it is intended to expend, and on the other hand for not. ' spending within •the year the whole of the sum* voted. It is 'practically' impossible "' that the periods of execution of large works should be Adjusted exactly, or even very closely to the periods of the votes. ... These, latter are.in fact authori-j ties fpr'^he payments of the year,: and toi' engaging tine" colony in opera-' tions wbieh •• ' must ; extend beyond theye»r, and the engagements of one year become in part neeessarily and properly the expendi- [ ture of the next and following .years, ' and tb.6, | only means by which Parliament can obtain practical control over the expenditure is by iVQjfcb&g such sums in respect of such works as it may determine shall be undertaken as will cover not only the probable expenditure within the year but liabilities incurred under contracts or engagements which may remain 1 uncompleted at the end of the financial year. Particulars, of the expenditure of the past year will be found in a table annexed to this sstsltement, but of course much fuller'information on the subject will in due course .be given by . the Minister of Public Works. The liabilities outstanding at the end of the r year, exclusive of those for -land purchases amounted, to £861,361,. : which, added to the amount expended^- £867, 194, gives a $otal of £1,729,055 as against £1,727,729 voted for the year. Hon. members, will perceive thai in speaking of .the expenditure of, tfiepublidl' works funcf. and the out-, steading liabilities St the <jlose of the year, 1 1 expressly excluded* :the expenditure and lia-j •bilities in respect ofland .purchases.. I did so; because.! tlimkit is "desirable tp keep the Ua-, bilities on acco'ijnt of land purchases, entirely: distinct from the other liabilities' of the public ( ; works fund; as ithey stand on an . entirely different foo ( ting t ,, .From the return of .liabilities' laid before ihe'JHouse by. the kddxt Office, -it j ■ will lie seen thai the .land purch'ase liabilities' oir the 81st March last*njoun-ed to £309,297. ' At the- close of the . previous year the ; .amount was £338.876, , any that year, the: House was informed thai probably, not more; 'tb:4n''£2OO,OoO would be required to completethe'purchase of those blocks which the 0oYenrment: had- decided to acquired "No new! liabilities have: been incurred on this account, ' and, as. already stated, the • amour i ex- ; '.pendedy last year wai £29,8-13 out of a; •vote for £82,455,- the differed ie between the i amount voted and the expenditure being a't- • fcributable to the non-completion last.-yearpf the purchase of .all .blocks pf land in the provincial district of Hawse's Bay. ' The balance \ of the pubKc works fund remaining uriek-j • petided on the 31st March last, including the; bajazjee of. the Joan of 1883 to be received,! estimated at£65,000, amounted to £1,017,7 25, i consisting of .cash and securities readily cob- '■ vertible into" cash. ' ■ :: ■'/■■' ' THE PUBLIC DEBT. " ' . ' On the 31st March, 1882, the grosspufclio debt of the colony* amounted to £29,946,711, ; subject to a deduction of £2,266,418 for.^ac-i crued sinking fund. On ihe 31st March, : 1883, the debt'was £30,357,111, and the sinking fund had increased to £2,571,829, the net jfebtJjeing thus .£27,785,281, or £104 : 989 j more than it was in the previous year. The :i only addition to the public debt ' during the i! past year was the loan of £1,000,000 autho- ■! vtafiH last session, qf which Lshallhave some- j thing to say presently. ' During the year we -i were enabled, however, out of moneys at credit > of the publip work* fund ; temporary '■ invest- ;' ment, to reduce, the amount of the Imperial | guaranteed ■ debentures outstanding on the '■ 31st of March, 1882,; by £264,700, an<] i to'talce up-temporai-ily debentures for £319, j 40b issued : under the' Treasury Bills Acts of I 1879 and 1880, upon which advances had been : obtained* also £3,300 of the Immigration and \ Public Works Loan of. 1870. We also redeemed f out of the special sinking funds £2,200 deben- j tares of theNorthOiagoDistrio^ublic%bris \ loan, which, with£67,Boo previously redeemed, ' completed the redemption of the debentures pf j that loan. Further, the sinking fur da were in- ', creased during the year by £305,411, These sums,' added together,' ' give £895,011, which, deducted from £1,000,000, leaves £104,989, i th£,sum b/ which, as I have stated., the public debt was increased during the past year.' When however, we have raised the amount repre'eented by the Imperial guaranteed debentures in hand (£400,000), arid debentures for £323,200 teaiporarily taken up put of the moneys at credit of the public works fund, the net public debt of the colony will amount to £28,508,518. In accordance with the prc.visions of the Treasury.Bills Acts of 1879 and 1880, the; whole of the , Treasury Bills issued nnder thip' Act, amounting to £1,882,000, were oii'ttie' 31st December^ 1883, exchanged for debentures having a currency of three .years. Jt will be remembered that the Government proposed with th# concurrence of the House to convert these debentures into.

4 per cent inscribed stock. I regret that circumstances have not yet prove sufficiently favorable to a successful operation of ttjis nature, but so soon as a fitting opportunity offers it is the intention of the Government to inscribe the debenture loan of £1,000,000 raised in January, 1883. Papers relating to the negotiation o£ the loan of £1,000,000 raised in last January will shortly be laid before honorable members. It will be remembered that the loan was issued in the form of a per cent inscribed stock, and that it was offered to the public by the Loan Agents, ; through the Bank of England, at a minimum of £ ( J8 10s per cent, the average price at which it was placed being £98 12s sd. The stock is now quoted at 102 k. The total amount paid by the Bank of Eng.anu to tne .uoan Agents, after payment of commission, stamp duty, and other expenses, was £972,297 11s 9d. On no previous occa- | sion has a New Zealand loan been raised at a price so favorable to the colony. The success which has attended the judicious negotiation of the loan by the Loan Agents, Sir Penrose Julyan and Sir Dillon Bell, and the present price of the stock, are therefore a fitting snbject for much congratulation. Prior to the above loan being offered to the general public full information, regarding the progress and prospects of the Australasian colonies in general, including New Zealand, was published in London by the Agent-General in a very able paper read at the Colonial Institute, and discussed in the public press. Not only the f vo able rate, therefore, at which the loan was placed, but the present price of our 4 per cent inscribed stock, and other loans shows tlia , r otwithstanding the reiterated sfca ements to the disparagement of our credit, there i& in the money market of the worl'd confidence in the resources of this colony and in its ability to meet the charges of its public debt. So long aa ouv finance is prudently managed and the affairs of the colony are suited to promote settlement on its lands, and the deve^pmen!; of local industries," there is no reason to doubt that our Sredit will be well Liaintained, and that we shall be able to. obtain, from time to. time, upon reasonable terms, such moneys as may be required to carry ori our public works. SAVINGS BANKS AXD GOVERNMENT INSTJBANCE DtiPARTSTEN'T." ' ' ' ' ' / j I should like here, Mr Hamlin, to refer i very briefly to the growth of the busi- j ness; during the past . year;, in ..connection with the Savings Bank and Insurance, as affording : a very fair criterion of the continued improvement which is taking • place in the cultivation of habits of economy and prudence amongst, "the people. In the Savings Banks of the colony on the 31st December, 1881, the amount held on deposit was £1,549,505 to the credit of 61,014 accounts, or an average of i525 7s 7d ttfCaeh account. On the 31at December, 1882; the amount was £1,832 047, to the credit of 68,358 acconnts, the average an? ount being £26 16s. There .was an increase 61 £282,532 in the deposits at the end of Vre year 1882, and of 7394 in the number of accounts open.. Of the large amount of £1,832,047 accainulated. in the Sayings Banks of the ep10ny,. £1.470,950 was deposited in the Post Offiae Savings' Banks. Considerable attention- is bestowed on 'the work of tha Insurance department in; the direction of ; . extending its usefulness, and especially in bringing its benefits more readily within the reach of those who may desire to insure sfjall amounts. The result has been very satisfactory as regards both branches of the Department, the rew business, which now exceeds a million per arnum, being double the average amount hitherto annually attained. In the ordinary branches the assurances in force number 17,000 policies insm--ing upwards of five and a-half millions. The new assurances average a,t present nearly £10,000 per month. The accumulated funds of the Department now amount to more than three millions and a quarter* These figures appear to . denote that a growing section of the general public possess the means and desire to make provision for the future, and are availing themselves of the advantages which the Department offers. ■ LOCAL FINANCE. - The passing of the Beads and Bridges Construction Act has, I am glad to say, enabled the local bodies to begin many useful works, but owing to the fact that the money for the construction of majn roads 'was not available until about February • the xvorka completed under the • provisions.' o£< the Act have been . less than would 'have been the case had the money, been, 'available in th« aping of the year.' The ambint available for tue construction of main roada was estimated at £200,000, , but applications to the px'js it of £540,358 wera i'jneivps, the result keing. iliat tu» applicant* were (allotted only thm.eigljtbs.of tbe amount of their ■ application, the Act proriding i-bat should' a larger 'amount bY applied for than | was available, tha graiti should be reduced pr.orata. The application! ifor district roads . oslj *ajoupted to £§1,795, . :bo that the whola of thoja applications which were in , proper 1 j form acd received the approval of the rate- ' payers were granted. ! The 'Act ie'ems to be J i working' on the whole we'lP, but will' probably I require Some amendment ;iu Jho direction of j limiting, the. aiaoupt wbiuh any laoal body , , may apply, for. This matter u under the j consideration" of the Government. .LOCATr INSCRIBED STOCK.. ] It will doubtless' be in the reoolleotiop of some members that an Act waa passed ' last session authorising the issue of a local ioan of a quatt?po(. a million .68 inscribed jtock.. The scarconeaß of mosey jn ; . the local s^arket has rendered "ifc inadvieable, in the opinion ot the Crovertimedt, to place this loafa.^ No action has therefore been' taken uodsv the Act further. than to' make tha necessary arrangements for issuing the stock, should & favorable turn in the taurket render it advisable to do so. Aito FINANCIAL KBSTJLTS OT TBE ■JEAB. I viil now briefly PumiDQrijp^ for th« conTenieuceof seme member*, the f general flnauciai results of Iho year, whiob I have just givea in some de ail. We Bad, at J. bare aldady sta'ed, tbat th« total expeaditure out of the ordinary, rerenue of (he Consolidated Fund was £3,638,38i. and that the revenue amounted to £3,470,^50: To tlie . revenue I add, £253,603; tbafc sum ..being the b'aladce standing tp the credit ;of the account on 3£«t March, i5,32; thus obtaisinjr £3,673,933 , as the to:&t receipts bflhayear. ' A BDBPLlis' Deducting from this the expenditure, amounting to £3,638i38i, a balance of £35,349 is obtained qb the surplus with which the year 1882-83 terminated. This result ths Cptomittee will, I hope, think very satisfactecy, especially wlieri ifc is remembered that taxation- was remitted last year to ' the extent of £80,000 r while for Constabulary e7sjooft. was charged againsi the revenue, «hich before Bad been bpipieupon loan, and ratra' charges on educatio;h "and interest had oeen provided for to' the extent of about 296,500. • Therefore, if the revision- of taxaion had not taken place, and. extra charges •not been required, the year would have errninated with a surplus as large as tbat of 1881-82. It should also be specially borne In aind that during the past year we contributed ,>ut of the revenue no less than £270,000, to the SinkingFund for redempt ion of onr public debt. I lo not of course liientiou this Bum as an exceptional charge oa the revenue of the past year, tbough it included £24,000 for arrears in respect of Sinking Pqnd of Imperial guarantee, debentures which were exceptional, but I refer \6 the^aci; for the purpose of drawing attention to' the large and annually ; increasing sum Avhich the Colony is gerlddically Be^jpg aside f w gaoceHfttion. ot it|

[ public indebtedness. In the figures I have just summarised, I have not of coarse included the proceeds of the land sales, which are kept ill a separate account, and arc applied, after the payment of authorised charges to local public works. But when we come to cou sider the whole of the transactions of the Consolidated .Fund of the year, the proceeds of land sales, and the expenditure charged thereon, must be included in the account. We find then that the total revenue received, includiug the proceeds of the land sales and the balances with which we began the -year, amounted to £3,057,599; and that the total expenditure, including charges against the proceeds of land sales, was £3,835,486, thus showing a surplus upon the whole transactions of the Consolidated Fund for the year of £122,113 ; hut, as I have already stated, the surplus of the ordinary revenue account at the close of the year was £35,549. The real credit balance of that account, however, as honorable members will see on referring to the account which will be appended to this Statement, was £85,649. The difference, it will be observed, arises from the addition to the receipts of. the year of deficiency bills for £50,000, which remained unredeemed on tbe 31st of March, 1883 ; but the balance of the account was £35,549 in excess of the amount required to redeem these bills, I have thought it better in speaking of receipts to exclude the £50,0. '0 in order to simplify the Statement of the iinacial results of the year. STATE OF TIUDB. Before I submit for the consideration of the Committee the estimated expenditure and revenue for the current year, I am desirous of calling attention to the condition and prospects of trade and commerce in the Colony. The subject is very important, and I am sure that honorable members will not think a little time misspent if devote 1 to its consideration. I propose to look back a little in order that we may seo more clearly the general tendency oi our trade. I take for examination the three quinquennial periods, beginning with fciie year 18C8, and ending with J BB2. I 'find from year to year the fluctuation of both imports and exports are only such as might be reasonably expected in so young a Colony >vbile making laige expenditure on public works, which have been going on for tho last ten years. The rapid and on the average teady INCKEASE OF IMPOSTS is not more than might have have beeu anticipated. from the impetus give to settlementand specula tion by the introduction of the immigration and public works schemes. The value of imports for. the period ending 1872 , was £23.822,033 ; for the period ending 1877, £30,494,260 ; and- for the period ending 1882', £39,358,574 giving a grand total for the fifteen years of £99,674,867. Of this total .probably about £35,50,0.000 represents in round numbers the capital forwbieh we have to pay interest to : persons not residents in the Colony. \Ve may divide this sum thusGross amount of money , borrowed by the State and Municipal bodies about £25,000,000, and by private persons £10,500,000. The whole sum left for tbe development of our., resources, being the balance after the deduction of the amounts thus borrowed, was £64,174,867. The latter sum being the payment we receive for evports and the value of the personal property imported by tbe settlers which ha3 not been I paid for, being {their own. The VALUE OP EXPORTS : for the period ending 1872 was £23,949,563 ; I for the period ending 1877, £28,693,254; and [ for the period ending 1882, £30,930,392; making a grand total of £83,471,159 Deducting this sum from the value of the imports just given, we find the value of the i imports during the fifteen years under (consideration was £16,203,708 more than the I value of our exports. No.v, if it is true as I I have assumed, that of our total imports £35,500,000 worth was tte property of non - residents, or, in other words, capital sent here for investment ; it will be seen, if we take this amouni from the total value of our imports, viz., £99,674,887, that the value of imports for whioh we paid from our own resources wag only £64,174,8671 OuFexporU, however, were w0rth £83,471,159 \ so that we bare paid for interest during the la it fifteen years to non-resident* the difference between these sumi £19,296,292, in aHdUi 9t io that proportion of the value of our import 1 which, represents capital introduced, a«c £wned by 011/ settlers, which may ba eitijnatos at about . £6,000,000. Tbu« wo have paic for interest outside the Colony abou £25,296,292 in tho fifteen years between 1869 and 18S2. Our average payment in round jquenbtra b«ipg near!? \ £1,200,000 a .'-. year] This of course is. a serious drain, i^ena sense) upen «ur productions j, and in fact mustnerei be Jost fight ojf,;if vedeeii-ejojindeMtfliidioui' real financial position. But if tbe Capita borrowed is being employed »o advantage, 01 We bava good reaiion to» suppose^ it is clsai tbat the transaction xamt be a profitable one lot tbeCeloriy. Ahkougij ifc it tr«» 'lbat we We sending away a large portion of product ia payment for the Use of this- money, it i« evident that it; would be: impossible for us to export iaytbing like Ihe quantity of produce we do-without its aid. The practical question then: for consideration is, are r vrß pruductng enou-ih to pay eur debts,, to live comfortably, and gradually to increase our capita!. Now in order to ariiwiir ibis question, it will ha necessary U unalyee tbe figures which Ihave given relating to our exports; We waat to see if, '« a people, w8 are directing our attention to the development of those \ ISDCBT&IBS which will enable us rb id'ereaire our exports in proportion to ! tbe wants and increase of our population. To do Urn, tbe bea^ plan will be to eliminate for (he present Beth ! gold and wool from our ' ;i>quirvl ; ' Honorable members vritl find ijpon reference ito the tables whicH: will bapublished with this Statement that out of. our total' axjcibrts of £83,471.159' no less than i£24;660,'658 was for gold and £40,339,98J for w.ool, or a total for gold and wool of £65,0,20#39": Now the 'alluvial gold industry, although it was at one tiine the principal prbductidp of., the Colony, "stands upon ■ quite a ;aaferefat footing 'fronl either agriculture or niKnu'factareß: and alluvial diggings can only be of a 1 shert 1 duration in such a country as this; and,, as a matter of fact, wefihd that the' 'produce of gold' has fallen off from £2,492,793 in 1868 to £921,644. in 1882.,. pi. thf wn^unti.exr^rted last year, about age third wag. .thel; produce. -of auartz reefing,^ .there reason, I to expecji a considerably larger yield of gold from quartz reefing than has hitherfo been obtained. But ;judgir}g b.jf,- tKe.gradual falling off for many years pastof the produce of the alluvial £elds. ,we. ca«pot cely, upon maintainiog . : PTJB t GOU) IXPORf „:: ■ . i at more than the average of the: laist 4 hree years, and that i» .at slightly ow* ona million sterling e, year. The export of gold for the firgt period was £11,517,655 5 for the! geeond, £7,645,496} and for tbe third* £5,557,607.1 Hlimioating, then, the gold export, w'efiud the export* for the three periods which we are coneideriog to be £12,431908; £21,045,808; and £25,312,785 respectively ; or a total of £58,790,601. Of Ihe latter sum, wool contributed £8,735,785 5 £15,907,346: and £15,616.850; or a total of £40.339,981. if rem this we see, tbat the value of the I EXPOET OP WOOL 1 rose rapidly during the second quinquennia) period, nearly doubling; but that it alighlly decreased in the last quinquennial period. Not so, however, I am glad to say, in tbe quantity or quality, the decline in ol«9 being due 19 tbe. fluctuation.! gf 0

; market. This industry is gradually changing I its character. The production of wool by ; small tanners now being coustdeiabla, audf i* likely treatly fo increase. Tho impoitauce to. the Colony of tbe wool/industry cannot well be exaggerated, fop wo may be acid to have paid the whole of the interest due to ci'sido creditors oat of wool during the lost .fifteen year? ; and to have received in addition, a fiulauce of one miliian a year for. exhendii live wiciii.-i the Colony as i;a results. If we now also deduct our wool export frem our tola!, we find that the exports other than wool. end gold, durine the peiiod ending 1872, were in va'ue £3,696,123 ; during the period ending 1877, £5,058 4fi2: and during the period ending 18S2, £9.095,935. From this we ace the value of ti e exports othvr il.ai gold »rul wool, has vi'ry largeh increneod dmiig eaoh period, and *as for tbe five yiara. ending 18i2, nearly three times ns much as for tbe period anding in 1872, while our population had only about doubled in the time. The proportion of malo adulrs to the whole population had fallen from 35*4 to 28-8 per sent- ; but the value of exports per male adult, after eliminating gold and wo<<),hss been for thp tt.ree pcrioda under consideration, £8 Wi 2d •' £9 ss7d; and £14 6i 85. Ibis is a -very satisfactory result, and our fat isfuctio.i u increase, wiien we como to exutuino in mote dalall tbe PROGRESS OF INDUSTMES which have produced this result. We find large and steady advances in. the export of grain, flour, gum, leather, potatoes, sheepskins, tallow, and sawn timber; and last year there is entered for the first tinie amongst our exports, a new industry, which promises to be of the greatest advantage to the community. I refer to tie export of frozen meat and dairy produce. This trade, as soon as it can ba fully- "organised, should enable us to bring into profitable cultivation a much larger area of land in proportion to the population than we can use at present for mixed farming. Nor must we forget that wo have among other industries, fully established woollen mills, soap and candle 'factories, clothing factories, boot' and shoe factories, iron foundries, tanneries, and agricultural implement factories, which will all tend to either, increase proportienally our exports ® r ) by reducing our imports, to liberate n equivalent part of our exports for payment to our outside creditors. For theses reasons' I think- wfr.may safely conclude that ; we are not only giving our attention to necessary' iridiis- 1 tries, to which I have referred, bu't that they '] ha\7o already been permanently established. But, notwithstanding, the fact that these -*■ results, as I have saidi most satisfactory, as showing we are rapidly developing industries ' which will 'bear almost unlimited "Expansion ; we must not' forget the present and the prospectof the* future. Although, as I have justl shown, we have begun in earnest -to develope these industriee r which are most .essential if we are to prosper. It is nevertheless, also true that, taking our exports including' wool' and gold into question, the value of exports per head of the male adult population has, for the three periods we are considering, steadily diminished. The exports are :— £ss 2s 5d for the first period ; £52 13s Bd 'for the second; and £45 lls <5d for the third, per head, respectively. Now, these figures, if taken ; alone, ; would give & very erroneous impression of what is really going on with regard to PRODUCTION IN . THE : COLONY, and they would have a very 1 serious aspect indeed if exports other than wool and gold had not both steadily and largely increased during the same period. But fortunately exports other than wool and gold have largely increased, as I have already shewn, from £8 10s 2d in 1872 to £14 6s 8d in 1882 per head of male adult population. I have said we have paid annually oh an . average for interest outside the Colony during the last I fifteen years nearly £1,700,000 ; but it must be borne in naind, considering our. present position, that we are now paying no leBS than £2,500,000 a year for INTEREST TO NON-BESIDENTS. i In other words, rather more than one third of our exports do not belong; to us— that is to say, they have to pay our dehts abroad, and bring us no return except the difference between the interest we pay forthe use of our borrowed money and profit we mate .by its use, which is probably net more than two toer cent directly for that p'rivatley borrowed, although the indirect gain must fee considerably ra«re, both upon the pnbiie'and private borrowing. Bearing ( iri 1 mind , then T tie estimate and facts which; I : Have jdst- submitted, we are now jin v d ppsitfon to 'under-; stand pretty well ihe'm ! eaiain£ 'pf " what is j koing on around us with regard tp'trade and I money, sd'far as these matter's aria. concerned by what 'we do Ihere. " Now : : the'l fir'sfi thing that strikte one, 'iy;,tn.e !!J^uriqti3 coincidence that the total amount 1 of ' "° ! '" mvj'.:! .: ;•, ; ...i,"i :> i.-»-jit^ .fi) . ... „ .JNIEBBST AND feDfKINO' iIT/ND, „.,, .,-»:. | so ,far ftslcan, be i..eatimated,. ; which.'We c .'.paid ' outside 'tH^ polony durin^.thal^at.loyear^ia practically tbe same ■ amount : as,jnaoney;^Qr-; rowed : by the ..Coleny 'an,d\mijnicip^ir bpjdiies taken %e)6hejr. But aHhbugh'thjs has.heen' a caao.in gross during tie last fifteen • years, the case has .bean 'different ," the last .three years.. Sqr, that period the expenditure, of money borrowed., by the Stat^ has. "not much exceeded, half of t^'e Interesit.^id/SinkiHg Fund,, ./.amountirig.'aß stated, to u '£2,500,*000, rwh.ich. we have, to pay put ofjit^s.Cplon-y for Colonial and, municipal loarW,' and ipr;pri^aite' indebtedness, x sini- for ihs lagt tw.Q?yea^a-it only been a; little more than > one jihjrd. From, itiia ,it will-atpnca -be ovldent, assuming our expanses ■tp remaia? the same, that; unless .^sufficiently large influx of "capital, ■. the pfoijerty of the settlers is maintained to justify tbe continuance .' of cur; impprfaj fat their average rate', or'unless the.prqduce of industries. supplying ppipnial consumption the extent of any\ reduatic-n. ,that in import^, •/; ...,,./ j ■•' -. COMMB2CrAI DEPHKSSIok u: ; " '"- '•' muit follow;; Now. our 'exp6rtg' : foi? »hejla>t threejeai'fl Hare' bean— £6.352,692 is 1880 ; £6;060,86G ; ih 1881 j and £6:6^8,008 in l88>; while. .the imports far the. jame yeaVa hare been ! £8. 162,011; £7,457,045, and £8,609,270 respectively. Our exparj's for ' 188a were • £6,352,692, and for 1882. £6,658.008,; an i inoreaie of £305,316.' Olir iQip.orta for 18'SO were £6,162,011, and for 1882 [ £8,609,270 j I nn inqrßaae,, of £3,44^259, . Npvr there ,J8 | reßS9p to -believe that the .introduotioa qV ' oapital, jth* properijr of eettlew, ..wa». rery i lar*gß (iuriag the last jear.j'aud to that, 'fix' ant ' tbe increase in our imports, wag iegitiqmie,. i But making every allowance fof ibw impor- • taut item, it is oleartomy miiH tliat our im- i ports last year wire at least £1,000,000 -more I tbap they ought to have been, to BUppjy our! reaaonabia wants ;. and are therefpee pr.eg.aing yery heavily u^on the ooraqaereial' o.lwses;; } and throu'h them upon the reU.pf thecommuniy.; It ja.l think, ,ciear : .that until, we have worked off pur turplua stocks tbi» can only bpdQnffby i; prpduoiDg means to pay for tbejn,;, which, , will be» work of time. We cannot eipeot full relief from tho . .present | conomprcinJ d.epejeioD, although the gradual . easing of tbe money-market in- Australia, as it 5 taked place, will give m some help. But are there any real grounds on . account of the , pre.-t-iit cominerci.il depre«ion, which undoubtedly exists oror a large part cf the Colony, or from any deduction winch' can be fairly drawn from the figures I have just given, to juetity ui in taking a gloomy view of the' • • FUTCKE PfeOSPECTs!? - ''!l j To that ques'ioD, Sir,'my,'ans\v^is!em'phat^ ' cally— No ! 1 say; , difitiinctiyi 1 ''ft'f,ter a. . mc^t careful cousldoirit'on of the, i^hole, condition of the country, tuat there are not only no ml grovio^s {op u, aespoo^ent yiew of

our position, but, on the contrary, there if much reason to ustify us in looking forward with confidence to a future of great pros. . penty. No doubt, Sir, we, like other communities will have our ups abd downs; unusual prosperity will be followed by unusual depression, as is the case allover the' world. No one, I think, who sees the steady improvements that are going on all over the Colony, who observes the very substantial increase m the Saving Banks deposits, tho great increase in the Life Insurance business, and the rapid development. of our'manufacturing industries, and who has watched our import and export trade wit'i care, can doubt that we 1 are producing enough 'to pay our debts, live comfortably, nnd gradually to accumulate. capital. The.prcsont state of onr trade is not satisfactory but we might have avoided it almost enlirely had our judgment been a little better. No doubt business men were tempted by cheap freight and comparatively easy money to over import, forgettiag for the moment the effect that would follow the contraction in the expenditure of borrowed money, an expenditure which I am glad to say Parliament has determined to keep within much narrower limits than have been observed in the past. , - THE BEIIEDX • ■ for such a depression as wo are now suffering from is in our hands. It is old, very simple, and thoroughly effective ; but unfortunately there is no royal road to it. It consists, Sir, in an amount of self-denial and self-restraint, of which 'we are somewhat impatient in these days. The remedy is, Mr Hainlin, to live within our means. Bufc,publicly and privately, there are, I am happy to say, indications that we are really making up our mxudS to follow that good old plan. ■■'•■ ■;.-.. EXPENDITURE OUT OF OHDIKAEY EEVEKUg '.."'" .- ". 1883^84.. , [ now cornf, Sir, (o tho cori«'d'eration of the ospenuiture of (he ord^n^ry rovenue of the C6tißo!idated Fund for the'eurront year, and foiiowiDg tho usual custom, I divxde it into two parts, viz., Permanent . Cli.aVgea, and Proposed A pprppr/atipha for Hie Year. I|ho noceasily- for! roaintnining on lh» p.nt ' ' £lie Committee a cureful supervision and . strict walcb ovorithe annual upproprktions, will, I pe*,^ t-uaio.ieu't excuse, for my troubling honorable na.tniers, at some length, with u comparison of tae expenditure of.the last two .je^rs, with. the proposed exi,enditure of the currout. year, First,' t ben, as regards , .'■ ■. jrEHMANEBT-cniiiaß?. Tho amount estimated to sh<> expended under it bis- bead during, the • current year it, £l,6iofi9<k of which £1,587,430 is for interest aDd'siri king fund, anabunUng respectively to £1,309,930, and £257.500'. That U tj say, we shall pay £-£309,930 ic (be^ublio oredifof, and :«et- aside £257,50) auru.y '^Je/y^r for redemption of debt, iast year (1882 o3 we paid £1,566,441 on t 19 aocount, teing ; £9BO less than the estimate for the current year. In the reav beforp, the liraouufc paid w^a £1,5001989, or £65,452 if u -than l^t year. This largo increaso'iri. the amount of interest and sinking fund paid last year is accounted for as follows :—lnterdßt on further advances' obtainad on the Imperial guaranteed debentures, £13,119'; sinking fund in respect of fho same debentures, £40,000/ being £16OCO for 1882-83. and £24.,C'00 for Wears, of interest on'. Trpajiiry bills, £12,775. No new Treasuiy Bills were however issued! The explanation of the additional interest being; that certain Bills which had been taken up temporarily out of the Public Works Fund, and which core no interest so long as they remained investments of that Fuud, had been disposed of, and, the proceeds returned to the Fund.' The ?ums ' mentioned slightly exceed the increase of £65,452 in 'the amount of interest and Sinking Fund 'paid last year, 1882-83; but there were certain small decreases which account for the difference," I have said that the amount estimated to 'be expended for interest and Sinking Fund during the current year exceeds the ambuut actually paid last year by £989 ; as, however, the first year's interest, amounting to' £40,000, -in respect of the loan' of 'one million raised, 1 in January last, becomes* this year,. it is necessary to . explain^ very briefly how we estimate that. •\ye shall only pay; £939 more tiian' we paid, last year, The' chief reasoa 'is 'that £24,0^0 ; which we ! paid test year jof ; arrears ' of Sinking Fuhd,. in respect or Mpeml'gukranteed debentures, 1 does tiot Xejeiir in the estimates 'for J lßߧ-'B4.'' A saving of £'2,433 has moreover been'effectedi by exchanging nnder-ithe^ Treasury- Bills kets! :b£ 1879 ■ and :;1880; £lj832;p00. of Treasury :BiUs-ibefering-'Jnteregfc at 3f per- cenfperdifem for fiveiper scfiht debenture's'; anS a further^ Baring ' of }$' taking temporarily ; ai portioa of of. the mod"6y's ; at the credit of the Public Works-Fund. requiringJnYestaient. The '.. ' „ . BEMAIJJra,G ,?EBIUNENX , C^ROES, , 1 on ■ the " -Estimates 1 to consisting of civil-list, £29,750 ; persioub,; civUind miJitary, .£27,641 jifothet chai-g^,; .£20,873, -.Last, year the, ampun^ actually! ;expehde.a on services ,was£7| ;^§; and' an the! before. it^Jßa'^^S.We^. 'V?TJh© aiaount u of ' ' 4PF°R«ations prpppsed |oi" .the jearV are! £2,015,802 as, against £ls9%bsf , actuailiyi expended last year, and .dei.'GQS^jßS.; ttiet : iyear | before. .. Tfie^e ( . show „_' pur.. . actijal i .relu^re.men't^'l^ j%r \ve.m'. greater. ;ihani those.,of pf.th^ar,bef6re.,by £2^8,2'3Q ;,'.and • thifTyeai; we/prpp6sp additfonal' expehdi ; ture of £.18,7,04,! "thus* making,, the estimated! expenditure. ( for' the "euarent year gref teyVby £316,93| tb'an the ap'tjial .expenditure, of ;'the year .'1:881.82..! Tnis-.stp,te of thingais.-J'aiiheri startlipg'a^ first sight,!but|l..'hopeitp bo'ftble! to, eplain. r tp .th]e .gat.isfactibni of !;the,QQ!m- ! m^te'e .^that ..wliat^is .^ajoparentlyV ;a« large I _iAcrea^s'.&^^ or.^ac^ca ; llyu^ayoid,a.hje.; Ishaii.-firs.t of.'aU , reefer tptlie expenditure of lasty^ar;(lßß3^BS), '.\f]aißilJsia.Y% Said '.eKcecded'tliat .q|- the .year befpr,e r (188l.-8,2)^ and if it', will be ,'cpn venien^ .j should" deal vrijh ■the^,veral;". riV ,','^" '". ,/.,"./.'.. ; ;I ,^/.',. ; , ltJ -; iri tbe order iij' which they are; pHa'cfcd'"-in the , Public 7 Accounts'^anaEstimato*/" In 'il&ia 'Tj.; ' Epgislative, tlrerew'arWi'dcre ! a6e ;3 of''£3 | '924 j cliicfly''^x'Vien«eB J '^f y me'riibeK '"'ta^'laaW'ijt., Oblo'nial'^&^cretaryj-thery'Was'altt'rlo^^ aipbriptiDg'to £^8 ; ,'465{n.' tlie'^x^nWito'ro'oo Hospmis; ai»d; oharita>le n A^, .Whieli; is 1 : api coun'feotitor.bY the fi'ct'tbftt'no recpyVries we're | made^from ibeal b.^aiw r m '" i^B2^B'3;;'.'th;a' sub ■ s'ctiejs' 'b'aving. ceased.^ ' ;'jb'n th'9. 'ypte ' .fp/r'.' Elecr j tor^jy th6re .'ivag 'a ' 'dejfrejjii^ptJ^^S^^ y'ioir^f the .'general !eTecUqti Tor . jtie Hpu§e '.Haying takeb pjace.ip the, pfe J vio'ae'y,ear,;'and*ofi the vote' fpr ,t|ie Begisl'rsr Generals depart-, menf^th'ere'w'as'a pjecrease oif £.B,o^o Kfter $t$ census bf r 188l." On' tbe' other ban^.t^e etpeoditure pf^stoc.k *r(«heep and rabbits) branch, of . the fcoioniai.'.^p.retary?*. Dopar,^ ai^nt, was. ..increased jby:jillO],6s4 ; : main}y 'owina , to tha transfer to .the ordinary !rav<jnue account of a portion pf $11$ co^fcof this aerTJee pai^out;pf the land revenue ;.ini.th^: previous year- -„^ha expenditure. ,pn. Lunatic ;Asyj«tD9 ji^re jncre^pd by J|si9s7.' Thera ; wer,aiiaor^s6 8 in thpexponditura on ; otber services ia tbe same class, apad^oting t0,,£3j503i,: and' de* creaaegamoupting Va£2Msr.> netiooreaso expenditure last year ou this dlasa was therefore £5.0,164,, .la^rclass 111., tha Colonial Treasurer's, there was on increase, of: £29,937; of tb.ig.sum7£lo,B4* represents .expenditure oa tbe Pttpecty TaxDepartoieht in oanneotion .with thftigeoera:! assosament; which assessment honoreble:;meinbara- are; awafei .occurs' every three;y,ears.oa.ly.; ond .£19,0001 was for > frx^ obacge .and •■ commiaiion; i The inoreaeo •of expeniitnra' lohutbe latter 1 item 1 - is merely nominal, aa under arrangement with the Bante q( $9vr %t*\w& (op ftjmM ol lateral UP

3 London, by which" add'iiiWl charg* tor ex--1 change been me we'emrj t a lurgs amount of - inters is received on balances at the credit, of - fhfl Public Account in the Coiony. In olhss ; IT., Minister of JusJieeV ppmtrlmpn't, there I was a i;et increase <l £4,645.' The' t6tal . increase. »a* £(i,093j 'of whi'-h £1,9/5 wag ' for criminal prngecuiibai ; £1,473 l<r prieon* ; i £$60 for Resident IKagfat. ales' Courts ; £740 i' for. coroners ; and £1,055 for older Vorficop. i I The decreases amounted to £1,415, of Which £963 . j? ■*» for fbft Department of JtwHce. In class V , the Postmaster General'* Department, there whs an increase of £20 35 1 : »ho ; vote for saiiiriesbeing nccounttible f0r £7 505 ; mainfenauce of Tu'eiiruph liii«3, repairs, etc., £8,111; und conveyance r.f mails, by sen, £t,128; tiip biilnnpe bting.mada up ol small 1 increases and dotireases o i other votsa. in the < «ame class. I u 6W VI., Coamiiasioner of 1 Customs' Dopyt.tr.ei.t, there was an iucreiee of £2,356; £1,350 being for salaiies, arid the reniaind : r for seal fisheries and the " In clusi VK, Commis-ioner of S»mn* Department, there was an increase of £2,67 1, arising mainly from contigenciea, including commission, paid on collection , of duties on Native, lands. In Class"; VIII , Minister of Education's Department, the increased expenditure amounted to £31,074: partly owing to the. restoration ol the five shillings :por head by which the grant's to.ths Eduea . turn Boards hart been > educed in 1881 82^ and partly to a greater increase of the average daily attendance at (tho public schools compared with that of the previous year.. In Class IX., Miuisler of • Native Affairs Department, salaries and contingencies in the Native Department, were less by, £915 , and miscellaneous services, &c j, hy £2077, thau they were the previous year ;, bu(j the expenses of the Native Land, Points increased £1392; and there was therefore 'a net decrease oE £2210 in this Class . In. Class X., Minister of ■Mines Department, there' was a reduction of £.2J59, ; , chifly in 'subsidies tow'ards tha construction of ; trucks- , on. goldfields. In Class XI, ..Minister :p£.. Public Works department, ;J the t , increased expenditure , punted ip.£47,952. ; The expen4iture-,on the .working railways was , greater-: last .year ■^P,. l^? ..tyjfore ; by : £43,473 ;' but this* increase of expenditure was compensated' for by an increase .of ,£'16,111 in the traffic receipU during, the; same period. ; liirOlass" Xll., w i|inister of Defeuce Department, there was an. apparent increase of £10,9,0,44:. > ■ Tho actual inqrease jwas, #hifts%iflU. ! The .vote from the- Consolidated Fund having beea S^ by < a >X°K'#/-£7»,Q00 from the loan in 1881-82,, whereas Just ..year the. whole cost.of the defence ..services.., was paid, put of the .revenue,. „/T;he increase of £34.044 arpso'out the unsettled condition of the Natives on tho West Ccgat of the North Island,. The ; IKCIIKASa.IN .EXPENDITUEE of last year over thetot ihs year before may, therotore, be broadly, summarised as follows (taking, the; larges? jiteuns first) :— Defence, £109,000, including; i^nirsfer from loan i-75^00,- and, £34,404 for, ser vices on tho WoßtjOoaat p.i tV .-North: Island ; Hospitals, Charitable Aid,,£4S,ooo,:forniorly,reu'ov,!rablo frora subsidies to. focal, bodies,, now discontinue.); Working Hail ways, £3,3,000, for extended mileage, traffic and increase in rates of wage? ; Eduction £31,000, for restoration of grants, to the:Educaiion Boards, a«v tha rate of £4 per head, aud for increased attendanco at public-, sobooU ; Post and Telegraph Department £20,000, for additions to silnrie?, niaintenance:of Telegraph line3, and extended accommodation to the public ; Property Tax Department, £10,000; for triennial assessment; exchange, and commission, £19,000 ; a similar iamoum received for additional inioreat on public account; to charges other services, £18,000, including the 10 per cent, reduction or salaries in force for fhe first llivee inoritlis in -1881-82; -inßLing-;-n---»U- £205,C00; =ir hotaorable ineuibeia will ' earefuliy 'examine the • • ' ACCOUNTS. OF' TnB TWO YKAR3, to which I" 'referred, 'they will, I think, in tho light, of triage explanations, see. that a large portion of the nppirent increiisea we're merely nominal; thU is, ;'wns. either transferred from loin, or balanced (iy equivalent receipts on the olne . r side of tbie account; and that' such of th.'e increased expenditure aa was not nominal, could only hate. Leon avoided by inflicting und.ue, hardship on the.pubtie servants of tho Colony;' or by bnu ing. inconvenience to the public generally.' Hiring tb.us explained, to tlie Cotiiuijttfl.e,' Jf trust .satisfactorily, how apparently The "large." increase. in espendiluro jfar arose, I shall proceed to :.-•. V.: j'.i -..iCOHPABiErESTIiUTES . \ : ' . ot last. year (188^-83) with those of the current year.- : It is; in'o^e. convenient to do So than to coni^arStTie estimates for the current ■ with" the' a'ctual of the past year, because, iri Vbtihg supplies for services of thb is 'alwa'ys riece/^ary "to vote such a 6uni' as will 1 ! leave' ' sufficienr tuargifl to x tyvti? unforeseen; ebntingisneies;: rathef'than be hnder ' .th'ei'- ' neceisi'ty Jot] charging sucji eipenditiire as* /** ! ptatrath£riged : "'". through .having left no /to'aygih: ' Before doing so I ItnustV however; draw :!r th£ atteu'tibn of "thb C6nini)titee to:. the amount by which, in. accorda,nce with section '10' ot ! .th|e ! Public "'•Sevenufes Act, 1882,' several 3 of;'thV votes on the Estiinajes •' haVe" o'efen" "aha,ted : " ' ' This amount,. -£55,772 , ! reprasehts . estimated feeovefieS rto be ' rebei ved ' diiruag the ;i year, w,hich Jbe tci the.,'ci;e(lit pV t|'e :relativfe Votes,' and. will tb tha^ex^eht ; increase : the speh'ding power und^r the" Wte. : As'thla is^hofirat' time that,'. such abaterheDts haya bben 1 Blade,' it ' is' necessary in. order 'to institute a fair cbkhparison between t he roles of last yea|r and the proposed .Votes of /the current year/ .tnat these aVatements' Bhp'ujd bo treated 'aa' if they h,ad ; not been madel The 'amount .voted"; by the iHoilse '.for ihJe services of lasfc' year was' £2,0(^(5,700. ..' The estiiiates'j'for 1 tli?i u cvM.-rent"year amount to £2;0l5 l ßp,2,,''but f ' idding 'the'-'abatemetit' -for re]J6yeries;\atao'uiiiiri^'t<i £55,772, to •vKicK-I deferred, they, anioun^ to £2,p7.1,57i> being £4,863 m6r 1 e than, the ambuh't voted lastjeav. I should explain ; biowe ver, !thafc the esUtn'a);'es of last ye^r included a, sum of £50,'000 fdv harbor' defences', which we do not prqpbse.to revbta dat J of ! 'reV^nue,,bu{ we shall asK-i.ne souse to vote put of the Public Works Funll • such" a sunl'&swe^arelikely to require for this^ purpose during the i' 'current year. The real mcte^o'iii; x e^titQa'tes for th'is year is fcherefpre £54,868 rfha'tis tb.e; net. result^ Ishall noil Veai'y the. Cpbinittee, by .going into a lengthy. Comparison of thetwoye'ars' estimate^'hu't t should like to draw iittentibh to'ohej.br, two prdminent itemsj ji( ln the Vote for Railways there is an. increase o'f £73,647 •, partly dd^ to the increased traffic on the ,-lines, aiid pairtly to the ; extens ion] 6t the mileage , open, there* lieing niiw . Ji4Q7. jhiles, as a^aiiist ' 1,308 . la'st 1 yfear. .lh'ilie y6te for, the Armed Gonstabula^ thWre'is K ! decr'e'ase Of £13,226^. . Ourimprovecf relations \vith the lyTatives on the Wb'st Ooftsfc hkyihg ena r bled 'the .Government" to' effect k reduction' inth'e' number of tti^n in" the field, forced .'The Vote for Hospitals' and' Charitable Aid has. been' increased by £16,0p0,"-. and-th^' t()taV ! ctorge^oa thia aJocjauttVi^ i^o^^£B3ii)Qo^ So^e dytnets, t4co ; gmsmg the truth ".ttiat at*. is m6re''b^ess j e ! d.to'giye tlian 1 to'receive,".! stQl continue to sub'sdribe^ 'to '"local Hospitals 1 aii(| Benjevoleiit Societies.;-! but "!the generjal .teitdency, I ara sorry to. say,' increase's to throw, the whole hurdeh of relieving, the poor upon the State. The comfort and well being. ia[ the 1 fhture of the'.gre'at body of the, people 6t this country bo much depends upon the waj; iniwhicHlwe may decide 'to 'deal ,']wifjb ,'W.^ important igLuesiion, an'd ppipjptfia^ iihf ottaeel apdn^tH^subject,' tha| no^wi^wm^ ing '' tl&'-'- Jniapy. , . evidenf . - xto!^Qi|s fse'nit syßtem^ B !^ o^^^^^^^^ . a'skfora ! c6nU n V}»n«i« of wO^ol^'lli

paratively open to ba dealt wilk when the matter bxs been more carefally considered. Sir. there Feein to me to be insuperable objec'ions to a poon law in nny shape. I believe such a law not only to he unnecessary, but highly demoralising to any community that adopts it- The Government are not therefore prepared to submit any law having for its object to charge the cost of maintaining the indigent- upon the general rates, but with the view of helping to form public opinion upon the subject, I shall nsk leave to lay upon the table of the H6use a Bill for COMPULSORY NATIONAL ISSUKANCE, not with the intention of asking the House to reed it a second time, bnt with the hope of getting a debate upon it, and then distributing the Bill throughout the country for public consideration. Hon. memher& will see upon examining THE ESTIMATES that the whole of the salaries remain the same as those voted last year, except in the case of cadots, who have a rise from £50. £80 o»^£9o a year, according to the scale in •which those officials are classified ; and some half a dozen extraordinary cases for which special reasons will be given by Ministers in charge of the Departments in which increases are made. The reason why no increases have been made is not that the Government think none are fair or necessary, but because of the difficulty through want of classification, and the differences in the pay of officers doiug. practically the sann work, which renders it impossible to mike the increases with fairness to the ameers of the various departments- The Government cave there, fore determined to submit the Estimates as they stand, and to ask the House to consider a scheme for the BBOBQASI3ATION AND CLASSIFICATION OF THE SERVICE. 1 shall therefore propose, in the course of a j few days, gome resolutions embodying the principles which the Government think l should be given effect to by a bill, and after discussion, I shall aak that they be referred for the consideration of a Select Committee, consisting of members from both sides of this House, with directions to the Committee to report, after careful enquiry and consideration of the subject &s to the principles upon which A Crvrii BEBVICB ACT should bo founded. This question is of such importers to the Colony, that I hope that by this means we may exclude party feeling from the question, and that -we may ba enabled so to reorganise our Civil Service as to lender it both efficient and economical, -while its status and pay will be such as to at tract men of ability and character to its ranks. The reorganisation of the CiviJ Service is no doubt a work of considerable difficulty, and it is possible, after thorough consideration by the Committee, there may not be time to carry a Bill this session, bat I yet hope tbeie will be. If, however, there should not be sufficient time to legislate this session tho House will have laid down the principles upon which it will be the duty of the Government to prepare legislation for next session. Should no Act be passed this year, it will be necessary to ask the House to increase the present salaries, ESTIMATED BEVEXTra, I have now, Mr Hamlin, to bring under the notfee of the Committee the estimated revenue for the year 1883-84. I anticipate that we shall receive a total ordinary revenue of £3,573,800 for the current year, exclusive of land sales, if our taxation remains unaltered. I have thought it prudent not to increase the estimated receipts from Customs duties more than £20,000 above the estimate of last year, but I hope that, looking at all the^ circjunstances of the colony, as far as is possible to do in advance, we may reasonably expect to receive £1,520,000 from thAne duties. T h»vo also estimated an increase of £8,000 on Stamps; £7,000 on Telegraph receipts, and £18,000 on Property Tax under the new valuation. I estimate then the total revenue at £3,573,800, to which I add the balance of £35,549 which stood to our credit on the 31st March last, and get the sum of £3,609,349 as the total amount available for services of the year. Now the total revenue received last year was £3,673,933, including the balance with which the year began. Hon members will therefore see that our ways and means for the current year are less than those of last year by £64,584. The estimated revenue proper, it is true, for this year exceeds that of last year by £103,550, but the credit balance with •which we began this year is le*s by £158,154 than the credit balance with -which we began last year, j so that, as I have said, our total ways and j means is less by £64,584, It should also be remembered thai the increase in the receipts from railways this year is only obtained by the necessary addition to the expenditure of £48,187 for their working expenses, a^A ** .must also .further be borne in mind by the Committee that it was entirely in coraeqtieH.ee of thV large surplus on the 31$t of March, .1882, that the whole of the cost of the Armed Constabulary was for "the "firsi time charged against the consolidated revenue. I have already shown the estimated expenditure as £3,860,496. There will', therefore, be a deficit of £57,147, as to the means of meeting whieh I will speak presently. LAND FUND, 1883 — 84. The estimated expenditure chargeable against the land fund is as follows: For charges fixed by Acts.o! the Gener&rAsserably, j £36,600 ; for the Crown lands, Survey and Mines Department, £157,280 ; and for rates oti Crown lands, £40,000, amounting in the whole to £233,880. The receipts from land sales are estimated at £275,600 for the current year. To this must be added the balance standing to the credit of the fund on the Ist march last, £86,564, making the total estimated receiptsfor the year £362,164. Deduct- 1 ing from this the estimated expenditure, we obtain a surplus of £128,284, against which, however, is chargeable £100,000 payable to the main roads account for last year. There is, therefore, only available, if the above estimates are correct, £28.248 for the main roads account under the Roads and Bridges Construction Act for the current year. I shall have to refer to this subject again before I conclude. PBOPOSAIB FOB THB TEAR. — OBDINABX BEVENCB ACCOUNT. I have said, Mr Hamlin, that the estimated expenditure for the year is £3,661,496, and that without further taxation the estimated revenue is only £3,609,349. It is evident, therefore, that we mustt either decrease our expenditure or increase our revenue. The Government see no prospect, after careful consideration of the subject, of reducing the expenditure for the year below the amount estimated, whatever we may hope for from the reorganization of the Civil Service, Ito which I have referred. There remains, therefore, as the only alternative, increased taxation, or charging gome services upon loan. The latter course the Government are hot prepared to {recommend. I shall, therefore, propose an increase in the property tax of dm farthing in the pound, ' and this I estimate to produce £85,000. Adding this amount then to the estimated revenue, £3,609,349, we get a total revenue of £3,694,349, and, from this our estimated expenditure, £3,661,796, we obtain a probable surplus of £32,853 on the 31st March, 1884. This is not as large a margin as might be desired, but the fact of its smallness will no doubt render the Government even more careful than heretofore in the expenditure of the votee authorised by this House, and will, I trust, ensure the assistance el the House being giyeri to the Government in resiflting any extraordinary proposals for expenditure which may [be Bubsaitied for its K>nsid.ei!»tion,

LAXD FUND. I have already said, Mr Hamlin, that the amount available from the proceeds of land sales, after the necessary charges for expenditure upon main roads under the Jloads and Bridges Construction Act have been deducted, will only be £28,284. This result is decidedly unsatisfactory from one point of view, especially when it is seen that no provision has been made for the expenditure of 20 per cent as provided by the Act for the opening up of new lands. This deficiency in the anticipated funds arises, hon. members will no doubt see, from the falling off in the land revenue, which was £81,695 less last year than the i estimated amount, and this year is only estimated to produce £275,(^00. This falling off in the land sales has arisen partly from the reservation as subsidies for railways under the Act of 1881 of lands which had been previously intended and prepared for sale, and partly from the principle upon which the Department has been, and is being, worked. The chief considerations which are now guiding our land administration being the settlement of the country in small holdings, this has necessitated large areas fceing sold and set apart for sale under the deferred payment system, and also under the perpetual lease system. The subject will be brought under the notice of the House by the Minister for Lands upon the second reading of the Land Act Amendment Bill. It is one of great moment to the future prosperity of the colony, and will require, ,and I am sure receive, the careful consideration of the House. I The financial aspect of the question is also of importance. We have been separating the proceeds of our land sales from ordinary revenue. In 1881 we relied upon dur land sales to produce, over and; above the permanent charges and necessary expenses of the fund, from £150,000 to $2QOSQQ ayear, which | was to be applied to the construction of local i public works, We have, however, in the interest I of settlement, been equally diminishing the sale of our public estate without properly recognising the fact for the three last years, and if the House should determine to continue in this course, as I have no doubt it will, we shall have again to face the question as to the best way of providing means to supply the main roads fund constituted under the Eoads and Bridges Construction Act. The course, however, which we shall finally pursue in dealing with onr public estate being yet undecided, it would be to make any proposal upon the subject at present. It is, however, clear that as we are administering the Land Department in the interests of settlement rather than of revenue; we must also in the interests of settlement make sufficient provision for the main roads fund. I shall, therefore, propose that there should be paid to that fund for the current year out of the public works fund a sum of £74,000, an amount sufficient, with the available balance of the land sales, to make up £100,000. With reference to opening up land before sale, hon members will recollect that £200,000 was placed upon the schedule of the last million loan for this purppse. Of this, £80,000, in round numbers, was spent last year, and it is proposed by the Land Department to ask this year for the balance of the vote. A large amount of most useful work has been executed with this money, as hon members will see when the report of the Surveyor General is before them. CONCLUSION. In conclusion, allow me to say that, notwithstanding the existence of some commercial depression in parts of the colony, the result of influences of which I have endeavored to afford explanation in my previous remarks, yet the steady growth of essential industries, the gradual improvement of our internal communications, the rapid and spontaneous increase of commercial facilities by means of fine sailing and steam ships which unite us with other lands and ply constantly on our coasts, the establishment of an export trade in frozen meat and other produce of the land, the encouragement afforded to the settlement of the country by small holdings, and the prospect of an early and complete solution of those questions which have So long delayed the reconciliation of a large section of the Native population to our rule, are considerations which justify a sober confidence in the future, and encourage the Legislature to persevere in the course which it has followed with such advantage tb_ the colony of a most careful and methodical finance, of a just and firm, but conciliatory, native policy, and of, the settlement of the land in such holdings as will promote its occupation bj the pe'ople. After Major Atkinson Lad concluded. Sir George Grey, Messr© Montgomery,' Pish; TajrabulJ, JJursthouse, and Qapb. M'Kdhzie criticised ;the Statement, after ; which the r«sojuti«a moved by Major Atkinson for an imprest wpply was agxeeftto, atid the Honse 1 adjourned at 10.25. . :. !