GENERAL ASSEMBLY.

New Zealand Herald, Volume XIV, Issue 4901, 1 August 1877, Page 2

GENERAL ASSEMBLY.

[FROM OUR SPECIAL CORRESPONDENT.] Government Buildings, Wellington, Tuesday, 6.25 p.m. THE STATEMENT. Expectation is keen regarding tho Financial Statement, to be delivered to night, and for the present this absorbs all ether topics. TilE AFTERNOON'S RUSINESS. Yet some business of interest was carried on in the House this afternoon. Mr. Rees's Auckland Highway Districts Validation Bill was read a second time. The standing Orders were suspended, and the bill passed through committee, and then was read a third time, ami passed. A keen discussion and two divisions arose on the Crossed Cheque Bill. Mr. Swauson narrated a telling story of how crossed cheques were given by the employers of labour in the country, in payment of wages, and that the recipients when they presented their cheques to the bank found that not having a bank account themselves, they had often to go to considerable expeusc to negotiate the cheque, and much loss and delay was occasioned, for even though the money was in the bank a crossed cheque prevented it 3 being paid, unless passed through another bauk account. Sometimes there was no money to meet the cheque, and it occasionally happened that this crossing was resorted to to cover for a time this deficiency by rendering delay necessary. He moved that the Act, except as regards the clause repealing certain clauses, should not apply to cheques below £20. Mr. Murray moved that £10 should bethe amount. Mr. Murra\*-Aynsley saidthat workiug men should refuse to take crossed cheques as payment of wages. After two divisions both amendments were lost, and the bill ultimately passed the committee without any amendment. A SHIPPING ACT. Seafaring people will be glad to learn that Ministers have in preparation and in a forward state a bill tc be introduced this session to consolidate the marine, steam navigation, and other Acts relating to ports and shipping j and, also, that some further provision is to bo made respecting pilot exemption certificates. This the Commissioner of Customs acknowledged in reply to questions put by Mr. Tole. MR. MACANDREW'S RAILWAYS. The notice paper is filling up with great rapidity, and to day a shoal of notices of motions on important subjects flooded the clerk's table. Among these was a long one by Mr. Macandrew, who wishes to secure a perfect network of railways in Otago province, for he enumerated six or eight lines and brauches. The probable cost is estimated roughly by some who heard the motion read at about a million and a half to two millions.

NOTICES OF MOTION. i Sir George Grey gave notice of motion for uuiversai suffrage for every male above 21 years of age, ami equalisation of electoral districts as near as may be. Mr. Kees gave Bofcice of motion for a large committee to consider the propriety of appointing a Royal Commission to inquire into the proceedings of Courts of law, and also as regards the consolidation of laws. He also gave notice of motion to inquire whether the cost of the action against the printer and publisher of the Waka Maori was defrayed by the Government, and whether that paper was still printed at the cost of the country ? Mr. Curtis gave notice of the following important amendments on the Education Hill when in committee. In section 85, sub-section 32, omit the word 14 shall" in the lirst line, in order to insert the words "may, if* the committee shall thiuk lit so to directin lieu thereof new clause to follow section 80:— 4< Wheuevcr any twenty-five or more householders in any education district shall signify in writing to the Education Board of such district their desire to be consolidated into a separate body for educational purposes, it shall be the duty of the Board feo convene a meeting of such householders for the election of a school committee, in the manner provided in part 3 of this Act, and it shall be lawful for the board to grant to the committee so elected such aid in books, school apparatus, and money, as the Board shall think expedient, or at the option of the committee such aid may be grauted in : money, only inclusive of the value of such b -oka and school apparatus as would otherwise be supplied by the Board. Provided always that every such committee shall provide a school-house or school-houses to the satisfaction of the Board, and shall appoint , and pay the teacher or teachers of such school or schools, every such teacher having lirst obtained a certificate of competency as provided in section 44 of this Act. Provided also that books used in any such school shall be approved by the Board, and that in every respect wherein no special exception is made in this section every such school shall be a public school. Under this Act, and subject to the provisions which this Act makes for the conduct, management, ! and inspection of public schools, and that I every such school shall be opened to all I children between the ages of five and fiftetn years, without fee or payment of any kind." THE CHARITABLE INSTITUTIONS BILL. The Charitable Institutions Bill may struggle through its second reading, but it will be a narrow squeak. Mr. Fox opposes it and will vote against the second reading becausc lie says it cncourages public-houses. THE AUCKLAND RAILWAY STATION. A strong effort will be made by Auckland members to aid Mr. Reader Wood's motion to-morrow, in favour of bringing the Auckland Railway-station close to Queen-street Wharf. THE TREASURER'S SPEECH". Notwithstanding a heavy rain and wild wind, all the galleries were crowded considerably before the hour of assembling. The ladies' gallery was brilliant, and much interest was displayed in the House. Shortly after half-past seven Major Atkinson, the Premier and Colonial Treasurer, began his statement, being greeted on rising with applause. THE AGENT-GENERALSHIP. I am informed that the Otago members will vote tn bloc for retaining Sir J. Vogel as Agent-General \n London. The Government, it is said, have do desire to see him superseded, and it is declared that he has in no case gone beyond the instructions which have from time to time been sent to him.

LEGISLATIVE COUNCIL. [PRESS AGFMCY.] Government Buildings, Wellington, Tuesday. NEW MEMBER. Sir F. Dillon Bell was sworn in, and took his seat. i GOVERNMENT AND TUE BANKS. 1 A motion was agreed to for laying on the table all correspondence between the Government and the Banks of New Zealand arid N'ew South Wales, relating to the loan of half a million each obtained from those banks. TREE-PLANTING, A bill was introduced to encourage planting of trees. CONSTABULARY BILL. The Constabulary Bill was passed. VARIOUS BILLS. Other bills were considered in committee HOUSE OF REPRESENTATIVES. [PRESS AGENCY.] Government Buildings, Wellington, Tuesday. The House met at 2.110 p.m. PETITIONS. A number of petitions were received. NEW RAILWAY IN" OTAGO. Amongst th« notices of motion £>iven was one by Mr. Maeandrew asking the House to order that several railways be constructed forthwith fur the opening up of the outlvinir districts of Otago. STORM SIGNALLING. Mr. BU>iN gave notice to move for a committee to inquire into tile system of weather reporting and ston U signalling. REFORM OF PARLIAMENT. Sir G. GUI'jV gave notice t-.o move for triennial I'arliaihentf* and the grantiug of suffrage to ■.•very male 21 year.' of nge. SAVINGS HANKS IN S'll. )< > L.S. Mr. STOl T T to ask what steps Government have taken with a view to establishment

RUSSELL V. "WAKA MAORI." Mr. REES to ask whether Government was bearing the cost of the libel case Rus?!*;i r. Waka Maori, now going on in Napier? procedure of courts. Mr. REES to move for a Select Commuteto inquire into the procedure of Court?, with a view to the modification of the hw-; in New Zealand. LOCAL GOVERNMENT. Mr. KOLLESTON asked whether Covf-ru-meut would print the suggestions of County Councils aud Road Hoards as to the future system of local government. Mr. "Will TAKER said they were : , volumiuous, and the expense of piintiaj would be too great. VALUATION. In reply to Mr. Kiciimond, Air. WUITAKER said it was r.ot t::.intention of the Government to r> !;• v j 11: Road Boards from the compulsoty aii:.u:il valuation as laid d<>wn in the Rating Ac:. THE MJ- RC-:U RAILWAY. Sir GEO KG E GREY asked whether ai.v steps were being taken for the prolong-ui- n of the Mercer Railway to Tarauaki. Mr. ORMOND said the next pie-.'- th-v intended t3 construct was the Waikato, and that could not be done wr.i ; :i twelve months. THE " NEW ZEALAND PILOT." In reply to Mr. Hunter, Mr. McLEAN said a further supply "f revised edition of the yew Zealand /V<»> had been ordered, and would be purchasable at all Custom houses in the colony. OFFICES AT AKAKOA. Replying to Mr. Montgomery, Mr. WHITAKER said there had been no correspondence with regard to erecting a court-house or post-office at Akaroa. INSPECTOR 07 If APS. In reply to Mr. Stevens, Mr. Rb.ID explained that the reason f« o : ; were charged for inspecting the public unpin the land otßces in Canterbury was because the maps referred to were <>t a vvry valuable nature, and it was not do :r.v-1 propei thoy should be open to indiscriminate in-pection by the public. MARINE ACT. Mr. McLEAN, answering a question by Mr. Tole, said an Act was being fram*.d : consolidating all the Marine Acts of th-? colony, and that it would be brought dowi: this session. intramural burying places. Mr. STAFFORD asked whether Government will introduce a bill to provide lor inclosing of all cemeteries within towns. a;i-i whether they would provide for the ciHeient drainage of all Government buildings ? Mr. WUITAKER eaid(L) they hoped be able to do something during present session, and (2) they would provide for the drainage of Government buildings wherever required. telegraph station at panmure. Mr. IVLE asked if Government intend to establish a telegraph station as Panmure. Mr. McLEAN said there was nothing to justify Government in crccting one th-rc. AUCKLAND HIGHWAY DISTRICTS VALUATI- >N BILL. The Auckland Highway Districts Validation Bill was read a second time. p-:t through Committee, and passed. crossed cheques bill. In committee on the Crossed Ch-siiv.s Bill, Mr. SWANSOX moved an amcudrM'-u: to clause 2 to the effect that no cheque u;:d« r twenty pounds should be treated a-: a crossed cheque on the ground that iii-i: .; crossed cheques was frequently producrve of very great inconvenience to poor wuiki:..men. Several speakers pointed out that thu- • evils wore more imaginary than real ; that the drawer of the cheque was not thr proper person to cross it, but the one who rcecivvl it, if he chose. Mr. WASON pointed out that he know of farm labourers being paid with crnsst-.l cheques, and for six or eight weeks tii-y were unable to obtain their money. Cheques wore frequently crossed, knowing th:it tii'.y could not be cashed. Mr. MURRAY moved, " TU.-.t- .I*lo be substituted for i"20." Mr. MONTGOMERY moved, " Thit tlw drawer of a cheque for wages should m«t cross it, under a penalty ot £10." A di isioa was taken on Mr, Swans iii'.s amendment, which was lost by 40 ajain.-t 25. Mr. Murray's amendment- was lost on the voices. Mr. >TOUT moved the insertion of th--word " fifteen," but it was negatived o:> llio voices. Mr. Montgomery's amendment was ;d-> negatived. The bill was then passed without am imeut. CHARITABLE INSTITUTION'S F.tr.L. The adjourned debate on fcho (J:i-trie i : «ic Institutions Hill was then resumed.

Mr. HODfiKLXcJOX said the bill ou^h,: > be summarily rejected. It threw tin; -a burden of supporting charitable ins'iar.i <n.s ; upon very few, Tim system was tried in Kngland some centuries ago, and with most unsatisfactory results. Ho al>o objected to putting the burden pr. posed upon the consolidated fund. i'hj whole tiling was tuerelj' of a piece wuh system of deception which marked the reyimt of the present Government. Tt.-j hon. member (quoted several not-od ecu >• mists opposed to the destitute being providel for by voluntary contributions. Tiu St.i'.o ought to provide. ??ir I<. DOUGLAS objected to saddi'n.; the cost of keeping the poor in partia:!.ir districts. He wanted to know whether i» •• veruuient would assist the country diatnoi-j in obtaining cottage hospitals. Mr. FOX regretted that the mover ut i bill did not afford the House more inform iti n than he did on tho question of social i • - lief, and of its workings in America and :n the various British colonies. The had never been faced before in the eol my, , but it imperatively demanded iimueli.it*: attention. He had no objection to voting i for the second reading, provided the G-.nvrn- ! ment agreed to the insertion of a ; bringing the Act into operation for only a i year, and that in the meantime a commisI aion should be appointed to collect data :u; 1 information upon the subject, so that thuy i might have something more to guide th-.-m in framing a measute than at present. He approved of the idea of compelling the localities to tidal with the exigencies of the eia.* face to face. Sir G. GREY moved the adjournment u*. the debate at 5.30. THE FINANCIAL STATEMENT. [Shillings and pence are omitted this summary.] At the evening sitting the Colonial Treasurer (Hon. Major Atkinson) made his Finauci.d Statement-. He said it was true we had reach*- ' that point in the scheme of the Public t , and Immigration when tho revenue was sutferI ing to the greatest extent possible from ti.o j large unproductive expenditure upon railway* in course of construction. It was alio true th I there existed a feeling of uneasiness— I ing in some quarters to anxiety—because uf :::•■> | belief that the services of the year coul i not h-i ! provided for except by increased taxation. Knowing the strong desire that therefore ;u o<<? for early information, he had taken the opportunity afforded by the rules of the Ho:;?* to state the finaucial policy of the Government. He meant, in his statement, to direct attention to broad features only. The details wouM - found in the usual tables, THE LATE BORROWING. He would first describe what had been under the Loan Act of last session, whu.;. authorised the raising of oua niillion for a defiuea purpose. "When authority wms asked for, he stated his belief tint th-.? moucy could be raised in the colonies, .vi l that if so, the Government would gu-Ly avoid going upon the London market for at le.ift a year. That belief had beeu realised. His colleague, Mr. McLean, had negotiated iu Sydney with the Bank of New South Wales for an advance of half a million, sesured upoo short-dated debentures, bearing 5 i»or cenr. interest payable half-yearly in and $ per cent, commission, principal able iu London in thiee iu>:--ments, at intervals of one mouth, t. ' tint instalment falling due on Ist ber, 187-S. From the Bank of New Zeal.ir.l they had obtained £500,000, secured short-dated debentures, bearing 5 per ceut i ;i terest, payable half-yearly in Wellington, f riu cipal repayable in London upon the K';'--February, 1879. A further arrangenu-nt the Bauk of New Zealand hail also been in. by which under the Bank agreement an ndv u: • 1 of £-100,000 could be obtained upon reniin-d 1 securities, instead of £300,000, making the advance obtained- under that arrange" ' £500,000. and fixing the 15th Febnnrv, for tiia repayment of allsuoli advances. PUBLIC WORKS EXPENDITURE. .The appropriations last session for inrnu_ r r.tti-" , :i and public works amoun?•>' ro £2,032,-£■'>. ' • luil been expended up to Juno ;-tUth £l.4V'.i ; !. • so that ihui'e had been «i saving of duriug the year on the amount voted. It- ,3 " : ' a 8um > pledged tho Oovtuiv

-ompstible with prudence, carc being taken that injury should not be done to tlio public and though complaints iniyht bo made ta.it some districts had been neglected, the Minister for Public Works would no doubt be tof.itisfv tin' Houm- not only as to what i.ul bti'n done, but :u tn what- hud been Ml nilil- no. The votes on which tho l.uges*. savings had been made, were- Kiilways, on which the expenditure had been L'vT'.JM.) less than tho (••'ia'.'te ; water supply on n«Mt:elds, £01,000 purchase.-'(North Island), £10,000 :,r,d roads. £::0.00l) less. The other - £22,000 on immigration and !>..ut the same amount on public buildings, ; ,n lighthouses and i* 12,01)0 on telegraph - t. w'".nV wiy and means hail been, V •\:,.n<iiHi'f:- l >m loaik in.dmhng £750,000 out loan of 1-7(1. and £:tp'',C.2d fiom receipts .dd, in.-liidiju' £2«»1.r.57 fr«>m stamp duties up :d.er l-'-t : th--ic w-.s thu\ a total of !•; «'f ways and means. The exnp to* June oOth amounted -:l-'.>'*•<>.-Hi. *■"> that there was on that ft l> dance of £I'^K 1 N '.'• The principal the expenditure had been; Kailways. ;V, r-".» 02"• : immigration (including location), ~1.V7.M V .' 1 : ri'.td?.. £>'.'LS7I: land i»urcha>es N.-.'—ji I<!..nd. £s.'v.'>.5 s n ; water supply on gohl- ; .. M V rpX',.or»:). The charges of raising the v'rti *V\d amounted to £4'.'5.5d2 : ami interest •-ml -iV.kirii: fund irpr.rented £21 >.500. Of the i. ! ~f £'.'>o.l>9. there would be required r,Vir, 0'.7 for works under contract or about to i, I 1: was proofed to ask for nppropria'amounting to abi.ut £1,-74.070. and if ti./i- wei e granted additinnl ways and means to about £990,440, would be required :Vt this account during the year.

I'M l >V ! N('i AI. 1.1 AHI I.ITI !»S. Next, as to Provincial liabilities. Triasnry p.ilN for £.'IIO,OOO hr.d been issued under the p iwtr given bv the Appropriation Ac* of last TOJir, And the procerdshad been applied in terms if that Ac* in making advances to the Provincial 1 > i-.trier* °f Auckland, Wellington, and NV'esrland. i »ut of tie I*7o loan, a quarter of a million was rppii'priated to meet Provincial liabilities, falli» • due between Ist of January and 30th June, 'i'aere had been transferred to the several Pro\M.ei»l liabilities accounts for that purpose V-» h- .ving to defray a proportion , t !.e Co-: of raisiiiL: the loan, the balance being • pj.iie.dde to outstanding liabilities. Taking ♦ 1 .*» Provincial liabilities account as a whole, receipts up to.Tune 30th h:\d been £t>20.0.»1, :• i t.heie was a balance of £-45..55S to be aj>-pln-.i." The OoTernmeut regarded the compeiii ,:ion to Provincial olliccrs v.h(>se services •. ,• bien dispensed with, as being properly Pro\:r,ci..'. liabilities. The amount so paid would t .irvfoie be included in a statement of un- .. ; ti;ori-ed expenditure, which the House would 1 e ii-keJ to cowr by a vote. THK Pnd.lC DF.BT. l.efore concluding this part of my subject • tinned the Colonial Treasurer), the Com:w\:ioo will, perhaps, allow me to g;\y r : .. worsts about our public debt. The — »s public; deb: of the colony, CJeneral ' :.-.i IVovincial. including Treasury Bills, when balances of all loins now authorised or wili be £20.51*5.311. As against this .we had a balance of los Id at the ti'.-dit >'f the Public "Works account on the oOth Los. n0 I>S \K\ ; at the defence loan ac»t. and accrued sinking funds, amounting to .-.;...5::.5n2 2s lOd. THE KEVENI'E AND DEIiT. i e.ir total revenue last year was £0.001,51U :-'.-4d. and. excluding land sales. £2,171,050 !e>- ; tiiat is. after setting apart that portion of i income derived from the s.»le of l.snd, **. ,:ich. in uio.-t coloMcs. is called revenue, our : public .Ivbt_ is eight a half times our sales, our public deb: is equal to six times revenue, while the public debt of Great }'.:itain is more than ten times the amount of i. ;• rcveiiuv. Thin se«uis to me a far fairer way of cornpaiing our indebtedness than at so much P'.rheadof the population. It should, moreover. be renumbered that the public debt of E:.g!«nd has been incurred for war purposes, winle tr.at of New Zealand has mainly been incurred for reproductive works. H'.'W THE L'.'ANS HAVE BEEN EXPENDEP. It may. perhap.-, bv inteieszing to stato the p-;rpo?es for whicii the several loans. General a:..i i l rovinci:\l, which constitute our national debt, have been r and the amount applied of the several Loan Act?, that those purposes and amouuts may be classified thus About ±.'c\o<X'.oW has been spent upon railways, 500,000 on imniigra.tion. £4,400,000 on liarbours, lij;h:housos, public buildings, roads, r ri.igesj. and other public works fur opening up the country: i.'I.oO'J.OOO in the purchase of i. stive iands. including the payment of the (b'bt to the New Zealand Company : £'2,000,000 in the suppression of the native outbreak, and the remaining ±.'500,000 on miscellaneous purposes. F.xrENDirnu: f«"»h 1570-77. The exj'vndirure for as authorised j-y P.trli tu.eiit. exclusive of that for railways, v;is £1,>55.407, and there had been a saving of iTM.OS upon tiie votes. Of that amount £7'->.523. under the head of interest and sinking fund, was mainly due to a year's, or £1,250,000. }. A'ing beer, provided for, and only a half-year's ] ivnieiit bein s ' necessary. Deducting this, there w.•uid still a-in.iin u saving of £123.500 on the r.ppropriations for the year. The atnalgamat: -N of the Armed Constabulary with the police Force of the colony had enabled a consi N.-r.d-le reduction, to be made in the cost of t:.M-e services, but owing to the necessity of p tvin;, a bonus to the men dischnrged, tho s-svin„' for the six months amounted onlj- to £'10,uo0. THE RAILWAYS. The estimates of expenditure upon railways | and the revenue from them during the year were necessarily contingent upon the progress works, nnd, therefore, the item had been (cjiitted in comparing actual expenditure with j' veii'.ie. Under each ln-ad there had been a diminution owing to certain extensions not :n' b r opened as early as w.ts anticipated. He 1 sesM'j.n estimated a profit of £>4,000, T . ceipts being set down at .£.'>45.000 and the t vpenditure at £200,753. ]jut it was a fact w "ii which the colony might well congratulate i:-.-If, that the j»rorits from railways Ind been 'luririg the year, tho receipts having i.-iet; £316,220 and tho expenditure £225,205. CON S 0 LID AT HDR EV £XI" E. He would no%v refer to the consolidated re- ■ nue. His estimate was that the surplus with v. hich to I >70 77 would be £50,052, hut i: had be-n provetl to be £01,027. The total

joipts umloi' thi= head wore estimated at 1 but they had reached £1,614,552

oi.lv. The Customs revenue .showed a defi-0-ncyof £40//21, but looking at the disturbM:Oe of trade throughout the world, and to the :< r.certainty of the wool market during the year, tixe Government were prepared to find the .i'jficiehcy larger, and probably honourable rriern-}-.r« were similarly prepared. The postal revenue appealed to h.- ve fallen £9452 below the (-rimato, hut sums amounting to £15,023 had '■> be received from the Imperial and Australian < fOvernments, *o that the seeming deficiency Wf.uld be converted into an excess of more than £'io'.Xl. In incidental recoipts there was a de ticiency of but receipts under this Le.vl can never be estimated with more than an approach to accuracy. To the £1,014,582 received into the consolidated fund, lie added r.r>t, the profits on the railways, £57,924, the £lu,ooo transferred from tlie State Forests recount, the *2 per cent, recovered from the Lijrl fund under the Financial Arrangements Act, amounting to £71.997 : the surplus at the ! -ginning of the year, £<51,027 ; and the assets y-t to be realised : these make a total of The total revenue for the year, as c-:imated, amounted to £2,14<»,902. or exclusive of railways, to £1,801,902, to which must be ;'Med the estimated profits on the* railways, '■^4.:.'44, making the estimated receipts for the y-ar £1,860.144, while the actual receipts were -'I. *82,219, being £.'3895 less than the estimate. Ta.- transactions of the year might be sum-iJiari-L-d thus ; Actual expenditure, including liabilities, £2.024,572 ; actual revenue, including realisable assets, £2,17:2,792, leaving a bal-1-.nco of £146.220 as a surplus with which to 1677 7*. Comparing 187d-77 with 1375-7G, the falling off in the Customs revenue was but Mualt, and notwithstanding it, the revenue ot the- Consolidated Fund, including revenue assets <.i the year, showed an increase of £238,276. THE 1.A2C1) FCNIJ. The receipts from the Land Fund during ';hc year 'exclusive of gold duty) were £1,039,242, "r £419,000 moro than the average for the ; lvcc-.liiig seven years. Since the Ist January, .'••■ id the Colonial Treasurer, when the Financial Arrangement Act came into force, the receipts have been £544,454. The estimate was £322,610, j that the estimate was exceeded by £221,851, hut I regret to say that, although there is a vc-ry hirye iuorea.se-, on the whole the deficiency is larger than was provided for by the Financial Arrangements Act. The sales in Canterbury fcfiow an enormous excess, while those in Auckland,Taraisaki, Hawko'n Hay, Nelson, and Otago, have proved to be less by £83,000 than the sum estimated. In consequence of tins the whole ot t):« Treasury ISills authorised under the Financial Arrangements Act, amounting to £150,000, l,a\v beer. issued, Hid all additional sun. of >-'5M,0u5 l.as had to be advanced from the Consolidated Fund in aid of the Land Fund. i'O.SI-uITICE SAVINGS HANKS, U'C. The business done by the J'ost-ofiice Savings Hanks hud been satisfactory, and the deposits remaining on June 3Uth were £720,000, and the year s tiansactions in the Annuities and Assurance departments had been most satisfactory, and reflected great credit upon all connected with the department. Rut as it was intended i'-> hiing in a bill to establish a board of managejaeiit. of leaving the direction in the ijands of u Commissioner, he would not new trouble the committee with remarks or detail*. KXPENj)rrt;):K. • P ro l l^"c d iuz-.il expenditure- for the year iNi-TS \va.> £o.]iJV,7.">4. llie cost of most of ; he tU'paiimeiiu had been reduced through amalgamation and simplifying, though the wurk had in many cabcs nearly doubled. He

regretted that more had not been done in this direction owing to want of time, in conssqucnco of the enormous amount of work which had fallen ujion the Government through constitutional changes it h id l.een their business to inaugurate (luring tlie recess. SITHSIUIES.

Under the head of " public debts" £30,000 was included f >r Hospitals .-mil charitable aiil. This was meant. to provide the subsidies which would probably be payable Ululi r the Charitable Institutions Act. Authority would be asked to deduct from the sil bsidies of the different Counties, and Koad IJoanN, a snllicient sum to lnainlain Hospitals anil for charitable niil. ill districts which declined to adopt the Act, or in which it proved insullieient. LIM V.VTI. 'N.

The House bad already been informed of the provision:; meant to be made for education. MII.irM, Vi'I.rNTKIUIS, ASl> CONS I'Al'.l' I.A ItY.

A large' increase amounting to £10.08'J had beer, found nectary in the vote for Militia and Volunteers, but it was chiefly on account of .stores and ammunition, and capitation for the increased number of \ olunteers. The saving ell'ected by the amalgamation of the Police and Armed Constabulary wascpial to £33,000 a year.

WATS AS 1> MEANS K-'R THE CUHUKNT YKAK. Keferring next to ways and means for the current year, the Colonial Treasurer said : As 1 have just shown, we have to provide for an aggregate oxpenditure of £'3.100., .> 1 12s 0 1 for the year. Of this £2.30) 540 PJs 1M is chargeable" on tho consolidated fund, on the gold revenue, £'7'2,000, and £V»43.20«S u]»on the land fumi, being such charges only as each fund should support. Now, if all the charges placed upon the land fund of each district could be rej covercd, the consolidated fund would be in a I position to bear its legitimate burdens without I dilliculty. As a matter of fact, however, Ido I not think that more than £500,000 of that sum will be practically recoverable. The L.uid Fund in certain districts being insufficient to meet its liabilities, it will therefore be necessary either to supplement the consolidated revenue or to relieve it of some of the charge* 1 have proposed it shall bear. I dismiss, sir, as altogether undesirable, the plan of charging such services as Police and lvlucation upon the Land Fund of those districts which are able to bear them. They are charges which in the opinion of the Government should be borne upon the consolidated fund, aided, if necessary, bv local rates. If the committee agree with me that it would be unwise to charge against the L:mil Kuinl any of the services I luivc proposed to place upon the Consolidated I*und, it follows that the only course open to us is to increase that fund up to our requirements. I say M.iat it follows that for the present year this is the onlv course open to us, because I have satisfied' myself that it is impossible so to reduce departmental expenditure as to bring our expenditure within our income, unless we are prepared to relinquish some of the luxuries we enjoy in the way of telegraphs, postal services, and * Resident .Magistrates, which aro spread broadcast over the land, and which, as far as mv experience tjoes, it is hopeless to attempt to reduce. I take it for granted then that we must, at anv rate, temporarily aid the Consolidated fund, and the question is—How is this to be done V SHALL A PROPERTY AN'P INCOME TAX HE IMTOSEP ? I know, sir, that manv persons whose opinions are entitled to great weight, from their position and their knowledge of the colony and its re quirements, think that the time has arrived for lowing a property and incomc tax, and, if we were now in a position to deal with the question of the readjustment of taxation, much might be said in support of such a tax. I 4 or 1113* own part. I am very loth to open the question of taxation at present. Our liabilities being what they are, the subject of taxation is not lightly to be touched. It is one which requires the most careful thought. It must be considered as a whole, and it would be quite impossible to deal with it satisfactorily during the present session. When our trunk railways are approaching completion, when we have had time to consolidate and settle down, and are able to better mind our real requirements, then the whole incidence of taxation must be considered; but to deal with it now, in a fragmentary way, would, I think, be a serious mistake. For tho reasons just stated, and because we think our requirements for the year can be met in a way which will be far more satisfactory to the country, and which is fair and reasonable, I shall not propose additional taxation this year ; and I venture to hope that additional taxation may be altogether avoided if we obtain from our railways that income which seems now assured, and if we are successful in the inscription of the stock.

CHARGES UN THK LAND FCNI). But hero, sir, it is necessary that I should recall the attention of honourable members to two principles which have been clearly recognised as underlying all our legislation relating to waste lands and to immigration and public works. Those two principles arc : First, that the Land Fund shall be localised; second, that the cost of immigration, roads, and railways is a proper charge against the Lind I'und. .Lhese principles have been constantly recognised, and though it is true they hive not been continuously acted upon, vet the recognition of them crops up in our legislation at almost every turn. By the Provincial Governments and Legislatures which have hitherto had the practical control of the land revenues, the second of these principles has always been acted upon, hut in this House expenditure upon immigration, roads, and railways has been from time to timo charged against the Consolidated Fund, as that fund has been found able to be:»r it. But these two important principles have been abandoned or lost sight of by Parliior the country. With reference to the localisation of the Laud Fund, it is necessary that we should distinctly define in our own minds the meaning of the term. The meaning, sir. which I attach to the term localisation of the Land Fund is that the money received for the sale of the Crown lands within a defined district .should be >pent in opening up ami peopling that district. I am noi, sir, now going into the question of what is a di-trict. That would open up far tuo wide a field altogether for the purposes of inv argunient. I shall accept the districts as they are, although it should be noted that Parliament has always claimed and exercised the right of altering the boundaries of these districts from time to time. Most honourable members will go with me so far : at any rate those will who, like myself, think that the pro coeds of the land should he applied to the land, that those who pay the most should recc-ive the greatest facilities for occupation, and that to treat Land Fund as ordinary revenue is thoroughly bad in principle. Some few will probably desire to go even further than this in localisation. I am not prepared to go, for, when the meney has been spent in opening and peopling the district, the object of localisation is accomplished. Our duty to the laud is fulfilled, and there, in my opinion, localisation ends. Holding then, as I do, the opinion that with the proceeds of the land, it is the duty of the State to open and settle the land, it seems to me not only no violation of the principle of localisation, but inerelv an extension of it, to say, that if the Ktatufinds the mor.ey beforehand for these purposes, such an expenditure should he made a charge against the Land Fund, and that is in accordance with the principle of localisation, to charge against the Land Fund of each district an\' sum not exceeding the amount expended within that district in any way which .Parliament may determine as tho most convenient. Now, there has been raised for railways and immigration a sum in round numbers of £'0,500,000, the whole of which is fairly a liability of the Land Fund. The annual charge on this sum for interest and sinking fund is about Jl 185,000. Out of this sum there had been expended up to the 31st December, 18(0, the day on which the accounts of the provinces were closed, a net sum of i.7,185,210, alld the colony had paid interest thereon to the amount of i' 825,452, but has only recovered from the provinces £1(10,o4.j, so that in aid of Land Fund the Consolidated Fund has actually paid £'055,139. The Colonial Treasurer stated the results of tables, showing how each district Land Fund had been benefited, and he then proceeded as follows I have shown the extent to which the Consolidated Fund has been burdened by the payment of interest and sinking fund on moneys expended in performing the work for which the Land Fund was localised—namely, the opening up and settlement of the countiy, ;illd, apolymy the arguments I have just used, I shall ask the House to reaffirm the principle that moneys expended on these purposes are properly chargeable upon the Land F nnd. \\ r e recognise that at the present moment the refund of these charges is beyond tho immediato power of the less wealthy districts, but, as respects the Provincial Districts of Canterbury and Ota"o no such argument can be used, and wc propose to charge the Land I'und of Cantelbury witli a sum of i.'55,001), and that of Otago with a sum of £100,000, being in each case one moiety of the amount by which the Land Fund of those districts has been aided. With the exception of fi small debt, the charge of '2 per cent, for railways, the subsidies payable to Counties and ltoad Hoards, an 1 the cost of survey and administration, the land revenue of Canterbury is absolutely free, ami, in view of the fact that a sum of £2r.(J,000 'of the surplus I.and I'und haa been distributed within the district during the past mx months, ami that a further fium of i'loo,ooo i.s now ready for distribution, we propose to deduct her contribution from the j>uni in hand. The c;ise of Otago is somewhat different. The district has a very large estate, though it la burdened now with leases just expiring, and which it would he a waste of public money to cancel. We propose, therefore, to raise the amount required to meet its contribution, together with the sum of A.'31>,000 advanced last Tear in aid of the district land fund, treatin- "the debt as a provincial liability, and making the interest and sinking fund a pel - mnnent charge upon its future land fund. Tuo I whole land fund of the Otago district for the year will then bo free, excepting only the 2 per cent, under the Financial Arrangement

Act, the interest on its provincial debentures, the co.st of surveys, and laud administration. The relief to tho Land Fund under the proposals of the Government is very considerable. In the Southern provinces education was almost entirely bjrne upon the Land Fund, under the provincial system, and, considering that the whole cost for building and maintenance of Kchools, of police, of gaols, of lunatic asylums arc now borne upon tho Consolidated Fund, I do not think that the inhabitants of Canterbury and Otago will consi'lei the proposition I have made um'uasoiVxMe, and it must further b»> borne in mind, that when tho colony has incurred a expenditure for public works and immigration. which is yearly improving the public estuto ft ;i time whfi) the burden of tho expenditure on uncompleiud works is most severely f, H. the only possible means of maintaining the l>road principle of localising the Land Fund is by taking c.uo tliat all rightful charges upon it are fairly and justly met." THK V.KVKNUE. The estimated total revenue of the colony for ] >77-78 "'as i'.'i, This total comprised li»0 of Consolidated licvcnuo, £1G7,000 of refunds from Canterbury and Otago land funds, 172,000 gobUields' revenue and gold duty, ami i'S!H),. r >2r> from land sales, licences, renrs, &c. The Customs revenue was put down at the amount yielded last year, niul on other items there wad a slight increase. Railway receipts were estimated at £G04.-100, and the year'* protit on tho work done by the railways was set down, after very careful consideration, at £170,000. Adding to the estimated revenue the surplus with which the year was heuun, £1.45,220, there would be a total of £'3,540,1)05. .Deducting then the total estimated expenditure, there appeared a surplus of £431,150. Of that sum, £320,.T0 was distributable amongst the Counties as surplus Land Fund, and there would remain a balance of £101,781 available to meet possible deficie ncios Jof tho Land Fund in certain districts. TIIE lIAILNVAY 9YSTKM. It had boon found impossiblo to carry out a promise made last year to submit this session estimates for tho completion of the railway system, ami it had been considered that delay was preferable to an incomplete estimate for the purpose. Thercforo, the Government only ask this session for a gum sufficient to unite the already complicated sections of the trunk line of 600 miles from Amberley to Kingston, and for extensions of the main line in other parts of the colony. Those works would be described iu the Public Works Statement ; and, should the House approve of the recommendations that would then be made, additional ways and means to the amount of £940,443 would be required. KXPENOITUBE ON PUBLIC WORKS. The total proposed expenditure for the year on public works would be £1,790,451. Immigration services were estimated to require £124.182, and thero were provincial liabilities to be met amounting to £259,550. These sums made a total of £2,150,150, and after allowing for the balance to credit of the Public Works account, £1,200,000 would remain, for which ways ami means would have to be provided. Tho £800,000 of guaranteed debentures had, in estimating ways and means, been treated as cash applicable to public works, but the Government were of opinion that these debentures should be freed, and should continue to be held as available security, against which advances could be obtaiued at a low rate of interest. ANOTHER LOAN. If these proposals were approved, authority to raise a loan of £2,000,000 would have to be asked for. The Government could not recommend that any of the works which would be included in the Public Works Statement should be delayed, but if the House should resolve to reduce the expenditure upon public works by, say, one-half, then the agreement with tho Bank of New Zealand would probably avoid tho necessity forgoiug upon the London market for another 18 months, and next session a complete scheme of works could no doubt be submitted. Put this, he repeated, was a course which tho (Government could not recommend the House to adopt. FEROHATION. The Colonial Treasurer iu his peroration ex. pbiined why the Government thought it most desirable the country should have time and rest for the complete development of the Public Works system, and should not •' present bo troubled by proposals for increase-, taxation or by questions of Constitutional changes, or the incidence of existing taxes. The proposals of the Government would secure this state of things, ami he asked for them early and most careful consideration. The House adjourned about 20 minutes aftei 9 o'clock.