THE New Zealand Herald. AND DAILY SOUTHERN CROSS. MONDAY, JUNE 19, 1882.

New Zealand Herald, Volume XIX, Issue 6423, 19 June 1882, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. MONDAY, JUNE 19, 1882.

The financial statement delivered by ' the Colonial Treasurer on Friday evening last in his place iu the House of Representatives, possesses many features deserving consideration by those residing in the colony, as well as by > those living at a distance from it. The first thing that arrests the reader':! - attention is the ample testimony that , the colony has recovered from the effect of the wave of depression that passed over it two to three years ago. ; The change produced is more surprising than many could have imagined possible within the time that has since elapsed. Prosperity is thoroughly restored, trade is active, and our finances sound. To a certain extent the credit of this desirable change is due to the Government, but only to the extent that they have exercised care and economy in the administration of pub- , lie affairs. During the period referred l to, extensive retrenchment in the Civil Service has been carried out, and ' though the Government has given effect to this, the policy of retrenchment was forced upon them. Public opinion demanded that the overgrown Civil Service should be curtailed, and the House of Representatives, reflect- . ing that opinion, exacted pledges from , the Government to secure the end in view. "With this wise policy, combined with good prices for wool and other colonial produce, sound trade was secured, and general prosperity has revived. The Customs returns during 1 the past year largely exceeded the Colonial Treasurer's estimate, and this may be regarded as a very fair test of the general state of trade in the colony. During the financial year which ended on the 31st of March last, the total ordinary revenue was £3,488,170, a sum which was £190,520 in excess of the estimate. Of this excess the Customs supplied no less than £125,107. When this large increase over the estimate is considered in connection with the limited population in the colony, it must be evident to the most casual observer that the spending power of the people is largely increasing. The land revenue, in addition to the above, was £317,063, making a total income for the twelve months of £3,505,233. Though the revenue showed a considerable degree of elasticity, the expenditure was kept well in hand. The expenditure of every kind (except that out of the loan fund), including the grants made to local bodies, amounted to £3,015,895, leaving a surplus on the two accounts —ordinary revenue and land revenue—of £ISS,33S. This added to the balance carried forward from last year of £20,706, gives a credit balance of £215,044 to start the business of the year with. The suddenness with which the colony lias risen from a state of j depression to one of general prosperity I cannot fail to be a matter of surprise ' to those not personally conversant with ' the vast natural resources of New j Zealand—resources which can onK- be adequately developed when the population and capital of the colony have increased many fold. The extension of public works during the past year has been steadily pushed ahead, and a good deal of substantial work has been done. During the year tho expenditure of the public works fund (loan money) has been to the extent of £979,800, with works pledged to the extent of £880,270. The balance of cash, however, will more than cover all outstanding liabilities, as it amounted on the 31st of March last to £924,805. The Government propose to raise a new loan of £3,000,000 in the London market for the purpose of completing, or at least extending, the arterial lines of communication throughout the colony. They also propose to resume assisted • immigration to some extent, but what « form it will assume lias not yet J been decided. It is probable that f the system of colonists nominating some relatives or friends residing iu i the Home country, will be the form 'i immigration will first assume. This X] plan lias many recommendations in its v favour. When nominated immigrants a

arrive in the colony, they rally taken charge of by their fr& and the Government is thus reliever, the responsibility and expense of W mg them for a time until they fir. l suitable employment. Though a loan is proposed, it is not anticipate that the payment of interest will enta-1 any additional taxation, and to avo - ri that, it is proposed that the loan shall be spent gradually, so that the work* executed with the first portion of *h loan will be giving a return before tf,! last of it is expended. The reference which the Colonial Treasurer makes to the deposits i the Savings Banks in the colony, telf of a very satisfactory state of prosperity among our working classes. The accu rnulated savings in these banks at th~ credit of the working classes is no W than £1,549,515. This is a large sum for a community that only numbers half a million, all told. The abo figures Ao not by any means represent the full financial condition of Hi working classes of £ujw Zealand, but only the cash they have at call! A very large proportion of the working people of the colony own the cottages they live in, and not few obtain an addition to their incoire from rents received from other houses which they own. Then, again, many hold shares in public companies, vhile a very large number are shareholders in building and investment societies Besides these, many receive Kpl ' from various friendly societies in the case of accident or sickness. The pru . dence thus manifested by a lar»e body , of the working classes speaks not only favourably of the self-denial which is exercised to attain such results, but also tells of the advantages which New Zealand offers to all the industrious, sober" and well-doing. ' Upon the whole, the financial state- . meat is likely to be well received by the colony, though some of the crude , r suggestions it contains are sure to r, meet with keen opposition. As one "' instance of this kind may be cited the scheme of National Assurance _ which _ is suggested, instead of maintaining the hospitals and cnari■t table institutions as at present by grant. The Treasurer admits that - he is enthusiastic on this subject d but the sober-minded may look upon st such proposals as too close an approach l to the acts of a paternal Gorernment. *; He evidently foresees that this scheme V, will not be given effect to, and intends __ to make provision this year for the _ hospitals, etc., as formerlv. The assurance scheme will doubtless form a subject o£ debate, but it is not likely that anything satisfactory will be the outcome, as it appears to be somewhat - beyond the range of practical politics.