FINANCIAL STATEMENT.

Opunake Times, Volume III, Issue 113, 2 August 1895, Page 2

FINANCIAL STATEMENT.

The Hon J. G. Ward, Colonial Treasurer, delivered the Financial Statement in the House on Tuesday evening. The following is a summary : THE COLONY’S POSITION. In cougrat :! ding the House upon the salisfacto y results of the year’s finance, the Treasurer states that, bearing in rniud the low prices obtained for our staple products, and the great reduction in the spending power of the people, it is cheering to find that, financially, the colony occupies a strong position. Several changes have been made in the form of accounts, with the view of enabling the public to more clearly understand the finances of the colony and to avert jthe adverse criticism which, the Treasurer states, has undoubtedly tended in the past to injure and discredit the colony. REVENUE ACCOUNT FOR THE YEAR. The estimate of revenue for the year was placed at £1,285,000, exclusive of £117,800 to be received to provide for the accretions of Sinking Funds payable during the year. The actual receipts came to £4,281,995, or £46,995 in excess of the estimate. This estimate had been prepared in view of a falling revenue, and had accordingly been reduced by £133,538 below the actual receipts of the preceding year ; yet the revenue had exceeded the Treasurer’s forecast to the extent of £86,563. A deficiency of over £55,000 had been allowed for in the Customs receipts. This, however, had been exceeded by £30,215, due, no doubt, to the caution and the hesitation exhibited by importers, who narrowed their orders down to the smallest possible margin, which was only natural in the face of an adjustment of the tariff in the near future, to say nothing of the very low and unremunerative prices for produce, which reguiate business transactions in most parts of the colony. The Treasurer accounts for the falling off of £17,251 in the railway receipts, chiefly by a great reduction in the grain traffic—the export of grain having been two million bushels less than that of the previous year—and in the damage done the railway lines by floods. There were, however, items of revenue on which there was a considerable increase over the estimate, notably from the sale of stamps (which showed an increase of £89,225), land and income tax (which showed an increase of £26,166 over the estimate). As compared with the estimate, the total amount underspent on the year’s transactions was £83,487, the principal savings being effected in Interest and Sinking Funds charged £27,787 Postal and Telegraph ... £14,000 Lands and Survey ... ... £15,000 Treasury, miscellaneous, for stamp duty ... ... £9,000 On the other hand, £4592 was overexpended in respect of subsidies under the Hospital and Charitable Institutions Act owing to extra contributions to hospitals and charitable institutions. RESULTS OF THE YEAR 1894-95. On the 31st March, 1894, the books were closed with a gross surplus of £290,238, to which add the receipts for the past year, amounting to £4,406,615, making a total of £4,696,753 ; and deducting therefrom the ordinary expenditure, amounting to £4,266,729, there remained a balance of £430,024, out of which the amount of £250,000 was applied in aid of the Public Works Fund, leaving a net surplus of £180,024 at the close of the financial year—a result which must be gratifying to members, and must add to the general stability of the country. PUBLIC WORKS FUND. The Treasurer stated that, as the money for expenditure on public works was now contributed by the Consolidated Fund, he had under consideration the question whether part of the Public Works Fund should be retained as a separate account or not; £50,000 had during the last year been provided by revenue, and other receipts amounted to £63,049. The expenditure on public works amounted to £307,182. Adding the receipts of £313,049 to the balance, £263,658 at the commencement of the year, and deducting £308,182 of expenditure, there remained a balance of £268,825 on the 81st March last, against which £229,078 of liabilities were outstanding. The loan money belonging to the North Island Main Trunk Railway Line was steadily disappearing. The balance to commence the year with was £79,197, to which was added a" small recovery of £l2 belonging to the former year’s expenditure. On the other side had been charged a sum of £52,604, leaving a cash balance at the close of the year of £26,604, against which £14,097 of liabilities have been incurred. THE CONVERSION ACCOUNT. The conversion operations of last year resulted in a further issue of £787,258 of 3£ per cent of inscribed stock, which, towards the close of the year, began to sell at above par. The inscription of this stock enabled £398,900 of various debentures to be converted and £283,300 of loans to be redeemed, leaving (after paying expenses) a balance of £40,193, which will be used to complete operations. LOANS TO LOCAL BODIES ACCOUNT. Up to 31st March last the amount raised for granting loans to local bodies was £648,082, and for grants for reading £118,918. These amounts, with the sum of £89,800 duo to public works, amounted to a total of £854,000. Experience had shown that, owing to absentees, to the indifference of ratepayers, and to other causes, the existing law exhibited defects and difficulties which should be removed ; and during the present session an attempt would be made to consolidate and amend the existing Acts. Tiie principal feature of the proposal will be the machinery to carry out all

the steps required to obtain a loan will be found embodied in a Bill. In this way would be done away with the different, and at times complicated, processes which the various local authorities have to consider and carry out. ' NEW ZEALAND CONSOLS ACCOUNT. There had been twenty deposits inscribed, amounting to the sum of £158,025, of which £158,000 had been invested in securities, yielding a 4 per cent rate of interest. 01 this sum £150,000 was inscribed by the Bank of New Zealand as a special investment of a portion of the second guaranteed million. By arrangement with the bank, in the event of the public desiring to make deposits in excess of the limit fixed by law, the arrangement provided that the £150,000 referred to, or any portion thereof, should be transferred to the investing public. At the time the investment was made the Bank of New Zealand was desirous of finding suitable investments in New Zealand Government securities for the balance of the guaranteed million in order that they might be held with coin as a reserve against liabilities in accordance with law. PUBLIC DEBT. The public debt has increased during the year by the sum of £560,549. It now stood at a total of £40,386,964. Of the increase over £400,000 was for the purpose of making advances to local bodies, improvement of land purchase of native land, and land for settlement. The interest which the Treasury had to pay upon these loans was considerably exceeded by the receipts derived from the transactions leading to the raising of the loans. The net de'bt on the 31st March was £39,345,032, or an increase of £760,541 as against the previous year. THE INDUSTRIES OF THE COLONY. The Government had been making enquiries as to markets for our surplus products. An expert was sent to London to push the timber trade, and by the reports received by the AgentGeneral there is no doubt that a considerable trade can be opened up in New Zealand woods for street-paving, and for carriage-building, furnituremaking, and other uses. Trial shipments have been sent to London from Auckland and the West Coast of the South Island, and a shipment is now being despatched to the Gape of Good Hope. It is confidently expected that these may prove the forerunners of large orders. LAND AND INCOME TAX, The revenue collected during the year was £370,079, being £20,079 in excess of the estimate. The amount of land tax outstanding the 31st March, 1895, was £472, all of which was made up of sums for various reserves not immediately recoverable. In order to remedy defects in the law relating to the taxing of native lands occupied by European tenants, the Government have determined to bring in an amendment of the Act. Former Colonial Treasurers in past years collected taxes at dates to suit the requirements of the colony, and this without the adverse aud extraordinary criticisms to which any action last year was subjected. However, as unexpected animadversions calculated to seriously affect the financial position of the country were made against the alteration in the date of the collection of the land tax last year, I deem it essential to take steps to prevent the possibility of such adverse criticism again being possible from similar causes. Under these circumstances I have deemed it advisable, in the best interests of the country, to prepare a measure to permanently fix the date for collecting , this tax. DEPARTMENT OF AGRICULTURE. Though prices obtained during last year for all products had been lower than for many years, yet the impetus that is now being given to the dairy industry by cool storage and proper system of grading promises to produce better results. Luring the coming year the Government will start dairy schools with the view of further improving the industry. Shipping live stock and chilled meat have now been successfully demonstrated. POST OFFICE SAVINGS BANK. During the year withdrawals had exceeded the deposits by £15,762 Is 6d. There was an abnormal increase of deposit?, during the first quarter of this year, largely due to the reduced rate of interest paid by the various financial institutions. GOVERNMENT INSURANCE. The condition of the Department continues to afford every satisfaction. The funds at present date amount to £2,300,000 ; the new business for the year amounted to £729,013. PUBLIC TRUST OFFICE. The best index to public confidence in the office is the increase in the number and value of the estates placed in the office by will or instruments of trust. These properties at the close of the financial year, had increased in number from 871 to 392, and in value from £548,238 to £586,813. By that Act the functions of this important office are so clearly defined, and the power of the Public Trustee so enlarged, as to render the office capable of affording services of a wider scope, and of being more attractive for the purpose of which it is mainly designed. ADVANCES TO SETTLERS. ■ The total applications to the 30th June dealt with by the Board were 1552 for £559,855, and of these 969 were granted for loans amounting to £354, 907. MINING INDUSTRY. With a view to affording encouragement for the expenditure of capital on mining in outlying districts, it is proposed to introduce a bill to provide for granting areas for a limited time to persons with sufficient capital to enable them to carry on prospecting on a large scale. It is also proposed to increase the subsidy payable to individual prospectors under the existing regulations iu order to encourage mining

associations and local bodies t > send out prospecting parties in their respective districts. LAND FOR SETTLEMENT.

The total territorial revenue for the year on current and new transactions was £310,106, an increase on that for the previous year of £BIO7 4s lOd. There is an increase in the arrears due to the Crown of £2788 5s lid, which is due, no doubt to the low prices for stock and produce which have prevailed during the past year. During the coming year the Government will offer for selection some very good lauds in the Awarua block, and other parts of the colony, for which many people are waiting. It is expected that some of the recent acquisitions in what is known as the King Country will be sufficiently advanced as to survey and reading to be thrown open. IMPROVED FARM SETTLEMENTS.

Up to the present date eighteen settlements have been formed, the areas set aside being 21,202 acres, which will be allotted to 193 settlers, but up to the 31st March the actual allotment of 9730 acres to 107 settlers only had been completed. The area already felled is 4048 acres, and the area grassed is 1469 acres. The amount advanced to settlers up to the 31st March was £5698 4s lid, and the value of the improvements on the land, including Government advances, was £6964 19s 3d. It is intended to introduce the half-time system into all these settlements so soon as it can be arranged. Several are already under it, and it is hoped by this means to find sufficient employment for the settlers to keep them going, whilst at the same time to allow them to improve their farms. It is believed that the system just started will offer to those who are not in a position to secure laud otherwise a chance of obtaining a home, and at the same time relieve the labor market from congestion. LAND FOR SETTLEMENT ACT.

The estates purchased and arranged to be purchased number 18, with a total area of 53,901 acres at an estimated cost of £195,561 2s 4d, plus whatever additional cost there may be for surveys and little reading. At the present time there are several desirable estates under offer with which tbe land purchase boards will soon proceed to deal. RECIPROCITY WITH OTHER COLONIES, The Government believing that a true policy for this country is to assist the settler to find fresh markets, have, subject to ratification by Parliament, entered into reciprocal tariffs with South Australia and Canada, by which an interchange can be affected with them of some of our products. An agreement has been made with South Australia, by which that colony would accept, free of duty, barley, oats, horses, and hops, and New Zealand agrees to accept free from South Australia, wine, olive oil, dried and fresh fruits, and salt. There was an understanding that admission of wine to this country will cease should the prohibition become the law of the land. The main features of the treaty with Canada are that there will be a free market between Canada and New Zealand for wool and woolen manufactures, blankets, flannels, tweeds, rugs, live stock, frozen and fresh meat, bacon and hams, fish, hides, condensed or preserved milk, flax, barley, oats, wheat, wheatflour, seeds, bindertwine, coal, m kerosene oil, safes, organs, and pianofoites, tallow, lumber, and tow, in addition to the articles on the full list of names above. Concessions in favor of the following articles' are made : Should a duty be placed in New Zealand upon agricultural implements, they are to be admitted free from Canada, and a concession of 24- per cent below general tariff rates is - also provided upon twine of all kinds, ropes and cordage. The competition ■which will ensue in this”ccuntry in that industry wall remove any friction that may have existed, and ensure at least a fair value upon this article. There will also be a deduction equal to ten per cent off the Customs Tariff upon leather, and five per cent upon boots and shoes, harness and saddlery, as between the two countries. The Treasurer estimated that he would not have to provide during the current year for more than a sum of £II,OOO to make up for any deficiency that might arise as the result of concessions of duty on such articles as to enable the trade between Canada and New Zealand to be fully carried on. It is advisable that regular steam communication between the two countries may be established. With this view, between the CanadianPacific Steamship Company and the Government would be submitted to the House for’approval. It is proposed that the line of steamers should run to either Auckland or Wellington, and in return for a monthly service to be conducted with a view to necessary expedition and accommodation, touching at Fiji and Honolulu, to give the company a subsidy of £20,000 per annum for a period of years to be fixed."

INSCRIBED STOCK. A saving had been affected or £3OOO per annum on the cost of management of our inscribed stock wih the Bank of England. EXTINGUISHMENT OF PUBLIC DEI!I*. Referring to the advantages that would follow on the general conversion of our stock into three per cents., the Treasurer stated that the large annual saving in interest thus obtained could be utilised to repay our indebtedness, and it would give greater stability to this country were the Government, when the right time arrives, to adopt an affective system for the extinction of our indebtedness. The million and a half loan result was found to bo satisfactory. Applications for £5,960,400, at prices varying from £IOO to £9O, were sent in, and of these 33 per cent of the tenders at £94 8s were accepted, those above that price being allotted in full. The average price realised was £94 8s 9d, and the amount payable was £1,416,601 2s. Now, hon gentlemen may think that, as the raising of

this loan was attended with so much success, the operation itself was of a simple character, but I can assure you that it was by no means the case. In the first place, the determination to fix a lower rate of interest for our new loan caused, as you maj imagine, groat anxiety, and was only decided upon after the most careful consideration, and I shall not, I hope, he accused of divulging a matter of a confidental nature when I assure the House that some of the highest financial authorities in London were of opinion thaa 3 per cent loan w r ould not be likely to prove successful. I have also to thank the Governor of the Bank of England for his valuable advice and assistance to the general manager of the Bank of New Zealand, (hen in London ; then to the local manager I am also indebted for the courtesy and information they so willingly extended to me. LOCAL BODIES LOANS. The Government propose, after due notice has been given, to readjust the lending rates of Government Departments’ and to take the necessary steps to relieve such local bodies as have funds provided for these institutions for carrying on their finances. LOCAL GOEERNMENT. The Hon the Premier will, at an early date, submit for consideration of the House important proposals for the improvement of local government in the colony. It is proposed to take over the main roads of the colony and relieve local bodies entirely of this work. PACIFIC CABLE. The important question of the establishment of a Pacific cable by an all British route to Canada and England had engaged the attention of the Government during the recess, and it is proposed to ask the House to assent to the necessary legislation to give the Government power to co-operate with Canada and other countries in pushing forward this project. OUR TELEGRAPH CABLE. The new cable across Cook Strait, from Oterangi Bay to White’s Bay 81 knots in length, was laid on the 7th of May last by the Terranora. This cable was ordered last year in anticipation of tha breakdown of the old threecore originally laid in 1886. Another single core cable had been ordered from England, and might be expected here in time to be laid in December. BANK ASSETS COMPANY. I deem in my duty to state that in my opinion the present position of the Bank of New Zealand Estates Company is far from satisfactory. Hon members are aware that this company owns large areas of lauds which, whilst in many cases suitable for closer settlement, are not now worked to the best advantage, attached, as the company is, to the Bank of New Zealad. lam convinced that it will be advisable at an early date to seriously consider in what manner this intimate relation can be modified. At the same time 1 may say that no hasty treatment of this important matter should be entertained. In my opinion thesubject is sufficiently important to warrant special consideration of a select committee of both Houses.

finance of 1895-96. Having now recounted the past, I will turn to our proposal for a current year, and I may at once inform members that I do not share in the gloomy forebodings of the prophets of evil who afflict our public life. In view of the recognised fact that our Customs and railway revenues had fallen somewhat during last year, it has become more than ever necessaiy to exercise the most rigid scrutiny over pur proposed expenditure of the current year, and I can assure you that the figures I am about to quote have been most carefully considered so as to bring them down to the lowest possible amount. Consistent with the efficient administration of our public services, the following table exhibits our financial position as estimated for the current year : ESTIMATED EXPENDITURE. Civil List £25,700 Interest and Sinking Fund 1,604,605 Under Special Acts ... 331,590 Legislative Departments 17,385 Colonial Secretary’s Dept. 70,110 Colonial Treasurer’s Dept. 25,560 Justice Department ... 124,186 Postal and Telegraph Dept. 835,017 Customs and Marine Dept. 64,186 Stamps and Deeds Dept. 20,560 Minister of Education Dept. 416,814 Lunacy andCharit’bleDept. 52,022 Department of Labor ... 6,260 Mines Department ... 18,289 Department of Agriculture 44,735 Working Railways Dept. 738,940 Public Buildings,Domains, andMacbinery Dept. ... 50,500 Defence Department ... 64,419 Police Department ... 200,441 Lands and Surveys Dept. 129,634 Rates on Crown lands ... 900 Total £4,831.843 ESTIMATED REVENUE. Customs £1,560,000 Stamps(inc postal cash r’c’ts) 644,800 Land and Income Tax . . 350,000 Beer duty 60,000 Railways 1,155,000 Registration and other fees 50,000 Marine 21,500 Miscellaneous ... - ... 65,000 Territorial revenue ... 290,000 Debentures for sinking fund increases 145,000

Total £4,311,208 THE CUSTOMS TARIFF. The present tariff is influenced by several considerations—-protection, remissions in favor of the working classes, revenue, and extra taxation of luxuries. It will bo seen that there are here the elements of a complicated tariff, ia which anomalies cannot be avoided, and I see no prospect of constructing a simple or comprehensive tariff so long as it is deemed expedient to allow the question to he influenced by these considerations. The Statement then gave a schedule of the proposed new tariff. CONCLUSION. The Treasurer concluded as follows :

Surveying the general c ndi iui of other countries, 1 am of opinion ihat New Zealand comes well out of the comparison. It is not to be expected that in the difficult task of fighting the bat'le of life all will be satisfied. But the evidence of thrift, enterprise, and energy which are observable in all parts of this country augur well for its future, and, though I foresee a somewhat difficult period, I look forward with confidence and hope, relying upon the grit and pluck of our fellow colonists to overcome any temporary difficulties that may arise.