THE FINANCIAL STATEMENT.

Otago Witness, Issue 2211, 16 July 1896, Page 30

THE FINANCIAL STATEMENT.

ONE MILLION TO BE BORKOWED.

[By" Telegraph.] W-evlikqtos, July W. In Committee of Ways and Means of the Home of Representatives this evening, the Hon. R. J. Seddon, Colonial TreaEurer, delivered his Financial Statement at follows : —

Mr Guinness, —l hopß it will not be considered out of place for me to express my personal regret at what has led to the' delay in the delivery of the Financial Statement "this year, and I feel assured that the regret is chared by members generally. The bitterest political .opponent of the late Colonial Treasurer, will do >Mta the justice of 'admitting tb&t ho unsparingly placed his great ability at the service of, the colony, and was ever zealous in promoting its, welfare, and this devotion to public duty has in 1 a great measure conduced to his personal lo?s, and resulted in his retirement from office. He has thus been prevented from placing before you a Financial Statement which, I ventura fco asssrt, while satisfactory to. the colony, wpuld have been most pleasant to him to have delivered. Knowing that our ejttf mof keeping the public accounts is jomewbat difficnlt to muter, and- that -financial skill -and experience ' arc requisite to ' sneceee, ifc was .- with considerable diffidence ■ that I took office, and following suofo » ani- able, predecessor' does not nrniirriw fehe difficulties. .How«ver, my misgivings arc to some exttnt allayed, for I feel assured hon. membcrß will be considerate ■and accord me reasonable and generous a«Bntfcnee. O«ing to the short time that has elapsed since I became Colonial Treasurer, the Committee will not expect me .to do mere than to place bafore it the year* transactions end bo briefly outline our present and future intention*. I earnestly desire to place before you the figures and results in a clear and practical manner, bo that members and the people generally may easily understand the financial position of the colony. REVENUE ACCOUNT, 1895-96. I dow a6k your kind attention while reviewing the operations of the past financial year and reporting the successful result. In forecasting the results of the year my predecessor in his last Budget did not express himself as 'hopeful of so large a. balance as be had teen able to predict on former occ&sions. Still he was able to show that the estimated revenue would more than meet the exprnditure of the year. It is the more gratifying to me, therefore, to be able to tell you that the actual results have considerably exceeded his expectations. The figures are :— The revtuut? and other receipts reached ' £4,556,015, and the expenditure whs £4,370, 481 ; balance of receipts over .expenditure £185,534. Add to this the balance of the previous year — < "j6lßo,'l)2' i ! j: -£365 l ssß,— ana deduct* the amount '. transferreH ddring thejear to the publfo works , 'fund— £lso,ooo,— leaving .a net surplus of ' (£215,538:! , ' Our who - are • few, •jilfbe disappointed,' but our friends, who are ■inauy, "Will rejoice with the Government ,at ,• well a 'splendid result. ai is' shown by ' the ' figures I have just recited to you. I affirm it is a'matter for sincere congratulation that the colony is able to show at the end of its last financial .year such a, handsome surplus as, close upon a quarter of a million ; and this conclusively proves in my opinion the wisdom and success which have" attended our efforts to establish and maintain a system of strong finance. „','. , F.oHowing' the'nsual cu?to,nvl "wili now give ' you.in as concite ; a,ni'arjner a'sfidstibleparticu.".ißM.of how these gratifying results 1 have been " ferop'ght 'about ,'/' ; , ' ' '' ' " '" Firist, is ' regards the revenue of 'the' year 1895-96, it was estimated that the receipts would produce £4.341,200. The actual figures, however, 'reached £4,556,015, or £214,815 beyond the estimate. Comparing the actual receipts of the year : just passed with those of the preceding year they will be fouad to be very nearly £50,000 in excess. Of this amount the duties received through tbe customs amounted to £79,526. The (tamp revenue - produoed an excess of. £29,962. One of the moßt satisfactory increases over last year is that of the railways, amounting to £29,532, and this -was rs*ched notwithstanding very substantial reductions which the Minister was able to make for the benefit of • the public. An additional sum of £27,600 was •'• received ,ia .connection with the debentures issued against the accretions of sinking fund for. the year. Some other receipts CDntributed -an excess of . £17,144. It was contemplated that the concessions made in the land tax would have, probably resulted -in a diminished revenue to a larger amount than has been actually re-. ' ceived, but I am glad to be able to say that' tbe falling off bf the land-tax has been-, couuterbalanced by receipts from, oocujicd Native lands' not previously collected, the land and income tax together showing only a diminution .of £5571.' The revenue .from ( . registration and' from marine show a falling-off of £3901 ; while the territorial revenue, about which the most anxiety was felt, bhows only a , decrease of £24,393— a most gratifying result, it mutt be allowed, feeing' that the best of our - Crown lands h&ve been alienated and only a remnant remuinv; and further, when we take nto consideration the struggles of many worthy uettlers who have had to bear maDy heavy losses arising but of the severe \yeather which we experienced last winter; The usual table showing tbe actual result* compared .with, the estimated revenue will be found attached to my Statement. „„ On the expenditure side' of the year 1895-96 tbtre is an excess, over the preceding year of £103,769. Iv looking over the various items I find ■* that the " expenditure on annual Vdtes exceeds last year's payments by £93,059. I will refer to this again presently. The charges authorised by permanent appropriations exhibit in ur/der-ixpeuditure of £3629, including £20,500 advanced to the Government Advances to Settlers Office to provide for the payment of interest and other charges which the office had not been able to earn during the first year of its existence. Interest and sinking fund show & decrease of -£33,113, but I do not claim that as a saving, because the previous year's expenditure included in the first quarter the last of ■ the old method of providing, for interest end sinking fund of the consolidated Jo»n of 1867. On subsidies paid to local bodies, the small «nm of £3464 was , under-spent. On the ether - hand some < f the permanent charges of last year exceeded thoEO of the preceding yeafc-notably iv the amount . contributed f^r charitable purposes, which increased as voluntary subscriptions* to local institutions in various parts in the colony flowed in, the Government being culled upon to subsidise thrse moneys with equivalent grants. There is »l»o an excess to be found iq the amounts paid over in connection with the receipts from the endowments of the West Coast harbour bauds.

.Reference to the statsment of the appropriation account of laibt year, which has been placed before hon. members; will show the various votes upon which savings have been effected, and where the expenditure has been in excess of the amount voted.

In comparing the. expenditure of the year 1895-96 with the previous yeac, it will be suffic;eat for me to mention the classeß wherein the principal saving or over-expenditure has been made. In class V (the Po&tmaster-goneral) an excess of expenditure amounting to £32,296 occur?. The conveyance of mails by sea and by land is responsible for £23,000, £11,000 of which was provided for payment to the railways in excess of tbe amount paid the previous year. The department had hitherto been carrying the parcel post at a very low rate. It mußt not be forgot fco n that this expenditure is returned to the oolony as railwajs income. The Postal and Telegraph department being at the disposal of tbe publio at every inhabited point in the colony has to bo served by a large staff of employee?, hence tb.9 small increases authorised bj* theJClassiflcatioQ Act amount 'yearly to a large enm in thcaggregate. In the Education '"department .whit may be termed ihe normal increase 'occurs, and "so long as our population ' "goes on increasing I do not imagine the 'hon. .members, will begrudge payment for the facilities we afford in educating the children of the colony. In class X[ (Working Railways, it will be found an increase in revenue has been earned. I am glad to see that the increased spending power of the public has enabled them to make good use of 'our. iron raids. The inmate of frejfibfc and Jof traffic will serve as a great inducement fqr the Government to afford <still further concessions.' In class ,XV^ nndec tbe oont'rpl of the Minister for Lands, the expenditure Tjus again expanded, and I feel sure that my, ' colleague ' will not', be bhraed 'for' a small increase 6X ''expenditure which arises from the tucoeeeTul settlement of the people upon the land. A good round sum of this expenditure has really been recouped by the deposits received from selectors of unsurveyed land. These deposits are by law carried to revenue instead of being used in reduction of the cost of survey. I hope the Government will not be blamed for a alight increase in tho expenditure of the Police aud Defence department. It bad become manifest that the pol'co force of the oolony needed strengthening, and with regard to the Defence department the Minister recognised that in these stirring times it would not do to be behind the age, so the authorities were urged to at once 6upply the arms aud ammunition which had been ordered some time ago to place our colonial force upon a' satisfactory footing in regard to modern equipments. It is to be earnestly hoped that the occasion will never arise to test the efficiency of our local defence, but it cannot- be gainsaid that we should be forewarned as well as forearmed. The ether heads of expenditure under votes civil for little comment. Under .the head of "Services not provided for" is set down the unusually large Bum of £22,422. Of this amount £11,333 w*s expended iv the purchase of Martini-Henry riflee, £7693 for tte first progress payment in respect of the contract for the building of the new cablQ B teamer and lighthouse tender (the Tutßneka<),'and £'2077""f0r expenses in connection with tbe native disturbances at Ruatoki' andTeWhaiti. As I have said before, the usual detailed Bjjftttment and tables will be laid before hon, < members either attached to my Budget or in separate parliamentary papers, and I feel sure hon. members will be pleased to nuke themselves acquainted with all particulars relating to the receipts and expenditure of the principal ' publio accounts of the colony — namely, tte | revenue account of the consolidated fund, the statement of which merabeis will find subjoined :—: — Statement of the Receipts and Expenditure of the Reven ye Account for the year ended 3lßt Mitch frISBS, jcompaved with .the financial year endtd 3lst Mai ctf 1895 :- '

THE PUBLIC WORKS FUND.

Passing on now to the public worlrs fund, I have not cared at present to alter the existing reparation of Pact I of this fund, although strictly spooking it may ba said to be a mere branch of the consolidated fund, seeing that it ia now almost entirely fed by moneys trans-fu-red from the -surplus of the consolidated revenue account. Advantages and disadvantages occur to me in the retention of the separate account, but on the whole J am inclined to retain it «s it is for the present. i .' Commencing the yeac with a balance of £268 526, the receipts into thß fund have been small, only £2272, and £150,000 transferred from the consolidated fund. The expenditure of £389,648 was more than, last year's, but it jvas imperative to push on with urgenb public works such as roading for settlement purpose?, tbe extension of the telegraph system, increased accommodation in public building*, and our permanent force and our volunteers required to be supplied with arms and ammunition, or for the'.e to be kept in store for any unforeseen emergency. At the close of the year the baknc« will be found to have been only £31,150. At the credit of Part II there was & balance of .£26,605 to commence the year with, to which £10,000 was transferred from the deposit account opened under action 4 of "The North Jsland lVla : n Trunk Railway Loan Application Act 1886 Amendment •Act 1589." The expenditure duriug tbe year amounted to £22,682, leaving a balance at the close of- the year of only £13,923. The cus/ ternary fables «howing the liabilities in resppdb of the public works fund will be found as usual attached to my Statement. / LANDS IMPROVEMENT AND NATIVE LANDS PURCHASE ACCOUNTS. To provide for the expenditure' made out of JJie lands imnravftment Mid Nativt lands cur-

chase accounts debentures, amounting respectively to £104,000 and £160,000, have been created and sold, and *he proceeds placed to the credit of the individual account.

THE LANDS FOR SETTLEMENT

ACCOUNT.

A number of estates were purchased during the year under tie authority of "The Land for Settlements Aob 189 V and to provide for the expenditure (amounting to £168,467) it beoame necessary to create and sell debentures under the act amounting to £163,200, which amount, in addition to £6070 received from rent 6 &c. of land alresdj acquired, was carried to the credit of the separate account, in which at the close of the year a balance of £1357 is shown.

THE CHEVIOT ESTATE ACCOUNT.

The sum of £14,512, principally derived from rents, was received during the year, and was credited to the separate account of the Cheviot estate. Payments for surveys, roading, and for the recoupment of consolidated fund were made so far as the balance of the account allowed. My colleague, the Minister for Lands,, -\yill presently place before you ample information in connection with' the operations conducted through these accounts.' THE CONVERSION ACCOUNT." ' /

The operations through' the conversion account have bsen pretty numerous during the jesr. Notwithstanding the handsome prices our stocks have reached, which naturally limits any conversions which tbe public might desire to take advant»ge of, £821,570 of fy per cent, inftsribeif ftook tfes Ilt«ued, together lyith £478,300 of 3£ per cent short-dated debentures at par! These issues provided for the conversion and reduction of £1,270,"364 .debentures and £10,687 for premium and convetiion expensed. Included in these opera l iona is half a million -which it .became ueceesiry to issue to the Bank of New Zealand, under tbe provisions of " Tbe Bank of New Zealand and BankiDg Act 1895," in exchange for th" bank's preferred shares. The exchange waß effected at par, and I believe the banket* made very satisfactory sale of our inscribed etock. The premium received by the sale of s'icck ba<, by the prevision of the act just referred' to, been carried to a trust account as port of the reuervo fund of the bank. £47,765 of released sinking funds was received during the year. Of this amount £18,600 was applied to redeem debentures t.t their date, and £29,100 to redeem sinking fund deb.-utures issued under "The Consolidated Sfccck Act 1074 " ; £64 was paid over to the public works fund, and £1 odd was tramfrrred to a-.auspeose deposit account. Over £300,000 of debentures fall due next y< ay, ol which £9200 will be paid off out of the accrued sinking fund, and the balance will reqiire to bo provided for by conversion. In 1897 ever two minions of short-dated debentures will likewise rcqu're to be provided for, and it i< a matter for congratulation to tbe colony that we shall, I believe, havo )it*.l« difficulty in 'ff cting thtir-conver-fion to a 3 per cent, irssription ntcck. Tnese fchort-datod debentures ere held by our various trust department* at rate 3 varying from 4£ per cent, to 3£ per cent. These departments" will have to face the lower earning r&te of 3 per cent

Many adverse erit'cisms have been levelled ,£ om time to fcimo at cur conversion qperabiouß, aria ibhas been often' asserted that noTeal saving has been t-ffected. • An iuteresting statement of the conversion into our 4 per oent. and 3£ per cent, inscribed stocks has been compiled iuthis'Sfca'temeht'. It is shown tint tbe saving in the annual amount of interest is £159 644— namely, £102 11* on conversions in"o 4 per cent, etock and £57 430 on conversions into 3£ per cost, stock. In respeob to these couv<rsioDS the sum of £2,038,972 has been added t i our public d=bt, iucluding nearly a quarter of * million for the expenses ot conve-sion. In order to obtain I'a1 ' a correct idea of- the real saving of interest whioh has . resulted from these ' conversions, 'notwithstanding- the increase of the- principal debt,' I> have had calculations made as to the amount it would be-neoPßyary' to set aside hiliVyearly in order to provide'sums (at the expiration of the several currencies) equal to the iucraase of the debt. The yearly amount to be so set aside, computed at a 3 per cent, rate, is £33,686 This sum divided between the several stocks show* tbe following figureR :— On the 4 per cent, inscribed stock, the annual saving of interest btins £102,114, less amount to provide for increase of debbp^vfble in 1929/ £28,799; net animal saving, £73,315. Oa the 3£ per, O3Dt. inscribed stock, the annual saving of interest btiog £57,530, less amount to provide for increase of debt payable in 1940, £4887;- net annual saving, £52,643;— t0tal net annual saving, £125,958. Now, an annual saving of £73,315 for 33 years produces a total saving of £2 419 395. Aud a further amual sayiDg of £52,643 for 44 years produces a further saving of £2,316 292, or a total saving in ire»pvofc of the two per'ods of £4.735,687 at the termination of the lorg<?st currency of the stock cfeated. These figures are so .manifestly satisfactory Ihat they ,nius(; completely disarm tbe antagonism of the .oppoueDt? of conversion, while to the taxpayer they ;sfford tangible' results in' tbe saving of revenue which it wou'.d have been nete'Siry ta ra-se to pay the interest onihe loans had they not been converted into lower interest-bearing stocks.

THU) LOANS TO LOCAL BODIES ACCOUNT.

During the year £105,500 of debeutureß were created and isui'd under "The Gove-nroent Leans to Local Bodies Acb 1836," and some small amounts totalling £374 were refunded. There sums, together with £291 of balance at the beginning of the year, were srxffhrient to provide for grants' to the variom locul authorities to the amount of £75,249 and £30,057 issued in respect of the roading of ,blccke of land proclaimed nn'ders " The Government Loans. to'Loeal Bodied Aob Attteudment Act 1891,* leaving a balance of. £759 at the close of the year. Although therowas a decrease of £27,693 in the amount of grants made to local authorities during the yearns compared .with the previous year, it cannot be considered that the local bodies are becoming satisfied in the matter of branch roads. Large sums for water supply and R&nifcary works are also being appljed for, and I do not think that the result of the present year's busi- ] ne?s will show any particular falling off .in the | amounts the local authorities will ask for to further the requirements of success f ul settlement. Up to March 31 last the amount raised for granting loans to local bodies was £723,656, and for loans under the provisions of seotion 2 of "The Government Loans to Lodal Bodes Act Amendment Act '1891" the amount of £166,9*4. These two amounts, together with •the amount of £81,800 which was created in , respeot of the debt of £89 878 8s 9d due to the public works fund for ctebentu'63 iasu«d under "The Roads and Bridgei Construction Act 1882," and now converted and inscribed »b debts of the local bodies under part 2 of " The Government Loans to Local Bodies Act 1886,"amount to £960,300 for debentures created and issued, v and the prooeeds of which have been carried into the loans to loc&r bodies' account. The disbursements to the game date have been £722,797 to local bodies, £146.944 to the Landi and Survar dfin&itmp.nfe.

and £89,800 transferred "tb the ptrtblip wsrk* fund, leaving a tsash barance, as I hsVe already stated, of £859' at the close of the" flUancial year. It is pleasiog^to be able to tell member! tbert- the whole of the -interest reoeivable-from the local authorities has been paid, and there are' no arrears outstanding.

THE NEW ZEALAND CONSOLS ACCOUNT.

The transactions within the New Zeal*no! consols account have not been Inge, only £3365 o£ deposits being received. When hon, mem* bers, however, consider the high rates which were offered by building ana" icyo a .tmeo6 sooieties for deposits, and alto Uiafl . ho. posb office and private savings br-rAe are. offering, equal, and even better, nioa of interest, it is not surprising that the publio have failed to take advantage of this method of providing & safe security for the savinggof brxt wage-earning population. For some time past I have felt that as bank' rates and rates "f or po?i{s given by the various financial institutions have been steadily falling there would hi a desire on the part of some of our wealthy corporations to avail themselves of 'the ffifcititiea afforded by our consols to 'make invest* mentk of large sums at ' the present suby stantial* rate of 3& per cent. It is tui« necessary for me to remark that ' the New Zealand Consols Aob was no 1 ; passed into law for such a purpose, bub was (imply provided as an auxiliary of the Post-Office Swings Bink whereby the savings and thrift of our colonist* might secure, a permanent investment at jrea«on« able icterett. ,It may, theref v>re,be"nepe«B«ry to' consider whether the rate of 3£ per. cent; which, we\*re at present. payiDg is not too high, tand itis quite possible that, the rate ' will jiave to be lowered to 3 percecij. .., , , . THE'fIOyERNAIENT ADVANCKS.TO • .. ISETTLBttS LOAN ACOOUNT. . - The Government advaoces to settlers' loan account shosvs an txpeaditure of £105,883 for expenses connected with tbe .rtiting of one and a-half million loan, ' which was. inscribed at 3 per cent. Taking off the amount of discount from the total of expenses the balance of ccsb is a shade above 2 per cent., the usual cost set down for raising a loan in London. I have already placed before hon. members papers relating to the issue of, tbe loau at 90, and which realised an average price ot £94 8s 9d. I now uo'ioe by the latest telegraphic advices that our 3 per cent, stock is quoted at 103— an excellent price for such a low . rate recant y of a young couutry. In n sep»rato paragraph 1 shall presently reft* v to the business done in the Advauces to Settlers Office. ,

THB PUBLIC DEBT, Fkom 1879 to 18.%.

Name of

Year - ' Debt ' dS*. Government . . . Uebt. Vfibt in p ower , £ . £ Jun«30,157f»...?2,028,611 21,071,304 Otaey" Match 31, '80... 27,02!1.3tl 26,000,147 TUll .. '31... 2.5. 185,7 11 27,)08.'G!) Hall .. '82 .. 25.479.U1 27.315,593 PUII . v '81.. 20,415,011 28,139,488 -Whitaker it 'H:.. 31,071,582 29,<Hfi,U:« Atkinson •i '85... 32,195 422 30,63^,518 Mout-Vogel •' .i '88 :. 33.530.722 32,'263,f»5fi ' Stout- Vogel •n 'Sf;.. 35 7-it:< ; s3 34,314,45t'5twt-Vogol ••" '88.-..30,755,437 35,414 010 Atkinain ■ ' .. '89... 35,376 051) 36,984,135 Atkinson ii '80-.. «,<Wy9:<o 37,25i,7«4 .Atkinson -ii 1 9i...3 1 »,830,350 37.343,308 Atkiuspa ii '!)2...35,7«3,M88 37,b75i'0t5 Ballanoo •i. VS.-.. 39,257,8 10 381*3,070 BilUnfia • • n '94-..39:8i«,415 3^,874,401 Setldori' • • ii '95.'.. 40,35') > 964 39,r>35,ft32 ' Seddoa ••ii m..4J,050,780 43,271,839 Seddott

Tho gross, debt on the 31st March 1895 was £40,386 964. On. the 31st March" lnsfit; was £43,050.780, -showing an incre«6e of £2,663;816. Tbe net debt on tho samo tWei respectively w £39,635,032 and £42,271,889, -or an increese of £2,636. 857.' ' 0 wing to' lihe inclusion of the ■ million and ;a- ! half 3 per cent, loan and'the half million of ",3i ,per cent, imorib-d' stock idsued in exchange for Bank' of Now Zealand '"prtftffea shnrf-s, ;the pubT'c ctebt pas been" considerably au^menied. r lt m'uit', "however, be remembered ' tWr'thif iricHa-eof dV.bS does not carry witk it tuHn-crea-e of the' interest charge of the colony. la tho n«se of thehalf million of 3£ per oent. stock the B<mk of Now Zealand has to pay over tn equivalent amount of interest in respect of their preferred shares held by the colony ; and with regard' to the million and a -half loan the iuterest paid by the borrowers mere than recoup* the 3 per cent, for whioh the colony is liable. Further, it must not be. forgotten that at the end of 36 years the annual in*talmei>ts paid by borrowers will entirely extinguish the debt. In order to place before members as prominently as I can tho financial position of this exceptional liability I think I cmnob do batter than subjoin a statement prepared by the superintendent of theAd?jan«w» to Settlers Board, which will b> found in his report laid before the House a few days ago in this f tatement. The superintendent shows the present position with regard to the income.and «xpeDditure ,conriected with this loan of a million an-3 a-half. Member* will see thaHhere is a balance "of inccm* over expenditure of no v leas than £5281 offcer pa) ing all f-xpenses, in- ' eluding £1900 of mortgage tax wJjich is parried to. .our consolidated revenue^ I a^perid the statement : —

INCOME. The advances authorised and accepted . amount to £735,957, of which the annual interest at 5 per cent, is ... ... ...£36.798. The temporary luvestment of £000,344 iv Government sec-mMcs of the halance ■uninvested in advenes is yielding an annual income at the rate of 3 42 per C6D^> *•• ■•• ••• *** "** *** *Uf • 4/ • The balance of the current account with • the bank of J251.505 may be estimated . to produce 14 per cent., or an annual ' income of — •■• .••• *><>&* The estimated ra'e of total annual ln- " com* on lstli'JutelS96 from £),3M,U6 ■ v ' V/B.S ' "... ■ .'« ••• • ■•• ' ••• w..*55,55l ■;- - •„„. -EXPENjDITUBE. , _, • .: . ■Annual qhai^e for Jateft 8 ' aX 3 percent, per annum ,on £1,5J0,p00 „. • . ... ... £45,000 Salaries .fqr the yew .... . \.\. . ..,' ;.-.. ' SJCO Other expenses, mcludinginterest on -aa- •' vanoes from the Treasury..." . .;. " .;. '2,800 Mortgage tax (estimated) :. » I.BQO Estimated rate of total annual expenditure on 15th Jime 1596 „. ... „,'53,303 Balance of income .over expenditure ..." 5,281 Total •...,' ...558.651^ Apart from what may be termed lhe_, extraordinary issue of the million and a-h&U' and half million loans, the increase to the .debt to the amount of £536,065 returns interest; in excess of the annual charge. -£105,500 was issued under " The Government Loani to Local Bodies Act 1886," £264,000 under " The Lands Improvement and Native Lands Acquisition Act 1894," £163,20.0 tractor « The Land for Settlements Act'lß94, v and £3365 o£ Ne.w Zealand consols. . These . issues, as I already stated, are of a distinctly recuperative character. What remains consist* of £1*5,400 issued under " The Consolidated 'Stock Act 1884 " against tbe accretions of sinking fund for the year, and £30,506 arisiDg put of £1,270,364 of conversion operations Suripg the year. These total to £175,906, upon nhioh we are paying the small sum of £5800 per annum for interest. The debt Juts keen decreased by the ledem-

(ion of £29,100 ooniolidate3 stock 1884 debentures, £18,600 of the Lyttelton and Christohnrch railway loan debentures, rand £144 of the consolidated loan, of 1867; ah'o there has iiaen written eff the public debt the sum of £311 of what were stated as " Ordinance of. the Legislative Council " debentures. These date ; as far back as 1847, and as no transaction} have ©courred 6ince 1873 it seemed unnecessary to continue them in our public debt; itatement. Those credits amount to £48,155, whioh deduoted from the £2,711.971 of increase gives tho net) -increase of £2,663,816, aa I havo already mentioned. LAND AND INCOME TAX. The revenue co'lected during the year was £364,173, r being £14,173 in excess of the j estimate. When the Estimates of revenue ,' for' the ' past year were framed the late Treasurer, had some hesitation in placing the receipts from this brauch of the revenue at £350,000 beariDg in mind the shrinkage in valueß of our staple products, and seeiog ateo $h»t in some parts of the colony there was a decrease in land values. It will be satisf&cbory tohon. members to learn that 'the reduction in land values was/not so great as was expected, and the returns of' income did nob show any appreciable falling off at compared with previous yeara. Certain items of revenue not previously collected have produced about £12,000, the chief contribution to this amount bring from occupied Native lands, and the business done in New Zealund by non-resident traders. Between, Depember and, March last 59 Representatives^ cf tbe'se trades paid the tax' imposed by last year' 8 &c •, and sioce the oTsb March 26 more nave paid',, the recftipts'frotn 'this 'apu'ice'for six months • being i £4250. ' 141 4 do .'not anticipate; i however,', that the second six months will pro-.j duce a.simijar amount inasmuoh as the licenses' iuve a currency for 12 months. During the yearvproteßts, were' made by tbe * colonies ' of Victoria -and .'Tasmania against the imposition of this tax. but seeing that there is uo limit as to the number of visits mftdeor to bhe volume and value of .the. transaction*, it is only jusb to oar own traders that this tax should continue to be levied. F«om the' results of last year I feel ju.tifled in estimating the revenue for the currenb year from land and income tax at £360,000. Ashou. members are aware the price of most of our staple produobs havo considerably improved, . but the effect has nob yeb been sufficiently felb to mtke apy great difference in the unimproved - values of land. Hon. members will observe in thi» year's estimate that owiog to its being unnecessary to make tbe periodical as«e stnent tbe cost of the collection of thift branch of tb.p, | revenue for the prt* eut and two preceding years ] compares favourably wiCh that of tt^er revenue departments. Ido nob propose apy alteration during the current session in the legislation affocting this department. I am, however, j considering the advisabi ifcy of having a oonsolidation of the five statutes prepared for introduction next session. THE GOVERNMENT LIFE INSURANCE J

DEPARTMENT. 'JL'he Government Life Insurance department has progrcsied favourably duriog the sear. The new business of the je»r amounted to '£608,000. : There 'are at present, upwards of 34; 000 policies on the hooks of the department, assuring to'thtir .holders at death or maturity an aggregate sum, of nine and a half millions sterling. £99,689 haa been paid awaj in deftthclaims duripg. the year, but thU amount does not exceed the estimate. , £27,663 has also been paid upon endowment ansurance policies, which hkve falli v due within the year. The utmost tare has be en shown in the selection of lives and the investment of funds, aud a most Butiifattory feature of the ytar's trans ic'.ion is a material reduction in the expenses of management, the ratio of .expenses to premium income having fallen as muoti'aa 3 per cet-fc. duting tlie ye-ar. The total funds of the Institution at December 31 Jast amounted to ■; £2,4-28, 245, whilst the annual income reached jthe large autn of £386,030. ' The anuual report of the commissioner, which is of -great iuterest ta policyholdere, has been laid upon the table in accordance with the statutory requirements, and vail be found to contain full and interesting information regarding the -financial progress Qf the department.

THE PUBLIC TRUST OFFICE.

The Public Trust Ofiioe continues to develop Its capability for all purposes of public and private tru*t6,and the confidence ia the-insti- ; tution since- the -colony guaranteed,- by the act of ' 1891," tha int?gcity of' the capital funds of the estates, may be estimated by the increase of the business of the office, During the lash five years the number of all descriptions of esbatei in the office has increased from 1678 at the close of tho year 1890 to 2236 on tbe 31st March last, and the value from £1,240,097 to £1;806,954. During the same peiioi the capital funds have increased from £493,861 to £774,533, the amount of inve&tments on mortgage on freehold lands in the colony from £215,909 to. £432,455, the amount of the-in-vestments in the Government securities of the jis6riy"'frdm '£199,20,8"% and the j capital funds in the office at the close of laWye«r h*s increased -by mow than twice, the; amount of the;inorease of any of- the previous j f out yeai-dr - The estimates of funds which, subject to wills or tru«ts, : were.inthe s ;officeat'th;e, close of the year, and for the administration of whiphth'e office is voluntarily selec'ed by the persons interested, had increased in number from 392 to 447, and in value from £586,814 to £673,478. The reserves subject to " The West Coast Settlement Reserves Act 1892" yielded from the income received during the year a Bum of £20,-985. The income had, at the close of the year, risen to the annual rate of £16,500, the number of leases had increased to 537, and the aggregate area of the leaseholds had increased ■to 95,550 acrvs, or about one-half of the whole area ol the reserves subject to the act. The average area of each leasehold is 178 acres, and the area of the reserves leased sit.cc tbe coming into operation of the act of 1892 is 41,449 acres. The expenses of subdividing and' surveying the lands, of surveying, laying off, clearing, and making roads, and of any other preparatory work necessary to the leasicg is met by the Public Trustee oub of the Public Trust Offioe by advance?, which are soou repaid out of the rents. The administration of this large estate in the interests of tbe Native owners or benefloiaries throws open for settlement a large area of valaable.land without the expenditure •of a shilling of public money. With respecb to the tbe Native res'erve3 vested in the Public Trustee > by " The Natives Reserves Aot ,1882," these were at the close of the year subject to 682 leases ot an aggregate area of 18,787 acres, and yielded during the year an income of £8614 for the benefit of, or distribution among, the Natives interested, THE ADVANCES TQ-SETTLERS OFFICE. ' At the close of the -flnwacUl . year there had been received; 3276 applications for advances, amounting- in the aggregate to £1,256,583, of whioh 67 per, cent, was required to pay off old mortgages, ,„ The board has considered 2929 of the .applications received, and sanctioned 2196 adunoe& to the •jgreg*^ amount) of £722,427, of obi*

' £539,490 had been accepted by the applicants, ! and £429,172 aotu&Uy paid to them. Information and instruction respeoliug the provisions ' of the act have boeu widely distributed through the agency of the valuers employed by the 1 Advances to Se' tiers Office and of the postmasters aud other officers of the pubic service, and durlsg the rnoh'hs of April aad May applicaticm were received for 591 loans, amounting to £222,308, while 505 advances, lo tho amount of £172,735, wore sanctioned by the board. The unending aot of last session so enlarged the scope of the original measure as to render eligible for advances all satisfactory securities, wLich many of our settlers can offer, in suburban ' lands occupied for farming, dairying, or nnrkeb gardening pu-posaa ; in educational and other reserves subjeofc to " The L*nd Aob 1892 " ; in Crown land held by license under the deferred payment system, and in land uuder lease from a leasing authority under " The Public Bodies' Powers Aot 1887" entitling the tenant to his improvements. The ' reconstruction of the general board of the Advauo<;s to Settlers Office, while relßßsing from the board four of the principal c fibers of the public service who could rob in the" exigencies of the servioe be well spared for the duty, has not baen followed by any relaxation of the prudence with which advances had previous'y been authorised, or with any less regard for the public safety. The complaints are, as might be c-xpected, fewer than when the act wa< brought into operation, and when its provisions were not clearly understood, and difficulties tin administration which could be only overcome ■by experience have' now bs.en fairly met- Considering the keen competition by private, lenders, and the misrcprescnW tions in many quarters that the' Government ! charged 6 per csnt for interns 1 ; and not 5, it fs a ma'for for serious consideration a? to whether or not the time has arrived to make "a reduction in the amount of the annual instalments, ,' Of course, if this is done, the" currency of the mortgage seouriby will require to be extended. I am having actuarial calculations made of the effect of suoh a change. It must, however, be borne iv mind that no change can be made which will imperil the ability of the office to ! pay it* working expense*. There is another alternative which presents itsalf to my mind, and whioh will require oareful consideration— namely, whether we may not allow;Mi option to borrowers in the direction of doiDg away with the sinking fund of J. per cent., and making loans repayable at fired peiiods. The managei ment account ti the 31st March last exhibits j an excess of £15,099 in expenditure over* : revenue, while the profit and loss account, i including interest and other charges accrued • but not payable t»t the close of the financial ! year, shows the whole balance of expenditure j over revenue- to be £31,159. Private capitalists : have been and still are offering money and competing for investments on mortgage at rates t of interest as low or lower than the rate on loans frooi tha Advances to Settlers Offiue, and though Ihia is a. condition of thing* very inujh moro giatit')ir>g th%n that the Advances to Settlers Offioe saould be the only recourae of our settlers for money at a low rate of interest, such conditions have tended to limit the advances made by the. board. Advantage has, therefore, been taken of the authority given by the amending act ,to temporarily invest in Government securities of the colony so much of the fund applicable to permanent investment in advances las -is not at present' required for such advacca?. The amount thus temporarily invested b at the present moment £618,170, .yielding an annual revenue of £21,482 ; while the advances whioh. havo been received by borrowers now amount to £640,000, .yielding an aunual revenue of £32,000. The total revenue is £56, 200 j to meet au annual expenditure of £53 300, including the mortgago hax. The admmistratiofl has consequently arrived at the turning point at which the income begins to exceed, the expenditure and afford a balance which will rapidly make good the temporary loss whioh tho acoounts now exhibit— a loss which can rarely be avoided ia the early stages of the initUtion of every large business,

INDUSTRIES AND" COMMERCE.

In the Budget of last year the Committee was informed that trial shipments of ,t ; mberfor street-paving purposes had been sent to London from Auckland and the WestCoasb of the Souih Island.' As regards the Aucklaud shipment, the wholiMif it was sold, but owing to thet timber being damaged oa tho voyage Home by a leakage of, tallow it did-not realise as high a price as the Government expee'ed. The timber sant.from the Weet Coast was not more fortunate, and the prices offered were so low that Ihe agent in England who was acting for the shippers did not think ib prudent to sacrifice tho timber. The Government has been advised thnt however good the timber may be thab is shipped from the colony for street piviog purpoey;", it will take some consider able time before mose interested in street paving will iisk their capital in new woods. Thi expense of laj ing a mile of wood paving is very considerable, and it is only natural • that the authorities should .hesitate ' before buying, timbar of t which they know bat little. The cblonks of .Western. Australia and Tasmania have been ttyitag to obtain a footing on the London market for. some^ years- psstj and have only recently succeeded ia overcoming. the feeling cf the London vestries ftgajnßt the use of their hard woods. - • Trial shipments of timber for, mining and other purpoaeß have been sent from Westlund to South Africa, and the firms who despatched them are satisfied with the prospects of the market there. To I encourage this industry the Government agreed to guM^ntee an amount eqiul to onehalf the freight on the cargo in case of tho sales resulting in a loss to the shippers. Toe department has been making inquiries in various parts of.thß world with a view of obtaining markets for other articles of oomi merce of which the colony has a superi abundance. It is a matter of regret that so I little gelf-relianoe should bz shown by the j mercantile community in not taking advantage of opportunities of supplying other markets outside New Zealand without seeking aid from the Government to f otter the undertaking by subsidies in the way of freight. The result of the visit of the Victorian commissioners to various ports in India and the East proved that there are markets available for many products of that colony which could also be supplied by New Zealand in great abundance, and the exports of which, if promptly taken in hand, would, it is confidently believed, still further increase the commercial prosperity of the colony. In accordance with the announcement made in his Excellency's Speeoh at the opening of Parliament, a conference has been called to meet in_ Wellington during the present month to which persons interested in the .timber industry have been invited. The matters to bs discussed will bet Steps to be taken to promote the export of timber, tree planting, forestry in all its branches, including the season in which timber should be cut, and to prevent the destruction of forests, and a\l other matter* thab may tend to develop the industry. Ib is confidently hoped that the conference may be productive of great inorease in the timber trade of the oolony. aa industry whioh. is the means (it jjJKlag employmeat to taousandi ox wotkew,

LAND SETTLEMENT.

The settlt msut of the lands of the colony has proceeded with brisknofs during the 12 months ending 31st March last, as is shown by the faob that 2865 selections for purchases took place, whioh is in excf si of the number for the previou3 year by 318. This ia dv? in a great measure to the increase of ssdeobions under the Land for Settlements Aob. If we deduot itova the total of selections the purchasers of town lands, lessees of pastoral runs, and miscellaneous le*sts we get a number of 2425 selectors who took up lands on whioh the law obliges them to reside and make improvements, residence commencing within one year in the case of open lands or within fouryears in tha cais of bush lands Oat of the number quoted 301 selectors took up land in the estates acquired uuder tbe Land for Settlements Aob, and, in addition, there wove 30 sections made iv tbe Cheviot estate, all sin ill allotments, which leaves nothing on h*nd bat a few reserves and other small areas in that eßtate. Tho Crown lands that have been d> ait with during tho last year ate nearly all in back blocks, the country occupied being rough and forest-clad, access bo whioh is difficu'b. In addition to the new lands, there have baen offered for selection aud taken up a goad many forfeited sections, principally those in the assoiatian blocks, where the land was not in all cases wisely choßen by the effioers of the associatioa originally. The total amount of territorial revenue received was £291,673 9a lOd, b=-iog an increase of £1673' 9a lOd over'' the estimate, bub £24,493 Is lid less than the receipts for tbe previous 1 year, which decrease is due in a great measure to the operation? of " The Pastoral- Tenants' Relief Act 1895" — a form of ie'i»sf which was rendered necessary by tbe n? avy los3es suffered by onny of the' pastoralists du-hvj the s.vere winter of 1895.' Tha arreirs of rent due to the Crown havo bean reduced duriog the Usb season by a sum of £15,130, which is some indication of the better prices thab have prevailed. Probably the most prominent feature in tha land transactions during the past year has been the extension of improved farm settlements under " Tho Lands Improvement acd Native Lands Acquisition Act 1894." On the 31ab March lass 39 settlements had been started, 1 ths area set awda being 63,549 noreßin 665 allotment, and at that date 679 persons wp re residing, on thote selection*. Under fche system a sum of £22,438 Is had been advanced to tho settlers for faomes, bush falling, gcaosing, and roading, whilst tha setters had made improvements in addition valued at £4545 19 « 7d. Au atea of 9301 acres had been felled and 8138 acres were in grass. It ii- toa early to tta'e that this species of settlement is a success; bub it has hadvthe effect of withdrawing from the ranks of the unemployed in the towns a number of people who, for the first time in their lives, have had the chance given them of becoming bona fide settlers, and who now have au opening bafore them to become useful »nd self supporting members of the community, rlepeadenb to a large oxient on their own exertions.

LAND FOR SETTLEMENTS AOT. Since the commencement of this system up to the 31M; March last 28 estates, of a total area of 86,919 ores, havo been purchased for a sum of £377,554 6s, to which £11,761 Us 7d for the cosb of reading, survey, admiuititratioo, &c., has bo be added. Up to the" 31st March 19 e3tabeshad been cffer.ed ,for selecbiou, and the annual rental of tbese amounts to £9987, which is a return of 4 76 ji'er cent, on the £209,559 expended on tlmse particular esfatts. This shows a pi\ fib of £1605 per annum after providing for the interest a 5 4 per cent, on the money sunk in the estates.. Tne arrears of rent ab the same dale amounted to £480 2« 8.1. Twelve forfeitures took place during the year. Two ot the sections have besn again selected, and it is contemplated there will be litble difficulty in disposing of most of the others as Eoon as offered. Au area of 11,895 acres remains on hand to ba dealt wi'.h, and this it is exfeebsd will shortly be taken up. The progress of the settlements in improvements, buildings, fencing, &'c. is very considerable, the total value aujoucting to £13,022 6s There were 643 persons residing on these lands at the date of the returns, aud muny others were making preparations to do so. The opening of these high-price land?, subjsct to strict condition of cultivation and residence as they are, has shown the very gceab demand bhere is for this class of land. An openiDg is here offered to the sons of farmers and cth.rs who have the necessary experience and tho meanß to seoure homes not far from their parents and where help oan be obtained iv starting. The anxiety to obtain some of these desirable f<<rmi has led to a very great numbar of application* being put in for them, tome of which no doubt may be put down to ''family dummyisra." It is pt-opc sed to deal with this question duiing the serslon, and endeavour to place such an important matter on a better basis.

Owing to the pressure on our spa?e we are compelled to hold over the balance of the Statement until next. week. ,

iir.»_ii.ii jo. , 1894-95. 1895-96. Balance At begin- £ c. d. £ c. d. nin& of year- ... 29(j|238. 6 5 180,024 5 9 Ordinary Revenue— Customs 1,569,781 7 10 1,019,310 7 2 Stamps, including postal and . telegraph cash receipts 677,225 7 6 707,187 12 0 Land tax 280,188 *11 271,394 8-2 Income tax 89,891 6 4 92,778 S 11 Property tax ... 19 2 11 54 18 8 Beer duty 59,5)01 9 1 62,657 11 6 Railways 1,152,748 5 6 1,182,279 16- 6 Registration and otherfees 51,381 4 8 48,414 12 8 Marine ■ ... '... 21,513 18 10 20,560 G«0 Miscellaneous • ... ,63,175 16 7 72,419 16 8 Totals .'.. .-.-3^5,829 4' 2 4,107,077 14 1 Totald .'.. Territorial -Revenue— Cash land sales ... 75,362 14 8 73,521 10 11 Deferred, payment land sales ... 56,104 14 10 53,049 14 3 Pastoral runs, - ■ '■ .rent*, and mis- , , cellaneous'"'- ... 185,699 2 3 165,102 4 8 Totals ... ... 316,166 11 9 "291,673 9 10

Grand totals 4,-251,995 15 11 4,398,751 3 11 Receipts in Aid—' Debentures issued .'. under "The Consolidated Stock Act; 1854" for. in- , creases of sinking fund- ... :.. 117,800 0 0 145,400 0 0 Amount recovered from the Cheviot estato account— balance of the purchase money 2,220 0 0 In respect of expenditure charged _ ' in previous ,^ear , to. unauthorised — •, "Jn yespect of interest paid on debentures ... 4,500 0 0 Totals ... 6,720 0 0 8,000 0 0 3,564 1 7 11,861 1 7 Sinking Funds Set Free— "The LytteltW ftud Christchurch. Railway Loan Ordinance 1860" 15,200 0 0 Applicable 1o the redemption of debentures issued under " Th* Consolidated Stock Act 1884 " in respect of "The New Zealand Loan Act 1856" 5,514' 0. Q " The Lyttelton and Christchurch Railway Lo.m ordinance 18' JO" •— "TaeNew Zealand Lo,»n Act 1«G3 " 27,000 0 0 "The Consolidated, Loan Act 1867 " 231,900 0 0 Totals 279,614 oT 18.6C0 0 a 13,000 0 0 11,101 1 3 47,701 1 3 'The Naval and Military Settlers' and Volunteers' Land Act 1892"debentures 1»

sued in exchange for remission cer- • tificates 1,180 0 .0' ~ ' Grand totals 4,977.648 2 4 4.753.740 12 6 Treasury bills outstanding at beginning of the year •* •* In anticipation of revenue 335,000 0 0 334,000. 0 0 In redemption of guaranteed de- „ . Dentures 476,000 0 0 476,000 0 0 Treasury bills issued during the year ... ...1,060,100 0 0 1,265,100 0 0 Totals 1,871.100 0 0 2,065,100 0 0 EXPENDITURE. 1894-5. 1895-6. £ 8. d. £ B. d. PERMANENT APPRO PIUATJONS— • Civil list 24.4H16 3 23,044 15 11 Interest and sink- „ „ „ „ ing fund 1,716,689 6 4 1,683,775 0 8 tfnder special acts ' _„ „ „ of the Legislature 189,890 17 6 £00,558 0 3' Subsidies paid to * ' „ " « _ local bodies .;. 67,342 13 8 63.879 97, Payments to local bodies and to deposit accounts under the land „„„„„« acts ... "... 44,959 0 2 44,066 7 3 Endowments— New Plymouth Harbourßoard... 6,993 110 8,987 11.10 -10.577 .9 0 , 11,348 10 2 ■ y Q Totals...' ...2,077,00119 2 2,052,073 6 5 Annual Appropriations— <■ v Legislative... 17.338 810 , 18,537 17 11 Co'onial Secretary Grt,oi2 13 4 72,380 14 10 Colonial Treasurer 2«,51l 17 6 24,784 0 6 Minister for Justice 124,-0 4 6 0 122.728 411 Postmastjr-genejal 293,7t55 15 7 331,032 11 11 Commissioner "of Trade and Customs 65,674 10 8 62,741 10 9 Commissioner of Stamps 20.1CS 8 7 22,565 17 1 Mister for Educa- .-,--,.,, tion's department 81)6,234 8 0 420,155 14 11 Lunacy and Charitable Aid depattment 54,413 18 8 53,129 4 6 Department of Labour 3,437 3 3 B.OEB 6 1 Minister for Mine? 15,602 9 8 15,806 14 7 Minister for Agriculture 42,529 11 1 43.347 16 4 Working Railways 725,256 1 7 743,670 5 2 Minister for Public Works 50,155 14 6 46,939 2 3 Defence department ... ... 62,156 7 6 fi5,647 12 2 Police department 1)4.210 5 1 98,2 219 Minister for Lands 119,763 14 10 . 121,533 15 1 Kates on Grown lands 319 18 0 493 1 3 Services not provided for... ... 8.834 13 1 22,422 16 10 Totals 2,189,710 5 9 2.297,307 8 10 Amount ' transferred ,to v the „".„. "public ' works fund -Part I ... 250,000-0 0 150,000 0 0 Advances to Government ofii.e . management -ac- A . % .. couat, iv '.terms . . - of section 49 of ' "The '.Govern- . ' . ment Advance 1 : to Settlers' Act "•1894" -Nil 20,500 0 0 Released 6inking funds transferred to public works fund 17 11 8 Nil Baknee at end of year 150.024 5 9 215,558 16 0 ' Total 4.636,754 2 4' 4,736.039 11 3 Total ... DEDttNtPRES REDEEMED— , "Consolidated ' Stock Act 1884" '' (colonial issue)... 264,414 0 29,100 0 0 "Lyttelton and Chrißtchurch Railway Loan Ordinance 1860," due Ist; January 1896 ; 15,200 0 0 18,600 0 0 Released sinking fund transferred I' to deposit subrtense account — 113 " The Naval and Military Settlers' and Volunteers' I Land Act 1892" remission certificates exchanged for debentures per contra ... 1,180 0 0 —

Grand totals 4,978,548 2 4 4,883 740 12 6 , TBEASuay Bills— Bills paid off during ysaf... " ...],o6i;ioo 0 0 1.330,100' 0.0 Treasury bills out- ■ - > standing at end ; , , -ofye.»;r-^ , ~* In anticipation of revenue ... 331,000 j0 0 335,000 0 0 In redemption of guaranteed de- * benture3 .... 476,000 0 0 400,000 0 0 Total 1,871,100 o' 0' 2.0G5.100 0 0