THE PRIME MINISTER.

Otago Witness, Issue 2849, 21 October 1908, Page 37

THE PRIME MINISTER.

GOVERNMENT POLICY DEFENDED. BEPLY TO THE OPPOSITION, IBt Tblegbawl"! PALMERSTON N., October 19. An audience of over 3000 persons, all keenly interested and at times enthusiastically appreciative, listened to Sir Joseph Ward's speech on the Government's record and future programme in the Opera House at Palmerston North to-night. The Mayor presided, and Lady Ward was among tnoee present. The scenery had to be removed from the stage to accommodate about 300 persons who could not find seats in the body of the hall. Sir Joseph Ward having rbturned thanks for the enthusiastic reception accorded him went on to refer to the address by Mr Massey, which he intended -to criticise, and then briefly sketched the policy of the Government. He then said: — Mr Massey sfcill does not appear to grip the meaning of the Land Laws Amendment Act, which is now embodied in "The Land Act, 1908," and "The Land for Settlement Act, 1908." All Crown land in every district is opened under the optional ey6tem, which is cash, occupation with right of purchase, and renewable lease. The renewable lease for ordinary Crown land is for a term of 66 years, and not 33 years, as stated by Mr Maassy. The only lands not opened under the optional syetem ara these in the gold-fields districts (which are under the control of the warden), LaTwls under the Lands for Settlements Act, and pastoral country, and by the Mining Act the warden has in those districts to decide under what tenure the land shall be opened, and in order to prevent large olaims for compensation, tha warden generally recom-men-da thet t<foo iard ba opened under renewable lease for 66 voars. Mr Masecy is only right in raying that 33 years is the length of the term of loate 'when he is referring to estates purchased by tho Government under the Land for Settlememe • Act. In the case of thf>s>9 lane's the- term lias 'been altered "from 999 years to 33 years with continual right of renewal, which may be greatly to the benefit of the lessee at the end «.? the 33 years because the capital value of the land will be fixed by arbitration. It is quite possible for the land to be 'much lower in value at the end of the term than when the Government originally '• purchased it, and the lessee would get th 9 benefit of the reduced capital value. With regard to the 8,000,000 acres ofVhich it is impassible for any settler to acquire the freehold, this land is now endowment land, and at no time has any tenant the right to acquire the freehold of land set aside for endowment purposes, whether Harbour Board, education endowments, endowment* ! for boroughs, etc- The 8,0C0,G00 acres set apart, as national endowment land are in exactly the tame category as the others. Mr Maeeey does not appear io realise that all the endowments held for Harbour Board purposes, education, borough endowments, ere. are he!<l under the same conditions 36 national endowment land, and none of the freehold can be purchased of the 8,000.000 acres which Mr Mas=ey complains can ne\ei- be mad.- 1 freehold. Small grazing run leases under '"The Land Act. 1902,"' atsorb 1.111,371 acres, and pastoral runs absorb 4,242,809 acres. That is out of the 8.000,000 acre.* which Mr Massey nlah.inoly «-aj ? can never be puicha. e cd Less than 5,334,1£0 acres are held as small grazing anil pastoral runs, the holders of which at the pro-sent moment have no right — and never ha-d any right — und-er any Land Act to acquire tho freehold. The annual rental of these- runs, which now gcos to the national endowment account, amounts t0' £57,037. To show that lands are being taken up on renewable lease, it is sufficient to state that from January, 1908, to the end of Septemrer. 1908, no less than 482 persons selected 181.431 acres. Of these 246 persons selected 69,502 acres of ordinary Crov.n land, and 236 persona selected 111,929 acre-* of land opened under thp Land for Settlements Act notwithstanding that the loaae k only for 33 years. "The Land Act, 1907," gave lease-in-perpetuity holders power <o purchaso the freehold of their lands under certain conditions, but from January, 1908, to the end of September, 1908, this privilege has only been availed of by 19 lessees for an area of 4£64 acres. Mr Massey advocate that there should be no taxation of mortgages. I have heard Mr Massey at this before, but I am always unable to imagine, why he does not ccc what hie proposal

means. If taxation on mortgages were remitted, what is there to prevent every man in the country having a mortgage upon his land. He ha 3 only to do so and evade taxation altogether. However much one may dislike taxation, we have to be practical, and when it is remembered that there are 145,188 landowners, including leaseholders, who pay no tasss whatever, and that the number of persons paying land tax, including leaseholders, is 26,563 — and that also includes those who pay graduated land tax, who number only 3973, — it will be Been that the total number of taxpayers, including graduated land taxpayers, throughout the Dominion is 26,563; and though I may be told that to escape taxation land would not be mortgaged, I feel quite confident that in practice it would nofc be so, as it would in that case pay the landowner to get his land mortgaged, and ho could even send his money out of the country for investment. Anyone who makes a 6tudy of taxation will xeoogniee that it is one of the most difficult matters in the world to establish a system that does not admit of leakage, and I feel confident that if Mr Massoy's proposal were attempted there would be a very great leakage. I give the landowners credit for having sufficient knowledge of the world to know that if this proposal was agreed to it wou'd only be a matter of time when tie leakage would be stopped, and in all probability more drastic measures would be enforced than at present. LAND AND INCOME TAX. What is conceded-^-exeanption of the land and mortgages of friendly eocietl-e-*, savings, 'banks, commissioners of sinking <und«, the common fund of the Public Trust Office, additional exemption from land tax in cases of old age or ill health, income limit extended trom £120 to £200 per annum, exemption of tho niprtgages and income of public charitable institutions, exemption of land and mortgages of building societies (shareholders, however, are liable on the actual dividends or profits received), exemption of all improvements from land tax instead of exemption to £3000 only, abatement of income tax on mining companies from all profits to half dividends only, exemption of Imperial pensions from income tax, exemption of house allowances from income tax, allowance for depreciation on machinery, allowance for j implements, utensils and machinery becoming obsolete or useless, exemption of the land and mortgages of religious tirsts devoted to the support of aged and infirm ministers or their wives and orphan children, reduction of the land tax on Maori lands' to one-half the ordinary-" tax and complete relief from the graduated tax, exemption of the income of friendly societies as far as profit made from their own mem-bers is concerned, exempt-ion of the profits of the co-operative dairy companies co far as such, profits are derived from milk supplied by their own members or shareholders, allowance of 5 per cent, on th© capital value of land and buildings used for business and owned by the taxpayer, reduction of tax on mortgages from Id to 3d, exemption of minerals, timber, and flax ' from the land tax and graduated tax and placing them under the operation of the income tax (this means a considerable saving to the taxpayers), church lands exempted from the graduated tax. The total amount of these allowances and exemptions since 1691 is £2,2BB,Boo.— (Applau&e.) The loss on the tax owing to the exemption of all improvements from 1892 is £923,500, and the loss of tax owing to the reduction of the mortgage tax in ISO 2is £246,500. With regard -to the land tax, Mr Maa-ey sa-ys there has been an increase in the Jand tax of £100,000, and this would probably be increaned by a larger amount next year. The large increase over what was e&timaited simply proves that the evasions have been much greater than the department ever conceived. At the came time Mr Massey and his party contended, when the bill was before the House, that the department's estimata of tho amount of the evasions was greatly exaggerated, and they ridiculed the idea. The indications are that, instead of a further increase next year, there will be a decrease, which will continue as time goes on owing to the effect of the graduated tax in inducing subdivision. TAXATION PER HEAD. There is poraisteni misrepresentation regarding taxation. Our opponents oomj pletely overlook tho remissions that have ' been made upon many articles chkfly used by the people. I will now give an accurate record of the ra*e of Customs ■ duty collected on all merohanidse, both free and ! dutiable, imported (excluding" specie}. In 1894- it was 26.25 per cent; in 1899, 23.76 per cent. ; in 1902, 20.90 per cent. ; in 1904, 20.58 pec cent ; in . 1906, 20.30 per cent. ; and in 1907, 18.65 per cent. Theee figure* show that the amount collected by way of Customs* duties . on evesry £100 •worth of goods imported was less by nearly £8 in 1907 than in 1894.— (" Hear hear.") The rate of duty^ collected on all dutiable imports (excluding specie) was: In 1894, 38.18 per cent. ; 1899, 36.09 per cent. ; 1902, 32.26 per cent. ; 1904, 32.79 per cent. ; 1906, 32.89 per cent. ; 1907. 30.28 per cent., a deerca-o of £8 in the Custon:s <!utie6 charged on fvery £100 worth of dutiable merchandise. Turning- to the \alue of our impcrte we find that in 1899 the amount wan £8.613,656, while in 1907 the amount was £16,539,707, co that our critics, who are straining every nerve to make water run uphill, though they known a^ well as the couijtiy clcce tha-t no imeie-ase of taxation hao been placed on the Siaiu'« Book for many years by the (Jovern'mf'-nt. excepting- tho increase in the graduated land ra-v, dihtoi I the tru<» rosition of affairs by a&surning- that the p«oplo do not know that the increase in Customs r'jvonuo is not due to increased taxation, but to ths prospeiou> cond'tion of trade. The greater the trade the larger the Oifciomri revenue, and \et ou/opponenJ-s deliberately convert th - into what they term ' tho increased taxation of the Go\crnmcnit. It is a monstrous tloct.mne thai they urge, and absolutely unjustifiable, and it is certainly not political honesty. — (Api plaosc.) A captious orit'C has endeavoured to make a gieat deal cf capital out of tho fact that the taxation per head of population in this country is £5 Oe 4d. Apart from thus, it should be noted that a -very large increase in the amount received in taxation is to be attributed to increased i prosperity and to higher wagc3 being paid and to the increased spending power of tj:e people, who have been purchasing more dutiable articles, such as spirits, tobacco, pianos, bicycles, etc. — (" Hear, hear ") — ■ and I would ako point out that in this i taxation per head there is included the ' revenue collected by way of et*mp dutj,

f such as tie duty on deceased perac-ns' i estates, which for the year ended March 31 | last amounted to £264,331 — a sum largely made up of the dues collected on deceased persons' wealthy estates. There is an : item, " totalisa-tor revenue," which for the year ended March 31 last amounted to £30,000, a sum which can by no means bo said to have been raised by taxation upon a necessity of life. Then, again, there is the staanp duty on legal deeds and instruments (£182,000) for the same period. Such items as these cannot be eaid to have been contributed to by the majority of the people of this country. Moreover, there is income tax, which very few workers or persons in ordinary positions in life have to pay at ail. As for the land tax, only 26,563 persens in this Dominion pay it, and the graduated land tax applic-3 to only 3973 persons. I would also like to draw your attention to the fact that it is only just and right that some tax should be levied with a view to providing revemie to keep certain public services going. In reUirn for Custom taxation the people get education, defence, the protection of the police, old age pensions, etc., and hero let me say that there .are several items of expenditure which in this Dominion are borne by the Government, which in England are borne by local bodies-, and which the ratepayers are locally taxed to maintain. PARLIAMENTARY BUILDINGS. The criticism of the Leader of the Opposition regarding this is not only disingenuous, but it is absolutely unfair. The Government has not only made no such proposal as Mr Massey" indicated of an expenditure of half a million for a building scheme at Wellington, but it never at any time contemplated anything of the sort, nor do the estimates of the architects bear out this exaggerated etateraent.— (" Hear, hear.") THE "GAG CLAUSE." I want to say a few words with regard to Mr Massey's criticism of w,hat- is known as the "gag" clause in connection with the Second Ballot Bill. No member, of the Government had the slightest desire nor was it contemplated to do anything in the' nature of gagging the press or of interfering in any way with thn freedom of speech. We have never at any time shown any antagonism as far as the press of this country is concerned. The proposal in the bill was made quite honestly and with the distinct object of conserving and protecting the interesis of the candidates standing for the second ballot. — ("Hear, hear.") We believed that after the general elections liad taken place, where every man would bo subject to the fullest criticism of the press, and in view of the fact of its being a pliy-iical impossibility for him in the majority of cases to go over hie electorate within a week, or, if the electorate was one of the larger ones, within 14 days, and his views already having been heard and fully criticised in the press during tho first election, the fair thing was that as, he could not get round his electorate he 6hould»not be put in the position of being: unable to answer bis critics in the prese. This was the light in whioh, from a British sense of fairplay, we regarded the matter. — (" Hear, hear.") ..There was no attempt in any way in the proposal to stop the- press from criticising the Government or the Government policy as it might think fit. Looking at trie matter quite dispassionately, I am inclined to think a great deal more was put into the proposal of the * Government than was either contemplated or intended by it. In any case, the statement that this clause was carried through the House without Uie knowledge of the Government side or the members on the Opposition benches was contrary to fact. The Supplementary Order Paper with the clause referred to was in the possession of the House before the question was put, and no one from the Opposition benches called for a division upon it. However, the clause is now no longer in tho measure, and I am quito prepared to have the second ballot aa it now exists judged upon its merits after a full and fair trial. The majority of the people should rule, and I am satisfied that what in this case is a general principle is a correct one. — (" Hear, hear.") In connection with the mining and agricultural 1 industries, Mr Ma c say was .reported to have eakl that thousands of articles fCr use in t.be^-e industries were taxed which last, year were perfectly free. I can hardly belie\e it possible that such n statement should have been maids, but we must accept, it as reported, and I will put on record what th© position is respecting the agricultural branch. It is not necessary to make any reference regarding the mining industry, as there have been no complaints whatever made to the (Government in •this respect. The statement made that agriculture is not helped under the Customs tariff .is absolutely contrary to fact. Agricultural machines and agricultural implements not otherwise enumerated, also parts peculiar to the manufacture or repair of agricultural machines and implements, are free. The value of the total annual imporrationa is £112,893. The rates of duty on items imported which protect tho agricultural industry are: — Cattle, horned, 10s each : horses, £1 each ; bacon and hams, 2d per lb; -chaff, £1 a ton; eggs 20 per cent, and foreign 10 per cent, extra; apples, poan?. plum«, cherries, poaches, nee-_ mr.nes, medlars, apricots, quinces, tomatoes, and grapes, Id per lb; apples and pears, from 14th July to 31=t December, Id per lb ; curiant-, raspberries, gcc£«bcrries. blackberries, strawberries, and lemons, id per lb; fruir«, dkied, 2d per lb; fruite pre-t-crved in juice or *yrup, 25 per ecrA. if Briti-h and 12^ pir cent, extra if foreign; fruit pulp, partially preserver! fruit, fruit pr<-ervcd by sulphurous acid, and un-■-ue^tenerl. lid p<>r lb; barley. 2s per 1001b; grain and yulse of every kind. M ncr lOUlb; grain and puUe of every kind when ground or in any way manufactured, including wheat and flour, Is Id per 1001b, and if foreipn 2s 2d extra; lard ami refined animal fats. 20 per renr., and if foreign 10 per tent, extra; malt, 2s. per bu&hel ; onion«, £1 a ton; pearl barley, Is per cwt.; peas (-plit), 2-=, per cwt; potatoes,. £1 a ton ; prepared calf meal, 25s a ton : ■\ egetables, 20 per o«nt., and if fore%n 10 per cent. e>tra. Wo not only place everything that the agriculturist can reasonably ask on the free Int. but we protect their industry from outside competition to an enormous extent. — (Applause.) Our opponents would have you beSieve that we do not help the agricultural industries, whereas the facts on record give the mo6t absolute contradiction to their unwarrantable statemente. MR JAMES ALLEN. Now I pace on from the Leader of the Opposition to his coadjutor (Mr Jas. Allen),

who epoko on the same occasion. Th« only portion of his statement that calls for any special not© at the moment is that in which he referred to the non-expenditur» of the moneys voted for roads and, bridge* He is reported to have Said that they had besn told in the House, that an extra £250,000 was to be given to the back-blocks tliis year for roads and bridges, and many] in the House would be glad to see that amount voted. At Milton, however, where he spoke recently, ho is reported to have stated that it came as a surcrise to many than another £250,000. making £1,250,«K* this year, was to be borrowed; they would have expected a decrease rathr than an increase in the public works expenditure. Again, at Palmerston North Mr Allen is reported to have said that during th© last two years £1,142.000 was voted for roads and bridges, and of this amount only, £760,000 had " been expended. At Mikon ■ he is reported as saying tha* Ministers were "playing to the gallery," and if they] did realise the responsibilities that theyi owed the country, both now and in the future, they had not taken upon themselves 1 those responsibilities in view of the extrava- , gant expenditure that was going cm. II 11I 1 do not wish to do' Mr Allen an injustice ;^j but it i& difficult to understand the viewa* so diametrically opposed to each other inH these two speeches of his. He may, ofj coarse, have been misrepresented, but Il'I 1 ' take the speeches- as, they appear in the press. In any case, Mr Allen complains that we are nofc spending money on roads and bridges in proporfci<m , to ttee amount voted," and he also finds fault with *mr borrowing' so much under the special i back-blocks vote.— (Laughter and "Hear, hear.") His position is rendered some- j what difficult from the fact that he voted! [ for the loan of £250,000 for this purpose,] as he did also for the million borrowed for. public works— that is, a total of £1,250,000., It is also of interest to note that ©vervj member of the Opposition voted likewise. | It therefore follows that; in being criticised* in this way, the Government has no reaaon. to find fault with a criticism -which is so>j inconsistent— (" Hear, hear.") As to the I "underspending of the road* and bridges vote, the liabilities at the end of the y«ai\| were not included in the £761,000 quote* by Mr Allen, and they should have been included in order to arrive at the properj position. I am satisfied that the only way to enable the votes authorised by Parliament to be fully spent within the year ia| to change fch« period so that the year should! commence on the Ist January and end on the 31st December. Then I feel sure the money voted each year would he expended" within this period. At present it ' is next to impossible to have the vote expended before the end of the financial year. DUNEDI2T RAILWAY STATION. Mr Allen's jßtatenUnt of extravagance is connection with myself regarding th« erection of the Dunedin Railway Station : hardly calls for serious remark except! that I do not know of anything more' unfair than lias* been attempted by tha Opposition. For the purpese of endeavouring to substantiate the charge od extravagance they have/ just about doubled^ the cost of the Duneddn Railway Station.. In it they include • railway sidings ana alterations to the Dunedin railway yards., which had to be made in any case. li?' would have be?n just as reasonable if w new railway station was erected at Palmerston North to include in its cost «■ duplication of the line between her« and|j Longburn. For anyone to add the cost o^ the doubling of the line to the cost of the' railway station, and then quote- the cost: of the two as the cost of the station alone would be en a par with Mr Allen's statement regarding the cost of the Dunedip Railway Station. PUBLIC WORKS. In regard to th<=> Public" Works Fund, th» main Estimates provided for an. expenditure of £2,436,*50. To this add the supple- 1 mentary appropriations of £161,056, andM we have a total proposed expenditure o.' £2,597,306 on public works. Ways andl ( means were stated at £2,594,363, to which we can add, say, £65,000, available un.de:: the Wellington and Mosawatu railway purchasing 1 account, making a total oi £2,659,363. From this deduct the proposed! expenditure, thus leaving a balance o3 £61,857 to be carried forward to next year. Th© amount provided on the Estimate* this year for roads, including the £250,000" for back-blocks, amounts to £700,000, and« yet in the face of what are distinctly splendid propolis for the making of roats and bridges and helping our settlors in the- back-blocks, tbs. Leader of the Oppos.tion and his lieutenant (Mr Allen) ar<* doing their best to depreciate what the Government is doing in this respect. 3D feel quite confident that the men in the back-blocks prefer to trust what the Government is doing rather than accept that insincere criticisms of the gentleman .referred to.— (Applause.) Facts speak loudest! in cases such &s this, and the mere declaration of our opponents is nofc going} to discount the gocd work we are doing. I proper to see that during the nextf three years £250,000 per annum, in addition to what we are doing this year, iaT devoted specially to reading in the backblocks. — (Renewed applause.) Yet thought v.*e are in a highly satisfactory position, Mr Allen, at Milton recently, made a/ (statement in which he accounted as ant extraordinary fact that the appropriation* for 1908-9 amounted to £2,597,506, while the ways and means were £2.594,363, showing a deficiency of £3143. The real position is that Mr Allen overlooked fehe factt that ways and means would be added trf the sum of £65,000 obtained under tb< Zklanawatu railway pure/ihse account, and there would be, instead of a dcfU cieney of £3143, as h? eaid a credit bs^ ance of £61,857.— (Applause.) LAST TWO SESSIONS. . I desire to say a few worde regarding th« work done during the session just ended, and the previous one. They were both remarkable for the quality and quantity of legislation that has been put through.' In no two cessions of Parliament hay« such important and difficult national question^ been dealt with. Last session laws were passed dealing with . the land quesi tion, the tariff, and- Native land settle* ment, and there were also paeeed the Rail* ways Department Classification AmendV ment Bill, the Post and 'Telegraph ClassU fication Bill, the Public Service Cla«ifica< tion BUI, the Pure Food Bill, the Chines* Immigration Bill, Infant Life Protection Bill, and the Land and Income Assessment Bill. At no time had member* given closer attention to the business o{ the House than during 1 tiio « •-~ion jiwfc ended. All ie^'-Ut-on pao-.d ibis sf.^ion

had been carefully considered, and nothing in the way of hasty or ill-considered measures had been put* on the Statute j Boole The Government had carried out b liberal and progressive policy in regard to legislation. Only thoee questions wnich were withiif the realm of practical politics have been dealt with- I have always believed in a progressive ppliej to promote national interest, and that the wisest course was to state temperately from time to time what work was proposed to be done in a, given Parliament, and not, to attempt work which must be left for our children or our children's children to carry out. The Government had aleo given effect to a. progressive 'policy of guolic works to open up the country, develop its resources, and promote national improvements. . '^'he amount voted for railways — additional rolling stock, etc.— was £1.245.000; telegraphs and telephones, £175,000 ; to open up the back-blocks — construction of roads, tracks, bridges, etc.,— £686,000. At no time have there been co many increased demands for Government grants for puohc works, for concessions, and extension of services, to accede to all of which would involve a largely-increased expenditure and heavy borrowing. The .additional applications beyond anything we provided tor upon, the Estimates, if, realised, would have "involved an additional liability of J d812,000,00G, and *ome of tho3e who were ready to accuse us of extravagant views will not give ns credit for refusing demands which would have necessitated such j a huge expenditure. Though I recognise; that our undertakings are large, etill I maintain that the Government has acted •with prudence and caution in making the appropriations. The increased vote for education this year was £35,863, and last year £32,899. The Government has also placed on the Estimates a vote for the j introduction of free text-books in our schools. THE FINANCIAL POSITION j of the Dominion is sound, and I am con- j fident that the outlook is promising. What we want is a little more faith in ourselves j end less pessimism. I have authorised •additional funds for both the Advances to Settlers and Workers Departments. Both have done excellent work. During the past six months no pressure could be allowed to be brought to bear on the board. It bad important and responsible duties to perform, and must do them without pressure or interference of any tind. LOANS MATURING. Considerable comments have been made from tima to time about our maturing loans and our difficulty to meet or arrange for the same. I may say that in this | respect, as Minister of Finance, I have had no difficulty whatever, m the following resufts will show:— ln 1906-7 £2,168,756 fell due, and had to bo provided for. Of this amount no less than £1,6*8,466 was renewed, £255,300 wae converted, and ■ £261,800 paid off. A net saving of interest was made at the rate of £2610 10s per annum, while the net cost of renewal and conversion was only £2167 11s Id. A reduction of interest was effected on several parcels,- and in no case were renewals made : under par, a premium amounting to £1704 boing obtained on & large parcel. In 1967-8 £2,552,900 matured, and £887,600 was renewed, £186,500 was converted, and £924,000 was paid off out of sinking funds, £4000 wa3 paid out of the State coal mine ! profits, and £429,100 was paid off by the issue of new stock or debentures. The sum of £933.817 of this amount was actually written off the debt, and an annual reduc- j iion of interest and sinking fund was made amounting to £63,744. The actual • saving of interest per annum on the amount j matured and replaced by the new debentures or stock amounted to £2004, while the increase to the public debt in respect J of these debentures was only £8183. In j 1908-9 (th-a current year) £3,133,838 matured, and of this £1.333,488 ha^ already •been dealt with, £1,255,435 has been renewed, and £78,050 redeemed by the issue of new debentures or stock. Of the amount renewed £883,400 formerly carrying 4 per cent, interest has now been renewed at 3£ per cent., effecting a direct saving in interest to the Dominion of £4417 per annum. In no instance was any discount allowed for renewals. Where a reduced rate in interest was not made the renewal* were effected on the same terms as the old debentures. Satisfactory arrangements Siave already been made for those falling due later on, so that in spite of the stringency of the market our financial transactions have been carried on without any extra ccst to the country. LOAN CHARGES. During the current year the Government has been able to effect a revision of its management charges in London on its inscribed stock, which give an immediate gain to the Dominion of about. £2000 per annum. A reduction of the bank's charge on -flotation of our loans has also b?en obtained, giving u« a. concession of £2500 per million on the flotation charge. In thi« matter the High Commissioner (the Hon. W. P. Reeves) has made meet excellent service. REVENUE. The result of the first six month' of (he year shows that the revenue from alls-ourcss is coming in in a most satisfactory manner. I believe that the estimate made in 4he Budget will be fully realised. I calculate that the result will be approximaTsly as follows : — We commenced the year v. itli £767.849, and our revenue for the year should bo at least £8,9e5,000. This give, a total of £9,752,849. Our expenditure, including ths supplementary appropriation.*, is set down at £8,878,346, leaving a gioss surplus of £874,500. From this wo mu*t further deduct the interest on our newloans, which is likely to come to charge for the current year— say £25,000. That reduced it to £549,500, and the contributions for the Public Works Fund of £800,000 will leave a net surplus of £49,500. I >have not included the Tevenue to ba de- „ rived from the acquisition of the Welling-xon-MamaWa'tu railway, as the expenditure in respect thereof will cover this. Our revenue fcr the 12 months ending September 30 shows an increase of £310,473 over the same period of last year, and our opponents, in their effort to adversely criticise the Government, overlook the fact *bat I have paid out of the revenue £300,000 of the floating debt of £700,000 of Treasury biUa. I have also provided a sinking fund for the whole of the land for settlements of 1 per cent, per annum on £6,000,000, as well £3 a sinking fund of a like amount in respect of money expended upon the Maori war, amounting' to £3,995,000; so we are setting aside £99,950 per annum for thi3 purpose at present, which »ill increase as

lands for settlement are purchased. Why do onr opponents, if they want anyone to believe that they are fair, distort everything that they possibly can with tbe- object of weakening the Ministry, and entirely shut their eyes to the jrood vsork that has been done in this respect. As an instance of this, one leading Opposition paper, in discussing the position after I had stated the result of the six months' revenue, declared that the figures as a whole were unusual and disturbing, and that their significance should not be lost upon the public, while the Otago Daily Times, viewing the matter impartially, says of the same figures: "The prospect is one which reasonably justifies, es Sir Joseph Ward says, a feeling of confidence and satisfaction, and this is heightened by the circumstance that notwithstanding the fact that we are passing through a <time of comparative financial stringency the Government was able during the pa&i six months to renew, on decidedly favourable terms, the bulk of t-he loans that came to maturity in that period." PUBLIC DEBT OF. THE DOMINION. The groas publio debt of the Dominion on the 31st March last was £66,453,897, of which £27,623,547 has been raised since 1691. Of thie amount, however. £18,306,651 may be set down as -interest-bearing debt, and therefor© the. interest paid thereon cmnpt be considered as a burden on the taxpayer. One 'of the .largest items i 3 £4;HO,000, raised "for- advances tc- settlers, the * interest in respect of which is not only repaid to tho Consolidated Fund, but there is a clear profit for %c department, sifter paying all expenses, of over 1 per cent, on the money borrowed for advaftces to settlecs and workers. Land for settlement is responsible for £5,890,000. The interest actually earned on moneys borrowed fcr this purpose -is over 4£ per cent. To provide loans for local bodies £2,603.000 was raised, which returns an interest of at least 3 .per cent., while additions to open l;n.ss (£2,350,000) may be set down as producing 3 per cent. Reserve fund securities (£800,000) earn 3i per cent. The sum of £500,000 raised for the purchase of the Bank of New Zeals-rid preference shares returns am interest cf 7i per cent., and New Zealand consols deposits (£500,000), the interest paid is Tnore than recouped by the reinvestment of the deposits received. Other items, suoh as State ccal mines, advances to workers, and purchase of Native lands, make up the amount, and all of these may •be fairly put down as interest-producing. The balance of the public debt (£9,317,000) included moneys raised for railways, roads, bridges, telegraph extension, and public buildings. On the total public debt outstanding on Ma.rch 31. 1891, the average interest charge was £4 10s 3d per £100, and the average rate is oow £3 4s 7d per £100. so that during, the period 1891 to 1908 the a.veras« rate of interest on our public debt has .declined by 15s Ed per. £100. Re-gardi-c^the position of THE MONEF MARKET, in New Zealand, I desire to give the i amount of deposits in tbe Dominion ! IN THE BANKS 1897 £14,290,512 1802 ... ... 17,231,767 1907 23,517,111 IN THE SAVINGS BANK. Post Office. Private. Total. 1897 ... £ 4,744,925 £ -775,155 £ 5,520,030 1902 ... 6,883,787 993,090 7,976,877 1907 ... 11,532,231 1,301,832 12,825,063 Grand totoh £19,810,592 £25,103,6*4 £35,342,174 During laet year and also this year the Government advances to settlers and workers will amount to ' upwards of three millions sterling, and to local public bodies in the same period nearly £400,000, in addition to which the great bulk of the lean money of the Government is coming from beyond New Zealand, and has been so for the laet few years, notwithstanding the unwarranted statements that have been made to tho contrary. WHAT THE OPPOSITION SAY. It cries out lavish expenditure, and vott3 for all expenditure suggested in pixblic v/ork3 and asks for more ; it cries out too mtich 'borrowing, and votes for every loan bill ; it cries out for a reduction in the expenditure, and asks for new railways in opposition districts ; it cries out for good finance, and when the Government pays off £300,000 of the floating debt out of the ordinary revenue it decs not 6av a word of encouragement or approval; it cri?» out for an improved audit extern, and when the Government propo*so! the Post Audit, by which every detail of every item would be laid on the table of the House, it, still fin&s fault; it cries out that tho Government proposes to spend £500,000 on a building programme in Wellington, though it -is absolutely contrary to fa-et, but it still adheres to a statement that ia wild exaggeration by over 100 per cant. ; it oriels out too much money expending on buildings, and asks for r.ew building* in Opposition towns or districts ; it crio cut for roads in Ihe back-blocl;3 to be helped, and when the Government propo e» to sp.^nd £1,000,000 in four years it save it is very pleased, but condemns, as Mr Allen dor*, the additional £250,000 to he rai-cd thia year: it cries cut bad adminMiatiou. j and -dees :not giva a singls cn*e cf where it occurs, and cries out that the Governjnent is opposed to t'u-e farmers, though the ! Opposition did in utmo-t to kill the cheap money scheme which has kzzn invaluable to our settlers; it cris=; out against the (.><>- vei-naient land policy, trough under it an additional 10.000 feouis have been placed on tbe land, and it crie-s out against taxation, though under it our people get fret? education, frca old -a go pensions, free tsxtbooks, cheap money, free service of polics which in England are charged upon the local rates ; it ories out that th-o country ingoing to the dogs, and expects, by preaching such a doctrine, to improve its position. It cries out that fiie CknanmeiTi railways policy by which concisions are given to the people, assisting farmers and every other class, is unsound, but does not say what it would substitute — whether increased goods and passer ger rates or reduction of train service- and a diinim.-h^d staff, though one or other, or both, would be necessary. DAIRYING. It i« extraordinary how quickly our opponents end sa -i our to rnak-a capita! out of the Government's desire to help the dairy Jj.rni€rs to obtain mci cased price* for their prodvc«. and the dd'rjing lesyulalion*. ! about which there ha« b"tn to much Paid, i have been suggested entirely with tha object of impioving ihu qu liitj of our

! butter and in order to get a better prioa for that product for our dairy farmers. In 1880 the value of our dairy produce was £1033, in 1890 it was £207,6157, in ISOO £301.059, and in 1907 £1,970,243. This is a tremendous stride, and it is admitted by unprejudiced dairy farmers that this gjjjeat development of late years has been io a large estent due to the work and efforts of t'-.\2 Agricultural Department. — (" Hear, .near,") In bringing about this result the most important laetor has undeniably been the fact that all dairy produce exported has been subjected to compulsory Government grading, and how strongly this was originally opposed by our opponents is too well known for me to elaborate. All dairy produce on arrival at tho port of export is graded by a dairy expert— an. officer under the control of the Agricultural Department, — and it is worthy of note that the proportion of butter now graded as first-class is as high as 98 per csnt. of the whole quantity exported. The I dairying regulations are not intended to j come into operation for nearly a year, and in the meantime the fullest opportunity will be given to dairy farmers to study them and to make any suggestions [ to the Government that they may desire. Some it/ea of wh*t the improvement in the quality of our butter means may be judged from the fact that if we can help our dairy farmers by improved conditions | to realise enly 5 per cent, more it is |- believed that the increase- to them will be considerably beyond this. At that rale it would mean, on last year's value of butter exported, over £8000 per annum. The dairy farmers know of their own knowledge all that has been done to assist them, and that the one desire of tho Govermn>ent is to help them to improve this produce and to obtain a better return for their arduous labour. — (Loud applause-.) It did not appear to be Known that the regulations were not to be gazetted until July, 1909, and that they would not come into operation until September of that year. I am confident that the regulations are in the bast int-erests of the dairy farmers, and in order to show that the Government fs in earnest in its desire to help them, the fees suggested will bs reduced with a maximum of 53 instead of 10s. The plans for the erection cT the dairy school at Palmerston North are now being prepared, and the work will be gone on with at an early date. The expenditure of the Agricultural Department in 1891-92 was £25,818, while for the year just ended it amounted to £144,000. From 1895 to the end of August, 1905. the dairying- industry was assisted in the matter of cold storage of dairy produce to the extent cf ov«r £86,000, and this was until the buainess got on itj« feet. After referring to the progress of the Post and Telegraph Department, the jßaili way Department, the work of tho Native ! Land Commission, the Native land policy of the Government, land matters gene-rally, 'advances to settlers and workers, conciliation and^ arbitration, old-age pensions, Sir J. G. Ward referred to tbe land policy of the Government, the land settlement finance proposals, etc. _Afc tho conclusion of th-e speech a resolution thanking the Prime Minister for" his able and statesmanlike addrsss. aud exprcesing continued confidence in the Administration, was adopted with absolute unanimity, amid a scane of great enthusiaem.