THE FINANCIAL STATEMENT.

Southland Times, Issue 1951, 22 July 1874, Page 3

THE FINANCIAL STATEMENT.

Mr Yogel made hia financial statement last evening. The following is an abstract of it, the amounts being stated in round numbers. Mr Vogc-1 said that the statement would pot only be eiiorter than usual, but it would be unprecedented on account of the prosperity which it -.evidenced. The statement was made at an earlier period than had been customary, a result ' ' for "which he was indebted to the untiring r exertions of the Treasury officials; In preparing the accounts lait year, it was anticipated ttiat the

actual results of 1872-3 would leave a surplus of £3800 with -which to bpgin the year, but it proved that there was a difference of £6000 as compared with whit was anticipate 1. This 1 arose partly through under estimating the ' outstanding liabilities', and partly from some f assets not being realised, the result being that instead of a surplus of £3SOO, there was a deficiency of between £2100 and £2200. As to loans, it would be remethbered that I during the last session tin announcej raent was niaile that five per cent, debentures to the amount of half a million had been sold at £2 10s premium. In 1 January last the Loan Agents invited tenders 1 for one" million pounds at 4§ per cent. He had l been favorable to the change to 4 per cent;, but | he approved of the action of the agents, since they had inserted a condition that the debentures might be retired at any time after live ' years. The half million borrowed at 4£ per cent, interest realieed £98. Mating an allowance ' for redeeming the discount, this was tantamount I to borrowing at the rate of £4 12s 62 per cent. It was originally calculated, that the money fdr ! the Immigration and Public Works Policy would have to be borrowed at 5£ per cent. It was gratifying therefore to know that the average rate of interest on the loans for those purposes yet negotiated, including allowance for recovering discount, amounted Only to £4 14s lid per cent. It was right that he should say that the market for Colonial loans was not so favorable last year as seemed to be then promised. There was now no demand for such debentures in the Colonies. This arose through the doraand for capital for local enterprise, but it had to be borne in mind when considering the question of the borrowing powers of the Colony. The aggregate amount of the public debt, after deducting sinkiug fund accrued, was £12,500,000, and the , annual charge was £777,000, of which £554,000 j had to be paid by the Colony, and £223,000 by j the provinces. After explaining the position of the various loan accounts, Mr Yogel referred to the land fund. This, he said, showed a remarkable progressive increase. During the year 1869---70, the receipts, exclusive of gold revenue, were £209.000 ; 1870-71, £298,000 ; 1871-72, £326,000; 1872-73. £389,642 ; 1873.74, £1,038,000. The Po3t Office Savings Banks account showed an increase of deposits of £137,000, the total deposits in thoso banks being £682,000. The revenue of the past year exceeded that of 1872-73 by £300,000, and exceeded the estimated revenue by £239,000. This result was very large when the proportion it bore to the whole amount of the revenue was considered. He could not state accurately the increase that had resulted from the substitution of ad valorem for measurement duties, as there had not yet been sufficient time to classify the returns, but there could bo no doubt that the new duties produced more largely than the measurement duties. He was glad of this, both on account of the result, and on account of the testimony it bore to the honor and truthfulness of the commercial classes of the country. He emphatically expressed the opinion that taxation had not pressed heavily on the bulk of the people, and that under the new system the duties had been more evenly distributed over articles of luxury than was the oase formerly. After deducting expenditure and liabilities, and allowing £20,000 for liabilities yet to oome in, and paying off £45,000 of Treasury Bills, there was a balance at the end of 1873-74 available for the service of the current year amounting to £207,000. After explaining flt some length the position of the railways, Mr Yogel said that the revenue of the country was increasing so much simultaneously with the introduction of immigrauts and the prosecution of public works that there could no longer be any doubts as to the success of the policy, and the Colony would be quite safe in taking over the main trnnk lines of railway whenever it might be found convenient to do so, and in relieving the provinces from all liability on account of those lines, apart from the revenue which it was now certain would be derived from the railways in excess of working expenses. The consolidated revenue of the Colony had during the last two years increased by £41,200, or within a few thousand pounds of the total annual charge which the railways, when completed from one end of the Colony to the other, would entail. It must be pointed out, however, that further authority for borrowing to complete the railways would have to be given. However successful the immigration and public works policy might be, it must be remembered that it was necessary to meet the Colonial requirements before straining the credit of the Colony for other purposes, in consideration of the fact of the railways being pushed on more quickly than was originally intended, and the fact that it was not desirable to encourage too largely the construction of other works, impelled the Government to decide not to renew their proposals of last year as to Provincial borrowing. The Government were prepared to allow a limited amount of assistance to the provinces, but such assistance would have to be rendered through, the Colonial Government, and to be charged either against the amount for settlement of immigrants, of upon the consolidated fund, but with power to the Government to issue Treasury Bills it found necessary to meet it. As to the assi»tan?e to be given to the separate provinces, Mr Yogel said first, in regard to Auckland, the Government during the recess undertook to ask Parliament to allow the province to raise £50,000 to be advanced from time to time, extending over a period of about three years, for works upon the Thames goldfields. The security in this case, besides that of the province, is of a specific and large nature, and the importance of the object to be gained is not to be denied. The Government besides agreed, subject to the approval of Parliament, to advance to Auckland on the security of one-half of its land revenue, to be impounded for the purpose, £40,000, in sums of £6000 every three months. The Government propose to ask Parliament to carry out their arrangements. They did not propose to ask for Auckland any further loan beyond the power to devote some part of the immigration funds to objects directly promotive of the settlement of immigrants. Taranaki (continued Mr Yogel), with its splendid lands, offers a field for the location of immigrants second to none in the Colony, and we shall ask for power to advance money to aid so essential a work. tSiniil irly we propose to devote some funds to Westlund and to Nelson. In respect to these four Provinces, it is to be remembered that they have not as yet enjoyed so much of the direct benefit from the expenditure on immigration as they might be supposed to have the right to claim. Still, for money expended on works, we propose conditions for repayment, and I may add also that while we shall require the approval of the Provincial Governments to any works undertaken, we propose that the work a shall be carried out under the control, or with the approval, of the Public Works Department. What I have said of these other Provinces in respect to immigration, applies equally to Marlborough. We shall propose for works in i connection with the location of immigrants i advances extending over two years, besides a loan of £4000 to bridge the Clarence River. In regard to Wellington, hon. members will no doubt have observed from the correspondence that the Government during the recess endeaF vored to induce the Provincial Governments to reduce the amount of borrowed money they desired. We agreed to submit for the approval of the Assembly a proposition to allow Wellington to obtain an advance of £66,000, on 80,000 acres . of land, to be opened to the selection of small settlers. We shall ask that this plan be carried out. I may also mention incidentally t that we propose to ask authority to construct i proper Government Buildingß in Wellington. • Nelson's case is the moat difficult to donl with j > that provinoe has long lagged behind in the race . that the other provinces have run. If it requirot useful works, of which it is signally desi titute, we propose to grant it, on specific security, £51,000, for works of which the Public > Works Department approve. From Otago also the ctj for borrowed money has como. We i % canpofr see our way to at present sanction the

sura that province nsks for, unless by way of purchase of the Winton ami Bluff line 3. If the Provincial Government are willing, we will be prepared to propose to the Assembly to purchase that railway at a valuation, the payment to be made in four equal instalments, on tho Ist February next, and the Ist February of the three following year 3, the money to be devoted to the construction of branch railways. Otherwise in respect to Otago, and in respect to Canterbury and Hawke's Bay. I have only to say we propose to continue their trunk railways, and to aid them in locating the immigrants they so wonderfully absorb. The Government propose not to undertake any further goldfields work until some of those" already begun have been completed. They propose to appropriate an additional £60,000 for worka in the North Island, and to continue the same plan as formerly by allocating to the .VEiddle Island provinces a like amount. Out of the sums that would thus become payable to Canterbury aud Wesflaml, it was proposed to put the road beivtt!?ti Christchurch and Hokitika into good oivler. As to the 1 provinces, Mr Yogel said the c>.?e of tho provinces is not to be dealt with by merely exeep- j tional advances for public works. There are three provinces which labor mirier the great disadvantage of contributing largely to tii? Colonial revenue, yet whilst they make the contribution they enjoy out of their own revenue local expenditure ; but the cose of some provinces is simply constant contributions, which have a constant disheartening tendency to the result so familiarly explained by the slaughter of the bird whioh lays the golden eggs. As n, mere matter of policy, if it is wise in the midst of the immense hureasa of the Colonial revenue to specially remember some of tho provinces which contribute it, and which are at present at a great disadvantage as compared with other provinces, it is not wise to let parts of the Colony languish under a sense of wrong— to allow them to feel they are still becalmed, whilst the favoring breeze removes from their sight the vessels formerly becalmed with them. The condition of the three provinces of Auckland, Westland, and Nelson, as compared with the other provinces, is lamentable, and requires from the surplus of the consolidated revenue the attention of the Legislature. Auckland's case is far the worst. It will take that Province some years to work itself round and enjoy the future which I firmly believe is still before it. Wetland deserves great sympathy. Weighted with a great public debt, i's Government is eagerly anxious to develope it, but fiacl themselves hampered in every direction. Westland has proved a mine of wealth to the Colony, and it is folly to desert it. The West Coast of Nelson is somewhat similarly placed. Nelson will, however, now have the means, as it appears its rulers have the inclination to use tho3a means to become a prosperous Province. These considerations impel m to recommend that out of the year's surplus a special allowance, in addition to that already provided by the scale of capitation allowances, be made to Auckland, Westland, and Nel<on, at the rate of €25.000 to the first, £10,000 to the second, and £5000 to the third. When hon. members study the whole of the circumstances, they.will not, 1 think, grudge the proposed aid. Passing on to the expenditure for the current year, 1874-75, Mr Yogel said that the essential principle of this budget was different from that of any previous one, its great object being to prevent the Government recruiting revenues by resort to borrowed moneys. In fact, the present budget had for its object to relieve loans at the expense of the consolidated revenue. He proposed this year to take over and to charge upon the consolidated revenue, all the cost of interest, inclusive of interest upon works in course of construction for which no other provision had been made. He proposed also to bear on the consolidated revenue half the Defence Expenditure, and half the amount to be paid as subsidies to road bwds. Further he proposed to pay off an additional £100,000 of Treasury Bills. Taking into consideration the matter of officers of the civil service who were inclined to leave the service, on scoount of opportunities to benefit themselves, and the hardships to which they were subjected through the increased cost of living, the Government had decided to recommend, as a matter of expediency, no less than of justice, that a special allowance should this year be made of ten per cent, to all officers whose salaries did not exceed £150 a year, of 7i per cent, to all officers whose salaries exceeded I £150, but did not exceed £300, and of 5 per cent, to all those whose salaries exceeded £300, but did not exceed £500. To do this would I absorb £15,000 of the surplus. Adding these various items to the amount of the capitation grant, the special allowance of the provinces, as well as the ordi« nary expenditure, the permanent charges, the total expenditure of tho current year would be £1,630,000. This would include £271,000 to be devoted to the reduction of Treasury Bills current, and to the payment of amounts which might under existing authorities have been charged to loans, thu3 justifying the statement he had made that the main feature of the budget was to relieve loans, at the expense of the consolidated revenue. He would explain when he made his immigration statement the further votes that would be required for immigration and for railway purposes. His colleague, the Minister for Public Works, would in a day or two explain the various circumstances respecting the main trunk lines. He must, however, state that what he meant to include when he spoke of main trunk lines which the Colony would be justified in accepting as a Colonial line, were those lines which had been already authorised, together with suoh other lines as would complete existing gaps between Kaipara and Auckland, New Plymouth, Napier and Wellington, as well as those necessary to complete through communication between Picton, Nelson, Hokitika, North Canterbury, and tho West Coast. The total revenue for the year, estimated with moderation, was £1,496,000. Adding to this the surplus with which the year was commenced, thore would be a total of £1,704,000, and deducting the total expenditure there would be a surolus of £66,000. It must be remembered, however, that that surpluß was liable to be largely trenched upon by supplementary Estimates. In conclusion, Mr Yogel urged that while the country was confidently pursuing its policy of progress, they should wisely husband its strength, and not have larger recourse to borrowing than was absolutely necessary ior carrying out the policy which the House and the people had adopted. Progress was reported, and leave obtained to sit again. The House was adjourned at halfpast nine o'clock.