Wairarapa Standard Published Tri-weekly, Price 1d. FRIDAY, MAY 28, 1886. The Financial Statement.

Wairarapa Standard, Volume XIX, Issue 1837, 28 May 1886, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. FRIDAY, MAY 28, 1886. The Financial Statement.

In our Wednesday's issue we published a condensed summary of tbe chief points of the Financial statement, ns telegraphed by our special correspondent. It now remains to notice some of its features more in detail, and we shall do this by dealing with the several topics under their appropriate headings. The Alleged Surplus. Sir Julius Vogel asserted that the accounts for the lust financial year showed a surplus of £37,851). This surplus is, however, purely nominal, aud is chiefly made up by certain items of expenditure having been postponed. Sir Julius Vogel is au adept at juggling with figures, and can, to his own satisfaction, apparently make them prove anything. It is significant that during the past financial year the Customs duties was L 15.175 short, the stamps £481)1, the railways £5695, the marine £IBB6, aud the depasturing licenses £18,166. On the other hand there was an excess on the item registration fees of £I6OO, and £37,811) on the item miscellaueous. Of the latter increase £25,000 is due to sinking fund released under the Public Debts Sinking fund Act, 1868, on account of excessive accumulation, and £19,000 tointereat received on public moneys. Public Debt and Loan Conversions.

. The amount of public debt ou the diet March was £34,966,222. The amount of the accrued sinking fund was £8,276,873, and the net debt was therefore £31,683,349. The conversion of loans has proceeded rapidly. Of bonds to the amount of £10,053.600, for which terms |of conversion were offered, £4,137,700 have been brought in. The actuarial estimate of the result is as follows: Firstly, augmentation of debt, £164,381 ; secondly, the annual reduction of charges lor the first six years, £42,229, and afterwards an annual reduction of £46,842 ; thirdly, total reduction of charge, £620,179! The results*are claimed to be gratifying. We are rapidly bringing our securities into carrying a [lower rate of interest. Soon there will be no part of the debt bearing interest at more than 4 per cent, and the task will fall on a future Treasurer of converting the 1 per cents into three or three and a half per cents. The Financial Local Bodies. Sir Julius Vogel dealt with this subject at great length. He said that the Government would not be able to keep up the subsidies to the Local Bodies, and that s'nne other scheme had now become necessary. On this I point he raid : —" The proposal of the [ Goveuitnciit that on the ratedayers shall depend the responsibility of determining ami accepting or of refusing ; and that, when the ratepayers appiove, money should be provided to loealj bodies on very liberal terms. These terms are a payment of 5 per cent per annum for 26 years, secured special rates ; the colony to he responsible tor payment of the principal sum, and to meet it by setting aside yearly a sinking fund of 2 per cent to redeem the debentures at maturity. It is also proposed that Parliament should determine from year to year the limits of the amount to bo available to the local hodVs ; nut that, in the absence of any other provision, the amount will stand authorised at not £200,060 annually. It is intended that these loans shall only be for country districts, and that the storage of water tor irrigating ami mining purposes shall be amongst the objects that local bodies may carry out. I have thus explained to you the substitute ho the Hoads and Bridges Construction Act. it v. i’l involve, in the course of time, a considciiil In charge on the con« solidated revenue, hut a charge which would he well repaid in kind by the increased value of property throughout the colony. It is evident, however, that with this prospective charge the Government cannot recommend the subsidies proposed last year, which, in large part, were meant to provide a substitute for the repeated Act.’’ Further on m his speech Sir added " To return to (he subsidies. The Government propose to limit the annual sura to £150,000, of which half shall come cut of loan money for the present. It is not intended to make the appropriation permanent, although it is believed that the Government should each year make a like piovision. This amount, it is estimated, will provide, beside the liabilities, the same subsidies as granted last year- namely, half the schedule rates included in the Local Bodies Finance and Towers Act, but only three quarters to be payable Withia (he hnaaoial year, aad the

fourth quarter during the three following months.” Charitable Aid. Sir Julius Vogel said that a? under the Charitable Aid Act the management of hoe pitals and kindred institutions bad been handed over to local control, and the Government was thus saved much trouble, it was fell that assistance to those institutions must still be continued. He then added :—" The Charitable Aid Act has answered on the whole. The management of all the institutions will be improved, whilst a great many have attained to the highest condition of development in the shape of separate incorporation. The feature east satisfactory is the disposition to raise special rates, instead of leaning on voluntary donations. Reluctantly the Government yielded to the pressure exerted to give the same amount of subsidy on account of money raised by rates as on account of voluntary donations. They will propose now to slightly increase the subsidy oh voluntary donations, to arrest the tendency to which I have referred of raising by special rates the money required. The Loans to Farmers Scheme Abandoned. It will be remembered that during last session a select committee reported in favor of a scheme by which the Government were to grant loans on mortgage to farmers at a low rate of interest. At that time Sir Julius Vogel was then strongly in favor of this scheme, but he has now changed his mind and abandoned it. On this point he remarks : “ I regret to say I am not able to make proposals on tho subject. If the Government were to enter the field as a lender of money,' it must obtain that money somewhere. In European countries where Government do this sort of business there is a sufficient market for the securities which provide the money; but in the colony there is not. At present, though I do not think it will be so, there is no sale for 4 per cent securities at even large discounts, and 5 per cent bonds hardly command par in small quantities, whilst considerable quantities could not be placed. To lend by giving to the borrower debentures which he would have to sell at a discount would mean to give him less money than the loan purports. . . There remains the alternative of the Government borrowing money in England and lending it out here. This would be quite possible if it were deemed expedient and recognised as a legitimate function of the State. I was once inclined to see it tried, but I am compelled to say that I do not consider it would be desirable at present. It would overstrain the colony’s credit. . . The stand the Government now take is, that at present the colony’s credit would suffer by their enteriug into the business, and that they are hopeful private enterprise will give such reliet to the small farmers as will render Government interference unnecessary. They recognise, however, that the subject should be watched, aud further consideration given to it.” Estimated Expenditure 1886.87. The estimated expenditure during the present financial year amounts to £ 1.070,208, which is £49,155 in excess of the Estimates aud votes, and £89,030 in excess of the expenditure of last year. The increase is fully accounted for by three items—yiz,, on education, £20,978 is estimated to be required more thau last year, on subsidies to local bodies £39,308, and on working railways £67,225. The Industrial Colonial and Centennial Exhibitions.

The late Industrial Exhibition will require £SOO, hut the expenditure of Inst year's vote was considerably exceeded. The Exhibition has cost £B6oHTnct, a much huger amount I ban was anticipated, ll is proposed that the next Exhibition shall take place in Dunedin or Christchurch about the end of 1887, in time to forward the exhibits, if it be so decided, to the Centennial Celebration Exhibition to be hold in Sydney in 1888. The Government are of opinion that an International and an Intercolonial Exhibition should be held in Auckland about 1890 to celebrate the opening of the through railway. The Colonial and Indian Exhibition absorbs a large vote. There are few members who will not recognise that this colony should be adequately represented on an occasion so momentous to all Her Majesty’s dominions. New Zealand was culled on to assert the strength of her resources in friendly competition with other colonies. There is to be no Additional Taxation. Sit Julius Vogel said in effect that the revenue from Customs Duties was decreasing, and. he expected, would continue to decrease. People did not drink so much spirits and beer, so the revenue from that source had fallen off. He would like to impose increased Customs Duties, but the attempt to do so Inst year had met with so hostile a reception that he was not disposed to try it ou again. He regretted therefore that he was debarred from proposing any increase of Customs Duties. This assurance means that there is to be no additional taxation iu that direction. A Little off tee Property Tax.

Sir Julius then oheeringly remarked I cannot say that additional taxation is necessary this year, for it is not ; on the contrary, 1 can do with less, and I propose to take off l-10tli of a penny of the property tax, making it 1316 th this year instead of jths. This is equal to a reduction of £24,000 or over 7 per cent of the estimated yield of the tax. A New Loak of £1,500,000.

I have to announce that the Government will ask for a loan of a million aud a half to be devoted exclusively to railway purposes. They propose that tlie Noith Island Trunk Railway Loan be made inalienable from the object for which it was intended. When aud as it is negotiated there will be lestored to the Public Works Fund tire amounts previously spent on that line from other loans. There will then remain the balance in that fund supplemented by the repayments I have just referred to, Taking the amount fiom the 31sl Match last, it will leave over £BOO,OOO to be voted as the House pleases on other purposes than railways, such as buildings, purchase of Native lauds, roads, and other works on goldlields, reading, etc. We look to it yielding at least two years’ provision, as alsu that the railway loan will do the same, CoNSTBiK'ITOS oe IUILAAVS.

The North Island Main Trunk Line is to be completed as {rapidly as possible. The Government will spare no exertion to pet the railway finished during the year 181)0 ; and they think an event so momentous iu the history of the colony as the completion of the line between Wellington and Auckland should be celebrated by an international and intercolonial exhibition. As regards other railways, they propose to proceed with moderate speed. Amongst the other lines to bo constructed out of the new loan those of local interest arc the following ; —Napier to Palmerston, estimated cost, £IOO,OOO ; Manriceville to Woodville, estimated cost £i'd i,OUO. Some eighteen other lines are to tie pushed ou by means of the funds to bo provided by the new loan. How Tim Old Vobostsus nor on. The depression, said Sir Julius, lias done good by putting a stop to the disposition !.•> monopolise groat estates. It ia frequently asked, How can it be expected that small properties with little capital devoted to them can pay better than latge ones upon which capital is showered ? The answer ia more or less understood. The man who is working on his own land, aud establishing tire foundations of a happy home and future compe* tence, feels a delight in every hour of - the labor which lie aud his family give toward increasing the value of his possessions. Therein he has the advantage over those who depend only on L hired labor. This is the secret of the snecess of the old colonists, and we should aim at placing a like means of working on his own account at fire disposal of every man who wishes if. Tub Pntoß of Wool. On this point Sir Julius, after a most : elaborate disquisition, remarked To sum I up, it appears to me that the need of wool is so confirmed aud so readily open to extea- I lion that nothing but temporary causes can I

keep it below the price at which it will well ;-;iy the puduoer. The change may not be iiimicdino', bat it cannot long delayed. I hup“ wh.it 1 have said will be taken lor what it may be considered worth; I have no special claim to speak on the subject. The Future of The Colonies. Sir Julius Yogel closed his speech by predicting a great and brilliant future for the colonies. He said “ The growth of these colonies has been so marvellously rapid that the mind is unable to retain the memory of the halting periods. As the paaf so the future, and in all hnmblcness of spirit I dare to predict that not many generations will pass away before the colonies beneath the Southern Cross reach the culminating greatness of their destiny.”