FINANCIAL STATEMENT BY THE HON. THE COLONIAL TREASURER.

Appendix to the Journals of the House of Representatives, 1867 Session I, B-01a

B.—No. la.

FINANCIAL STATEMENT BY THE HON. THE COLONIAL TREASURER.

IN COMMITTEE OF SUPPLY, 22nd AUGUST, 1867.

WELLINGTON.

1867.

1

B.—No. U.

FINANCIAL STATEMENT. By the Hon. Mr. Fitzherbert, 22nd August, 1867. On the House going into Committee of Supply, -weather; it nevertheless adds to the embarrassment of one who Mr FITZHERBERT said—Mr. Carleton, it now devolves has to deal «* a subJcct (duU enough at the best) from which on me to make the usual annual statement, explanatory of the "*■ bloom of freshness has been rubbed off. results of last year's financial operations, of the proposals for I am > moreover, but too well conscious (if reference for an the present year, and of the financial policy of the Government instant to a personal question may be excused) that the anxiety as affecting the future of tho Colony; and it so happens that wMdl has oppressed me whilst preparing for the present occathis is the fourth consecutive session in which I have been called sion > ha9 in a great measure unfitted me for the adequate dison to make such an official statement. Not, indeed, that I have ctarf oi the task whion now lies before me- I therefore soUcit been fortunate enough to hold the seals of office uninterruptedly consideration for myself personally , and, for the sake of the throughout such a period, for the wisdom or fickleness of our Colon J> l ask for tuat Patient bearing, that impartial suspension New Zealand Parliament forbids such an excessive indulgence of Judgment until the proposals of the Government shall have in the sweets of office; and, true to the colonial instinct of been carefully considered and weighed as a whole, which is abgetting the most for its money, it has contrived to squeeze out solutely necessary if the Committee regards (as it is untwo extras during that period of less than three years, by which doubtedly its duty to do) not only the interest of every part of means it may be supposed to have reduced the cost of budget New Zealand, taken by itself, but also the interests of every speeches to half-price. P arfc rcS arded a* a P° rtl°n of one whole Colony. ,_.,,., , . ... I now ask the Committee to pass in review the estimated ordiNotwithstandmg, however, the change of personnel made in *, _ . B! ,.,-•. r ti v ,.,,., nary expenditure as proposed by the Government for the past obedience to the impartial spirit of Parliament, which likes . , - , ± "~. .. ... ., . .. „ _ , „ _ , , , ,, , financial Tear, and contrast it with the actual expenditure for " iust to give a turn to all round, I am happy to be able to * . J ° . - , the same period. 1 he uprures are these, viz.: — state that the engine has not been reversed ; but that, on the contrary, there has been a progressive movement of the financial Estimated Expenditure for 1866-7. policy introduced in 1864 —an epoch when the Colony took the _. ., -r. . „„ _._ first step, at a cost of £50,000, which rendered the unity of _ ' _!"" '" „„„' _ . / ,.„ . „ _ ' , .. ,.,.. -, „ ... , Permanent Charges ... ... ... 266,889 national life in >ew Zealand a practicability; definitively _" ,_ , „,„„ . ,. . ., . ,, . , „ T . lfrl Government House and Domains ... 7,138 dechned to contribute to the maintenance of Imperial Troops ; , . .. , , . ., ii v j -i. ■», Public Departments ... ... ... 36,560 and, resolutelv settmsj its back to the wall, relied on itselt to T , i . . . , . . f * xl nJ ixn i • Law and Justice ... ... ... 64,8d3 maintain the internal peace of the Colony. When also, m . ,, ... .. . ,, . u_. a 11*. Postal ... ... ... ... 143,150 order to enable it to accomplish these great objects, and, at the same time, maintain the credit of the Colony and continue to sunplv tho Provinces with the funds necessary to enable them _ _ Fi J , , . . , . . , . .. '.. . MisceUaneous ... ... ... 30,922 to conduct their special work ot colonisation, the Colony un- _ „ . ... .,.,. , . ,. Defence ... ... ... ... 70,000 posed on itself heavy additional taxation. _ ' Supplementary ... ... ... 15,000 It might be supposed that, as practice is said to make perfect, I should be able now to deliver a financial statement with much TotaJ propo8ed Appropriations for Colonial greater satisfaction to the Committee and ease to myself than and Provincial Services 738,308 on former occasions. But I am free to confess, that although in Pavmcnts to Provinces 318 750 many respects our financial condition contrasts most favourably with what it was in 1864, both as regards income, resources n^ q»^ Qgg and credit, and that so far, the path along which a financial ,„„„,. ' , , L . ° . t . Actual Expenditure, 1866-7. statement has to travel has been rendered very much smoother * £ s d and easier, yet the financial problems which now demand solution Civil List 27 500 0 0 and cannot be avoided, unless indeed the Government is pre- Permanent Charges 282 472 4 5 pared to shirk its duty, are so extensive and complicated with Government Houses and Domains... 2346 18 5 so many and often conflicting interests; there are so many PubUc Departments ... ... 42,567 16 2 financial solecisms which have grown up in New Zealand; there j jaw an( j j ll3 t; co 59 409 jg g are moreover so many mouths to feed, no longer belonging to Postal 122 435 11 6 nine little Oliver Twists asking for more, but to sturdy claimants, Native 23 751 4 0 making as though they would seize whilst they seem only to Customs 40 894 7 7 solicit; that a much abler Finance Minister than I pretend to Miscellaneous 35 554 13 4 be might well shrink from the present task. Defence 71 436 18 3 But I feel also that I have been placed at an unusual dis- Supplementary (refunds of Eevenue) 9*229 17 9 advantage, owing to a somewhat free use of the privilege of Payments to Provinces 320,368 5 10 diffusing information on the part of my honorable colleagues ; Unauthorized Sundry Expenditure 6,558 18 4 for, however interesting the circumstance may be, as an illustra- Payments to Provinces, June, 1866 18,356 5 10 tion of the fact that all ships, whether merchant ships or ships of State, even those classed Al, do somehow leak a little in bad £1 Qg3 332 18 \

B.—No. la,

2

FINANCIAL STATEMENT.

By "actual" I mean expenditure inelusivo of advances made from them would yield a very much larger amount than that during the year, but exclusive of advances made prior to that stated by the Government, and that I was strongly urged to period, and observe that the excess of actual over estimated amend my estimate in that respect, some false prophets even expenditure, under the head " Permanent Charges," arises from foretelling that the income from that Bource would flow in at the circumstance that the Colony had to make advances during the rate of £200,000 per annum. It will now be conceded, I the past year for payment of interest and sinking fund on suppose, that the Government took the prudent view. The allocated debts, which have not yet been refunded by the deficiency of actual income will then be discovered under the Provinces. item " Miscellaneous," wherein the most noticeable decreases The Committee will next please to eomparo the estimated ex- attach to the following services, viz:—Postal, Marine, and traordinary expenditure of the past year with the expenditure Crown Grants. Fuller departmental explanations on these of that class actually incurred during the same period. The points will be offered at the proper time, result appears in the following figures, viz.: — I next compare the estimate of Extraordinary Ways and ,_ ~ _ ~, ,„„„ H Means with the proceeds actually realized from those sources Estimated Extraordinary Expenditure, 1866-7. , ~ , „„}. „ ■~ ~ . ~ 3 for the year 1866-7, with this result, viz.: — Cook Strait Cable and Telegraph Extension £ to Auckland ... ... ... 38,000 Estimated Proceeds, Extraordinary Ways and Means, 1866-7. Treasury Bills (removal of Seat of Govern- £ ment) 11,500 Treasury Bills 150,000 Military Settlers 207,000 Unexpended Balance of Loan 170,000 Liabilities on account of Settlement of Military Settlers 50,000 £320,000 Actual Proceeds of Extraordinary Ways and Means, 1866-7 £306,500 £ g d _ Actual Extraordinary Expenditure, 1866-7. Treasury Bills 125,000 0 0 Cook Strait Cable and Telegraph £ s. d. Proceeds of Loan 173,000 0 0 Extension to Auckland ... 14,852 7 0 Incidental Beceipts 17,4*9 10 9 Treasury Bills (removal of Seat of ■ Government) 11,775 0 0 £315,189 10 9 Military Settlers, and liabilities on The amount opposite the item " Incidental Receipts " arises account of settlement 255,743 10 10 from sales of confiscated lands, which I last year declined to estimato for as a source of revenue, and I think I was fully £282,370 17 10 justified by the result; for although I have thought it would These statements may therefore be regarded so far satisfactory, be more satisfactory to the Committee to disclose the amount as showing that the total actual ordinary and extraordinary actually received from these sales, yet it cannot be regarded expenditure incurred for the year 1866-7, did not reach the as net proceeds, inasmuch as the special attendant expenses, expenditure as estimated for that year by the sum of £17,805. which are included in the expenditure side of the year's The next point is to compare last year's ordinary revenue, account, exceed the proceeds. as estimated to provide for the estimated ordinary expenditure, When I inform the Committee that I hold Treasury Bills with the income actually received. The following is the result to the amount of £25,000 ready for delivery at par, but which of the comparison, viz.: — I did not find it necessary to issue to the purchaser during the past financial year, I hope the announcement will be Estimated Ordinary Revenue, 1866-7. regarded as an indication not only that these estimates have turned out remarkably exact, but that the Government resisted Customs . ... 850,000 ... >• v. •. i i a temptation to which governments are in general supposed Bonded Warehouses 4,500 to yield, viz., that of spending as much money as they can StamP9 SO'ooo lay their hands upon. . Miscellaneous 154,000 j anticipate that the Committee will now be able to follow me with a greater degree of clearness as I present a balanco ' ' sheet showing the result of the past year's transactions of the Ordinary Revenue Actually Received, 1866-7. Colony, than they would if left to gather these results £ a _ ,j_ presently from the published accounts. For although any Customs 865 032 8 0 one w'lo as stucuc(l the accounts of the Colony as published Bonded Warehouses 5,325 0 0 annually in the Blue Book must admit that the information Stamps £34,688 12 5 ifc contains is at once voluminous and detailed, yet at Less stamps used 843 15 10 tho same time he may be excused if he rises from that 33,844 16 7 interesting study with but a dim vision of results. The Miscellaneous ... ... ... 123,804 1 3 purchaser of a stack of hay could not be more disappointed < if taken into a field and confidentially shown the process £1,028,006 5 10 of haymaking as exhibited in cocks and windrows, than This shows an over-estimate of revenue amounting to I imagine tho student of New Zealand Finance would be upwards of £30,000. In explanation, I would observe that if who wends his way through advances, reserves, savings, transwe bracket the two main sources of revenue on which the fers, &c, and arrives at last opposite a column of figures Colony now relies for its ordinary income, viz., Customs and under "receipts and transfers" exceeding in amount by several Stamps, it will be found that my estimate of last year was millions sterling the possible income of the Colony. In singularly exact, for it will be seen that I estimated the revenue sympathy with such disappointment I have taken some pains derivable from Customs and Stamps at £900,000; and it now to have the accounts for the past year analysed; and I now appears that the actual receipts have reached the sum of present them divested of tho processes by which the same £898,876 : a closer approximation could not well, I conceive, figures aro first marched past, and then counter-marched back have been made ; and I think I am fairly entitled to call the by way of review. No Treasurer, I venture to affirm, has yet attention of the Committee to tho accuracy of the estimates been able to attempt such a task within a few weeks after the of the Government, because it will be remembered that an close of any financial year with any great confidence in his opinion was very generally expressed, both by the opponents figures; and it is much to the credit of all the officers of the and supporters of the Stamp Duties, that the revenue to arise Treasury department that the accounts of the past year have

FINANCIAL STATEMENT.

3

B.—No. la.

been brought xip so as to enable me to submit the results of which I have given—l say it is out of that source that I have, an analysis of the accounts for the year ending 30th June, during the past financial year, derived the funds with which to 1867, so closely approximate as I believe the one which I effect the following refunds—refunds which, I have no doubt, now present to be. I would merely observe that the brevity my predecessor would also have effected had he been in office, of the statement is not to be regarded as any measure of the viz.:— time taken to arrive at it. Amount of Overdrawn Account at £ s. d. The following is an abstract of results, viz.: — Bank of New Zealand, in July, Receipts. £ s. d. 1866 26,361 15 4 Ordinary Ecvenue 1,028,006 5 10 Intestate Estates, &c. (as particuIncidental 17,489 10 9 larized before) 24,431 2 2 Extraordinary 298,000 0 0 Making the total of refunds and £1,343,495 16 7 payments from the Treasury, Expenditure. effected during the [year, outside Ordinary 1,063,382 18 1 the statement of expenditure Extraordinary 282,370 17 10 which I have already submitted 50,792 17 6 and I have now disclosed (presented I hope in an intelligible £1,315,753 15 11 shape) all the transactions of the year, so far as I am aware. Showing an excess of expenditure over income of very trifling When, therefore, lam thus enabled to inform the Cornamount indeed, considering the dimensions of the figures. mittee that not only have the funds belonging to intestate Outside, however, these figures, there have been transactions estates and certain other trusts been refunded by the to which I must refer, and which indeed are of a character Treasury during the past financial year, and placed ad deserving special explanation. I need, perhaps, scarcely inform interim in deposit at interest with the Bank of New the Committee (for the question has been raised in various Zealand, awaiting their final disposal by the Legislature, forms from time to time) that the uso of money, in deposit Dut a i 9o t hat t he overdrawn account of the Government, with the Government, has insensibly grown up into a habit yrith the Bank of New Zealand, which, in 1864, culminated in New Zealand; and however the exigencies of the public to £818,000, and in July, 1866, stood at £26,361 15s. 4d., has, service may have induced the custom, it is one which I shall ou the Ist July, 1867, wholly disappeared, and that the Governnot pretend to uphold; and the Government has accordingly meut o f jf ew Zealand is now in the course of receiving instead decided to propose its discontinuance. There are, indeed, o f paying interest on its balances, I think the Committee will certain deposits of a current character which may, I think, concur that it is a satisfactory announcement, and affords a be fairly employed as a working balance; whilst there are prac tical illustration of the prudence with which our finances others of such a character as to require that they should be must necessarily have been conducted. Still, an exchequer held aloof in trust. The 'practice, however, has not hitherto sys tem which permits such transactions as the indiscriminate been in accordance with this opinion, and considerable sum s use o f trust f un( j S) a nd the indulgence in unlimited overdrafts, belonging to intestate estates and other funds have been, from ig notj it must be confessed, a sound one, and if any argument time to time, employed for the purposes of revenue. As weTe neC essary, in addition to those which I hope to adduce, in an instalment of reform of this abuse, and in anticipation SU pp Or t of an amendment in our revenue laws (to which subject of legislative action being taken, I have to state that I have j shall pres ently recur, as one of the proposals of the Govern, caused the following refunds to be made from the Treasury, men Q t the present instances certainly afford such argument. Tlz-: We have now done with the past and its comparisons, and £ s. d. proceed to the immediate future, which does not allow of comIntestate Estates 15,667 15 8 pa risons, although it must be admitted that the opprobrious Real Estates Administration ... 1,047 16 6 epithet usually attached to comparisons is, fortunately, not appliSupreme Court Account ... 385 10 8 cable in tue present instance. It will become, perhaps, the duty Justices Relief Act 225 7 9 of my successor to institute such at the proper time and pass a Estates of Deceased Soldiers ... 904 10 5 judgment. What a fine opportunity the future, although it be Native Reserves, Wellington ... 168 2 5 only the immediate future—the jporf/a^mm-affords Dunedin Disputed Reserves ... 6,031 18 9 the financier) especially if he be of a sanguine temperament. All the financier wants —all anybody wants —is time. The £24,431 2 2 great battles of the world were lost, and the bankruptcy lists are This sum has been placed in deposit at interest with the Bank mci up> b(?cause the loser 3 and flfifenltew are not "up to time." of New Zealand. -g^ a ith oug h the future is glorious because unknown, the GovernI have said that this amount is not included in the expend!- ment doe 3 no( . propoge to avail itself of the elastio margin it ture side of the statement which I have just submitted to the a ff ol .a s . It points to the past with a pardonable satisfaction Committee; as, therefore, the expenditure is shown in that ag proof that itg anticipations and estimates were reliable, and statement to exceed somewhat the income, the question of the resultants of prudent and careful calculations. In accordcourse arises, where did the money come from to enable the ance -^th this spirit I content myself with a moderate estimate refund to be made ? I proceed to explain, and at the same o f the revenue for the year 1867-8, which I particularize thus, time take the opportunity of pointing out the source from vi z .. which not only this sum but a further amount was derived, Estimated Revenue, 1867-8. £ whereby the Treasurer was enabled to effect other repayments Customs 870,000 as well. My predecessor (the honorable member for Gladstone) Bonded Stores 5,000 informed the Committee last year that " there had been expen. Stamps 75,000 diture provided for from other sources than the loan itself, Miscellaneous 134,000 and which must bo returned by the loan;" and, therefore, he first allowed for such refunds, and then stated the balance of £1,084,000 the loan as available at £178,000. I subsequently stated it Whilst however I believe that I have not presented to the at £170,000 ; and the proceeds have, in fact, amounted to Committee a sanguine estimate, I wish equally to guard myself £173,000. Out of the reserve, then, allowed for such refunds, against submitting our estimates below par, under the depressas stated to the Committee last year, and therefore not affecting ing influence of any local commercial crisis. There is a pecuthe amount set down as available for appropriation, and con- liarity in New Zealand which distinguishes her from most other sequently outside the statement of receipts and expenditure Colonies, and cannot fail to strike the financier, whose duty it

4

B.—No. 1a

FINANCIAL STATEMENT.

is to examine critically her capacity. It consists in the number Class VIII. —Miscellaneous ... 39,403 6 8 and variety of the places which are sources of supply to her revenues. New Zealand in fact does not depend on one or two £744,178 7 6 ports only. The consequence is that you are enabled to strike With respect to this proposed expenditure, I remark that, an average, and so calculate with a confidence which would be notwithstanding an increase over the sum as estimated last rash elsewhere. I draw the attention of the Committee to a year, of nearly £40,000, under the head " Permanent Charges," very interesting return (No. I.) which I hold in my hand, it will still be found that the total proposed expenditure for showing the growth of the Customs Revenue of New Zealand this year only exceeds that proposed for last year by the sum for the last ten years, uninterrupted by a single check. The of £6,000. progress is as follows, viz : Hb&B result has been attained mainly by removing certain 1857-8 £138,998 1862-3 ... £488,522 items out of the ordinary estimates, and providing for them as 1858-9 £100,830 1863-4 £617,002 other services of an extraordinary and emergent character 1859-60 £178 117 1864-5 £643,297 may, consistently with sound principles of finance, be provided 1860-1 £204 612 1865-6 £796,227 f°r- lam particularly referring to the item " Defence." Last 1861-2 £339,393 1866-7 £864,668 7ear I estimated the amount for this service to be borne on I believe the Committee may feel a confidence in my figures the ordinary estimates at £70,000. The sum is placed down as based on such progressive returns which they would not feel on the ordinary estimates of this year at only £28,000, and if they regarded some isolated fact only, as for instance that embraces the Militia and Volunteer services only. there was a slight decrease in the Customs Revenue for the last Government has decided, after a very careful consideration, quarter. to **^B this step, which means much more than a mere transfer In further confirmation of the elasticity of the resources of from one set of estimates to another. But whilst the Governthe Colony, I refer to returns of imports and exports (Nos. ment has, as I believe the Committee will agree, wisely 11. and III.) which will be interesting not only to the Com- determined to cease to place the Defence service on the mittee but outside the Colony; from which it appears that estimates as an ordinary department of Government, it is my our export of gold for the last year was £2,605,000 as against duty to doclare > on t]ie part of the Government, that whenever £2,858,000 of the preceding year, and that the grand aggregate the occasion may arise, and to the very fullest extent such of the export of gold from New Zealand, from the commencement occasion may require, they are determined to put in requisition of the gold discoveries to the present date, has now reached the entire resources they can command in order to maintain the upwards of thirteen millions sterling. Peaec of the countr? iv tlle event of its hciaS disturbed. I remark in passing that I anticipate that there will be certain The Government simply judge it to be for the best interests incidental receipts arising from the sale of sundry stores &c.; of the Colony nofc to maintain a P eace establishment of also from instalments falling due in respect of sales of con- Defence a3 olle of the P™nanent institutions of the country, fiscated land effected prior to 30th June, 1867, and of sale of Whllst' however, it must be adnutted that this is a very large certain confiscated lands in the Province of Taranaki. But and lmP° rti™t step to take, and whilst it is not to be imagined these receipts (which are not likely to be large) will not more that the Government is prepared to make any preposterous then suffice to provide for certain charges of a special character, Proposal which shall aim at defining and limiting as between including surveys, &c. I regard them as a special fund, and the different parts of the Colony that which by its very nature consequently have not included them in the estimate of the mu9t be as preposterous, indeed, as it would be for , a canny bachelor to prescribe beforehand the limits of milliners' "\ OiiT t> revenue* " The question now presents itself, how, within such limits of bills; tlle cadem willbe and graciously accepted ~ . , . „. ~ . .. . m token of acquiescence, but when the gift has been used up ordinary income, we can best propose efficiently to provide for '• . f. r> ~ ~, . . ITI ■-, ■ » t>t rr i to -itt the full weight of marital responsibility recurs, and it is flic Colonial and Provincial services ot JNew Zealand r We ~ -, , „ ~ ~ , „ . . „'. ~,.,, . , discovered when too late that the fascination of the moment have finished with the routine statements — the data are , , , ... ~,.,,,, . was the only substantial result obtained by the absurd bargain, ascertained —and we come iaco to lace with the problem ot the _ ,-,,, ~^, . , -~,? _ 1 say that, although the Government is not prepared to hold out day. It is close work. Can we make more room r Can the ... . „ , , .. ~ t . , ,*,,.,«-., i ~ . „., illusory promises of limitation, it ,is a satisfaction to be able to data bo altered? In other words, can the taxation of the . „ . . - _ . ~ , ~ _ . . . _ _ . assure the Committee that the Defence expenditure has now country be increased? The opinion of the Government is, . . . , , .n_-L_# * ij , , . ~ ■.•.., become a decreasing series, and need not, therefore, be regarded that it cannot, and that there is no use looking for relief m that ~, ~ , . . „,. . ...... , , ~ , X. ~ , , , with the same apprehension as formerly. This assurance is direction in order to make both ends meet. On the other hand , , f . _ . * . ~, „ , i, >i j! on. hi i- borne out by the following statement of expenditure for the taxpayer puts the opposite question, ' Cannot the taxation ~ ~,-,. /.,,., -, , . , -,-,„,, T • Colonial Deienco (including advances made during the years of the country be reduced? In reply to the last question, ,„„_,. ~ ,-,. -, ~«,._ X _ . , _ J , _ ,*■ ~ . . ' 1866-7, but excluding advances accounted for) for the financial I am not prepared to say that no alternative nuance might „ „„•„« ,„„„». , , . , . ,-... .*ATT ....... . years from 1858-9 to 1806-7, both inclusive :— be devised in that direction, isut under present circumstances, speaking as a Government, with whom must always rest the r,..., . , , ~ .... . Expenditure in year 1858-9 ... 4,415 15 1 responsibility of endeavouring to the utmost practicable extent l ■ J . -tj. j •*. • - _m • i> i n ,-, ~ », 1859-60 ... 27,076 15 6 to provide tor and maintain in efficient working order all the existing institutions of the State, I have to inform the Committee " " 186°-1 •■• 62,634 10 0 that no reduction in taxation will be proposed by the Govern- . ~. J „ „ 1862-3 ... 203,013 12 8 ment this session. 1863-4 ... 853,146 2 3 With this observation, I pass on to state the proposed expen- 1864-5 886 259 0 11 diture for the year 1867-8, as follows, viz.: — 1805-6 473 348 18 4 £ s. d. „ „ 1866-7 ... 327,180 9 1 Civil List ... ... ... ... 27,500 0 0 That is to say, the Defence expenditure was not much more Permanent Charges 305,818 5 5 than one-third of what it was in the two years 1863-4 and Class I. — Public Domains and 1864-5, when it reached its maximum. Buildings 4,376 4 0 It is also satisfactory to note that the ratio of "Native Class ll.—Public Departments ... 45,025 10 4 Expenditure" is decreasing, as is shown by the following Class lll.—Law and Justice ... 69,892 4 0 statement of expenditure for Native purposes for the financial Class IV.—Postal 155,241 4 0 years from 1858-9 to 1866-7, both inclusive :— Class V.—Customs 44,810 7 6 £ s d Class Vl.—Native 24,058 17 6 Expenditure in year 1858-9 ... 11,109 15 4 Class Vll.—Militia and Volunteers 28,052 8 1 „ „ 1859-60 ... 17,140 8 1

B.—No. U,

£ s. da draw the attention of the Committee to some of the points of Expenditure in year 1860-1 ... 17,800 14 0 interest in this return, which exhibits Tery clearly the past „ „ 1861-2 ... 25,372 711 relationship of colonial and proTineial expenditure. „ „ 1862-3 ... 53,412 19 1 It appears then, that during the period referred to, the „ „ 1863-4 ... 52,599 3 2 expenditure, as borne on the civil list, -which comprises the „ „ 1864-5 ... 60,291 6 9 salaries of all the high officers of state in the Colony, has „ „ 1865-6 ... 49,547 19 0 only grown from £19,000 to £27,500—an increase of less than ~ „ 1866-7 ... 30,751 4 0 one-Half. I believe I may safely say that there is no colony That is to say, Native expenditure for 1865-6 was about one-fifth where there has been such a system of economy (not to say less than it was in 1864-5, when the expenditure of that class parsimony) as in the Colony of New Zealand, so far as the reached its maximum, and for the past it was one-third less than provision for its Executive is concerned. that of the preceding year; thus showing a rapidly decreasing We next come to a charge which lias grown in nine years ratio of expenditure. This reduction, I admit, may bo attributed from £20,265 to £305,365. This item is " Permanent Charges," in some slight degree to the fact that certain services formerly which principally consist of interest and sinking funds ; and has charged under tlie class " Native " were transferred to other become fifteen times larger than it was in 1858. It is an ugly ok sea. At the same time an attempt, of the only kind which item ; you have no control over it; it must be borne like the ills was practicable, has been made in the present estimates to of life; and it is all the uglier, because it is a charge of an introduce an clement of limitation into the Defence estimates, unproductive character; it is, in fact, the condign punishment It consists in charging locally a certain portion of the " Militia of war —a war, however, it must be observed, which was not and Volunteer services," in the manner which will be best sought for by the G-eneral Government, but into which it was explained by a reference to the estimates themselves. hustled, and its charges flung at the Colony no doubt with a The result to which I have referred is also partly due to w-ish for good luck, like the old shoo at the wedding, the careful manner in which the departmental estimates have We now come to the second table, which shows expenditurebeen prepared, for otherwise an estimated expenditure could provincially charged. It consists of recognized local charges, not have been submitted showing only so slight an increase An examination of the growth of this class of expenditure, will over last year as appears in the following figures, viz.: — show that whereas the Auckland local charges have been the Estimated Appropriations, 1866-7. most economical, on the other hand those of Otago have been £738 308 0 0 *^c mo9'' extravagant. It is only reasonable to conclude that _, ~ , , , ... ,n,,*o the ultimate settlement of accounts will show a corresponding Estimated Appropriations, 1807-8. . L £744,178 7 6 difference in results. We next glance at the third and fourth tables, and remark Now, with a proposed expenditure of only £744,178 7s. 6d., up fQ 1864 . 5 ProTinccs were s]lort paid] and that and an estimated revenue of say £1,084,000, it would at first during the j^ twQ yearB> they haye been over . paid . sight appear that there was no ground for the assumption This feet v notewortliy on iwo acC ounts. Ist. Because it is which I just now made, namely, that there was very little coinc ident with the increase of taxation. I refer to an estimate margin, and it would seem that it could not be necessary to (No y according to wh i ch i calculate that the additional relieve the ordinary estimates of the charges for certain services reTenue receiTed during the last two-and-a-half years, in conseand make provision for them elsewhere, and so indeed there qnmce of the increase of the Tariff in 1864; and tho i mpos iti o n would be ample margin, but for tho necessity of making of the Stamp Duties in 1866) hag amounte d to £580,000, and provision for the Provinces—a necessity, however, which I have accord i ng to tue return before us £626,000 has been distributed already stated tho Government recognizes. Here then is our to t]ie p rovinces during the last two years. Now if there had great difficulty—the bete noir of New Zealand financiers—and been no such increase o f t h e taxation, such a distribution could if the present Government succeed in making such a settlement not l, aTe been effected. I doubt, therefore, the wisdom of of this much vexed question as may be accepted by prudent and those! whOj witllin the recesses of t ] ie i r respective Provinces, reasonable men, they believe they will have conferred a lasting declaim against the General Government, as the devourer of the benefit on the country, by removing a great cause of delay, procee( j s o f the taxation of the country. 2nd. Because the uncertainty, and irritation. But this question cannot be dealt principal over-payment (which was that of the last year) was with satisfactorily merely as one of measure, it is one of manner made by a Government which has been attacked on account also, and the one is only second in importance to the other, if, of ita alleged anti-provincial tendencies ; a Government which that is to say, any character of stability is to be stamped on our it now appear3i However, has, without authority of law, actually proposed arrangements. overpaid the Provinces (the proportion of 3-Bths of the gross The results of the past financial relations of the Colony and customs revenue having been paid over to the Provinces for the Provinces can alone afford data on which to base safe thirteen instead of only twelve months within the past year, a proposals for the future. Now, lam not going to travel over year whiell may henceforth be recorded in the almanac of the the ground which I took in 1865, when I endeavoured to Colony as "The Provincial Leap Year"). The Committee may expose the defects of the system of distribution of surplus sanction this proceeding or it may not; but certainly this would revenue, as settled by " The Surplus Revenue Act, 1858." The be a dro ll conclusion to arrive at, viz., that a Government, arguments I then used, to show that the effect of the system was exceeds the law to aid the Provinces in their embarrassto keep the public accounts in a chronic state of arrears, and mcntj ; s at tlle Bame timo seeking tne ir destruction. lam cause sums to be distributed under the delusive character of reminded of a domestic complaint of ill-usage once brought surplus sums when in fact no available surplus existed, have before a police court, which, after cross-examination, was not been controverted, and are, I believe, incontrovertible, reduced to this, " Well then, your honor, he gave me such a But it is indispensible, before proceeding to propose any new l oo k!" I need hardly inform the Committee that the court arrangement, to take a retrospect of the past. With this object dismissed the case. I have had a return (No. IV.) compiled, consisting of four if fairly judged, these over-payments to Provinces ought to tables, exhibiting the annual authorized expenditure for colonial be regarded as the reductio ad absurdam of the present and provincial services respectively; also, the annual amounts surplus revenue system. distributable to the Provinces compared with those distributed. Another striking result is, that whereas £1,597,842 was all I do not vouch for the entire accuracy of this return, but the that was distributable under the Surplus Revenue Act since its errors, if errors there are, are proportional, and will not commencement to 30th June last, there has actually been invalidate the conclusions I seek to deduce from it. The return distributed the sum of £1,781,531; showing an over-payment extends from 1858 (the year in which the Surplus Revenue Act amounting to £183,689, and therefore due by the Provinces to was introduced) to the end of last financial year. I propose to the public revenues. 2

5

FINANCIAL STATEMENT.

«.—No. IA,

6

FINANCIAL STATEMENT.

This very interesting return gives us a bird's-eye view of the particular attention of the Committee to my observations) wm ■whole progress and result of the relative colonial and provincial decided to be made in order that the Provinces might be placed expenditure of ordinary revenues since 1858. Before quitting in the position of being able themselves to make a provision for it, I contrast the grand totals, and if the amounts of provincial outlying and road districts of a character as permanent as that charges and surplus revenue distributed be added together it will which, according to the explanation I have just given, is now be found that the total of provincial charges amounts to contemplated by the proposals of the Government to be made £2,762,000, and that of colonial chai-ges to £2,348,000 ; thus for the Provinces themselves. In further support of the general showing an excess of provincial over colonial charges amounting exposition wliich I have just given of the principles on which to £414,000. (It will now be quite apparent to the Colony, the financial policy of the Government has been based, I where the proceeds of its taxation have been absorbed.) It will proceed to develope our particular proposals, and begin with— be seen that if the sum of £183,689, above referred to as ue scm man w«. buih , , tjie CONgoIIDATION or pkoviNCIAL LOANS. overpaid to the Provinces, had not been so overpaid, the _ . , . , r , , , . ~ It is almost unnecessary to say one word to prove the revenues of New Zealand (exclusive oi territorial revenue) would , . J J; , - - , , , necessity of some such measure. Perhaps no measure has been have been nearly equally shared between the Colony on the ~ ~ , ~ , . , ~ . ~ ~ J H J . , , . more distinctly called for by considerate men of all parties, one hand and the Provinceson the other, during the last nine , , ~. * ~ J .. ~ „ , , , , , b by the public Press, and by those friends m Lngland who watch years; and it is patent that the amounts hitherto appropriated ~ „ . , ~ „,, ~ , . i , . . , T , . „ J ' F m a -3 the financial operations of the Colony with interest. It is sufllfor provincial services have not more than sufficed to provide ... ~ ~, ~ T , , , j. * , - . . - cicnt to say that the appearance on the London market of a for the payment of the interest and sinking funds on provincial . , „ ~ .. ..„, ... r J , , . . . great vanetyof paper, all secured on diuVrcnt parts oi therevenue loans and the eener;il maintenance of provincial administration. „., „ , „,.,,. . , ... , . . h l . of the Colony, all bidding against one another with the lender Unless, therefore, it be decided to force on fundamental changes. - .. . , . , . .. . , , ~, ~ ~, . ' ""olc ' » 'of capital, has had (as it must have had) a disastrous effect on ■which may be effected in either of two ways, according as either , ,„ .., — , ~ , . .. . } . -. 6. the credit of the Colony generally, and has resulted in very Dartv holding extreme views may be dominant: that is to say, , , , , m ~ . „ l»ujr jiuiuui,, iii i ,T „, , serious loss and embarrassment. Two years ago this House the Provinces may be cast adnll and left absolutely to take care . , ... ~ 9 ~, ~ t .-, -r, P wu, j.iuv.iiv.c» may uv «»"u> j awoke to a sense of the evil, and prohibited the Provinces from of their own loans and credit, and brought face to face with . . . ~ , . t, , in v>* »uv & exercising any further borrowing powers. But a general call the people, by being obliged to tax them directly for the special , , , ~ _, ~ , ~ ....,.., f■ ' ' b b ~.,./ , has been made on the Government, to which it would fail in its purposes of provincial administration (in which event the cost , , ._ , „ . ~, , n] , , rl * . ~ ~,...,,, duty to the Colony it it did not respond, to go still further of the necessaries of life might be considerably diminished by a ' * j . JT^.-. ■ , ~ 7. . ~ , ° ' and to deal with the outstanding engagements into which reduction of indirect taxat.on)-or the General Government may ProTinceg ]iaTO already entered _ jdo not conceal from be cast adrift, the colonial debt be disintegrated, and the pay- mygelf ag objec( . ]mg been thought) ft ment of its interest and sinking funds parcelled out as a charge depend Qn the princip i e of the measure for its aeeompUshment on different portions of the Colony, and the General Govern- whether ft meet & general acceptance from the House _ ment reduced to a ahadow-nomims umbra. Unless, I say, one j tek(J i( . tha( . moat men are agreed upQn point &at fte or the other of these extreme views be adopted, it follows that credi( . of th(j whole Colony gha]]) some form or he some such distribution of revenue as that indicated by the impreaßed upon the proTincial securities, but I foresee that it results of the investigation we have now been pursuing must be d;fficulf . tQ avo;d awakening a very natural jealoußy on 111 the part of those Provinces which have been chary of their The present Government, speaking as a Government, desires to credit) and most econom i ca i i n their expenditure, unless it steer a course between these two extremes ;it seeks to preserve be clearly prov ia e d that each Province shall still bear its own the unity of the Colony. It wishes to maintain existing b ur( j cng . t h a t whilst the consolidated revenues of the whole institutions in a state of efficiency, provided those charged with Co i ony are mortgaged as a security to the outside creditor, still, their administration are willing to be controlled within prudent a 9 between the Provinces themselves and the General Governbounds. It does not intend to propose an alteration in the ment) t]le charges occasioned by the provincial debts shall system according to which the Parliament of the country has fall upon the Province's by which, and in the prohitherto been the great taxing medium ; and it proposes to port ; onß - m w hich, these debts have been incurred. In order to create an interest common to the Colony and the Provinces in see t h at this principle has been rigidly adhered to, it is necesthose very considerable revenues derived from such taxation. sary to road together the Consolidation Bill and those clauses. It takes still broader views, and is unwilling that the unity of of the Public Revenues Bill wliich relate to payments of revenue the Colony should remain a mere idle name, and desires that j- o p rOT ; nces the powerful combination expressed in that term should be There is anot her point in which the interests of the Provinces made to yield its legitimate financial results, by putting in are concerne d wn ich has received much attention. Various motion the vast power of a common credit, which is now op ; mong have been expressed as to the actual saying, both of • frittered away and wasted by being exercised provincially. But pr i nc ipal and of annual charge, which may be effected by such in order that such results may be obtained, it is indispensable measure . am i Borne o f those opinions have been sufficiently that the Government of the Colony should exist as a reality with extravagant. I will not waste your time by speculation which large controlling powers. must be o f doubtful value; but I may say that by ordinary Influenced then by the above considerations, and guided by skill and prudence a very appreciable saying may probably be the results of the investigation wliich have just been traced out, effected in the burdens of the Colony. The question may, the Government now proposes to the Committee that the con- however, be fairly asked, who is to have the advantage of any solidatcd revenues should be divided equally between the Colony such savings ? and I will briefly reply, that the measures of and the Provinces. It only remains for me to show the precise Government are framed with the object of relieving the revenues effect of this proposal in figures. Stating then one-half the of the Provinces to the full extent to which any saving can be consolidated revenues at £542,000, as available on the one effected, either of principal or annual charges, and that the side for colonial, and on the other for provincial services, and General Government forgoes all participation in the profits of taking the colonial expenditure at £540,267, it will bo seen that the transaction. There were several proposals which naturally there is only a very bare margin left. Again, taking the pro- presented themselves to our minds when considering the nature vincial charges at £204,173, I find a balance of £337,827 of the measure it would be our duty to propose, available for provincial appropriation ; and comparing this 1. One plan was simply to affix to the provincial securities, amount with that which would be yielded by three-eighths as they stand, the imprimatur of the General Government— Customs Revenue, viz., £324,000, the result ought to be merely to give the endorsement of the Colony to provincial regarded as one very favourable to the Provinces in measure, and, paper. We rejected that plan mainly for two reasons; first, as will be explained presently, favourable in manner also. because we should then merely have enhanced the value of the This proposal of the Government I observe (and I invite tho property in the hands of private individuals, without gaining

13.— No. la.

anything for the Colony or the Provinces; and secondly, made applicable to the other Provinces. The inference thus because we should have still left that inconvenient variety of became inevitable that no greater restriction ought to be placed paper upon the market which perplexes the capitalist, and raises on the Province of Southland than that imposed on other PromMs mind that sort of doubt which must always be paid for vinces, and it is accordingly proposed that the public lands of by so much per cent. Southland should not be tied up to a greater extent than 2. Another possible plan was that of a compulsory recall of those of other Provinces affected by the proposed measure. all provincial paper and its exchange for colonial debentures. I 4. There was a fourth plan, which was not overlooked by need hardly say that we did not think it necessary, and there- us in entertaining this question. It was to consolidate the fore did not think it wise, to run the risk of damaging our credit debts, not only of the Provinces, but of the Colony, and by any such shock to the feelings of the creditor which he would include the whole in one large loan ; and there were not have equally conceived it to be, even if we had forced him into wanting many good arguments in favour of such a scheme. a favourable bargain. We rejected it, however, for many reasons which appeared of 3. There remained, therefore, but one other course, and that sufficient weight. First, we could not make such a plan cornwas a voluntary purchase and exchange of proviucial for colonial plete, because a part of the debts of the Colony is guaranteed by securities, and that is the plan which the Government has the Home Government, and therefore could not be called in; adopted. When I say voluntary I mean voluntary on both and secondly, we do not think that this is the time to disturb sides —on the part of the Government as well as of the holder of our operations more than is absolutely necessary. Nor did provincial paper. For whilst on the one hand we hope to be there appear to us to be any sufficient pecuniary advantage to able to offer the holder of provincial debentures such an im- be gained by replacing one form of debenture by another, the proved security as shall induce him to part with them either for security for the two being identical. It seemed not impossible casli or for colonial debentures, on the other hand it is necessary that any small pecuniary advantage anticipated might be more to take care that the Government shall not place itßelf in a than destroyed by the appearance of performing an operation, position which may enable the creditor to force it to accept the object of which might not be very intelligible to the offers which are not as favourable as the Colony has a fair right money-lender. The contingent gain might be but small, the to expect. We propose to raise a loan with a maximum limit, loss from unnecessary tampering with existing securities would but which is to be raised only as required and to the extent re- certainly be appreciable, and therefore we abide by the safe quired for purchasing the provincial paper ; and we propose maxim quiela non movere. that all Buch purchases shall be made in cash or by exchang- I desire to point out that reading the Consolidation of Loans ing colonial for provincial debentures by agents in England or Bill and the Public Revenues Bill together, it will be seen that elsewhere upon the best terms which can bo obtained. But we we offer to the creditors only the consolidated revenues of the do not think that, when the Colony comes forward with the Colony as a security, and we take the current payments of offer to enlarge the security upon which these debts have been interest and sinking fund out of the provincial share of the incurred, it ought to allow the holders to wait an indefinite consolidated revenue. These provincial loans, however, lmve time before availing themselves of the offer. We are not dis- been mostly raised on the security of the land revenue, we posed to allow speculators to wait until the very offer of the have therefore provided that where the provincial share of the Government shall have enhanced the value of their claims, and consolidated fund falls short, the General Government may then to expect to obtain from the Government the higher price immediately come upon the land fund of the particular Province which the operations of the Government itself will have created, which is in default. The creditor, therefore, whilst nominally We therefore propose to limit the time during which holders of having only the security of the consolidated fund, has really provincial paper can come in and avail themselves of our offer ; that of the land fund as well. I think the Provinces generally and after that, to exclude them from all the benefits of the will prefer that the repayments of interest should be taken in proposed consolidation. Three years is the timo to which wo this manner than that the General Government should stop propose to confine these operations, and I tlu'nk we may fairly them out of the land fund in tfie first instance. Financially anticipate that in that time the great bulk, if not the whole, of course it would make no difference ; but there is a strong of the provincial securities will have disappeared from the feeling in favour of having the land fund paid over directly market, and that the financial engagements of the Colony will day by day to the provincial chest, winch we do not wish to be restored to an intelligible basis. disturb, and see no necessity for disturbing. But we have not forgotten that some of the Provinces have I have explained the financial bearings of the measure, but entered into large engagements upon the faith of raising it has political consequences wliich ought not to pass unloans which have not yet been fully negotiated. Wo propose noticed ; and I take the opportunity of recording my opinion to place Buch Provinces in the same position as they would that, should this measure become law, insular separation will have been in had this Act not been passed. It is clearly have become well nigh impracticable. of no use that such Provinces should be allowed to issue Closely connected with the measure for the consolidation debentures, which will immediately afterwards have to be of the provincial loans is the Public Revenues Bill. The two bought in. We therefore propose to raise money under this must be read together, for they are inseparable parts of the Bill to the extent to which any provincial loans are still scheme of financial policy which we propose. I shall endeavour unraised, and to pay over that money to the Province. briefly to state the objects of this measure. First, when wo In distributing the payments amongst the Provinces of propose to undertake the provincial debts as a colonial liability, the interest and sinking fund, we propose to charge against and to recoup the general chest out of Provincial revenues, the each Province the exact sum for which the General Government question is immediately forced upon vs —What does provincial has made itself liable by the extinguishment of its debt, revenue consist of? Are we to rest satisfied with the uncertain That is to say, if we can buy a £100 debenture of Otago for arrangements existing under the Surplus Revenues Act ? The £80, we shall charge against Otago the interest and sinking Government has, as I have before explained, at length come fund on the £80 of debt which the General Government to the conclusion that the system of distributing the surplus has incurred. And we propose to stop out of the provincial revenues requires to bo reconstructed. Again, we are of opinion revenues, every month, one-twelfth part of the annual sum that the whole system under which the accounts of the Colony thus due to us. are kept requires to be simplified, and that the control and Before, however, leaving the subject of Consolidation of the audit of the public moneys requires to be more effective. We provincial loans, I must not omit to explain the provisions of have had forced on us a variety of points, in which the the Bill, as specially affecting the Province of Southland, operation of the Comptroller's Act is inconsistent witli other Whilst preparing this measure, it was impossible not to perceive parts of the financial system, and these are matters which that the principle of the legislation introduced two years ago, must be dealt with in order to avoid the utmost public infor the special relief of Southland, was, by the present measure, convenience. The Committee will therefore perceive that the

7

FINANCIAL STATEMENT

B.—No. 1a

8

FINANCIAL STATEMENT.

time had arrived when it became the duty of the Government to the House that these debts should disappear together with I o review the machinery by which the public moneys are the Act out of which they have arisen. We propose to abandon managed, and, if possible, to consolidate all the law upon this this claim altogether on the part of the Q-eneral G-overnment. great subject into one comprehensive, simple, and intelligible If, however, we were simply to pass a sponge over the entry, statute. That is the purpose of the Public Revenues Bill, and justice would not be done as between Provinco and Province, which it will be my duty to propose, and which will be placed The Provinces have been all over paid, but not all in the samo in your hands without delay. proportions. Simply to cancel the debt, therefore, would bo Subsequent opportunities will present themselves for ex- to take from one Province in order to give to another. We plaining in detail the provisions of this measure. The Bill propose, therefore, to abandon this claim on the part of the may be considered as having two distinct parts. I anticipate Government, but to require some Provinces to pay such sums that all that part which is principally of a technical a s shall adjust the amount fairly between all. The General character will meet with the unanimous approval of the House, as Government will stand in the position of a liquidator, and will lam certain that its results will that of the country. The other pay to some Provinces the whole of the amounts which it part, which comprises what may bo called the new policy receives from others, and we shall ask that a short Bill shall be introduced by the measure, will be found, and is wholly contained, passed, stating specifically the sums to be received and paid in three clauses under the head of " Revenues payable to by each Province in final liquidation of the account. There Provinces." is one exception to this. It is the case of Marlborough, which I need hardly say, after the elaborate explanation I have I think requires the special consideration of the Committee, already given the Committee, that we propose to repeal the Under the operation of the Surplus Revenues Act, Marlborough Surplus Revenues Act. No one, lam sure, will contend for the stands indebted to the General Government on the whole maintenance of a law, the operation of winch has to be sua- account from 1858 to 1867. That is to say, her share of the ponded whenever it acts differently from what was supposed, surplus revenues is some four or five thousand pounds less Siidi a conduct of financial affairs must end in the worst than nothing. She has been paid about £7,000 as surplus embarrassment. We, therefore, propose to replace the existing revenue, and in the proposed adjustment of the account law by a new arrangement. We propose to retain one-half of Marlborough would have to refund about £12,000 to other the consolidated fund permanently as the revenue of the Provinces. Now it is impossible that Marlborough can pay General Government, and to settle one-half, with certain deduc- this money. The sum, therefore, for distribution will be t ions, permanently on the Provinces. Those deductions are : — deficient by that amount. The fairest arrangement seems to be first, for the cost of services voted by the House, but provincially that it should be divided equally between Wellington and Nelson, charged; and, secondly, the annual charges to which the General because it is owing to the fact that the customs duties on goods Government will become liable on account of the purchase or consumed in Marlborough are to a certain extent paid in-Nelson exchange of provincial debentures. and Wellington, that the account with Marlborough assumes a We propose also to make SO entire change in the manner character so different from that of all other Provinces. We of computing the sums payable to the Provinces, and to make have, in fact, thrown upon Marlborough the same proportional the account relate solely to past cash transactions. For example, charges as upon other Provinces; whilst she is accidentally or Bay in the month of February, as soon as the accounts arrive f rO m other causes deprived of the revenues by which those from various parts of the Colony, the Treasurer will make up charges are to be met; whilst the revenues are infringed on by ;n i account of the half of the actual sums paid into the con- two of her neighbours, the expenditure borne on those revenues soli dated funds in each Province during the month of January, ; s voted by the House;' that is, the pro rata share of the and of the actual sums expended on account of general services general charges, and the cost of the general services provincially provincinlly charged during the same mouth, and the difference charged, have been larger than the total amount of the will be the sum belonging to_ the Provinces for the month of revenues received. The total sum is not large. Both January. If there is anything due from the Provinces on Wellington and Nelson, which, if matters remain as they are, account of interest for its debentures bought and charged under wou ia have to refund considerable sums to the General the Consolidation Act, that will be deducted also, each month, Government, will, even after the special arrangement as regards at the rate of one-twelfth of the annual charge Now this Marlborough, have to receive instead of to pay money. Theirs account will absolutely close all transactions between the General will not, therefore, be a case of hardship. The total result of the Government and the Provinces up to date. No money will operation will be as follows: — ever be paid in advance, no balance left unpaid. The account £ depending on past cash transactions, instead of on future contin- Auckland wfll have to receive 25 380 gencics, will be absolutely closed month by month, and I Wellington 4 815 venture to say that this result will be equally acceptable to Nelson 615 the General Government, to the Provinces, and to the public ; — Canterbury 618 to the General Government, whose finance will no longer be n!»lructed, and its accounts mystified, by engagements difficult £31428 to be ascertained and never settled; to the Provinces, who „ . - , , . . . Un the other hand, will no longer be tempted to extravaganco by the anticipation of "hearing something to its advantage" in the annual balance _, ...... b ° ° . Taranaki will have to pay 376 sheet, or irritated by the prospect of having to refund sums _ ~ „ . ....,, . . -.. - .^ . liawkes ±>ay „ ... ... ... dul which it had overdrawn in enforced ignorance ot its real _ ° Otago „ ... ... . . 25,140 position; and to the public, who may possibly begin to Southland 5 fill understand something of the manner in which its money is disposed of, which any one but a most accomplished accountant Thu9 <*" total slmla received and paid over in liquidation of must despair of doing under our present system. this d°ht of £183,688 9s. 6d., will be found only to amount to I have said that the Provinces are at present indebted to ' " ' the General Government in a sum which somewhat exceeds Altogether, Mr. Carleton, I think this may be considered an £183,000. At a time when an entirely new arrangement is unusually pretty transaction, for every party to it comes out being introduced, and a new system of accounts inaugurated, satisfied. The General Government assumes the dignified it would be extremely embarrassing if the simplicity of the new attitudo of Paterfamilias hushing the clamour of his nine system were destroyed, and its working spoiled by the retention children, who were expecting to be punished, by a judicious on our books of engagements which cannot fail to be a subject distribution of sweetmeats, which he himself disdains to taste. of irritation between the General Government and the Pro- Each of the nine Provinces must needs be pleased with the vinces. Wo hare, therefore, thought it wise to propose sharo allotted to it, when it regards the following statement

FINANCIAL STATEMENT.

9

B.—Xo. 1a

of sums due by the Provinces, under the Surplus Revenues Act, the permanent debt of the Colony. On the contrary, when it yJjj . is borne in mind that under the provisions of the loan j) Eg, £ g , d. Consolidation Act power will be taken to recoup to the Colony Auckland 17 954 15 11 c sum °^9ilT £43,000 advanced to the Province of Southland; Taranaki 4 026 710 a^80» 'na'' there is every reason to hope that the amount Hawke's Bay 4 657 7 7 P"* down for contingent defence will not be required, for it is "Wellineton 10 297 18 10 on^7 an emergency vote (although one that must be provided Nelson 4 526 12 11 f°r)> anc^ when it is further borne in mind that there are sums Harlborough 12,063 12 6 amounting to £34,000 which appear on the estimates of this Canterbury 36,006 15 6 Tear > but arc °^ an exceptional character, and therefore, not Otaco 80,445 4 2 likely to recur every year, I think it may be fairly anticipated Southland 13,709 14 3 tnat if tne Committee consents to our proposal that the sum _ of three millions sterling should be raised under the Act of £183 688 9 6 1863, the Treasury Bills to which I have referred can be This transaction will close the whole of the operations provided for without still further increasing our permanent under the Surplus Revenues Act. debt- At anT rate> 1 do not sec how otherwise the contemBefore I proceeded to the explanation of the proposal for P lated provision for the Provinces can be effected this year; division of the ordinary revenues of the Colony, I alluded to' an <""* if it be not, I do not see how the Provinces can meet their arrangement for relieving those revenues of certain charges engagements, an event which must re-act disastrously, for a and observed in effect that unless some arrangement of the sort time at least> on the whole Colony. were made a system of retrenchment alone would not suffice to From the consideration of the losses sustained by the Colony in enable such a scheme of division to be put in practice this the negotiation of the loan of 1863, I naturally pass on to that year. The Commiteo will have anticipated from the tenor of of the position of the Colony as regards the claim of the those observations that it would be necessary to take up a Imperial Government, for the two questions are dependent on further sum of money. lam now going to explain the each other. exact proposal of the Government in this respect. With It is well known to the Committee that the Imperial Governreferencc to the loan of 1863, it may be here stated broadly that ment have from time to time been most urgent in their desire when the whole of the temporary 8 per cent, bonds are taken up, to adjust outstanding accounts, in which they have been met the Colony will have issued three millions of debentures, on by a like anxiety on the part of successive Colonial Governments, which the discount is upwards of £260,000. An attempt was made towards such adjustment by the appointNow the Government do not propose asking for a new Loan ment of Mr. Crosbie Ward as agent in 1863, and Mr. Reader Act; for the Act of 1863 is held to confer the legal authority Wood subsequently, who placed themselves in personal communecessary to raise three millions sterling. But it will ask for a nication with the home authorities. These attempts were not further Loan Appropriation Act to provide for the following successful, and the Colonial Government, finding the Imperial extraordinary services ; which I may observe are of a character Treasury persistently urging a settlement of past and accruing consonant with the original appropriations of moneys to be claims, determined to evince the readiness of the Colony to meet raised unclcr that Act, viz.:— these demands, and instructed the Crown Agents to hand over £ to the Imperial authorities £500,000 in New Zealand Colonial Telegraph Extension ... ... ... 47,412 Securities. Before long, however, the necessity of appointing a Marine (Lighthouses) ... ... ... 19,725 Commission to examine into these accounts became apparent. Defence ... ... ... ... 109,025 At the close of last year Mr. Commissary-General Jones was Taranaki Debentures 38,750 appointed on the part of the Imperial Government, and my Contingent Defence ... ... ... 45,000 honorable friend Major Richardson, a member of the Executive Government, was commissioned to represent the Colony. I Amounting to £259,912 lay upon the table a report of the Colonial Commissioner on When the proposed Loan Appropriation Bill is introduced the claims of the Imperial Treasury, and also copies of corcstimates will be brought down showing the estimated ex- respondencc which has taken place in connection with this penditure in detail, but I take the present opportunity of subject. stating that one-half of the sum of £109,000, set down against It will not be necessary that I should do more than just the item " Defence," is for liabilities, and, therefore, not a summarize the results, as honorable members will immediately recurring charge. be in possession of the documents themselves. The claims of I also take this occasion of giving explanations of the the Imperial Treasury stretcliing back to 1848 amount to the sum proposals of the Government with regard to Taranaki. There of £1,304,963 9s. 3d., composed as follows : — are two financial matters to be adjusted with regard to that £ s. d. Province. Capitation Charge for Imperial 1. With regard to the Taranaki Debentures, I may state Troops 353,817 10 0 that they form, part of the compensation already awarded ; the Compound Interest Capitalized Aninterest has always been paid by the Colony, but the existence nually ... ... ... 167,278 7 1 of those debentures is an obstruction to further operations of Advances for Colonial Troops ... 582,156 17 7 the Province with the Bank which holds them. It is proposed Miscellaneous 201,710 14 7 to take them up. 2. In 1856 a sum of £36,000 was allocated to that Province £1,304,963 9 3 out of the half million loan. Of this, £20,000 without interest The Colonial Commissioner, after carefully considering these and £16,000 with interest. To the present date a subsidy has charges, and the grounds on which they rested, was of opinion been paid of £2,200 per annum by the Colony to the Province that the sum of £516,130 12s. sd. was inadmissable, thus reducof Taranaki in lieu of land revenue. On final adjustment ing the claim to £759,621 14s. 7d., up to September, 1866. A of the question of handing over the confiscated lands, this few weeks prior to the forwarding of the Colonial Comsubsidy would cease, and the interest and sinking fund on missioner's report on these claims, the Imperial Commissioner £16,000 become chargeable to the Province, leaving on the returned to England, for reasons which may be found in the transaction a relief to the Colony of £3,160. correspondence above referred to ; and in consequence it was If the Committee accede to our proposed loan appropria- not possible to proceed any further in the investigation. I may lions, I believe that it will not be necessary to attach the here mention, however, that the counter claims of the Colony, £150,000 Treasury Bills authorized to be issued last year, to with schedules attached, have been forwarded to the Secretary 3

E.-No. la.

10

FINANCIAL STATEMENT.

of State for the Colonies. The amount of these counter claim It must be confessed, however, that the whole affair has, from is as follows, viz.: — the very first, being surrounded with great and special diffi- £ s. d. culties, and I very much doubt whether any other administrators Colonial Debentures sold at par ... 500,000 0 0 could have effected more. Much, indeed, has been achieved; Military Roads 102,875 9 10 and had the original calculations been less sanguine, the Proportion of River Transport Charges 97,329 011 subsequent disappointment would have proportionately Miscellaneous 206,652 411 diminished. Nevertheless, on large grounds of policy, the Government has, after a very careful consideration of this £906,856 15 8 subject, decided to propose to the Committee that the conIt will now appear that, on the supposition that the sums fiscated lands should, with certain limited exceptions, and comprising that counter claim will not be much, if at all, affected subject to conditions as to fulfilment of engagements with by examination in the Imperial Treasury department, there will Natives and others, be handed over as speedily as possible to remain due by the Imperial Government, on a final adjustment, the respective Provinces for their beneficial administration, the sum of £147,235 Is. Id., and here the question would rest, and free of all claims for past special expenditure. In a coloviewed as a mere matter of account; but, as the Colonial Com- nizing point of view, I believe this proposal will be hailed with missioner has very properly observed, there are claims which the satisfaction by the Provinces of the North Island. In a financial Colony may justly prefer, and which lam sure Great Britain point of view, lam not going to pretend (hat any great boon will not be slow to recognize, arising out of the peculiar con- is being proffered. There are some who are sufficiently neetion which existed between the Crown, the Colony, and the sanguine to believe that a considerable revenue will be derived Native race, at the time when these liabilities were incurred, from this territory. For my own part, I candidly confess that, The nature and extent of these liabilities are dealt with in the judging from the past (during which the cost has far exceeded report of my honorable friend, which I commend to the atten- the proceeds), I cannot arrive at the same conclusion. Ncvertion of the Committee as a monument of patient and impartial theless, the colonizing opportunities which will be thus afforded research. to the Provinces, cannot, I think, be valued too highly. A Bill But I must be allowed to draw attention to the fact that the on this subject will accordingly be introduced to give effect to Colony has expended and become charged with in aid of the this proposal. suppression of the rebellion against the sovereignty of the I cannot however dismiss the consideration of this and the Crown, the following sums : — two preceding topics without adverting to the policy of 185G ; £ s. d. and I particularly ask those who may be inclined to regard The Colony has actually expended 2,725,660 18 8 our proposals as over favourable to the North to give their Is charged by the Imperial attention for a short time. In 1856 the Colony adopted the Treasury with £1,304,963 17 1 policy of localizing the land revenues, and declined to reserve for itself even such a proportion of that revenue as might be £4,030,624 15 9 regarded as a royalty. In this respect, no less than in others, It is a duty incumbent on me that I should make this public there is a fundamental difference between the financial policy statement, whilst lat the same time express a belief on the part adopted in the United States of America and that pursued of New Zealand that the Imperial Government will, upon a ™ ew Zealand. In America, not only do they regard the careful review of the whole circumstances, extend that con- customs duties as general revenue (and if any tax is of a sideration to the Colony which would materially aid it in the general character it is certainly customs duties) but also struggle it is now making to get out of the embarrassments territorial revenue ; whereas in New Zealand we have localized created by the war. customs revenue as well as territorial revenue. As this is a I approach another disagreeable sequence of the loan of 1863. very interesting subject I will cite before the Committee a It was within the original scope of the policy of 1863 to nigh authority ; I quote from Kent on American Law. "By charge certain expenditure locally. This intention was carried th° Act of Congress of September 4th, 1841, c. 16, ten per out by the Legislature of 1865 and 1866. During the past cent- °f tne B*4 proceeds of the sales of the public lands financial year it was incumbent on the Treasurer to recoup l° be made- subsequent to the 31st December, 1841, within certain interest and sinking funds from the Provinces of the tnc limits of the States of Ohio, Indiana, Illinois, Alabama, North Island. I regret to have to inform the Committee that Missouri, Mississippi, Lousiana, Arkansas, and Micliigan, are I have to a great extent failed in my endeavours to enforce to be paid to those states respectively ; and the residue of these recoveries. I can also assure the Committee that this these net proceeds, subject to certain provisos, divided halffailure did not arise from any want of efforts on my part, yearly among the twenty-six states of the Union, and the The Provinces of Auckland, Taranaki, and Hawke's Bay, pleaded district of Columbia, and the territories of Winseonsin, lowa, their inability to make the payments ; and the Government, an(l Florida, according to their respective federal representative not being prepared to drive those Provinces into embarrass- population, as ascertained by the last census, to be applied by ment, decided not to enforce the claim until Parliament the Legislatures of the said states to such purposes as they should have considered the question. I have now to state should direct." that it is one of the proposals of the Government to relieve the Hut in order to ascertain what has been the financial effect Provinces of the North Island from the payment of this special of the policy of 1856, I refer to a very interesting comparative debt. I am ready to admit that, so far as the Province of Return (No. VI) of the Imports and Exports, and Territorial Wellington is concerned, the reasons why she should be and Ordinary Revenues of the North and Middle Islands released from this allocated debt are not so cogent as they r6spectively. There is not time now to do more than just, are in tho case of the other three Provinces. The Govern- glance at this statement. But when I inform the Committee ment, however, believes that the Committee would not be that the figures show that from the year 1856-7 to the 30th disposed to mako any exception (and the amount is com- June last, the Middle Island has received as territorial revenues paratively inconsiderable) ; if, that is to say, it should approve in excess of that of the North Island (I repeat the words, "in of the general scope of the financial policy of the Government excess of that of the North Island,") £3,154,635, the full which is intended to be one of final provincial adjustments, effect of that policy is perceived; and the South would do Thero still remains one more subject to bring under the well to recollect these figures when proposals are made to consideration of the Committee. It is also a legacy of the hand over certain territories (all encumbered as they are) to policy of 1863. I refer to the confiscated lands. Great expee- the Provinces of the North Island, and to relieve those tations were once entertained, but these have been disap- Provinces of the charges of certain allocated debts arising pointed. I wish I could say that the administration had been out of the transactions under the loan of 1863; and also altogether satisfactory, cither to the Colony or the Government, when it is proposed to raise the full amount of three millions

B.—No. la.

FINANCIAL STATEMENT.

11

sterling. For it is necessary to take the discount into consi- pensee. A bargain is a bargain, all the world over. But, when deration, to bring up the figures to an equation. I mean, questions cognate to, and arising out of a former bargain come that the amount of territorial revenue received by the South, to be settled it is not only competent but often necessary to in excess of that received by the North, will (if three trace the effects of such a bargain. millions sterling be borrowed) about equal the amount of the Sir, I have nothing more to add ;I am afraid I have by this debt that will then have been incurred on account of Che time wearied the Committee—l am quite sure I have wearied war in the North Island. The figures are significant, and the myself—without, however, exhausting the various important following question forces itself on our notice, " But for the subjects which have come under consideration, and certainly policy of 1856, would the loan of 1863 have been necessary?" without doing them justice. 1 can only commend the financial The imports and exports and ordinary revenue tables of this proposals of the Government as a whole to the favourable statement also contain an instructive lesson, for they show that consideration of the Committee; believing them to be just and during the first half of the period under examination, up to conciliatory, and therefore wise ; and moreover calculated, if the era of gold discoveries in the South, the North not only accepted in the same spirit in which they are intended to be kept pace with the South, but, for the greater part of that submitted by the Government, to impart a substantial character period, contributed much the largest share of the revenues of to the credit of New Zealand which it has never yet attained, the country. It would be well to bear in mind that prudent °lJy remains, Mr. Carleton, for me to move, "That a sum people act as though " what has been may be again." not exceeding £5,000 be granted lo Hoi- Majesty to provide for Let me not, however, be misunderstood. I guard myself the reception of His Koyal Highness the Duke of Edinburgh, against being supposed to have raised this question, cither on on the occasion of his visit to the Colony of New Zealand." behalf of the Government or.independently with any arriere

Return I. RETURN of the GROSS CUSTOMS REVENUE for each Quarter, from September Quarter, 1857, to the Quarter ended the 30th June, 1867, inclusive.

Financial Yeae 1857-8. Financial Yeae 1862-3. September Quarter ... ... £31,251 "| December „ 34,730 V £138,998 September Quarter ... ... £94,754 December „ ... ••• 118,526 i- £488,522 March „ 127,465 June „ ... ... 147,777 J March „ 31,126 June „ 41,891 J Financial Yeae 1858-9. Financial Yeae 1863-4. September Quarter ... ... £40,420 December „ ... ... 38,199 £160,836 March „ 41,884 June „ 40,333 J September Quarter ... ... £145,594 "^ December „ ... ... 171,001 [- £617,002 March „ 147,778 June „ 152,629 J Financial Yeae 1859-60. Financial Yeae 1864-5. September Quarter ... ... £41,491 "j December „ ... ... 44,607 | |. £178,117 March „ ... ... 46,298 June „ 45,721 J September Quarter ... ... £140,872 December „ ... ... 150,995 } £643,297 March „ 167,690 June „ 183,740 J Financial Yeae 1860-1. Financial Yeab 1865-6. September Quarter ... ... £45,790 December „ ... ■• 51,359 ■ £204,612 March „ ... ... 52,236 June 55,227 J September Quarter ... ... £180,160 "| December „ 198,418 | i- £796,227 March „ 208,794 j June „ 208,855 J Financial Yeae 1861-2. Financial Yeae 1866-7. September Quarter ... ... £66,935 1 December ,, ... ... 86,406 - £339,393 March „ ... ... 98,050 June „ ... ... 87,942 J September Quarter ... ... £199,452 1 December „ ... ... 227,253 | }- £864,668 March „ 220,183 June „ 217,780 J Custom House, Wellington, lGtli August, 18G7. William Seed, Secretary and Inspector.

B.—No. U.

Return II. RETURN showing AMOUNT and VALUE of GOLD EXPORTED during the Financial Years from 1856-7 to 1866-7.

FINANCIAL STATEMENT.

12

1856-7. 1857-8. 1858-9. 1859-60. 1860-1. 1861-2. 1862-3. 1863-4. 1864-5. 1865-6. 1866-7. ToTAt. Ozs. Valu Auckland Value. Ozs. Value. Ozs. | I Value. 029. Value. Ozs. Value. Ozs. Value. Ozs. Value. I Ozs. Value. Oza. Value. Ok. Value. Ozs. Value. Ozs. Value. 4,337 13,689 3,910 11,878 3,853 11,627 5,410 16,197 4,368 8,847 Nelson 8,873 34,381 10,772 41,745 27,720 107,491 135,275 524,199 168,044 651,173 ... Otago ... 3 1 'm to •3 I I ■p I I 4 491,686 1,905,284 537,817 2,084,039 309,576 1,199,610 203,850 789,919 154,973 600,521 .2 Marlborough .& 7,205 27,919 22,424 85,878 2,418 9,373 532 2,061 Canterbury "o 1 o m 23 91 57,025 226,573 390,238 1,512,093 337,837 1,309,120 Southland 1,625 6,297 8,791 34,067 Total... 976 3,7* | 976 3,784 17,220 66,730 9,482 36,747 6,147 23,818 6,341 24,568 449,279 1,740,956 504,896 1,631,179 738,816 i ,2,858,078 674,545 3,388,027 £13,110,675 1,953,354 £559,727 2,165,672 420,598 2,605,789 1 I The year 1862-3 is the first in which the produce of the several gold fields is shewn separately. J. "WOODWAED, Treasui , 17th August, 1867, Assistant Treasurer.

B.—No. la.

Table III. RETURN of the Value of IMPORTS and EXPORTS for each PROVINCE for the Year ending 30th June, 1867.

RETURN of the VALUE of IMPORTS and EXPORTS for each PORT of NEW ZEALAND for the Year ending 30th June, 1867.

13

FINANCIAL STATEMENT.

Value op Expobts. Peotince. Value op Imposts. Auckland ... Taranaki Wellington Hawke's Bay Marlborough* Kelson Canterbury Otago Southland ... Chatham Islands ... £ s. d. 1,109,641 0 0 50,622 0 0 720,409 0 0 75,075 0 0 12,655 0 0 429,959 0 0 1,759,748 0 0 1,825,700 0 0 196,003 0 0 257 0 0 £ s. A. 268,894. 0 0 1,116 0 0 239,643 0 0 73,300 0 0 52,556 0 0 243,162 0 0 2,470,964 0 0 1,086,164 0 0 142,948 0 0 95 0 0 £6,180,069 0 0 £4,578,842 0 0 * This does not include the Wairoa returns of last Quarter, which have not; yet been sent in.—W. S. Office of the Commissioner of Customs, Wellington, 31st July, 1SG7. William Seed, Secretary and Inspector.

Poets. Value of Imports. Value of Exports. Auckland ... Wangarei Kussell Mongonui ... Hokianga ... Kaipara New Plymouth Wangimui ... Wellington Napier Wairau Picton Havelock ... Nelson Wentport ... Brighton Grey mouth... Hokitika Okarito Lyttelton and Christchureh Akaroa Timaru Oamaru Dunedin Inyercargill... Bluff Harbour Kiverton Chatham Islands ... £ s. d. 1,085,489 0 0 1,068 0 0 740 0 0 6,634 0 0 15,710 0 0 50,622 0 0 57,088 0 0 6G3,321 0 0 75,075 0 0 6,992 0 0 5,658 0 0 5 0 0 426,701 0 0 3,258 0 0 237,507 0 0 661,928 0 0 8,452 0 0 800,422 0 0 7,423 0 0 44,016 0 0 15,990 0 0 1,809,710 0 0 148,679 0 0 20,944 0 0 26,380 0 0 257 0 0 £ s. a. 247,023 0 0 160 0 0 175 0 0 2,761 0 0 16,314 0 0 8,461 0 0 1,116 0 0 11,749 0 0 227,894 0 0 73,300 0 0 43,020 0 0 7,922 0 0 1,614 0 0 69,109 0 0 106,504 0 0 67,4#9 0 0 614,060 0 0 1,191,529 0 0 14,150 0 0 496,818 0 0 154,407 0 0 90,746 0 0 095,418 0 0 139,574 0 0 3,374 0 0 95 0 0 £6,180,069 0 0 £4,578,842 0 0 Office of the Commissioner of Customi "Wellington, 31st July, 1867. "William Seed, Secretary and Inspector. 4

FINANCIAL STATEMENT.

B.—No. la.

14

Return IV. RETURN showing the ANNUAL EXPENDITURE authorized by the General Assembly for COLONIAL SERVICES, out of the ORDINARY REVENUE, for the Financial Years from 1858-9 to 1866-7.

1858-9. 1859-60. 1860-1. 1861-2. 1862-3. 1863-4. 1864-5. 1865-6. 1866-7. Totals. Graxd Total. £ s. d. 19,000 0 0 £ s. d. 19,000 0 0 £ s. d. 19,000 0 0 £ s. d. 19,000 0 0 £ s. d. 25,000 0 0 £ s. d. 27,500 0 0 £ s. d. 27,500 0 0 £ s. d. 27,500 0 0 £ s. d. 27,500 0 0 £ s. d. 211,000 0 0 £ s. d. Civil List Permanent Charges, Interest, &c. Annual Appropriations 20,565 19 1 27,717 12 0 21,591 8 3 30,207 18 1 70,799 6 4 20,901 2 10 65,772 9 7 35,473 0 11 92,226 17 8 79,139 8 4 108,437 7 5 96,055 4 5 152,212 6 8 108,196 1 2 120,794 1 1 186,451 8 8 329,623 9 6 305,365 17 9 330,458 13 1 873,739 11 5 1,263,480 15 1 Total 67,283 11 1 ■ ■ — 513,574 18 2 009,321 10 10 [105,673 12 5 146,699 18 7 1212,576 15 9 [275,797 11 1 1 |256,490 2 3 | [£2,318,220 6 6 RETURN showing the Annual Expenditure authorized by the General Assembly for Provincial Services, out of the 0: from 1858-9 to 1866-7. IDINAET REVE] stje, for the Financial Tears Auckland Taranaki Hawke's Bay Wellington ... Nelson Marlborough Canterbury ... Otago Southland ... 11,972 15 11 1,341 12 5 747 14 3 7,391 7 10 6,229 14 11 11,960 3 6 1,445 14 4 1,529 1 1 6,816 0 7 5,410 16 9 395 6 9 6,130 3 1 3,651 0 3 14,783 1 10 1,482 3 8 2,320 2 1 8,270 2 3 4,862 2 0 1,064 7 2 8,340 1 2 5,798 4 1 452 9 8 18,261 0 8 1,967 6 4 2,737 10 8 10,306 13 8 6,852 14 3 1,501 5 3 12,321 17 6 18,289 3 2 1,995 13 2 19,521 3 7 2,552 15 1 3,643 3 6 10,324 2 7 6,067 13 3 2,280 18 8 16,166 18 2 44,832 2 9 4,626 1 9 24,428 1 9 2,696 3 7 3,872 17 0 11,152 4 7 7,007 7 0 3,535 16 10 22,485 11 5 57,262 6 11 17,256 3 0 28,954 8 10 3,344 0 10 3,033 18 4 12,258 17 6 6,813 16 4 3,462 19 10 23,852 6 10 48,815 18 3 10,228 6 1 39,704 13 0 4,547 7 3 5,685 7 8 16,753 13 2 9,329 3 10 9,344 17 6 43,396 16 6 76,850 11 2 14,097 15 10 30,334 18 2 199,920 7 3 3,436 10 2 22,813 13 8 4,726 0 11 28,895 15 6 15,882 9 6 99,155 11 6 8,343 10 4 60,946 18 8 5,205 5 11 26,790 17 11 45,387 11 0 183,997 5 2 43,662 1 2 303,029 9 1 7,484 17 11 56,141 7 5 5,915 19 6 3,868 1 4 Total... 47,372 13 11 74,233 4 8 141,394 12 10 £981,691 6 4 37,467 6 2 37,338 6 4 110,014 19« 4 149,696 12 1 219,710 5 11 164,463 5 1 RETURN showing the Annual Amount distributable out of the Oedinary Revenue as Sueplus Revenue, to the credit of the Provinces, for the Financial Tears from 1S58-9 to 1866-7. Auckland Taranaki Hawke'g Bay Wellington ... Nelson Marlborough Canterbury ... Otago Southland ... 20,643 6 2 2,069 7 6 1,442 7 0 20,664 3 9 4,553 3 6 31,620 13 7 2,557 1 7 3,721 7 4 17,656 3 1 7,168 4 6 118 10 2 17,874 14 10i 14,270 18 5 22,672 15 3 4,005 16 9 1,855 6 0 12,237 17 7 6,375 6 11 111 4 2 13,599 13 2 15,733 8 7 338 16 7 36,960 10 5 2,692 14 0 3,566 14 7 16,536 11 3 8,860 13 4 633 7 2 20,007 8 9 76,388 17 8 3,605 15 8 43,758 3 11 62,387 7 11 2,746 2 5 4,823 15 9 2,898 14 11 : 4,813 12 3 18,130 19 8 21,064 1 6 9,967 17 7 11,476 14 0 60 16 11 Dr. 18 13 10 28,362 19 10 39,820 9 6 103,832 11 1 114,235 5 2 20,027 11 3 24,931 6 5 103,216 5 3 8,129 3 1 9,236 5 1 31,410 15 2 16,637 6 5 3,592 1 2 50,701 18 8 103,016 5 8 15,203 7 9 28,098 1 8 2,651 8 1 5,533 8 9 24,690 19 7 15,550 15 7 Dr. 6,G23 13 11 72,979 0 9 Dr. 310 19 4 Dr. 2,494 4 6 27,601 8 1 376,958 12 3 2,070 19 11 31,746 9 1 4,825 2 l! 37,892 18 0 23,606 1 11 185,997 13 6 18,663 18 2 99,254 0 0 Dr. 1,989 11 8 Dr. 4,115 19 10 60,591 14 lli 318,591 13 5 47,376 19 1 481,077 1 5 8,827 10 9 70,440 3 11 14,65312 Hi 6,533 15 1 Total... 70,559 15 lli 94,987 13 7i| 76,930 5 0 229,785 17 7 283,533 18 8 140,074 16 8| 191,574 3 3! |£1,597,842 11 9 169,252 12 10 ■3 11,1 13 8 3 RETURN showing the Annual Amount distributed out of the Oedinaey Revenu: from 1858-9 as Sueplus Revenue, to the credit of the Peovinces, for the Financial Years ;o 1866-7. Auckland Taranaki Hawke's Bay Wellington ... Nelson Marlborough Canterbury ... Otago Southland ... ... ] 18,466 16 3 21,780 14 9 1,825 8 10 2,045 17 10 1,258 9 2 2,676 2 5 ... 15,801 2 5 14,614 17 10 5,671 3 9 5,547 16 7 229 14 4 ... 11,854 14 65 12,919 11 9 5,737 6 6 9,066 15 7 21,780 14 9 2,045 17 10 2,676 2 5 14,614 17 10 5,547 16 7 229 14 4 12,919 11 9 9,066 15 7 34,817 12 11 4,237 6 11 2,551 9 0 18,274 9 2 7,305 6 4 601 18 0 20.G98 16 3 19,687 2 1 28,780 12 1 2.846 6 9 3,179 14 5 14,273 2 8 7.847 17 5 399 15 2 16,806 16 6 51,804 5 4 3,439 17 7 42,120 13 0 3,169 16 3 3,376 16 0 15,779 7 6 8,925 11 4 57,457 16 4 4,088 5 5 4,752 9 8 17,766 16 8 11,359 8 3 74,208 7 1 6,470 12 2 7,065 8 2 31.694 4 5 13,397 13 10 1,918 16 4 43,463 2 9 98.695 10 4 12,359 11 0 63,325 14 10 5,669 8 2 8,225 1 11 29,381 1 7 18,251 14 5 2,126 16 5 83,773 4 9 67,325 11 3 10,909 6 2 53,955 0 11 5,419 14 7 9,464 14 10 38,710 10 1 25,471 1 0 2,670 12 5 101,433 15 6 87,551 8 2 14,048 0 6 394,913 8 2 35,772 16 11 42,550 5 7 196,295 12 4 103,780 12 11 7,947 12 8 354,598 8 11 561,522 5 7 84,149 18 2 26,496 18 5 100,414 19 7 14,247 10 1 37,151 8 5 121,239 3 9 29,115 12 10 £1,781,531 1 3 Total i ... I 60,615 1 6j| 68,881 11 1 108,174 0 8 1282,961 1 4 1 289,273 6 1 ! 288,991 2 6 338,724 18 0 129,378 7 11 214,531 12 2 J. WOODWARD, Assistant Treasurer. Treasury, 17th August, 1867.

FINANCIAL STATEMENT.

B.—No. la.

15

Return V. RETURN showing the INCREASE to the CUSTOMS REVENUE by the New Customs Act of 1864.

1865. 1866. G) 1867. Total. £ £ £ £ Spirits 81,332 90,100 44,391 215,823 Cigars and Snuff... 4,445 4,291 2,716 11,452 Tobacco 33,636 42,234 20,451 96,321 Wine •'" 14,630 11,986 4,832 31,448 Ale, Beer, &o. 17,478 16,869 8,067 42,414 Tea 19,706 23,265 9,806 52,777 Coffee, &c 3,062 2,903 2,114 8,079 Sugar, &c. 34,005 37,770 16,664 88,439 Total 208,294 229,418 109,041 546,753

B.—No. la.

16

FINANCIAL STATEMENT.

Return VI. STATEMENT exhibiting the ANNUAL IMPORTS, EXPORTS, ORDINARY REVENUE, TERRITORIAL REVENUE, and ORDINARY and TERRITORIAL REVENUE united, of the NORTH ISLAND and MIDDLE ISLAND respectively, for the Financial Years 1853-4 to 1866-7.

1.—Imposts. 1853-4. 1854-5. 1855-6. 1856-7. 1857-8. 1858-9. 1859-60. 1860-1. 18G1-2. 1862-3. 1863-4. 1864-5. 1865-6. : 1866-7. Total. North Island Middle Island £ ... 555,806 ... 188,707 ... £744,513 622,664 531,164 229,666 230,145 £ 544,054 306,808 £ 636,265 429,888 £ 733,981 611,406 £ 787,197 762,485 852,736 1,168,336 £ 1,105,339 2,454,607 1,380,508 ! 1,916,826 4,444,817 I 4,845,526 £ £ 2,456,958 2,285,658 3,590,543 3,459,096 £ 1,874,230 3,990,379 £ 16,283,386 26,712,409 Total ... 852,330 1 761,309 850,862 1,066,153 1,345,387 1,549,682 2,021,072 3,559,946 5,825,325 j 6,762,352 6,047,501 1 5,744,7,54 5,864,609 42,995,795 2.—Exports. North Island Middle Island Total ... ... 271,429 40,642 ... £312,071 264,102 79,263 230,028 109,488 204,876 135,787 208,697 237,057 202,436 265,737 253,529 316,690 231,474 748,126 239,508 1,656,982 320,693 506,539 536,308 2,033,361 2,936,645 3,020,747 475,025 3,641,437 668,276 4,585,853 4,647,541 20,373,194 343,365 339,516 340,663 411,133 j 502,794 570,219 979,600 1,896,490 2,954,054 J 3,443,184 j 3,557,055 4,116,462 5,254,129 25,020,735 3.—Oedinaey Revenue. North Island Middle Island Total ... 75,452 19,893 ... £95,345 86,485 24,428 83,165 26,250 92,082 38,841 110,111 56,535 120,560 73,174 127,224 93,512 142,916 135,669 165,496 190,812 250,644 434,447 256,480 522,449 345,639 381,618 530,535 629,881 362,717 745,645 2,510,757 3,581,903 110,913 109,415 130,923 166,646 193,734 220,736 278,585 416,140 625,259 778,929 876,174 ' 1,011,499 1,108,362 6,122,660 4.—Teeritorial Revenue. North Island Middle Island Total ... 83,419 40,368 ... £123,787 73,192 48,372 30,907 38,331 33,535 50,150 44,034 82,462 53,159 148,682 58,655; 67,993 170,166 j 213,564 61,017 411,074 47,538 513,080 63,983 555,603 80,024 71,153 527,381 567,084 58,995 555,472 827,604 3,921,792 121,564 69,238 83,685 126,496 201,841 228,821 j 281,557 472,091 560,618 j 619,586 607,408 638,237 614,467 4,749,396 5.—Beventje —Ordinary and Territorial. North Island Middle Island 158,871 159,677 114,072 125,617 154,145 173,719 185,879 210,909 226,513' 60,261 72,800 64,581 88,991 138,997 221,856 263,678 349,233 661,718 ... £219,132 232,477 178,653 214,608! 293,142 395,575 449,527 560,142 888,231 1 238,350 320,463 425,663 947,527 1,078,052 1,057,919 1,185,877 j 1,398,515 11,483,582 452,771 421,712 1,196,965 i 1,301,117 3,368,361 7,503,795 Total ... 1,649,736! 1,722,829 10,872,156 1,185,877 J 1,398,515 1,483,582 J. WOODWAED, Assistant Treasurer. Treasury, 17th August. 1867.