FINANCIAL STATEMENT BY THE HON. THE COLONIAL TREASURER.

Appendix to the Journals of the House of Representatives, 1868 Session I, B-01a

B.— No. la.

FINANCIAL STATEMENT BY THE HON. THE COLONIAL TREASURER.

IN COMMITTEE OF THE WHOLE HOUSE, Ist SEPTEMBEB, 1868.

WELLINGTON.

1868,

B.— No. la,

FINANCIAL STATEMENT.

B the Honorable JOHANn Hall, ALLt September, 1868.

On the llouso going into Committee of tho whole, Mr. HALL said, —Mr. Carleton, if it is usual for the person upon whom it devolves to furnish tho annual statement of the financial position of the Colony to bespeak from the Committee an indulgent hearing, I think that the circumstance* under which that task devolves upon me give mo a claim to a more than ordinary measure of such consideration. I need hardly tell tho Committee that I have to speak of financial depression—that, for the first timo in the history of this Colony, its revenue exhibits a falling off, corresponding but too truly with the general commercial depression which we know to exist throughout (lie Colony. I labour also under personal disadvantages, having but very recently undertaken,, and being but temporarily in charge of the office of Treasurer, and having had to discharge its functions at the same time ■with the ministerial and parliamentary duties of my own department. I feel sure, however, that I shall be aided in tho discharge of tho duty now before me by a large measure of that indulgence of which I have had abundant experience during the time I have occupied a seat in this House. I will promise the Committee, in return for this favour, that my statement shall be as short as I can make it, consistently with a clear explanation of the important facts of which tho Committee and the Colony will be anxious to he informed. It will probably be for the convenience of the Committee that I should recall the anticipations put before it last year by the Colonial Treasurer in his financial statement, and the proposals which he submitted, and which received tho sanction of Parliament; that I should show the extent to which those anticipations and proposals have been realized and carried out; that I should then explain to the Committee the provision which the Government believes to be required for the service of the current year; the means by which that provision should be attained; and the manner in which the Financial relations of the General and Provincial Governments should be adjusted. I will refer first to that new system of keeping the Colonial Accounts, and of ascertaining the amounts payable to the Provinces, which was introduced by the Public Revenues Act of last session. That Act became law on the 10th October,. 18G7, but its operation extends back to the commencement of the last financial year, namely, the Ist July, 1867. We have heard in some quarters expressions of dissatisfaction at the working of this Act; it is complained that it has not placed tho Provinces in possession of their accounts as soon as was promised, although it has undoubtedly done so sooner than heretofore, and that full payments of sums due have not been punctually made. Ido not deny that the Act requires modification, and tho Government hopes to receive, during the present session, such a report from a Departmental Commission which has been appointed on tho subject of the accounts as will enable it to propose substantial amendments. No doubt the Act has introduced improvements into tho Colonial Financial System, but in doing so it has set to the Department by which it has to be administered a task of the arduous character of which the Committee is probably not fully aware. It not only imposes upon tho Treasury itself a very largo increase of work, to be discharged with a promptitude never before required in New Zealand Finance, but it lias extended to the 420 Receivers of Revenue, and the 3CO Paymasters and Sub-Paymasters scattered throughout tho Colony, the duty of keeping in many cases two, and in some cases four sets of accounts, and of rendering these accounts monthly. Any failure on the part of any of these officers to keep the accounts of the several funds entirely separate, or any error in these accounts or in one of the 60,000 vouchers and receipts sent up by them, gives rise to corrections, correspondence, and loss of time. It must bo obvious that tho getting into complete working order so extended and complex a machinery must necessarily be a work of much time and great labour, if, indeed, considering the qualifications of a great portion of tho agents by whom it has to be worked, it can eror, without considerable modifications, realize tho expectations of its projectors. The difficulties I have referred to were immensely aggravated by the time at which and manner in which the Act was brought into operation. When it became law, one quarter of the financial year was already closed and a second was commenced under the old system. It was impossible to make arrangements for the adoption of the new accounts, including the preparation of books and forms, and the instruction of the various officers at head-quarters and throughout the Colony, until the Ist of January. Then the accounts for the first half-year, which had already been made up, had to be entirely reconstructed upon the system laid down in the new Act —a work of very great labour, especially as it had to he carried on simultaneously with the ordinary duties of tho department. This work has only recently been completed. These difficulties were further increased by the necessity for adjusting a number of unsettled accounts extending back over several years, for which tho Public Revenues Act mates no proper provision. It was only after these obstacles were overcome—which has recently been accomplished, at the cost of an amount of continuous exertion on the part of the officers of the department which I confidently assert has not been exceeded in any establishment in the Colony—that the new system can be said to have started, and since that time the monthly statements' and payments have, with one exception, been furnished within the time required by law. In future there is no reason to apprehend that the required accounts will not bo forthcoming with reasonable punctuality. lof course except that period of difficulty for the Treasury accountants which elapses between the expiration of one Appropriation Act and the passing of another —during which the expenditure of the Colony cannot be classified in the books of the Treasury, because no classification has been established by law. During this period the account-keeping must necessarily fall into arrear, the effects of which will be felt for somo time after the passing of the Appropriation Act; but during this period payments will be made to the Provinces as nearly in accordance with the amounts which will ultimately be due as it is possible to estimate them. In spite of tho drawbacks I have enumerated, I am now enabled to lay before the Committee detailed accounts (A.) of the Receipts and Expenditure Table A of the Colony for the past financial year, within the time prescribed by Jaw, and at a much earlier period than has ever yet been accomplished. This is tho earliest date at which such accounts have ever been published, and the first occasion on which the Colonial Treasurer has ever been able to embody them in his financial statement.

FINANCIAL STATEMENT.

B.—No. 1a

4

TaMo B,

The Committee will, doubtless, agree with, me that the comparatively advanced period of the session to which it has hitherto heen found necessary to defer the Financial Statement is a source of considerable public inconvenience, which ought, if possible, to be obviated. It may be done in two ways—namely, either by postponing the meeting of Parliament to a later time of the year, or by making the financial year terminate sooner, and in either case mating provision in the Appropriation Act for carrying on the service of the Government for six weeks after the termination of the financial year. The Government will, hereafter, submit a proposition on this subject. The next point to which I will ask the attention of the Committee is the subject of the claims and counterclaims of the Imperial and the New Zealand Governments. At the time the last financial statement was made there were large disputed accounts outstanding. The mother country claimed from the Colony £1,304,963. The Colony claimed from the mother country £906,856. There did not appear much probability of cither claim being paid, but their existence was a source of "dissatisfaction, and of serious injury to the Colony. The Committee is aware that these claims arc now settled by each party giving to Hie other a release from all further demands. This settlement cannot, in my opinion, be looked upon as any concession on the part of the Imperial Treasury. It is no doubt an advantage to the Colony to have cleared out of "its way a large and formidable claim, consisting though it did of charges which in many instances were quite untenable, and in some actually preposterous, but still a claim urged with all the weight and authority of the Imperial Government, and one the continued existence of which could not but seriously affect the Dfinancial credit of the Colony, For these reasons I think it is a source of satisfaction that these accounts can now be considered finally closed on the terms I have mentioned, although I believe that, if the case could have been referred to an independent and impartial tribunal for determination upon considerations of equity and good conscience, and upon a comprehensive review of all the circumstances of the case, Sow Zealand would have been pronounced a creditor of the mother country to a very large amount, I cannot leave this subject without referring to those persons who have chiefly contributed to the settlement which has been arrived at—to Mr. Weld, who, by the transmission of £500,000 of Debentures, when w^e had nothing else to send, satisfied the Imperial Authorities of the anxious desire of the Colony to discharge to (he utmost its honorable obligations; to my honorable friend the Colonial Secretary, to whom is due the ercdit"of having first asserted the counter-claims of the Colony; to the Hon. Major Richardson, for having, in his valuable and elaborate report, supplied an array of facts and evidence in support of the Colonial claim, without which that claim would doubtless never have been successful; and finally to Mr. Ktzherbert, for the judgment, perseverance, and tact with which he combatted the serious opposition which our claims encountered, and for the success with which his efforts were ultimately attended. Our acknowledgments are also due to the present Secretary of State for the Colonies for the considerate and liberal manner in which he has dealt with the question, and which forms a remarkable contrast to the conduct of the Imperial Treasury. The Committee will doubtless be as glad as is the Government to hid a final adieu to this unpleasant and'unprofitable subject. I now come to the Estimates submitted to the Committee last year of the ordinary revenue of the Colony, and have to show to what extent those estimates have been realized. In doing this 1 quote from the Public Accounts of the Colony for the financial year' ISG7-GB, already laid upon the Table. It is well known that the revenue has fallen short of the Colonial Treasurer's anticipations. The case stands as follows : — Estimated Consolidated Revenue, Actual Consolidated Revenue, 1867-68. 1867-68. £ Custom, 870,000 Customs ' 789,814 Bonded Warehouses ... 5,000 Bonded Warehouses ... 4,80 l Stamps . 75,000 Stamps ... ... 53,405 Miscellaneous ... ... 134,000 Miscellaneous ... ... 127,637 980,707 Eaised by Treasury Bills ... 25,C00 £1,084,000 £1,005,707 This is a deficiency on Customs of £80,198, and on Stamps of £1G,595. The occurrence of an actual decrease in the revenue of the Colony is so novel, I believe so unprecedented a feature in Sew Zealand finance, that it may be apt to create a more unfavourable impression than a careful study of the eircuniBtancea under which it has occurred will at all justify. The year in which this falling-oif has taken place has been one of general depression, not only for this Colony, but for the neighbouring settlements, for the mother country, and indeed for the whole commercial world. It has been a year in which the expenditure occasioned by the presence of large bodies of Her Majesty's troops has been almost entirely withdrawn, and in which the Colony has ceased to feel the stimulating effects of the disbursement of those large sums of money raised by loans, General and Provincial, which^ only now remain to be paid. When these circumstances and others affecting this Colony in particular, such as the reduction to the extent of nearly one-third in the value of wool, which is one of our main articles of export, are considered, I think tho result which I now state to the Committee, so far from being a cause for gloom and despondency, is valuable testimony to tho extent and elasticity of the various resources of New Zealand. The returns (o be attached to this statement will show that trade, although depressed, is intrinsically sound, the total exports being almost on a par with the imports of tho Colony. There arc one or two features in the revenue receipts for the year which appear to deserve the notice of the Committee. The departments with which 1 am more immediately connected, namely, the Post Office and Telegraph, have not only not shared the general depression, but show an increase both, in their gross earnings and in the amount of business transacted by them. " This is eminently satisfactory, as tho business of those departments is considered to furnish a more correct index to the general condition of the people than any other brandies of the public service. The proceeds of Stamps have fallen very short of the amount estimated. To some extent this is no doubt to be attributed to the same causes which have lessened our receipts from other sources, but there is also reason to believe that the use of stamps, in cases where the law requires it, is to a great extent neglected. The Government has under consideration measures for repressing this evil, and has given directions for prosecutions to be instituted whenever and wherever an evasion of the law is discovered. I lay upon the Table a detailed Eeturn of the Duty Stamps sold during the past year ; it shows results both curious and instructive. Jh-om the comparison of estimated and actual receipts, I turn to the subject of the expenditure which has been incurred. The actual ordinary expenditure of tho Colonial Government for 1867-68, exclusive of payments to Provinces amounting

FINANCIAL STATEMENT.

B.—No. v:

5

to £200,683, and of payments amounting to £31,823, chargeable to Provinces under Special Act 3 (as Provincial Interest and Sinking Fund, Provincial Auditors' Salaries, &c), was as follows : — Authorized Ordinary Expenditure for General ■ A.cttta.l Ordinary Expenditure for General Government Services for 1867-GB. Government Services for 1867-68. £ s. a. £ s. a. £ s. d. £ i. d. Civil List 27,500 0 0 19,020 1 3 saving 8,473 18 9 Permanent Charges 314,265 5 5 220,486 11 9 „ 83,828 0 0 Class I. — Public Domains 4,076 4 0 4,434 (i 0 excess 358 2 0 Class II. —Public Departments ... 43,56710 4 40,583 8 8 saving 2,982 1 8 Class lll.—Law and Justice ... 69,143 19 4 59,425 13 8 „ 9,723 5 8 Class IV.—Postal 148,579 9 0 125,855 4 9 „ 22,724 4 3 Class V.—Customs 44,471 7 6 38,527 6 7 „ 5,944 011 Class Vl,—Native ... 23,544 5 10 21,200 19 8 „ 2,313 6 2 Class Vll.—Militia and Vohmteeers 24,538 8 11 18,708 7 2 „ 5,830 1 9 CB«YllL^M«^w^ge<Ml,j. 4B|oßa 0 8 45;02G 11{) n S)0561S10 Audit Committee ... 150 0 0 Expenditure unauthorized by Parliament £02 3 1 £747,774 11 0 £593,578 4 5 £154,190 G 7 This would leave an apparent saving upon the expenditure authorized by Parliament of £154,196 6s. 7d. A considerable portion of this saving is apparent only. Prior to the passing of " The Public Revenues Act, 1867," payments made on account of services rendered in a given financial year, were, as far as practicable, included in the published accounts for that year, although actually made in the year succeeding. In accordance with this custom the accounts for 1866-67 were kept open until the 9th July, 1867, so as to include the salaries for June, which were, of course, not paid until the beginning of July; these salaries appear, therefore, in the published accounts for the year 1866-07. Under the Public Revenues Act, however, the accounts for the year must include only sums actually disbursed during the year; and as the salaries for June, 1868, could not be paid until the month of July, it has not been possible to include tliem in the accounts for 1867-68. Hence the accounts for that financial period will be found to include only eleven months' salaries, and the expenditure of the Colony appears to bo diminished thereby to the extent of about £51,000. lam anxious that this point should be clearly understood, in order that it may not be supposed the Government is claiming as an actual saving what is after all but an involuntary transfer from one year's account to another. There have, however, been actual savings of some considerable value. The expenditure I have stated to the Committee, is that for which duly authenticated vouchers have been received in the Treasury, but does not include sums issued from the Treasury by w ray of advances, but not yet accounted for; this mode cf dealing with the accounts is prescribed by the Public Revenues Act. To arrive, therefore, at the total cash issued during the year, we must add to the expenditure brought to account, the difference between the advances outstanding at the commencement and at the close of the year. This difference amounts, in the present case, to £75,405, making the total issues from the Treasury, for the services above enumerated, £668,983. Deducting the total issues from the Consolidated Fund during the year, for all purposes, from the total receipts, there remains to the Treasury, as shown by the printed accounts, a balance in the Bank of £46,979 15s. lid. Of this sum £25,000 will be required to pay off the Treasury Bills to that amount issued during the past year in aid of revenue : the balance is fairly available for the service of the current year. In addition to this cash balance there also remains to the Colony an available asset in the shape of the advance made sonic time ago to the Province of Southland, and amounting (with interest to 31st December next) to £55,117. This money can now be drawn at any time, having been raised under the Consolidated Loan Act. I shall, when treating of the expenditure for the current year, state how it is intended to dispose of this amount. It has not been in the power of the Government during the past year to take up any of the Treasury Bills issued in preceding years in aid of Revenue. The amount of these Bills now in circulation (exclusive of the £25,000 already mentioned) is £125,000. The amount of the Trust Funds in the hands of the Government is at the present moment larger than it has been at any previous period of the history of the Colony, having reached, on the 30th June last, the sum of £167,000. The increaseis mainly attributable to the extent of the deposits which have been made in the Post Office Savings Banks, which reached £115,000 on the last day of July, and is valuable testimony to the usefulness of these institutions, as well as to the foresight and thrift of a large part of the population. A part of the sum I have named has been invested by the Comptroller in Treasury Bills, a part in Colonial Debentures, and the balance was in the bank on the 30th June last. It has, I believe, been the practice of every successive Treasurer of New Zealand to draw the attention of the Legislature to the fact that Trust Funds had, by his predecessor, been appropriated to the exigencies of the public service, and to express his own steadfast determination to adopt a different course ; this is however the first occasion on which these excellent intentions have been fully realized. Leaving the subject of the current income and expenditure of the past year, I will now lay before the Committee a statement of what has been done under the Finance Acts of last session. The Surplus Revenues Adjustment Act provided that £31,053 10s. 7d. should be paid by the Provinces of Hawke's Bay, Otago, and Southland, to tho Colonial Treasury, and by it paid over to the Provinces of Auckland, Wellington, Nelson, and Canterbury. The payments to the latterProvinces have been effected in quarterly instalments. The contributions of Otago and Southland have been raised under the provisions of the Public Debts Act; and the interest and sinking fund on the sums so raised now form a charge against those two Provinces, in the proportions specified in the Surplus Revenues Adjustment Act. Of the action taken by the Government under the Act for consolidating the numerous loans of the Colony and Provinces, full information lias already been laid before the House. Mr. Fitzherbert, acting in London on behalf of the Colonial Government, has offered to the holders of both Colonial and Provincial Five and Six per Cent. Debentures torms of conversion which, while presenting to those holders considerable advantages, will secure to the Colony and the several Provinces, if the whole of these loans are so converted, an annual saving of interest and sinking fund of £40,000 against which must be set an increase in the amount of capital debt to be ultimately repaid of £385,150. Tho result of this operation, up to the latest dates of which we have advices, is as follows :— 2

FINANCIAL STATEMENT.

B.—No. 11

6

STATEMENT of COLONIAL and PROVINCIAL LOANS converted into Five per Cent. Consolidated Stock with One per Cent Sinking Fund, to 30th June, 1868.

Already, therefore, a reduction in the annual charge upon the Colony on account of its loans, far more than commensurate with the increase of the capital debt, has been obtained ; and there is every reason to believe that the ultimate result of the mission on which the Colonial Treasurer is now engaged will be a further considerable diminution of these annual charges, as well as the accomplishment of that desirable object, the substitution of one description of New Zealand Stock for the great variety of loans by which the Colony, up to the present time, has been represented in the London money market. I feel sure the Committee will agree with mo as to the advantages of such a result, and will concur with the G-overnment in its appreciation of the judgment, care, and zeal displayed by Mr. Fitzherbert in the discharge of the important task entrusted to him, and the successful accomplishment of which, we are assured on the most satisfactory, independent testimony, is mainly to be attributed to his exertions and his ability. In addition to the financial operations in London which I have mentioned, the Colonial Government has, under the provisions of the Public Debts Act, been called upon to provide £27,280 for the payment of debentures issued under " The Nelson Debentures Act, 1858," and which became payable on the Ist July last. These debentures are, by section 2 of the Public Debts Act, made payable by the Colony, but the Act makes no provision for the recovery from the Province of Nelson and Marlborough of the money thus paid; the matter stands over, therefore, for adjustment by the General Assembly. In compliance with a request from the Superintendent of Wellington, twelve months' notice has been given for paying off, on the Ist July, 1869, loans amounting to £50,000, raised under the Wellington Loan Acts of 1854 and 1855, and bearing interest at 8 per cent. This further proof of the value of the provision made by the Assembly for the consolidation of Provincial Liabilities cannot be otherwise than satisfactory to the Committee. By the Public Debts Act, expenditure was authorized for taking up Loans of Southland and other Provinces, and for extraordinary services, such as Lighthouses, Marine Surveys, Telegraph Extension, &c, to the amount altogether of £1,114,000. This sum lias been raised under the Consolidated Loan Act, or rather bonds to that nominal amount have been issued in London, realizing at 97 per cent, a sum of £1,080,580. The manner in which this money has been or will be disposed of is shown by the tabular statement which I beg to lay upon the table. (See p. 7.) In reference to the figures given in this table, I beg to add the following remarks -.-—The payment of the certificated liabilities of the Province of Southland mentioned in this statement has chiefly to bo made in London, and, by the last advices from Mr. Fitzherbert, he was about to take steps for effecting this payment. The Lighthouses, Telegraph Extension, and Marine Surveys, are in progress : the latter work has been seriously impeded by the boisterous weather which has prevailed during the last autumn and winter, and which has been most unfavourable for operations of this nature; the expense of this survey will exceed the estimate by about £3,000. The amount appropriated for Lighthouses, although not actually expended, has been to a considerable extent contracted for, and the full amount of £19,725 will be required. The sum set apart for ordinary Defence service has been expended in the manner and for the purposes shown in the detailed estimates laid before the House last session. These estimates included sums payable on account of pay and rations of Military Settlers, and for expenses incurred in locating them on their land. I need not point out that these items, which have figured so often and so largely in New Zealand Estimates of late years, is a legacy to us from former G-ovcrnments, from the obligations of which we have been powerless to escape. The Committee will hear with satisfaction that, except a trifling payment still to be incurred for surveys, the obligations entered into with the Military Settlers are at last completely discharged, and the gulf in which, year after year, so much of the good money of the Colony has been swallowed, is at length closed. It will be recollected that the sum set apart for Contingent Defence was intended to meet expenditure in which the Government might become involved by renewed Native disturbances. Although events during the past year in the neighbourhood of Opotiki would, in strictness, have justified the expenditure of a considerable portion of this sum, it had, as will be seen by the tabular statement, been untouched, except to a small extent, before the 30th June. Since that date, claims upon this vote have been considerable ; but I still entertain the hope expressed on a recent occasion, that, unless the existing operations assume wider dimensions, or are more protracted than there is at present reason to anticipate, their cost will be covered by the unexpended balance of the vote for Contingent Defence. The Committee will perceive that the .amount authorized to be raised in lieu of unissued Provincial Debentures is in excess of that which lias been actually wanted. This is owing to the fact that, a few days before the Public Debts Act was passed, a considerable portion of the ■Canterbury Debentures, which this Act was intended to cover, had been sold in the London market, of which fact neither the Government nor the Legislature could be aware when the Act was passed. The general result, Sir, of proceedings taken under the Public Debts Act is, that the total sum realized is, owing to the discount at which the bonds were issued, less by £26,000 than the nominal amount authorized to be raised, but is still, for the reasons shewn in the Table I have produced (see p. 7), in excess by about £43,068 of the amount really required for the various purposes specified in the Act. This amount the Government proposes, after defraying the cost of raising this loan, and which will amount to £10,000 at least, to devote to the paying off Treasury Bills now in circulation. The indebtedness of the Colony will therefore not be increased, if the whole sum raised should not be required for the purposes specified in this Act.

Description of Stock. Total Amount authorized by Act. Eate of Interest and Sinking Fund. Amount converted Original Annual Charge on Amount converted Eate of Conversion. Amount when converted. Total Charge for Interest and Sinking Fund after Conversion. Total Annual Saving. Total Increase in Nominal Debt. -r Sinking Interest. Flmd f £ Per cent. Per cent. £ £ Per cent. £ £ £ £ General — 64,300 4,3-14 1181 61,030 3,698 646 7,330 "New Zealand Loan Act, 1860" ... 150,000 6 "New Zealand Loan Act, 1863"... 3,000,000 I 6 1 410,600 24,636 99 i 408,547 24,513 123 Less 3,053 2 861,300 68,904 1131 977,575 58,65-1 10,250 116,275 Provincial — 500,000 " Auckland Loan Act, 1863" 6 467,500 36,600 109 498,675 29,020 6,0S0 ■11,175 11 Canterbury Railway Loan, I860 " 300,000 6 156,400 12,512 109 170,476 10,229 2,233 14,076 " Canterbury Loan Ordinance, 1862" 500,000 6 1 163,800 11,466 109 178,542 10,713 753 1.1,742 " Otago Loan Ordinance, 1862" ... 500,000 4,950,000 0 1 341,300 2,445,200 . 23,891 182,353 109 372,017 2,687,462 22,321 160,048 1,570 22,305 30,717 222,262 Totals

STATEMENT showing the pro rata Distribution of the Amount realized by the Sale of £1,114,000 new Five per Cents, under the various heads of Appropriation specified in the Schedule B. of "The Public Debts Act, 1868," of the Sum actually required under each head, the Sum already expended, the Balance available, and the Surplus or Deficiency, if any.

9 " PS ~ | 1 h si §S |S ? j "8 Its iTEI . VJ o O 1 2 H| I if! S'.S S § »a Ia" ®% % a S"» X & "^ CD a wJ ss aj M Jdo a » $ 5 £ . g i - ?■?« g^ .^! to £ E: r o h . o £■*- 8 s c II '£> tj a a 3 « 3 3 o '.S I 8-B■„■«> g| £ §|

B.—No. JU.

7

FINANCIAL STATEMENT.

Amount of Debentures authorized to "be issued. Pro rata Distribution of Sums realized. Amounts actually required in respect of each item. Amount expended to 30th June, 1868. Balance available for Expenditure. Amount aetuarly raised. Surplus. Deficit. For payments to be made under " The 380,000 Southland ProTineial Debt Act, 1865," and " The Southland Provincial Debt Act Amendment Act, 18C6," any sum not exceeding £ 380,000 £ 368,600 £ s. d. | £ s. d. For debts of Southland, exclusive of debt to ■■ General Government ... ... .., j 285,92-1 5 3 For interest on do. to 31sfc December, 1868... j 51,403 7 1 For balance of debt to General Government I 14,377 6 4 £ s. d. £ s. d. £ s. d. £ s. a. £ s. d. 1*351,701 18 8 351,704 18 8 151,704 18 8 368,600 0 0 16,895 1 4 For liabilities of the Provinces of Otago 32,000 and Southland under " The Surplus Revenue Adjustment Act, 1867," a sum not exceeding 32,000 31,040 For Otago 25,140 8 10 ! For Southland 5,611 17 9 0 0 4 J 0 0 4 31,040 0 0 287 13 5 For a liability of the Province of Southland 42,000 to the General GrOTennnenfc a sum not exceeding 42,000 40,740 | j 30,752 6 7 I 30,752 6 3 For certificate granted 17th December, 1867 j 46.709 11 10 For interest to 31&t December, 1868 ... 8,407 14 6 55,117 6 4 | Less amount charged to first item ... ... 14,377 6 4 40,740 0 0 40,710 0 0 40.740 0 0 For the purpose of Telegraph Extension, 260,000 Lighthouses, ColonialDefence, redemption of Taranaki Debentures, and Marine Survey, a sum not exceeding 260,000 252,200 Telegraph Extension 47,412 0 0 -(-36,407 1 2 Lighthouses 19,725 0 0 3,462 G 9 Defence 109,025 0 0 109,025 0 0 Taranaki Debentures ... ... ... ... 38,750 0 0 Contingent Defence j 45,000 0 0 3,211 13 8 Marine Survey j 3,500 0 0 j 2,786 18 11 203,412 0 0 11,004 18 10 45,393 18 8 16,262 13 3 18,885 8 4 104,384 8 1 38,750 0 0 j 37,100 12 6 41,788 6 4 1 43,084 11 11 713 1 1 I 3,351 0 6 2,018 1 ■ 839 11 I 4,640 11 1 1,649 7 I 1,915 8 : 148 19 I 1 For taking up the total unraised and 400,000 unissued Debentures authorized by the j several Acts specified in Schedule A to this Act, a sum not exceeding 400,000 388,000 ; i Taranaki Debentures £25,000 at 97 per cent, j 24,250 0 0 ' 20,000 0 0 Canterbury ditto 266,600 ditto ! 258,602 0 0 190,000 0 0 Ila-svke's Bay ditto 60,000 ditto 58,200 0 0 30.000 0 0 Nelson ditto 5,000 ditto 4,850 0 0; £356,600 at 97 per cent. 345,902 0 0! Total , £1,032,511 5 3 425,645 6 9 4.250 0 0] 68,602 0 0 28.200 0 0 4,850 0 0 Total £■ 1,114,000 388,000 0 0 42,098 0 0 : 1,030,580 '606,865 18 611,080,580 0 0 159,280 14 9 11,212 0

FINANCIAL STATEMENT.

3.—No. la,

8

I have thus stated generally what has been done under the Finance Acts of last session. With a view of supplying full information as to the indebtedness of New Zealand, I lay before the Committee two tables, showing the position of the debts of the Colony on the 30th June last. The first (B.) gives full particulars of each of the existing loans of the Colonial or of the several Provincial Governments ; the second (C.) shows the actual annual payments required from the Colony and from each Province on account of these loans. There are two subjects which came before the House last session which the Government has again to submit for its consideration, namely, the case of the Province of Taranaki, and the question of the Confiscated Lands. The Committee is doubtless aware of the nature of the claims of the Province of Taranaki arising under the financial arrangements of 1856 According to the terms of that arrangement, £20,000 was allocated to Taranaki, without interest, for thepurchase of Native land, and until the whole sum was expended an annual subsidy of £2,200 was to be paid to the Province Only £4 000 has been expended in purchasing Native lands, and the annual subsidy continues to be paid. V, o propose to extinguish this claim by a special arrangement, which will require a Bill to be introduced for this purpose. The second subject to which I alluded, viz., the Confiscated Lands, is doubtless a most unsatisfactory one to many members of this Committee, and to none more so than to the Colonial Treasurer. In the last session of the Assembly the Government was authorized to expend out of proceeds of confiscated lands a sum of £34,750 to defray certain liabilities and charges in respect of these lands'. These liabilities consist principally of payments for surveys actually executed, of compensation due to friendly Natives for their land included in confiscated blocks, and for which, m most cases, courts of law have decided the cxac't sums they are entitled to receive; there were also payments to be made for public work, contracted for when the confiscated lands were under the management of the Superintendent of Auckland. During the year some new expenditure has been incurred in surveying land for sale ; but the greater part of the outlay has been for obligations actually duo before the last session, or becoming due under contracts entered into before that time; they were in fact 'quite beyond the control of the Government. The sum realized from the confiscated lands during the year has proved altogether insufficient to meet these liabilities; but, considering their origin and character, we have felt it to be a duty to the Colony to take upon ourselves the responsibility of discharging, at any rate, the most pressing of these debts, and upon furnishing this House, as is needful in such cases, at the earliest opportunity, with a full statement of our proceed, ing. of askin* for its sanction and approval. Unpleasant as it may be to see the Treasury of the Colony still drawn upon for an estate which we were led to believe would long since have become a source of considerable income, I feel sure there is hardly one member of this House who will deny that the honor of the Colony required that the obligations I have described should be discharged without further delay; and especially that it would have been a national disgrace if the Government had turned a deaf ear to those friendly allies whose property has been taken from them by the authority of an Act of this Legislature and who have for years been waiting for payment. The total receipts from the confiscated lands during the year, including fees on Crown Grants, has been £11,929. The expenditure has been £26,410. Unfortunately this does not exhaust the subject. The claims already paid are only the most pressing ones ; to discharge the remainder, and complete such surveys and other preliminaries as are indispensable for effecting a sale of the land, will require a sum of £28,000. We are satisfied after careful inquiry, that the confiscated lands will realize at least this amount within the next two years. But the debts of the Colony ought not to remain unpaid for that time, nor can sales be effected unless preliminary expenses are incurred for surveys ; we shall therefore ask the House to authorize the above sum to be advanced by means of Treasury Bills repayable within two years, and made a first charge on the proceeds of the confiscated lands. Tims no expense will eventually be thrown upon the Colony. The subject will be more fully stated to the House by my honorable friend the Commissioner of Customs on a future occasion. In the meantime I lay before the Committee a tabular statement showing the total amount of land confiscated, the amount already disposed of, and the amount now saleable. This statement tends to show that these lands may still return some considerable sums to the Colonial Exchequer. I have thus endeavoured to place the Committee in possession of as full information as time will allow respecting the income and expenditure of the Colony for the past year, respecting the action taken under the important Acts passed during the last session of this Assembly, and respecting the present position of the Colony so far as it is the result of such action. Notwithstanding the period of depression through which we have passed, I cannot but consider the result to be on thewhole highly satisfactory. ~.,.„ , , ~ I now turn to the future. Before, however, proceeding to the estimates for the year 1808-G9, I will briefly state to the Committee the disposition which the Government propoess to make of the £55,117 which, as I have already stated, will be recovered from the Province of Southland during the present year. We propose to devote £15,000 to the erection of a new Government House, and to providing increased office accommodation for the officers of the Legislature and of the Government. As to the necessity for this item, I believe that little if any difference of opinion will be found to prevail. The character and condition of the residence now provided for His Excellency the Governor must be admitted to be discreditable to the Colony • and while in the present condition of the Colonial finances we are as anxious as Parliament can be to avoid any large expenditure, wo believe that a sum of £10,000 (in addition to the proceeds of Lowry Bay, which we hope to dispose oi) is the least that will provide a suitable and commodious residence at the seat of Government for the Representative of Her Majesty. The necessity of further accommodation for officers of the Government as well as of the Legislature, for which the remaining £5,000 will be required, is very obvious. A considerable number of the departments of Government are now located in rented buildings in different parts of the town, an arrangement involving not only a considerable annual outlay, but constituting a serious obstruction to the prompt and efficient transaction of the public business. The Marine Survey, for the reasons already referred to, has proved more expensive than was anticipated ; to meet this outlay, and to complete the survey of the West Coast which is now in hand, a further vote of £3,000 will be required. The completion of the Telegraph to Auckland will probably cost £1,500 in addition to the sum estimated for it last year. For a sum of £7,000 the Telegraph could be extended to Wanganui ; looking to tho important advantages to be anticipated from telegraphic communication between that place and the seat of Government, and to the probability of the line being highly remunerative, the Government will be glad if the House should think right to sanction this work being proceeded with. The remaining balance of about £28,000 the Government proposes should be reserved to meet any extraordinary expenditure which it may be necessary to incur in the suppression of renewed Native disturbances, if such should unfortunately occur. I know that this proposal will meet with opposition in some quarters ; but anxious as the Government is to avoid involving the Colony in any fresh outlay which can with safety be avoided, we feel we should be shrinking from a solemn duty if we did not ask the Legislature to place in our hands the means for dealing so promptly and efficiently with any renewed disturbance as may prevent it being developed into a general outbreak. I will now ask the attention of the Committee to the Ordinary Income and Expenditure of the current year. Alter a very careful consideration of the condition of the Colony, and the circumstances by which its sources of revenue are likely to be affected, I feel justified in estimating that the receipts of tho Colonial Treasury for the financial year ending 30th June, 1869, will probably be as follows : —

Table B. Table C.

Table D,

B.~No. la.

FINANCIAL STATEMENT.

9

£ Custom, ... ... - ■■■ - - 00 Bonded Warehouses ... ... ... ... •■■ ••• G> soo Stamp. Ga> 000 Telegraph 15>000 Port Office 60,000 Miscellaneoui ... ... ... ■•• ■•■ ■•■ 56 >000 1,000,500 The principal item in this estimate, namely, the proceeds of Customs duties, is put down at but little more than the amount which it realized during the past year. Many members of the Committee will doubtless consider that more sanguine anticipations would have been justifiable, and it is undeniable that the extraordinary richness of the Northern gold fields furnishes a strong argument for such an opinion. It is however but prudent to anticipate, from the increasing attractiveness of the Northern district, some diminution in the population and revenue of other parts of the Colony. We have estimated the Customs revenue of Auckland at £25,000 in excess of last year, but we must expect a corresponding reduction in Westland, North and South, and the same may be expected in the caso of Otago. The Stamp Duties may fairly be estimated to yield a larger sum than has been realized during the preceding year, as a considerable amount of legacy duty, the payment of "which could not be enforced before the present time, will be received during the current twelve months. I have next to state the amount of money which, after the practice of that resolute economy with which, as already stated, the estimates for the current year have been prepared, appears to the Government indispensable for the efficient maintenance of the Public Service of the Colony. The estimates are as follows :— Authorized Ordinary Expenditure, 18G7-68. Estimated Ordinary Expenditure, 1863-69. £ £ £ Civil List 27,500 27,500 Permanent Charges 314,265 320,542 increase 6,277 Class I. Public Domains 4,076 2,880 decrease 1,196 Class 11. Public Departments 43,567 37,863 „ 5,704 Class HI. Law and Justice 69,148 ... ■ ... 55,587 „ 13,561 Class IV. Postal 148,579 106,401 „ 42,178 Class V. Customs 44,471 41,781 „ 2,690 Class VI. Native 23,544 12,384 „ 11,160 Class VII. Miscellaneous, Special & Temporary 48,083 30,029 „ 18,054 Class VIII. Militia and Volunteers 24,538 22,183 „ 2,355 Total 747,771 Defence (charged on loan in 1867-68) ... 109,025 47,497 £856,796 £704,647 The only item in which there is any increase, is that of " Charges on Public Loans." This is accounted for by the interest, &c., on the additional sum of £260,000, which, as I have already explained, has been raised for the several services enumerated in the Public Debts Act of last session. In nearly every other class of expenditure there is a decrease, the amount being in many cases considerable. Iliu has not been arrived at without much care and exertion, not merely in the preparation of these estimates, but by a constant endeavour on the part of the Government during the recess to effect reductions and combination of offices whenever and wherever this could be done, and public money could be saved, without real injury to the public service. I have no faith in the economy which is merely attempted during the sitting of Parliament. The largest savings which these estimates exhibit are in the Postal Service, in the departments of Law and Justice, and in the Native and Defence Departments. The diminution in the sum proposed for Postal Services is caused in a great measure by the smaller contribution which, owing to the establishment of the Panama Mail Service, is now made by New Zealand to the cost of that by way of Suez, causing a saving of not far from £20,000 a year. The other steam mail services maintained by the Colony are also fewer in number than formerly; and I have been compelled, though reluctantly, to diminish to some extent the accommodation hitherto furnished'by the inland mail services. The savings on Postal Services amount altogether to £42,178. In the department of" Law and Justice a considerable number of district magistrates have been dispensed with, and other reductions have been effected as opportunities presented themselves. The sum asked for Native purposes is reduced from £23,544, as voted for 1867-68, to £12,384 for the present year. In both cases this is in addition to the £7,000 provided by the Civil List, and to the permanent appropriation of £4,000 contained in the Native Schools Act. It is only fair to state that a portion of the sum provided on the Civil List for Native purposes remains unexpended, and will be drawn if required. The following statement of the outlay on Native purposes during the past ten years will show that this expenditure has been reduced to an extent which will, I think, elicit tho approval of the most ardent economist: —■ Expenditure in year 1858-59 ... ... ■■• ••• 11,109 15 4 „ 1859-60 ... 17.140 8 7 „ 1860-61 l7' 800 W ° 1861-62 ... ... ••• ■■■ 25' 372 7 U „ 1862-63 53,412 19 1 „ 1863-64 ... ... ... - 52,599 3 2 „ 1864-65 60,291 6 9 „ 1865-66 ... ... ... -.. 49,547 19 0 „ 1866-67 ... ... ■•■ ■•■ 30 '751 4 ° „ 1867-68 ... 21,200 19 8 As has been already stated to the Legislature, steps have been taken for abolishing the Defence Office as a separate Ministerial Department. The office of Under-Secretary for Defence has been done away with, and that of DefenceMinister will also be dispensed with within a very short time .after the operations at present being: carried out are brought to a close. The reductions effected last year in the provisions for Militia and Volunteer services were so considerable, that no further savings of largo amount have beon found practicable. The capitation grant for 3

B — Ko. 1a

10

FINANCIAL STATEMENT.

Volunteers throughout the Colony haß, however, been considerably reduced, and if the Legislature should be of opinion that, in consideration of the financial exigencies of the country, the Volunteers may be reasonably expected to forego even thi« reduced allowance, a further saying to the amount of £6,216 ss. may be effected. The remaining expenditure for Defence Office and for the Armed Constabulary is now for the first time charged upon the ordinary revenue of the year instead of upon loan, so that although there is an apparent increase under this head in the ordinary expenditure of the year, the cost of this service has, in fact, been brought down from £109,025, including outstanding liabilities, which was authorized for its maintenance during the year 1867-68, to £47,4,97 for the present year. The Government has reduced to the utmost to which its sense of duty will allow both the numbers and the cost of the small Constabulary Force which a regard for the peaca of the Colony precludes it for the present from entirely dispensing with; but having brought down this cost to the amount which it has now reached, they believe that it should be borne so long as it continues indispensable, as one of the ordinary burthens of the Colony, and Bhould not be allowed to add to its indebtedness. This remark applies only to the ordinary annual cost of the Constabulary Force, and not to any extraordinary outlay which may be entailed upon us by tb.B suppression of such disturbances as those which have recently occurred on the West Coast. The total amount, Sir, required for the services charged on the ordinary revenue of the present year is less by £152,149 than that voted for the sam» services during 1867-68. I fear that these savings, large as they are, will not satisfy those advanced financial reformers, whose objects I entirelj sympathize with, but whose zeal appears to me in many eases larger than is their information as to the effect which their suggestions would have on the subjects with which they are dealing. The Government believes that in the course of time further reductions may be attained in the cost of the public service, but they do not think that further immediate savings to any extent can be effected without real injury to the public interests. At the same time they will welcome any practical suggestions which may be made to them on this subject, and will give them their candid and careful consideration. There is, however, one direction in which I think that such additional savings should not be looked for, namely, any farther general reduction in the rate of salaries now paid to public officers. As a rule, and especially in the junior classes, these salaries are very moderate. For the last four or five years hardly any advance has been given to public officers, who in many cases ara receiving remuneration little if at all in excess of that paid to a good mechanic. I need hardly point out to the Committee that this state of things has had and must continue to have a very discouraging effect upon all ranks, especially the juniors in the public service, and must effectually prevent the Government of New Zealand from obtaining the services of men of more than ordinary energy and ability, who can usually obtain from banks or other private employers more adequate remuneration than they can hope to receive from the Government of the Colony. Owing principally to this cause the Treasury has, during the past year, lost some of its beet and most experienced officers. The result of this is not real economy. So long as the present Government continues to administer the affairs of this Colony, they will not cease their efforts for reduction in the public expenditure by which such considerable savings have already been effected. But it would bu useless to disguise from ourselves the unpleasant fact that the peculiar manner in which these islands have been settled, and in which their population is now distributed, involving as they do a very great multiplication of the machinery of government, must effectually prevent the Government from ever being a comparatively cheap one. The facts and figures I have already given will have prepared the Committee for the announcement that the Government is unable at present to propose any reduction in the heavy taxation of the Colony. The Government is alive to the weight of existing burdens, and has anxiously considered the practicability of relief. But these figures will, I trust, satisfy every impartial and prudent financier, that though it might not be difficult to change the incidence of taxation, we cannot afford to diminish at the present time the sum total which that taxation produces. Before I leave this part of my subject, I must be allowed, while admitting the weight of the burdens laid upon the shoulders of the people of this Colony, to deprecate the exaggeration with which this subject has been treated in many quarters, and which appears to me calculated to excite unnecessary discontent within the Colony, as well as seriously to injure its position in the estimation of persons at a distance. The positive as well as the comparative weight of the taxation of New Zealand has been frequently over-stated. The sum per head paid for duties of customs, which constitutes four-fifths of the public revenue, amounts, it is true, to £3 11s.; but of this sum no less than £2 Is. Bd. is paid on spirits, wine, beer, and tobacco, which arc generally considered fair subjects for the operations of the tax-gatherer. It may be interesting to note the different proportions in which the tax on these articles is paid in different parts of the Colony. Leaving out of consideration the case of the Westland gold fields, which, of course, occupy in the matter a somewhat exceptional position, I find that the most generous contributor to this portion of the Colonial Revenue is the Province of Ilawke's Bay ; while the most apparently economical is that of Jlarlborough. In the latter case, however, I fear the character is rather assumed than real, and that a considerable proportion of its expenditure on these luxuries appears in the accounts of its Wellington neighbour. Again, although the amount of taxes paid by each individual in New Zealand is considerably higher than in Great Britain, being £4 10s. (including provision for many local services) in the former, as compared to £3 os. 7d. (including local taxation) in the latter; yet when it is considered that the average earnings of the labouring classes in the Colony are, as a rule, more than twice as large as in the mother country, it will be found that, testing the weight of taxation by the proportion which that taxation consumes of the earnings of each adult, the position of the Colonist will compare favourably with that of the taxpayer in the United Kingdom. With regard to this question of taxation generally, it has, in many of the discussions on this subject which have taken place throughout the Colony, been somewhat hastily assumed that heavy taxation, if not incompatible with, is at least rarely coincident with National prosperity. I think this is a very false and a mischievous impression. A reference to the statistics of the principal countries of Europe will show that, so far from tin's opinion being true, countries like Turkey and Russia, where the taxation is Bs. 4d. and 16s. Id. per head respectively, are those which are far from being the most prosperous or wealthy; while the State in which (with the well-known exception of the United States) taxation is the highest, namely, the Kingdom of Holland, where the general taxation is £2 lls. 3d. per head, is admittedly one of the most nourishing. I do not mention these facts as any incentive to the people of this Colony to indulge in further taxation, or even to be content with our present position, but rather as a consideration which may afford us some amount of consolation under the weight of a burden which, for the present, we cannot escape, but which will, I trust, be gradually lessened by the increase in the wealth and population of the Colony, and by improvement in its administration. A full consideration, Sir, of this important subject, on the part of any person whose duty it has been, as it recently has been of my colleagues and myself, to deal practically with the difficult question of governing this Colony in the most efficient manner at the smallest cost, must, I believe, bring home to the mind a deep conviction that one of the most serious obstacles to be found in the way of affording relief from the weight of present taxation, is to be met with in the financial relations of the General and Provincial Governments. I can illustrate my meaning by a reference to the estimates of expenditure now before the Committee.

FINANCIAL STATEMENT.

11

B.—No. la.

The estimates of expenditure for those services of the General Government which are provincially charged have been by strict economy on the part of the Government, reduced from £204,173, which was Toted for them during the last session, to the sum of £172,069 for the current year, being a saving of no less than £32,104. Instead, however, of this saving being available for the purpose of effecting an instalment of that reduction in the taxation of the country which we are all anxious to see accomplished, the whole of it will swell the payments to bo made from the Colonial Treasury to the several Provincial Governments. I need hardly say that under a financial system, of which this is an essential feature, any large reduction in the taxation of the Colony must be almost hopeless. The payments made to the Provincial Treasuries during the last ten years have been as follows :— £ a. d. 1858-59 ... ... ... ... ... ... 60,615 1 5 1859-60 ... ... ... ... ... ... 68,881 11 1 1860-61 ... ... ... ... ... ... 108,174 0 8 1861-62 ... ... ... ... ... ... 129,378 7 11 1862-63 ... ... ... ... ... ... 214,531 12 2 1863-64 ... ... ... ... ... ... 282,961 1 4 1864-65 ... ... ... ... ... ... 289,273 6 1 1865-66 ... ... ... ... ... ... 307,347 14 8 1866-67 ... ... ... ... ... ... 322,902 9 2 1867-68 (Eleven months), including Interest and Sinking Funds, &c, paid for Provinces ... ... ... ... 292,506 19 8 Total ... £2,076,572 4 2 Instead, therefore, of its being true, as is often alleged, that the Colonial Government has crippled the action of the Provinces by a diminution of their resources, it has, whilst providing for the large and growing burdens of the Colony eupplied them with constantly increasing funds, drawn, in the three last years, from the augmented taxation of the people What, however, do we find to be the practical result upon the Provinces themselves of this financial system ? If the estimated provincial moiety of Consolidated Revenue for the present year is compared with the necessary deductions to be made from it, on account of services provincially charged, and on account of Interest and Sinking Fund on Provincial .Loans, it will be found that in four Provinces out- of the nine, not only is there no surplus available for police, gaols, and harbour services, but the Provinces will actually be left in debt to the Colonial Government. In most instances, this result ia owing to the heavy sums which have now become payable for Provincial Interest and Sinking Fund ; in some to an actual falling off of revenue ; and in many cases to the unfairness of the system by which the revenue accruing to each Province is at present determined. According to this system, the Consolidated Revenue is now credited to the particular Province in which it happens to be collected. No reference is made in the case of Customs duties, to the localities in which the dutypaid goods are consumed, and by the inhabitants of which, therefore, the duty is really paid. The practical result of this arrangement is that the Province of Otago receives a largo share of the revenue really paid by the inhabitants of Southland and of Canterbury; in the same manner, Westland lives to some extent upon Nelson, which Province again despoils Marlborough ; and this latter Province is in the unfortunate position of supplying revenue both to Nelson and Wellington. The extent to which this injustice operates may be estimated by the fact that, whereas the Customs duties collected in Wellington average during the past financial year £3 19s. 7d. per liead of the "population, in Marlborough the amount bo collected averages only £1 7s. Bd., although there is no reason to suppose that its population consumes a less amount of duty-paid goods than that of Wellington. Various proposals have been made for remedying or alleviating the unfairness of the present mode of distributing the Customs Revenue, which has practically beggared Marlborough ; but no solution of the difficulty has been found which would not interfere, to an almost unbearable extent, with the ordinary commercial operations of the country. There are, however, still graver objections to which the partnership between the Provinces and the Colony are O"ocn. If, as has been asserted, concurrence of authority in matters of legislation is apt to produce uncertainty, confusion, and conflict, how much more must this principle be applicable to the case of a common purse ? That part of the Constitution Act which made the Provinces and the Colony sharers in one common purse, has always appeared to me as one of its greatest defects. Bad in theory, it has proved most pernicious in practice ;it has interfered grievously with the fair action of Representative Government in this House, delivering over one Ministry after another to provincial factions, presenting to the Government of the day the usual alternative of " More money, or your life." It is, Sir, I think, all but universally admitted to be radically wrong in principle that one Government should raise money and another spend it. Nothing is less likely to ensure care and economy in the disbursement of the proceeds of taxation ; while, on the other hand, nothing is better calculated to ensure a prudent and economical administration of Public Revenues by any Government than that it should be brought face to face with the taxpayers, by whom such revenues are contributed. After a careful consideration of the evils of the existing system, of the impediments which it presents to any early reduction in the taxation of the country, of its incurable unfairness as between different parts of the Colony, and in view of the financial difficulties under which some of the Provinces are now labouring, we have decided to recommend to Parliament that on the Ist of January next the partnership account should be finally closed, and that the funds, if any, which may be issued from the Treasury for provincial administration should be voted annually and for specific services by this Legislature. This will end the distinction which has for ten years been maintained between general and local charges. All the appropriations will be general appropriations. There will be no contingent balances to be the subject of dispute between the Colonial and Provincial Treasurers. The accounts will be reduced to the simpler and more natural form which they present in other civilized countries. As a necessary consequence of such a change it appears to us that the several Provincial Debts, which, by the Public Debts Act, have received the colonial guarantee, should cease to be charged to the Provinces by which they were incurred. A similar course will have to be adopted with respect to those portions of the Colonial Debts which have been allocated to particular Provinces. We have carefully considered the provision which will have to be made for police, gaols, and harbour departments. The latter we consider as a matter of economy, by means of combination with the Customs service, and as a safeguard affecting external commerce, should be placed entirely under the Colonial Government, which would, of course, receive the port dues and pilotage fees now paid to the Provinces. With respect to police and gaols the Government is of opinion that although it is incumbent upon it to make a reasonable provision for these indispensable services, it is desirable to preserve, where possible, the advantages of local administration. We propose, therefore, that the Assembly shall vote to the governing bodies in the several Provinces or other divisions of the Colony, a capitation grant based upon the census and annual estimates of population to enable or assist them to maintain police and gaols; that it should be a condition of such grants that they should be devoted to the specified services, and that accounts of the expenditure,

FINANCIAL STATEMENT.

B.—No. la.

12

functions of colonization and settlement which in many parts of New Zealand are still left to them to fulfil. Of course Sir it will he suggested that such a change as I hare indicated, however desirable on general grounds, may affect very ~ii; the variouf Provinces of the Colony, and may in some ca.es, unless this mequaUty is adjusted, cause mmmmmsmsm S^^STt^amTß^Lompleteithw not been thought expedient to embody its partial resul to m tin. ST B proceeds on the action that the current financial year will add £25,000 to the revenue of Auckland, and X away £10,000 each from Westland and Nelson, from which a considerable migration is now going on.

TABLE SHOWING FOR THE FINANCIAL YEAR 1867-8-

~ * Harbour Keceipts in excess of Expenditure. mmmmmimm

I.—The Debit Consolidai Crovcrnmc Fund of t or Credit I ted Revenui ialance of each Province after receiving Moiety of the 3 a, providing for all Services controlled by the G-eneral .vincially charged, and for the Interest and Sinking II. —Loss or Grain t< withdrawal of Me Bevemie, by bei of Harbour Sen Charges, and of 3 Fund of Loans, a tion Grant for Pc o eacli Province by riety of Consolidated rig relieved of cost rices, of Provincial Interest and Sinking md receiving Capitaslice and Gaols. ;nt bat Prc ;he Provinci ial Loans. Province, Estimated Moiety of Consolidated Revenue, 1868-9. Estimated Charges. Interest and Sinking Fund oil Loans. Total Charges. Bali mce. Contribution to Provinces of 7s. per head. Cost of Harbour Departments, less - Fees and Dues. £ s. d. 2491 11 11 Loss to Provinces. Gain to Provinces. Debit. Credit. £ s. d. £ s. d. 9195 18 11 £ s. d. 29476 0 0 £ s. d. 45400 0 0 £ s. d. 74376 0 0 £ s. d. £ a. d. 10208 0 0 £ s. d. 16912 7 0 Auckland £ s. d. 85081 0 0 1907 0 3 3546 0 0 1500 0 0 5046 0 0 BO 0 0 1526 13 0 391 7 3 Taranalri 4996 0 0 11100 15 7 65465 0 0 20088 0 0 15712 0 0 35800 0 0 19665 0 0 7682 10 0 881 14 5 Wellington 1819 1 0 584 13 7 3093 14 7 Hawie's Bay ... 13960 0 0 6900 0 0 7720 0 0 14620 0 0 630 0 0 47936 0 0 14293 0 0 5171 2 5 19464 2 5 28471 17 7 8334 18 0 •316 4 3 i 20453 3 10 w Nelson 1529 17 0 266 15 2 2133 6 S Marlborough ... 4710 0 0 3723 0 0 1322 14 0 5045 14 0 )! 335 14 0 30500 0 0 30187 0 0 60693 0 0 15936 0 0 13448 15 0 1719 18 7 ' 767 6 5 Canterbury ... 76629 0 0 3 2213 7 10 19124 0 0 ) 30187 0 0. ) 49311 0 0 10601 0 0 6396 6 0 2991 6 2 West] and 59912 0 0 510894 19 0 43667 0 0 ! ) 57865 1 7, 7 101532 1 7 30385 18 5 16999 3 0 2491 16 5 Otago 131918 0 0 1595 16 0 3 13414 19 6 316 4 3 13098^5 _3 17974 6 0 5 34363 5 11 Southland 18711 0 0 499321 0 0 7635 0 0 178958 0 0 J 24674 9 oj .) 219739 7 0 ) 32309 9 0' D 398697 7 0 13598 9 0 14641 3 0 2780 1 0 78458 11 0 D 645429 12 8 3 115267 16 0 Totals ... 3

FINANCIAL STATEMENT.

13

B.—No. la.

of Westland North desiring and obtaining separation from the Province ; for, as no part of those Provincial Loans hava been spent in that district, it ia probable that, in any financial adjustment between it and Nelson, the Province would bo charged with the greater part, if not the whole, of its original debt. It is clear, therefore, that the loss to accrue to Nelson from our proposed consolidation is not a definite and fixed annual loss, certain to continue for the full period of thirty-six years. After fully considering the above circumstances, and the various political contingencies by which, within a period of thirty-six years, the present condition of things may be modified, the Government is of opinion that the reasonable claim of the Province of Nelson will be met by a payment to her of the sum of £90,000. The case of Wellington is even more difficult to determine. She would lose by the new arrangement, because she would no longer receive any part of her neighbours' revenue; but also, to some extent, because her debts are small in proportion to her present population, which has increased considerably since the removal of the Seat of Government. We propose that payment should be made to Wellington of a lump sum of £15,000. I must now ask the attention of the Committee to the subject of the Sinking Funds on both Colonial and Provincial Loans. With regard to the Sinking Funds on Provincial Loans, it was an evident omission in the Acts of last session that when the liability for their repayment was undertaken by the Colony, the control of the Sinking Funds by which that repayment was to bo provided for, was not also Tested in the Colonial Government, or, at any rate, in some body appointed by the General Assembly. Wo propose to remedy this defect, and to introduce a Bill vesting the Sinking Funds, both General and Provincial, in Commissioners, consisting of the Colonial Treasurer for the time being, of the Comptroller, and of two trustees, to be appointed by the General Assembly. Two exceptions must be made to this arrangement First, the case of the Guaranteed Loan of 1856, of which the Sinking Fund is required to be invested by the Lords of the Treasury; and second, the guaranteed portion of thejjoan of 1863, the Sinking Fund of which will doubtless continue to be invested as now by the Crown Agents. Nor can the arrangement apply to the new Consolidated Loan, the Sinking Fund of which will be applied in London, as it arises, in paying off portions of the Loan. It will be seen from the tabular statement of the Colonial and Provincial Loans I have laid before the Committee that the accumulated Sinking Fund amounts on Colonial Loans to £194,595, and on Provincial Loans to £123,525. Of the first mentioned sum about £112,000 may be taken to belong to the loans guaranteed by the Imperial Government and issued at 4 Per cent., not affected by the consolidation, but assuming the whole of the remainder of the loans to be converted, there will be released for general purposes, as the consolidation progresses, £82,595 of the General Government Sinking Fund, and the whole of that on the Provincial Loans. The amount applicable to the bonds already converted is £31,081 13s. Id. and £47,141 12s. lid. respectively. The first question to be settled is to whom shall the Provincial Sinking Funds, as they tecome freed be paid over, and it is of course a question for the Legislature to determine. The Government is of opinion that if the Colony absolutely undertakes the payment of the Provincial Debts, it is but fair and reasonable that the Colony should have use of whatever provision has already been made towards such payment. If the House should agree in this view of the case, there will come into the hands of the Commissioners of the Sinking Fund for immediate disposal a sum of £78,223 65., and by degrees, as the holders of the remainder of the Provincial and Colonial Debentures agree to the terms of conversion, there will be a further sum so available of £115,724 15s. 7d., making a total of £193,948 Is. 7d. Wo propose that out of this sum there shall be paid to the Province 'of Nelson, in satisfaction of claims arising out of the consolidation of Provincial Loans, £90,000, and to the Province of Wellington £15,000 —the balance, as it becomes available, to pay off, as far as practicable, Treasury Bills now in circulation. It may probably be suggested that this balance should be devoted to appliances for improving the penal discipline of the Colony. This will no doubt be discussed hereafter. It is more than probable that by the time the funds for the above purposes are actually required they will havo become available by the realization of Sinking Funds ; but to provide for any temporary deficiency, we shall ask thia Assembly for authority to issue, if found necessary, Treasury Bills to an amount not exceeding £30,000, to be repaid out of the first fund 3 coming into the hands of the Sinking Fund Commissioners available for the purpose. Having thus stated generally the proposals of the Government, I will briefly show their immediate effect on the finance of the current year. As already stated, we propose these changes should come into operation on the Ist January next. The year will therefore be divided into two financial periods, which will be provided for as follows : July to December, 1868. £ s. d. £ g , d _ Balance m Bank, Ist July, 1868 46,979 0 0 Six months' Charges as per Estimates ... 352,325 0 O Six months' Consolidated Eevenue, Colonial Less Provincial Charges, six months ... 82,034 10 0 Moiety 250,125 0 0 " ■ £270,290 10 0 To pay off Treasury Bills 25,000 0 0 Balance 1,813 10 0 £297,104 0 0 £297,104 0 0 January to July, 1869. £ s. d. £ s _ d _ -Balance 1,813 10 0 Six months' Charges as per Estimates ... 352,325 0 0 Six months Consolidated Revenue ... 500,250 0 0 „ Harbour Departments 11,000 0 0 Southland contribution ... 6,000 0 0 „ Capitation grant for Police and Harbour fees 4,000 0 0 & ao l 3 39>229 0 0 „ Six months' Interest and Sinking Fund of Provincial Loans 110,125 0 0 £511,679 0 0 -Balance 384 10 0 £512,063 10 0 £512,063 10 0 The small balance here shown will probably be increased by further reductions in the charges for Interest and Sinking Fund, both on General and Provincial Loans. 4

FINANCIAL STATEMENT.

B.—No. la,

14

There are one or two possible objections to the proposals of the Government, which lam anxious to anticipate. The first is that it is a disturbance of the financial arrangements of 1856, under which £200,000 of debt, incurred to pay off the New Zealand Company, was made a charge on the Territorial Revenue of the Middle Island. This is true ; but on the other hand it is to be borne in mind that by the same arrangement a sum of £180,000 expended for the purchase of Native Lands in the North Island was charged upon the revenues of the Provinces of that Island. We propose to release both Islands from these special charges, and a reference to their respective contributions to the Consolidated Fund will show that the advantages of such a release are at the present time considerably in favour of the North Island. I refer to this subject because I wish to state that the Government adheres firmly to the financial arrangement of 1856—t0 the compact itself as well as to the principle on which it is based. We hold that sound principles of political economy require that the land fund of any part of the Colony should be locally applied. Another objection to the Government proposals will be that they release the Territorial Revenue of the Middle Island Provinces from its present liability on account of the respective Provincial Debts, and may possibly throw the payment of those debts on the Consolidated 'Revenue of the rest of the Colony. Except in the case of Southland, which is to be specially dealt with, this objection, though theoretically true, is of no practical weight. In the other Middle Island Provinces, the Consolidated Revenue, if fairly distributed, is, and is likely to continue, amply sufficient to meet the loan charges. The condition of Canterbury and Otago is not now abnormal; no feverish excitement of any Mud sustains either of them above its natural financial level, and there is so little reasonable probability of the Consolidated Revenue of these Provinces being insufficient for the payment of these debts, that as a representative from' the Middle Island I should not object to the liability of the Land Revenue being retained. I believe, however, that it would be an unnecessary and a troublesome provision. I trust the Committee will consider that the scheme as a whole is as near an approximation to justice as is attainable between the various parts of the Colony, and that the advantages of a final and complete settlement of accounts between the Colony and the Provinces are so great as altogether to outweigh the objections to which I have just referred. Every member of this Committee will, I am sure, be heartily glad to see the last of these accounts, which for the last ten years have been a constant source of confusion and dispute ; and which, even under the system introduced by the Public Revenues Act, have not yet ceased to be the occasion of unpleasant and unprofitable discussion. Bat the Government claims for its proposals not merely the abolition of a set of troublesome accounts, nor oven the satisfactory solution of difficult and complicated financial questions ; it believes that these proposals are fraught with large and important political advantages. If adopted they will, to a great extent, remove the inducements to the formation of, and the mischief resulting from, separate provincial factions in this House, each looking rather to the advantage of its own particular Province than to the welfare of the Colony; they will facilitate the formation of those rational political parties, indispensable to healthy political action on the great political, social, and commercial questions which are looming in the not distant future ; and especially, Sir, they will disembarrass the Local Government question of half its difficulties. At present one of the main obstacles in the way of any alteration of the existing territorial divisions of the Colony consists in the presence of largo provincial liabilities imposed on the revenues of the whole Province, which must be allotted on any sub-division of the Province ; another difficulty is, the securing to any new territorial divisions of such a share of the consolidated revenue as will enable it to provide, where necessary, for police and gaols. Both these obstacles are entirely removed by the proposals now before the Committee. The Provincial Debts are disposed of, the police, gaols, and harbours provided for; the position and the powers of the Provincial Governments are defined and simplified ; and the question of further local organization is reduced to one of how the local and territorial revenue, including the <rold revenue, can be most advantageously disposed of in the promotion of settlement and the construction of public works. The shape which the Government proposes to submit this important question for the decision of the Legislature is in a series of resolutions, which 1 shall conclude by proposing to the Committee. Upon the main principle which these resolutions embody, namely, the termination of the partnership account between the Provinces and the Colony, the Government will stand or fall. The details of the plan, including the proposed adjustment are fair subjects for amendment to any extent which will not be antagonistic to the principle of the scheme. If these resolutions should be adopted by the Assembly, Bills will be brought down for giving effect to them, and it will also be my duty to submit supplementary estimates providing for the payments to the Provinces of Nelson and Wellington, and the votes required for the Harbour Departments, the erection of a Government House, and the capitation grant to the Provinces on account of Police and Gaols. I should not be doing justice to my own feelings, if it were possible for any one standing in my position to make such an omission, were I to leave this part of my subject without referring to an honorable member of this House whose name is especially associated with the main principles of financial proposals now under consideration. I allude, of course, to the honorable member for Sclwyn, Mr. Stevens. That honorable member does not probably claim credit for having originated this scheme, but the country knows what time and labour he has spent in the difficult and useful task of forcing this question on the attention of the public. This work he has done in a way in which it would not have been possible for persons in the position of a Government to do. He has brought his faith, ability, and perseverance to bear on the public mind, and has succeeded in convincing all who are capable of understanding the subject that the change is advantageous, nay necessary, and that it should be made without further delay. lam glad to have this opportunity of ascribing to the honorable member, and those who have been associated with him in this work, a large measure of the credit for whatever benefits may result to the Colony from the abandonment of the peculiar system of finance under which it has hitherto laboured, and the adoption of a wiser and simpler system, and from the effecting the greatest reform in the constitution of the Colony which has ever yet been accomplished. lam sure the Committee will now be glad to hear that my task is completed. When I consider the extent and importance of the proposals I have submitted to it, the effect they may have on the future progress and welfare of this Colony, I must say, without affectation, I am painfully conscious of the inadequate manner in which my task has been discharged. On the one hand, I feel that I must have wearied the Committee by the length of my address; and on the other, that I have but lightly touched upon many subjects that should have been carefully dwelt upon. If I have been tedious, I can only say I have made a long speech because I have not had time to make a short one. To those members, on the other hand, who may think that I have dwelt too perfunctorily upon the many important subjects comprised in my propositions, I reply that my difficulty has been not to find reasons and arguments, but so to condense them as to bring them within the necessary compass of an address like the present. I now commend the proposals of the Government to the earnest, careful, and patriotic consideration of members on all sides of the House, believing them to bo fraught with consequences of the most vital importance to the future progress and welfare of this Colony, and I sincerely thank the Committee for the patience and attention with which they have listened to me.

FINANCIAL STATEMENT

15

B.—No. la,

I now beg to move the following Besolutions :— 1. That in order to simplify the relations between the Colonial and Provincial Governments, to remove uncertainty from Provincial Finance, and to facilitate the ultimate reduction of taxation, it is expedient, that the system of Provincial Charges on the General Revenue be abolished, that the Consolidated Fund be at the disposal of the General Assembly, and be charged generally with the Interest and Sinking Fund on the Colonial and Provincial Loans, and with the expenses of the Colonial Government, including the maintenance of the Harbour establishments. 2. That in order to equalize the effect of the above change as between the several Provinces, a sum of £90,000 oiit of the proceeds of the accrued Sinking Funds realized by the operation of the Consolidated Loan Act, be paid to the Province of Nelson, and a sum of £15,000 to the Province of Wellington, and that an annual sum of £12,000 be deducted from the Territorial Eevenue of the Province of Southland in aid of the Consolidated Fund, until the repayment of the Consolidated Loan shall be effected. 3. That annual appropriations in proportion to population be made to the several Provinces and other divisions of the Colony for the maintenance of Gaols and Police. 4: That the above arrangements be brought into operation on the Ist January, 1869; and that leave be given to bring in a Bill for giving effect to these Bt'Bolutions.

Table A. STATEMENT of the RECEIPTS and EXPENDITURE of the PUBLIC ACCOUNT of NEW ZEALAND for the YEAR ended 30th JUNE, 1868.

B.—No. la.

FINANCIAL STATEMENT.

PROVINCIAL. GENERAL. TOTAL. Auckland. Taeaxaki. Weiuxgtcmt. Hawke's Bat. Nelson. Maeibobough. Canteebttey. Westland. Otago. Southland. FUND. RECEIPTS. £ s. d. £ s. d. £ a. A. £ s. d. £ b. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Customs Duties ,, Seizures, Rents, &c. „ Bonded Warehouse Duties Stamp Duties Postal ,, Telegraph Judicial Fees and Fines : — Supreme Courts Sheriffs' Offices District Courts Resident Magistrates'Courts Petty Sessions Pees :— Registration of Land ,, Deeds ,, Births, Marriages, &c ,, Joint Stock Companies Issue of Crown Grants Under " Arms Act, 1860 "... ,, " Merchant Shipping Act, 1858 " „ "Patents Act, I860"... ,, " Land Claims Settlement Act, 1856 " ... „ " Aliens Act, 1860" ... „ "Trade Marks Act, 1866" „ " Oyster Fisheries Act, 1866" „ " Licensing Ordinance Amendment Act"... „ "Marine Act, 1866"... „ " Steam Navigation Act, 1866 " ,, "Debtors and Creditors Act" ... ,, "Ifative Circuit Courts Act" ... ,, " Lost Land Orders Act" ,, " Armed Constabulary Act" Incidental Receipts Treasury Bills 41 6 8 3 10 10 17 0 4 ,113,277 3 9 814 8 11 1,160 16 8 7,073 9 8 6,266 17 6 480 17 1 7,168 9 7 40 2 3 100 0 0 660 11 3 536 5 0 86,717 19 2 20 6 3 1,060 15 2 6,343 7 5 4,987 14 5 1,228 0 5 22,676 6 4 200 0 0 1,459 16 9 1,292 12 0 9 18 G 84,898 12 10 366 13 4 5,509 4 10 3,543 0 0 795 2 2 6,048 12 3 26 17 6 25 0 0 591 6 2 704 5 2 567 16 7 171,042 16 9 64 4 5 837 10 0 13,929 17 4 11,329 16 1 2,818 0 6 54,613 10 3 350 0 0 1,961 16 5 2,359 13 4 1,163 6 5 212,558 3 4 28 16 8 550 0 0 18,728 6 9 18,211 11 2 4,218 6 3 29,776 6 2 200 0 0 2,14.3 12 11 1,905 9 3 619 8 11 788,819 7 1 994 16 0 4,850 15 2 58,405 0 4 46,154 4 3 11,920 16 10 1,241 12 G 496 8 1 476 14 0 2,713 1 0 8 6 6 52 4 4 575 6 11 195 9 6 244 17 0 2,297 14 1 181 8 9 23 1 6 62 4 0 682 2 0 371 19 6 39 4 2 132 8 8 5,196 2 1 18 19 0 40 8 0 15 3 6 47 18 9 3G7 14 9 26 10 2 1,454 14 0 301 19 7 79 6 6 4,726 13 11 0 4 0 374 18 4 20 5 0 141 3 0 2,185 13 6 1,348 19 9 296 6 7 118 13 6 5,245 0 0 135 14 0 2 8 0 5,777 6 1 1,390 5 11 1,303 5 5 24,357 8 3 53 19 8 77 8 8 471 0 1 394 18 2 6" 5 0 26 0 0 53 15 1 4,408 6 6 479 1 6 18 13 4 1,859 4 2 199 4 0 119 3 9 80 0 0 630 3 8 32 0 6 2 0 0 75 4 4 25 0 0 1,347 6 6 294 11 0 10 16 0 325 8 10 119 4 0 57 5 0 51 0 0 56 11 8 56 1 0 3 3 0 0 5 0 495 10 0 87 12 0 136 3 11 38 8 0 3 9 0 1,040 12 6 252 1 0 0 5 0 256 14 11 203 3 0 17 2 0 9 15 0 43o" 5 0 49 4 6 173 12 5 51 14 0 7 11 0 1 12 6 3,086 13 0 609 7 6 62 0 6 1,011 6 9 203 9 0 07 10 6 10 0 0 0 15 0 28" 0 0 116 5 0 129 9 0 12 6 0 10 0 0 5 0 0 3,144 10 6 786 12 6 20 3 6 1,152 14 2 125 14 0 94 15 0 10 0 0 0 12 6 664 13 0 106 7 0 64 4 6 81 12 0 9 0 0 a" 7 6 58 15 1 15,276 0 8 2,813 7 6 113 18 4 5,054 14 0 1,176 17 0 388 2 3 I 161 0 0| 56 11 8 56 1 0 3 3 0 15 7 6 20 0 0 6,272 6 3 566 9 6 1,876 11 0 13 0 6 10 0 22 18 0 2,733 14 4 100,000 0 0 1,080,707 2 7 1,874 12 7 765 4 10 124 19 0 158 1G 8 13 0 6 1,378 10 5 120 4 6 111 16 9 3 3 0 8 9 4 957 19 4 60 18 0 121 17 1 58"l7 5 1,029 13 1 92 8 0 1,112 15 10 77 9 11 29 8 0 38 0 9 1,427 4 4 135 9 0 320 16 1 577" 6 11 318 6 10 0 1,494"14 10 100,000 0 0 22 18 0 7 0 6 3 0 1 1,151 5 5 12 11 0 4 0 0 i 10 0 18 11 8 7 0 0 34" 0 10 Totals Transfers from Land Fund ... 101,654 6 4 142,319 3 G 1,874 12 7 9,797 1 1 108,754 19 5 27,372 16 1 103,795 14 5 9,235 19 8 213,889 13 11 63,638 4 11 263,561 16 5 36,687 6 10 101,654 6 4 144,193 16 1 9,797 1 1 108,75-4 19 5 27,372 16 1 103,795 14 5 9,235 19 8 213,889 13 11 63,638 4 11 263,501 16 5 36,687 6 10 1,082,581 15 2 EXPENDITURE. 19,026 1 3 5 3 0 Ciyil List Do. Fund Account Permanent Charges:— Interest and Sinking Fund ... Under Acts of General Assembly " Provincial Audit Act" " Customs Regulation Act" " Debtors and Creditors Act" " Justices of the Peace Act" Appropriations: —• Public Domains and Buildings Public Departments, — Governor's Establishment Legislative Executive Provincial: — Treasury Departments District Registrars of Births, &c. Registrars of Joint Stock Companies Stamp Office Printing Office Geological Survey ... Electoral Law and Justice : — General Charges Provincial Charges,— Supreme Courts and Sheriffs' Offices District, Resident Magistrates', and Petty Sessions Courts Criminal Prosecutions, Coroners, &c. Registry of Land and Deeds Postal Telegraph Department Marine Engineer's Department... Customs ... Native Department Militia and Volunteers Miscellaneous ... Supplementary Treasury Bills 174,179 0 7 73,002 8 2 4,434 6 0 1,462 1 1 10,409 1 2 7,580 2 5 650 9 6 7,578 16 7 2,462 14 2 312 10 0 201 5 6 312 13 0 2 2 0 808 4 2 377 6 9 223" 1 8 132"16 8 37 10 0 64 10 0 32 0 6 2 0 0 114 5 9 250 0 0 20 0 0 102 6 3 3 7 0 206 5 0 214 17 10 10 16 0 265 19 10 162"lO 0 147 11 7 27 18 0 116 11 0 81 17 2 127' 1 11 229 3 4 228 10 0 13 5 0 91 13 4 194 18 C 0 5 0 20 16 3 45" 16 8 4 4 0 49 4 6 22 3 9 458 6 8 103 12 3 563 6 8 3 13 0 942 3 10 397 18 8 35 15 0 239 9 6 65 13 6 19" 7 4 495 0 0 30 0 0 813 1 8 187 10 6 470 5 4 668 17 6 20 3 6 262 12 2 225 0 0 5 0 0 100 7 G 9 5 0 116 13 4 106 7 0 78 12 10 19,026 1 3 5 3 0 174,179 0 7 73,002 8 2 2,311 3 4 359 17 9 2,305 6 8 247 0 6 4,434 6 0 1,462 1 1 10,409 1 2 7,580 2 5 2,820 10 0 2,189 1 11 68 19 6 2,024 0 6 7,578 16 7 2,462 14 2 3,990 1 4 895" 5 10 88 10 1 332 2 10 141" 0 11 330' 5 11 73" 11 4 52l" 2 9 92 1 3 1,272" 9 6 2io"lO 11 3,135 7 7 3,135 7 7 1,516 1 6 95 11 2 1,041 3 7 172 5 4 157 16 8 70 5 2 1,983 11 0 309 15 0 1,438 7 7 133 4 7 6,918 1 7 357 10 0 46,926 9 1 18,539 4 10 7,307 3 6 1,541 14 2 21,200 19 8 6,108 10 9 36,116 4 7 202 3 1 75,000 0 0 5,510 1 9 1,082 2 2 2,028 16 5 6,881 9 6 559 7 2 108 9 0 376 17 10 631 6 2 3,732 4 0 901 6 1 847 16 8 4.014 14 2 1,243 3 6 191 18 8 324 16 8 1,397 6 6 2,751 15 0 219 9 C 819 4 8 2,908 18 0 1,092 2 4 129 9 10 338 1 0 1,295 4 8 4,779 13 7 1,092 2 2 1,684 6 8 15,192 10 1 983 1 8 646 10 6 107 2 1 1,852 7 7 10,648 0 0 3,415 11 1 1,685 19 2 16,474 2 7 1,080 2 0 154 5 4 480 18 0 2,434 8 1 32,379 11 0 7,941 4 4 9.051 9 2 100^008 16 5 18,539 4 10 7,307 3 6 38,527 6 7 21,200 19 8 18,708 7 2 45,026 1 10 202 3 1 75,000 0 0 7,545" 3 8 553" 4 8 4,219 "l3 2 1,436" 0 0 3,981" 0 4 81419 7 7,666 0 11 2,293 19 4 6,264"16 1 2,21013 11 2,651 0 9 5,750 6 2 858 18 0 51 3 0 2,913 4 10 1,372 17 2 1,020 8 9 1,296 12 11 1,252"16 0 304 16 0 1,376 15 9 156 19 4 48 0 2 2,029 7 2 281 18 8 144 9 0 Totals Payments to Provincial Account 517,225 11 2 36,097 10 10 6,365 13 6 3,706 10 0 1,030 17 3 20,448 14 5 31,245 16 5 7,890 3 8 4,766 6 1 13,199 17 6 41,979 11 4 4,239 18 10 551 4 3 37,197 7 10 65,545 19 0 6,417 18 5 21,447 18 8 46,458 2 6 78,385 19 11 7,519 17 6 9,364 6 0 700,401 12 8 260,683 12 5 517,225 11 2 42,463 4 4 4,737 7 3 51,694 10 10 12,656 9 9 55,179 8 10 4,791 3 1 102,743 6 10 27,865 17 1 124,844 2 5 16,884 3 6 961,085 5 II.-SPECIAL FUND. RECEIPTS. " Public Debts Act, 1867 " !— Amount raised in anticipation of Debentures "Gold Duty Act, 1858" ... " Gold Fields Act, 1858 " ,.. " New Zealand Settlements Act " ;— Sales of Confiscated Land Passages, &c. Recoveries ... " Loan Act, 1863 " :— Proceeds of Sales of Debentures " Loan Act, 1863," Charges Account: — Premium on Sale of £505,400 Debentures Sale of Bricks " Debentures Act Amendment Act, 1865 " : — Proceeds of Sales of Debentures 190,000 0 0 10,167 10 3 170 10 0 8 0 4 ! 13,154" 18 11 2.276 13 0 6,716 11 4 4,873 14 1 190,000 0 0 19,871 10 3 7,150 7 1 10,346 0 7 505,400 0 0 505,400 0 0 21,406 12 6 20 0 0 i 21,426 12 6 25,896 11 0 25,896 11 0 Totals 753,069 4 1 15,431 11 11 11,590 5 5 780,091 1

FINANCIAL STATEMENT.

B.—No. 1a

SUMMARY of the RECEIPTS and EXPENDITURE of the PUBLIC ACCOUNT of NEW ZEALAND for the Year ended the 30th JUNE, 1868.

Table A —continued. STATEMENT of the RECEIPTS and EXPENDITURE of the PUBLIC ACCOUNT of NEW ZEALAND for the TEAR ended 30th Jote, 1868.

PROVINCIAL. GENERAL. TOTALS. ArCKlAJvD. Taeasaki. "WEUJNCrTOS. Hawke's Bat. Nelsox. Maeiboeotjgii. Cakteebuet. Westlocd. Otago. SotTHlAKD. II.-SPECIAL FUKrD-oontmued. EXPENDITURE. " Public Debts Act, 1867," Schedule B. :— . Defence Telegraph Extension Lighthouses Marino Survey Payments under Surplus Revenue Adjustment Act " Loan of 1863" :— Charges on Negotiation, &c. Interest on Taranali Debentures " Debentures Act, 1864 and 1865," — Debentures Redeemed ... " New Zealand Settlements Act" : —■ Compensation Surveys Purchase Monev, Waiuku " Gold Duty Act, 1858 " ... " Gold Fields Act, 1858 " " Otago Gold Fields Judicial Officers Act, 1867 " ... £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ a. d. £ s. d. £ s. d. £ s. d. £ s. c\. £ s. A, £ s. d. 97,571 2 2 35,215 6 2 3,462 6 9 2,786 18 11 30,752 6 3 1 ] 169,788 0 3 3,580 2 0 2,703 15 0 3,580 2 0 2,703 15 0 489,001 11 0 489,001 11 0 7,894 15 0 17,465 8 41,050 0 0 } 26,410 3 4 10,958 19 9 4,000 3 11 4,931 19 4 3,795 16 8 14,959 3 8 4,931 19 4 3,795 16 8 Totals 12,727 19 11 ;691,483 11 7 10,958 19 9 715,170 11 3 III.-LAETD FUND. RECEIPTS. Land Sales Depasturing Licenses and Assessments ... Miscellaneous Gold Fields Revenue Gold Duty Fees and Duties, Native Lands Courts ... 1,513 18 9 80 0 0 5 0 0 8,278 13 10 2,873 8 5 1,458 0 11 14,801 0 0 355 18 8 4,708 7 9 907 11 6 239 19 6 4,533 7 6 379 16 0 2,464 14 1 244 12 6 30,063 8 3 5,166 13 8 448 16 8 2,884 10 9 54,675 19 1 34,198 3 10 612 1 4 6,808 3 0 18,407 3 3 828 15 0 125 0 0 97,077 16 4 48,755 7 6 1,278 4 0 5,624 14 5 11,976 18 8 40,446 5 8 152 0 7 15,882 19 0 90 2 0 1,337 17 8 223,752 3 9 85,046 16 1 23,723 7 4 21,096 5 9 64,746 4 9 3,014 1 1 441 2 1 1,114 18 1 87' 8 6 Totals 14,209 1 11 15,598 0 9 6,970 16 10 37,685 18 4 8,587 9 7 114,751 10 6 953 15 0 164,713 0 11 57,909 4 11 421,378 18 9 EXPENDITURE. Land Revenue:— Receivers' Salaries Payments to Provincial Accounts Colonial Treasurer, for Interest &e. ... Timaru and Gladstone Board of Works Miscellaneous Refunds of Revenue Gold Fields Revenue : — Expenses of Administration Gold Duty :— Paid to Provincial Account 01 13 4 8,026 0 5 459 1 10 46" 0 0 75 0 0 12,961 16 10 ; 1,539 15 0 76 14 9 24 0 0 68 15 0 250 12 6 3,375 17 8 43 5 0 63 0 0 150 0 0 16,208 15 11 900 0 0 107" 10 0 50 0 0 4,859 10 8 3,390 3 7 291 13 4 87,366 12 0 2,220 0 0 838 0 5 547 18 9 950 7 7 400 0 0 149,374 19 7 1,890 0 0 50 0 0 40,224 3 5 270 0 0 15,171 0 4 114 5 10 1,177 1 8 319,272 11 4 10,054 14 6 838 0 5 19,376 12 5 1,151 13 5 41 14 0 514 6 5 556 0 5 17,902 19 8 3 4 2 15,010 7 1 0 8 0 603 1 6 33,520 0 5 Totals 8,658 9 7 I 14,677 6 7 3,801 10 2 35,269 5 7 8,302 18 5 107,224 19 2 152,179 14 0 56,432 11 1 386,546 14 7 IV.-TBTJST FTJBTO. nwmvis. Money Order Aocoimt Post Office Savings Banks ... Intestate Estates Account ... Intestate Estates' Expenses Account Eeal Estates' Administration Account ... Unclaimed Dividends Unclaimed Property Native Reserves Trustees' Relief Act Bant Deposits Land Assurance Fund Pilotage Rates Estates of Deceased Soldiers Civil List Fund Account Military Savings Bank Wairarapa Five per Cents. ... Unclaimed Balances Miscellaneous 57,938 17 11 90,280 17 3 10,066 6 1 708 15 9 338 19 5 161 2 2 29 14 5 4,878 14 6 498 11 2 6,031 18 9 0 9 5 57,938 17 11 90,280 17 3 10,066 6 1 708 15 9 338 19 5 161 2 2 29 14 5 4,878 14 6 498 11 2 0,031 18 9 0 9 5 15 3 4 84 7 0 15 0 0 611 10 7 76 14 9 102 9 1 2,411 10 8 84 7 0 15 0 0 611 10 7 76 14 9 102 9 1 2,411 10 8 7. 5 4 7 18 0 Totals 174,235 18 11 7 5 4 7 18 0 174,251 2 3 EXPENDITURE. Money Order Account Post Office Savings Banks ... Intestate Estates Real Estate Administration... Intestate Estates' Expenses Account Estates of Deceased Soldiers Unclaimed Dividends L Tnclaimcd Property Military Savings Bank Account Native Reserves Dunedin Disputed Reserves Law Practitioners Act Civil List Fund Account Supreme Court Account Wairau Memorial Fund Trustees' Relief Act Miscellaneous ... Trust Fund Investment Account Pilotage Rates ... 59,977 9 0 6,541 13 7 11,135 0 4 348 2 4 327 9 4 384 11 1 197 2 3 10 12 6 616 4 9 2,283 16 8 6,031 18 9 15 15 0 538 13 8 275 0 0 17 15 3 57 19 0 2,673 18 2 130,000 0 0 59,977 9 0 6,541 13 7 11,135 0 4 348 2 4 327 9 4 384 11 1 197 2 3 16 12 6 616 4 9 2,283 16 8 6,031 18 9 15 15 O 538 13 8 275 0 0 17 15 3 57 19 0 2,673 18 2 130,000 0 0 7 18 0 7" 18 0 Totals 221,439 1 8 7 18 0 221,446 19 8

Eec: MI3. ■ Expex: >IltEE. Balance in hand on first day of Year. Beceipts during Year. Imprests unaccounted for last Year. Totals. Balances in hand on last day of Year. Expenditure during Year. Imprests unaccounted for. J Totals. Consolidated FundSpecial Fund Land Fund Public Trust Fund ... £ b, d. £ s, cl. 1,082,581 15 2 780,091 1 5 421,378 18 9 171,251 2 3 £ s. cl. 20,272 3 5 235,024 8 0 5,291 15 11 45,004 12 3 £ B, Cl. 1,102,853 18 ■ 7 1,015,115 9 5 426,670 14 8 259,093 16 1 £ s. d. 46,979 15 11 7,183 14 11 36,856 13 2 36,782 3 6 £ 9. d. 961,085 5 1 715,170 11 3 386,546 14 7 221,446 19 8 £ s. el. £ s, d. 94,788 17 7 1,102.853 18 7 292,761 3 3 1,015,115 9 5 3,207 6 11 426,670 14 8 861 12 11 259,093 16 1 39,838 1 7 Totals 39,838 1 7 2,458,302 17 7 305,592 19 7 2,803,733 18 9 127,802 7 6 2,2S4,249 10 7 391,682 0 8 2,803,733 18 9 Note. —Sums recovered or transferred during the year are deducted on both sides in this Account. Treasury, 'Wellington, 27th August, 1868. C. T. Batkin, Accountant to the Treasur r.

FINANCIAL STATEMENT.

Table B. TABLE SHOWING THE LOANS OF THE COLONIAL AND PROVINCIAL GOVERNMENTS OF NEW ZEALAND, AUTHORIZED BY ACTS OR ORDINANCES UP TO THE 30TH OF JUNE, 1868.

B.—No. la.

NTEREST. SINKING FUND. PRINCIP. .L. AUTHORITY FOR LOAN. BY WHAT REMARKS. Total Debentures in Circulation on 30 June, 1868. Pay, jble. Annual Charge foe Sinking Fund. Amount of Sinking Fund Accrued. GOVERNMENT. Total Amount Authorized. W.ten Debentures AEE Redeemable. Rate of Interest. Annual Charge foe Interest. Place of Payment. Rate op Sinking Fund. Names OF Trustees. In what Manner Invested. Amount. Date. £ £ s. a. 316 0 0 500,000 0 0 £ s, d. £ s. d. £ s. d. £ s. d. Colonial Government Ordinance of Legislative Council ' New Zealand Loan Act, 1856 " 500,000 0 0 On presentation ... £300,000, 31st Dec, 1887 £25,000, 30th Sept., 1888 £25,000, 31st Dec, 1888 £50,000, 30th June, 1889 £50,000, 30th Sept., 1889 £50,000, June, 1894 1st July, 1891 8 per cent. 4 per cent. 20,000 0 0 8,500 0 0 8,500 0 0 1,500 0 0 1,500 0 0 Julyl January 1... October 1... April 1 ... London f f 2 per cent.... 10,000" o 0 Lords of H. M. Treasury 101,260 17 2 £101,26017s. 2d. in 3 per centConsols of the nominal value of £110,584 10s. Id. nterest ceased 13th July, 1858. Guaranteed by Act of the Imperial Parliament. ,, ' New Zealand Loan Act, 1860 " 150,000 0 0 6 per cent. 9,000 0 0 j j 2 per cent.... W. Gisborne J. Woodward 25,480 8 9 'his Loan was raised by the Union Bank of Australia, and by agreement the interest is lodged with that Bank in Auckland on the 1st of April and 1st of October in each year, for transmission to London. • New Zealand Loan Act, 1863 " 3,000,000 0 0 150,000 0 O 1,000,000 0 0 500,000 0 0 500,000 0 0 14th July, 1914 30th October, 1915 14th March, 1891 5 per cent. 4 per cent. 6 per cent. 50,000 0 0 20,000 0 0 30,000 0 0 29,676 0 0 4,500 0 0 4,500 0 0 25,000 0 0 25,000 0 0 10,000 0 0 10,000 0 0 15,000 0 0 15,000 0 0 14,838 0 0 14,838 0 0 15,162 0 0 15,162 0 0 July 1 January 1... July 15 ... January 15 November 1 May 1 March 15 ... September 15 June 15 ... December 15 June 15 ... December 15 ? j (See margin) London ... ,, ,, ,, ,, ,, 1 per cent.... 1 per cent.... 2 per cent.... 2 per cent.... 10,000 0 0 5,000 0 0 10,000 0 0 9,892 0 0 3,000 0 0 P. G. Julyan W. C. Sargeaunt Ditto Ditto Ditto 32,653 8 3 10,450 15 7 24,749 19 10 £17,097 19s. Id. in New Zealand Government 8 per cent. Debentures £8,350 in New Zealand Treasury Bills £32 9s. 8d. deposited at interest in Bank of New Zealand £67,925 9s. 6d. invested in Securities of the total nominal value of £65,870 19s. lid. as under : — £5,000 New South Wales Govt. 5 per cent. Debentures £8,500 Victorian Govt. 6 per cent. Debentures £6,300 Queensland Govt. 6 per cent. Debentures £29,400 Ceylon Govt. 6 per cent. Debentures £11,600 Cape of Good Hope Govt. 6 per cent. Debentures £3,500 Natal Government 6 per cent. Debentures £1,400 Antigua Govt. 6 per cent. Debentures £170 19s. lid. 3 per cent. Consols 494,600 0 0 14th June, 1891 6 per cent. ? > 505,400 0 0 14th December, 1892 ... 6 per cent. 30,324 0 0 2 per cent.... 10,108 0 O Ditto ,, ) j ' New Zealand Debentures Act, 1864," and " Amendment Act, 1865 " 48,527 15 11 31st December, 1868 8 per cent. 3,882 4 6 600 0 0 600 0 0 40 0 0 40 0 0 60 0 0 60 0 O 557 3 9! 557 3 9' 683 18 6| 683 18 6, 4,600 0 0, 4,525 0 0, 3,250 0 0 3,250 0 0 3,250 0 0 3,250 0 0 Julyl ... January 1... Julyl ... January 1... Julyl ... January 1... Julyl January 1... Julyl January 1... December 31 June 30 ... July 15 October 15 January 15 April 15 ... ; , To be paid off out of proceeds of £3,000,000 Loan. Sydney Auckland... Dunedin ... ' Treasury Bills Act, 1866 " 150,000 0 0 Wellington £75,000, 30th June, 1868 £75,000, 30th June, 1869 Within thirty-six years from 15th April, 1868 ,, 150,000 0 0 4d. per cent. per diem 5 per cent. 9,125 0 0 13,000 0 0 ,, London 1 per cent.... 2,600 0 0 P. G. Julyan W. C. Sargeaunt ' Public Debts Act, 1867 " ... \ ' Consolidated Loan Act, 1867" j 260,000 0 0 260,000 0 0 , j ,, Total General Government 4,060,000 0 0 4,108,843 15 11 215,032 4 6 215,032 4 6 60,600 0 0 194,595 9 7 Total nominal value of Securities, £201,935 18s. 9d. Provincial Governments : — Auckland ' Auckland Loan Act, 1863 "... 500,000 0 0 500,000 0 0 33 years from date of issue 6 per cent. 30,000 0 0 15,000 0 0 15,000 0 0 April 1 ... October 1... London t > 2 per cent.... 10,000 0 0 Superintend!, of Province 36,792 10 0 £18,600 on Mortgage of Real Estate £10,000 in New Zealand Treasury Bills o Trustees appointed by the Act. 10,000 0 0 36,792 10 0 Total invested, £28,600 Total Peovince op Auckland ... 500,000 O 0 500,000 0 0 30,000 0 0 30,000 0 Taranaki 5 per cent. 1,250 0 0 312 10 312 10 312 10 312 10 July 15 ... October 15 January 15 April 15 ... London 1 per cent.... 250 0 0 P. G. Julyan W. C. Sargeaunt ' Taranaki Loan Ordinance, 1862 " } ' Public Debts Act, 1867 " ... j 25,000 0 0 25,000 O 0 Within thirty-six years from 15th April, 1868 ,, 'his loan was raised before the separation of Hawke's Bay from Wellington ; the proportion to be paid by each Province has not yet been determined. Notice has been given that this loan will be paid off 1st July, 1869. }he amount authorized is " half the cost of the bridge." The total cost is estimated to be £32,000. This loan replaced " The Wellington Loan Act, 1857," due 1st January, 1867, raised before the separation of Hawke's Bay from Wellington ; the proportion to be paid bv each Province has not yet been determined." Ms loan was authorized for the purchase of land from Natives in Manawatu. Twenty per cent, of the proceeds of the land when sold is to be paid to the Colonial Treasurer as Trustee for a Sinking Fund. > > ? j ... Total Peovince op Taranaki ... 25,000 0 0 25,000 0 0 1,250 0 0 1,250 0 0 250 0 0 Wellington 'Wellington Loan Acts,1854 andl855," Nos. 6 and 9 50,000 0 0 49,900 0 0 12 months' notice 8 per cent. 3,992 0 0 1,996 0 0 1,996 0 0 Julyl January 1... London ) ! ' Wellington Loan Act, 1862," No. 11... 25,000 0 0 25,000 0 0 1st July, 1877 ... 8 per cent. 2,000 0 0 1,000 0 0 1,000 0 0 800 0 0 800 0 0 Julyl January 1... Julyl January 1... y f 4 per cent.... 1,000 0 0 Provincial"") Auditor and Deputy | Auditor Ditto J 7,115 19 8 £6,610 on Mortgage of Real Estate ' Wanganui Bridge Act, 1863," No. 6... 16,000 0 0 16,000 0 0 3 months' notice ... 10 per cent. 1,600 0 0 Wellington ,, 2 per cent.... ' Wellington Loan Act, 1866," No. 3... 50,000 O 0 50,000 0 0 1st July, 1886 ... 8 per cent. 4,000 0 0 2,000 0 0 2,000 O 0 Julyl January 1... London 1,000 0 0 >.» ' Wellington Loan Act, 1866," No. 11... 30,000 0 0 30,000 0 0 1st July, 1871 ... 10 per cent. 3,000 0 0 1,500 0 0 1,500 0 0 Julyl ... January 1... Sydney Total Province of Wellington 171,000 0 O 170,900 0 0 14,592 0 0 14,592 0 0 2,000 0 0 7,115 19 8 Total invested, £6,610 Hawke's Bay ' Hawke'a Bay Loan Act, 1863-4 " ' Public Debts Act, 1867 " } 60,000 0 0 60,000 0 0 Within thirty-six years from 15th'ApriUL868 5 per cent. 3,000 0 0 750 0 0 750 0 0 750 0 0 750 0 0 July 15 ... October 15 January 15 April 15 ... London »« 1 per cent.... 600 0 0 P. G. Julyan W. C. Sargeaunt j, Total Pbovince op Hawke's Bay 60,000 0 0 60,000 0 0 3,000 0 0 3,000 0 0 600 0 0 Nelsow ' Nelson Debentures Act, 1858," 29,000 0 0 20,800 0 0 700 0 0 1st July, 1868 8 per cent, 10 per cent. 2 per cent.... To be invested as Governor may direct 1,720 0 0 £860 paid to Trustees £7,500 of the £29,000 and interest thereon is payable by the Province of Marlborough. " Nelson Lunatic Asylum Act, 1862"... 5,000 0 0 " Nelson Waterworks Loan Act, 1864 " 20,000 0 0 20,000 • 0 0 £10,000, 1st Jan., 1876 ... £10,000, 1st Jan., 1881 8 per cent. 2 per cent.... 'art of Nelson Debt allotted to Province of Marlborough. Total Province of Nelson 54,000 0 0 41,500 0 0 1,720 0 0 £860 paid to Trustees Maelborough "Nelson Debentures Act, 1858" 7,500 0 0 1st July, 1868 8 per cent. 600 0 0 I Canterbury Total Province op Marlboeough 7,500 0 0 600 0 0 ?he first issue of Debentures, £50,000, was signed and cancelled the same day. " Canterbury Loan Ordinance, 1856"... 30,000 0 0 30,000 0 0 28th September, 1872 ... 8 per cent. 2,400 0 0 1,200 0 0 1,200 0 0 June 30 ... December 31 London ,, 2 per cent, for 3 years 4 per cent, for 12 years 2 per cent. 1,200 0 0 H. S. Selfe J. Morrison J. Marshman 12,148 4 2 £12,200"") In Colonial Securities, principally NewSouth Wales Government De£15,200 ! bentures 5 per cent, and Queensland G-overnment Debentures 6 per cent. £7,900^ " Canterbury Railway Loan Act, 1860 " 300,000 0 0 250,000 0 0 £50,000, 30th June, 1893 £50,000, 31st Dec, 1894 £50,000, 31st Dec, 1895 £50,000, 31st Dec, 1896 £50,000, 31st Dec, 1897 50 years from date of issue 6 per cent. 15,000 0 0 7,500 0 0 7,500 0 0 June 30 ... December 31 ,, 5,000 0 0 H. S. Selfe J. Marshman 14,464 11 6 ,, "Canterbury Loan Ordinance, 1862"... " Public Debts Act, 1867 " 500,000 0 0 233,400 0 0 266,600 0 0 Within thirty-six years from 15th April, 1868 6 per cent. 5 per cent. 14,004 0 0 13,330 0 0 7,002 0 0 7,002 0 0 3,332 10 0 3,332 10 0 3,332 10 0 3,332 10 0 June 30 ... December 31 July 15 ... October 15 January 15 April 15 ... , t ,, 1 per cent.... 1 per cent.... 2,334 0 0 2,666 0 0 H. S. Selfe T. Somers P. G. Julyan W. C. Sargeaunt 13,566 15 0 The amount of Debentures in circulation is £233,400. Debentures for £266,600 have been handed to the Colonial Treasurer, to be dealt with under " The Public Debts Act, 1867." ,, ,, , j ... Total Province of Canterbury 830,000 0 0 780,000 0 0 44,734 0 0 44,734 0 0 11,200 0 0 40,179 10 8 Total nominal value of Securities, £35,300 Otago The whole of this loan was raised; £24,700 has been paid off as the Debentures became due, leaving in circulation £10,300 as stated. Sinking Fund in hands of Trustees waiting investment, £3,816 16s. Id. " Otago Loan Ordinance, 1856" 35,000 0 0 10,300 0 0 31st December, 1868 ... 10 per cent. 1,030 0 0 515 0 0 515 0 0 March 31... September 30 London , j " Otago Loan Ordinance, 1861-2 " " Otago Loan Ordinance, 1862 " 50,000 0 0 500,000 O 0 50,000 0 0 500,000 0 0 £43,000, 31stDec, 1874... £7,000, 31st Dec, 1875 1st July, 1898 8 per cent. 6 per cent. 4,000 0 0 30,000 0 0 1,832 O 0 1,832 0 0 40 0 0 40 0 0 128 0 0 128 0 0 15,000 0 0 15,000 0 0 170 0 0 170 0 0 76 0 0 76 0 0 1,754 0 0 1,754 0 0 1,354 0 0 1,354 0 0 646 0 0 646 O 0 323 19 6 323 19 6 323 19 6 323 19 6 January 1... Julyl ... January 1... Julyl ... January 1... Julyl January 1... July 1 May 1 November 1 Mayl ... November 1 Mayl November 1 April 1 ... October 1... April 1 October-J™. July 15 ... October 15 January 15 April 15 ... ,, Melbourne Dunedin ... London 3 per cent.... 1 per cent.... 1,500 0 0 5,000 0 0 E. B. Cargill J. Jones Ditto 38,716 12 11 £34,879 16s. lOd. invested as under — £13,929 16s. lOd. New Zealand Government Debentures, 8 per cent. £11,300 Harbour Loan Debentures, 8 per cent. £1,525 Public Buildings Loan Debentures, 8 per cent. £5,000 Dunedin Waterworks Company Debentures. £3,300 Mortgage Corporation City of Dunedin. "Otago Harbour Loan Ordinance, 1862" 50,000 0 0 50,000 0 0 1st November, 1874 8 per cent. 4,000 0 0 ,, Melbourne 3 per cent.... 1,500 0 0 Ditto "Otago Public Building Loan Ordinance, 1862 " 50,000 0 0 50,000 0 0 1st October, 1875 8 per cent. 4,000 0 0 Dunedin ... London 3 per cent.... 1,500 0 0 Ditto Dunedin ... 1 per cent.... 259 3 1 P. &. Julyan W. C. Sargeaunt " Public Debts Act, 1867 " (for Surplus Revenue Adjustment Act, 1860) 25,918 0 0 25,918 O 0 Within thirty-six years from 15th April, i868 5 per cent. 1,295 18 0 London ,, Total Province op Ota&o 710,918 0 O 686,218 0 0 44,325 18 0 44,325 18 0 9,757 3 7 38,716 12 11 Total nominal value of Secu rities, £35,054 16s. lOd. Southland... " Public Debts Act, 1867" (for payment of Debts of Province with interest to 30th September, 1868) 387,455 8 7 387,455 8 7 Within thirty-six years from 15th April, 1868 5 per cent. 19,372 15 5 4,915 10 3 4,915 10 2 4,915 10 3 4,915 10 2 July 15 ... October 15 January 15 April 15 ... London 1 per cent 3,874 11 1 P. G. Julyan W. C. Sargeaunt 5,785 9 0 5,785 9 0 5 per cent. 289 5 5 it 1 per cent.... 57 17 1 Ditto "Public Debts Act, 1867 " (forSurplus Revenue Adjustment Act) Within thirty-six years from 15th April, 1868 } i Total Province op Southland. 393,240 17 7 393,240 17 7 19,662 0 10 19,662 0 10 3,932 8 2 Total General Total Provincial 4,060,000 0 0 2,744,338 17 7 4,108,843 15 11 2,664,358 17 7 194,595 9 7 122,825 7 2 Total nominal value of Secu rities, — Gen. Govt. £201,935 18 9 Prov. Govt. 205,114 16 10 Totals 6,804,338 17 7 6,773,202 13 6 317,420 16 9 £407,050 15 7

A.—]STo. la.

Table C. TABLE SHOWING THE ANNUAL LIABILITY OF THE GENERAL AND PROVINCIAL GOVERNMENTS OF NEW ZEALAND, FOR INTEREST AND SINKING FUND ON LOANS, TO THE 30TH JUNE, 1868.

FINANCIAL STATEMENT,

17

LI J3ILITY ON THE 30th JUNE, 1868. LOANS AUTHORIZED. Debentures in Circulation on the 30th June, 1868. Annual Charge. REMARKS. Interest. Sinking Fund. Total. £ s. d. 316 0 0 £ s. d. £ s. a. £ s. d. General Government New Zealand Overdue Debentures issued under Ordinance of Legislative Council " New Zealand Loan Act, 1856," £500,000.—" The Public Debt Apportionment Act, 1858," made £380,000 of this a charge on the Provinces, leaving chargeable on the General Government But the Interest and Sinking Fund on £36,000, the portion allotted to Taranaki, is by the same Act to be paid by the Colony until certain conditions are fulfilled " New Zealand Loan Act, 1860," £150,000 ... "New Zealand Loan Act, 1863," £3,000,000 ... ,.. ... ... ... ... ... '' " Debenture Acts, 1864 and 1865 " " Treasury Bills Act, 1866" ... ... ... ... ... ... ... ... ... ... '"_ " Public Debts Act, 1867." —Telegraph extension, Lighthouses, Defence, redemption of Taranaki Debentures, and Marine Surveys 120,000 0 0 36,000 0 0 150,000 0 0 3,000,000 0 0 48,527 15 11 150,000 0 0 260,000 0 0 4,800 0 0 1,440 0 0 9,000 0 0 160,000 0 0 3,882 4 6 9,125 0 0 13,000 0 0 2,400 0 0 720 0 0 3,000 0 0 45,000 0 0 7,200 0 0 2,160 0 0 12,000 0 0 205,000 0 0 3,882 4 G 9,125 0 0 15,600 0 0 2,600 0 0 Interest in 1868 (Leap Year) will be £9,150. Provincial Governments — Auckland " Loan Act, 1863," £500,000 " New Zealand Loan Act, 1856," £500,000.—Portion allotted by " The Public Debt Apportionment Act, 1858 " Total General Government 3,764,843 15 11 201,247 4 6 53,720 0 0 254,967 4 6 By " The Pub] ic Debts Apportionment Act, 1858," Auckland is to be credited with the annual charge on £11,151 10s. lid. in diminution of the £90,000; the amount so credited, is to be paid by the other Provinces. By Resolution of the House of Representatives in 1860, £1,460 18s. lid. was deducted from the £11,151 10s. ljd., and Auckland is now credited annually with £581 8s. 8d., the same being charged on the other Provinces in the Colonial Treasurer's Account. 500,000 0 0 90,000 0 0 30,000 0 0 3,600 0 0 10,000 0 0 1,800 0 0 40,000 0 0 5,400 0 0 Takanaki Total Province of Auckland 590,000 0 0 33,600 0 0 11,800 0 0 45,400 0 0 " Loan Ordinance, 1862," £25,000 } " The Public Debts Act, 1867 " ) " New Zealand Loan Act, 1856," £500,000. —Portion allotted by " The Public Debt Apportionment Act, 1858," is at present chargeable on the General Government. See above. 25,000 0 0 1,250 0 0 250 0 0 1,500 0 0 WELLINGTON Total Province op Taranaki 25,000 0 0 1,250 0 0 250 0 0 1,500 0 0 " Loan Act, 1854 and 1855," £50,0001 Hawke's Bay will eventually have to bear a portion of this debt, meanwhile that Province contributes £2,500 per annum " Loan Act, 1866," ... £50,000 J towards the interest. All the Debentures in circulation are shown here, but the contribution of Hawke's Bay is deducted from the interest 49,900 0 0 50,000 0 0 2,742 0 0 2,750 0 0 1,000 O 0 2,742 0 0 3,750 0 0 In addition to the liabilities shown here, the sum of £32,000 has been raised by a mortgage on the reclaimed land in the City of Wellington. " Loan Act, 1862," £25,000 " Wanganui Bridge Act, 1863 " ... "Loan Act, 1866," (Manawatu), £30,000 ... ... ... ... ... ... ... '.['. \[ '" "' " New Zealand Loan Act, 1856," £500,000. —Portion allotted by " The Public Debt Apportionment Act, 1858," £54,000. On the separation of Hawke's Bay from Wellington, this charge was divided equally between the two Provinces, see Resolution of the House of Representatives, 3rd November, 1860, confirming the compromise between Hawke's Bay and Wellington, referred to in Appendix to Journals, House of Representatives, 1862, B. No. 3. Wellington is therefore charged with 25,000 0 0 16,000 0 0 30,000 0 0 2,000 0 0 1,600 0 0 3,000 0 0 1,000 O 0 3,000 0 0 1,600 0 0 3,000 0 0 27,000 0 0 1,080 0 0 540 0 O 1,620 0 0 Total Province of Wellington 197,900 0 0 13,172 0 0 15,712 0 0 2,540 0 0 Hawke's Bay "Loan Act, 1863-4," £60,000) " The Public Debts Act, 1867 " > " Wellington Loan Act, 1854 and 1855," and " Wellington Loan Act, 1866." See above ... " New Zealand Loan Act, 1856," £500,000. —Moiety of sum allotted to original Province of Wellington. See above. 60,000 0 0 3,000 0 0 600 0 0 3,600 O 0 27,000 0 0 2,500 0 0 1,080 0 0 540 0 0 2,500 O O 1,620 0 0 ■ Total Province of Hawke's Bay 7,720 0 0 87,000 0 0 6,580 0 0 1,140 0 0 Nelson " Debentures Act, 1858," £29,000. —" The Nelson and Marlborough Public Debt Apportionment Act, 1860," directs the respective liability of the two Provinces, after the separation of Marlborough, to be fixed by arbitration. Umpire awarded £21,500 to Nelson and £7,500 to Marlborough " Lunatic Asylum Act, 1862," £5,000. —This amount has not been raised ; if raised, it will form part of the £400,000 authorized by " The Public Debts Act 1867 " " Water Worts Loan Act, 1864," £20,000 " New Zealand Loan Act, 1856," £500,000. —Portion alloted by " The Public Debt Apportionment Act, 1858," £45,000; this, by " The New Provinces Act, 1858," is divided between Nelson and Marlborough in proportion to the Annual Revenue of each, the amount therefore varies each year In the Financial Year 1866-7 this was to Nelson, £30,687; to Marlborough, £14,313 ... ... ... ... ... ... ... ' *22,165 0 0 1,108 5 0 221 13 0 1,329 18 0 *This loan has been paid off in terms of the Loan Consolidation Act, but as no direction has yet been given by the Legislature in respect to this repayment, the interest and sinking fund have been computed on the terms on which the money has been raised under the Act referred to. 20,000 0 0 1,600 0 0 400 0 0 2,000 0 0 Maeibobotoh 30,687 0 0 1,227 9 8 613 14 9 1,841 4 5 Total Province of Nelson 5,171 2 5 72,852 O 0 3,935 14 8 1,235 7 9 " Nelson Debentures Act, 1858," £29,000.—Portion allotted to Marlborough. See above ... " New Zealand Loan Act, 1856," £500,000. —Part of sum allotted to original Province of Nelson. See above t 7,732 0 0 14,313 0 0 386 12 0 572 10 4 77 6 5 286 5 3 463 18 5 858 15 7 f The above remarks apply to this part of the loan also. Canterbury Total Province of Marlborough 22,045 0 0 959 2 4 363 11 8 1,322 14 0 " Loan Ordinance, 1856," £30,000 " Railway Loan Act, 1860," £300,000 (£50,000 cancelled) ... ... ... " Loan Ordinance, 1862," £500,000 " Public Debts Act, 1867" ... ... ... ... ... ..'. [[[ .'" " New Zealand Loan Act, 1856," £500,000.—Portion allotted by " The Public Debt Apportionment Act, 1858," and " The Public Debt Apportionment Act 1858 Amendment Act, 1861" 30,000 0 0 250,000 0 0 233,400 0 0 266,600 0 0 2,400 0 0 15,000 0 0 14,004 0 0 13,330 0 0 1,200 0 0 5,000 0 0 2,334 0 0 2,666 0 0 1,480 0 0 3,600 0 0 20,000 0 0 16,338 0 0 15,996 0 0 4,440 0 0 By " The County of Wcstland Act, 1867," the annual charge in respect of the loans of the Province of Canterbury, is divided between Canterbury and Westland, in proportion to the Customs revenue received in each. The proportions paid for the six months ending 30th Juno have been — Canterbury ... £10,316 18 3 Westland ... 12,064 8 8 Otaoo 74,000 0 0 2,960 0 0 Total Province of Canterbury 854,000 0 0 47,694 0 0 12,680 0 0 60,374 0 0 "Loan Ordinance, 1856," £35,000.—(£24,700 paid off) ... " Loan Ordinance, 1861-2," £50,000 ... . ...... " Loan Ordinance, 18G2," £500,000 ... ... ... ... "' " Harbour Loan Ordinance, 1862," £50,000 ... " Public Buildings Loan Ordinance, 1862," £50,000 " New Zealand Loan Act, 1856," £500,000.—Portion allotted by "The Public Debt Apportionment Act,' 1858," and " The Public Debt Apportionment Act 1858 Amendment Act, 1861," £81,000. " The Otago and Southland Public Debt Apportionment Act, 1861," directs the respective liability of the two Provinces alter the separation of Southland to be fixed by arbitration. Arbitrators awarded £63,000 to Otago and £18,000 to Southland. " Public Debts Act, 1867." —To enable the Province to fulfil the terms of " The Surplus Revenue Adjustment Act, 1867 "....' 10,300 0 0 50,000 0 0 500,000 0 0 50,000 0 0 50,000 0 0 1,030 0 0 4,000 0 0 30,000 0 0 4,000 0 0 4,000 0 0 1,500 0 0 5,000 0 0 1,500 0 0 1,500 0 0 1,030 0 0 5,500 0 0 35,000 0 0 5,500 0 0 5,500 0 0 £22,381 6 11 63,000 0 0 25,918 0 0 2,520 0 0 1,295 18 0 1,260 0 0 259 3 7 3,780 0 0 1,555 1 7 Total Province op Otago 749,218 0 0 46,845 18 0 11,019 3 7 57,865 1 7 Southland " Public Debts Act, 1867."—Amount required to pay off debts of the Province of Southland, as per certificates issued by the Auditor-General under the Southland Provincial Debts Acts of 1865 and 1866, with accrued interest thereon to 30th September, 1868 " Public Debts Act, 1867."—To enable the Province to fulfil the terms of " The Surplus Revenue Adjustment Act,' 1867 " ... " New Zealand Loan Act, 1856," £500,000. Part of sum allotted to original Province of Otago. See above 387,455 8 7 5,785 9 0 18,000 0 0 19,372 15 5 '289 5 5 720 0 0 3,874 11 1 57 17 1 360 0 0 23,247 G 6 347 2 6 1,080 0 0 ■ Total Province op Southland 411,240 17 7 20,382 0 10 4,292 8 2 24,674 9 0 TOTAL GENERAL TOTAL PROVINCIAL 3,764,843 15 11 3,009,255 17 7 201,247 4 6 174,4.18 15 10 375,666 0 4 53,720 0 0 45,320 11 2 99,040 11 2 254,967 4 6 219,739 7 0 TOTAL 6,774,099 13 6 474,706 11 6

B.—Ho. Ik.

Table D. SCHEDULE stowing APPROPRIATIONS of CONFISCATED LANDS.— August, 1868.

23

FINANCIAL STATEMENT.

Waieato and Tactaxg-a. Opotiki. Hawke's Bay. Taeanaki. and Wellington. Acres. Acres. Acres. Acres. Acres. Total Areas 1,217,437 214,000 440,000 335,500 1,200,000 Compensation Awards i 221,000 9,822 48,967 104,000 134,000 Abandoned to Claimants ... 15,000 63,341 40,832 100,000 Katikati and Puna Block also abandoned but repurchased. Missionary and School Claims 4,870 800 Land Orders — New Zealand Company 4,000 These areCrown lands included in confiscation. Eeturned to Provincial Administration 2,240 30,000 Reserves for returned Rebels 25,000 2,616 110,000 73,000 Military Settlers' Allotments 214,000 26,701 70,483 105,700 Immigrants' Allotments ... 26,167 Reserves for G-eneral Purposes 2,630 5,000 Ditto Special Purposes 45,000 Taranaki Railway Reserve. Ditto College Endowment ... 20,000 4,000 acres College Reserve, Waitotara, The remainder not yet set apart, but ordered by House of Representatives. Sales —Town Lots 90 137 2 ' Suburban Lots 980 232 ... ... Rural Lots 108,960 854 Unsaleable 125,200 13,650 37,000 193,000 70,000 VALUATION. Saleable Balance —Town ... 300 £ At £5 per acre, value about 10,000 950 550 130 Suburban S50 100 3,000 At £3 per acre, value about .,. ... ... 12,000 Rural 470,000 95,197 132,584 8,500 640,000 At 10s., 5s., and 2s. 6d. per acre, value about... 275,000 £297,000

B.—H"o. la.

Table E. STATEMENT showing the REVENUE RECEIVED from STAMP DUTIES during the Financial Year 1867-8.

24

FINANCIAL STATEMENT.

Adhesive. PKOVIXCE. IlIPEESSED. Bake Composition. Fees, Fines, and Penalties. Totals. Under Schedule I. Under Schedule II. "Under Schedule III. Under Schedule IV. General — ■ £ s. d. £ e. d. £ s. d. £ s. d. £ b. a. £ s. d. £ s. d. £ s. d. Chatham Islands 3 10 10 3 10 10 Provincial — Auckland 526 11 0 5,110 2 2 283 13 0 39 15 6 970 15 9 142 12 3 7,073 9 8 Taranald 96 9 4 344 7 3 23 0 0 188 15 2 7 19 6 660 11 3 Wellington 918 1 7 3,922 14 1 315 6 1 11 0 0 1,106 10 4 69 15 4 6,313 7 5 Havke's Bay 127 16 2 988 12 9 10 10 0 296 14 10 36 3 0 1,459 16 9 Nelson 214 13 8 2,575 4 11 236 15 0 2,454 15 3 27 16 0 5,509 4 10 Maiiborough 47 19 2 322 14 2 23 10 0 194 5 10 2 17 0 591 6 2 Canterbury 1,390 2 10 9,025 1 4 430 10 0 2 4 0 9 19 2 2,837 12 0 234 8 0 13,929 17 4 Westland 398 17 3 1,171 1 1 29 10 0 361 11 7 0 16 6 1,961 16 5 Otago 1,326 9 2 12,485 16 9 622 6 1 154 9 11 22 4 8 4,018 6 6 98 13 8 18,728 6 9 Southland 133 10 4 1,606 17 9 86 1 0 311 4 4 5 19 6 2,143 12 11 5,180 10 6 37,556 3 1 2,061 1 2 207 9 5 32 3 10 12,740 11 7 627 0 9 58,405 0 4 C. T. Batkik, Accountant to Treasury.

B.—No.

Return I. RETURN of the GROSS CUSTOMS REVENUE for each Quarter, from September Quarter, 1857, to the Quarter ended the 30th June, 1868, inclusive.

25

FINANCIAL STATEMENT.

Financial Yeae 1857-8. Financial Ybab 1862-3. September Quarter ... ... £31,251 "| December „ ... ... 34,730 | }■ £138,998 March „ ... ... 31,126 I September Quarter ... ... £94,754") December „ ... ... 118,526 | I- £488,522 March „ ... ... 127,465 I June „ , ... ... 147,777 J June ' „ ... ... 41,891 J Financial Yeae 1858-9. Financial Yeab 1863-4. September Quarter ... ... £40,420") December „ ... ... 38,199 j> £160,836 March „ ... ... 41,884 I September Quarter ... ... £145,594") December „ ... ... 171,001 }- £617,002 March „ ... ... 147,778 June „ ... ... 152,629 J June „ ... ... 40,333 J Financial Yeae 1859-60. Financial Yeab 1864-5. September Quarter ... ... £41,491"") December „ ... ... 44,607 Y £178,117 March „ ... ... 46,298 September Quarter ... ... £140,872") December „ ... ... 150,995 J> £643,297 March „ ... ... 167,690 June „ ... ... 183,740 J June „ ... ... 45,721 J Financial Yeae 1860-1. Financial Yeae 1865-6. September Quarter ... ... £45,790") December ,, ... ... 51,359 | [ £204,612 March „ ... ... 52,236 I June „ ... ... 55,227 J September Quarter ... ... £180,160 "| December „ ... ... 198,418 j g6 22? . March „ ... ... 208,794 j June „ ... ... 208,855 J Financial Yeae 1861-2. Financial Yeab 1866-7. September Quarter ... ... £66,935 ") September Quarter ... ... £199,452 "| December „ ... ... 227,253 | !■ £864,668 March „ ... ... 220,183 June „ ... ... 217,780 J December „ ... ... 86,466 J- £339,393 March „ ... ... 98,050 June „ ... ... 87,942 J Financial Yeab 1867-8. September Quarter ... ... £196,916 "| December „ Maroli „ Juno „ ... 209,118 I J- £793,394 ... 194,618 I 192,742 J Custom House, Wellington, "William Seed, 8th August, 1868. Secretary and Inspector.

B.—No. la.

Return II. RETURN showing the AMOUNT and VALUE of GOLD EXPORTED during the Financial Years from 1856-7 to 1867-8.

26

FINANCIAL STATEMENT.

1860-1. 1861-2. 1862-3. 1863-4. 181 14-5. 1865-6. ISi 16-7. 1867-8. 1856-7. 1857-8. 1858-9. 1859-60. Value. Ozs. ; Value. OZ3. Value. Ozs. Value. Ozs. Value. Ozg. £ Value. Ozs. Value. Ozs. Value. Ozs. Value. Ozs. Value. Ozs. Value. Ozs. Value. Oza. £ £ : £ . j .1 £ £ i £ £ £ £ 4,337 3,910 £ £ 5,410 4,368 22,984 Auckland ... 13,689 11,878 3,853| 11,627 16,197 8,847 73,966 If elson ... 8,873 34,381 10,772 41,745 27,720 107,491 135,275 524,199 168,044 651,173 241,031 964,124 Otago Marlborough o CD O o o o 491,686 1,905,284 ■• 537,817 7,205 i2,084,039 27,919 3O9,576| 22,424 ■1,199,610 85,878 203,850 2,418! 789,919 9,373 154,973 532 600,521 2,061 149,545 7Oo| 598^180 2,800 Canterbury 23 91 57,025 226,573 390,238 i 1,512,093 337,837 1,309,120 147,248 588,992 Westland ... 106,442 425,768 Southland,.. 1,625 6,297 8,791 34,067 10,703! 42,812 i I i I i i ! I I i I TOTAI... 976 3,784 17,220 { 66,730 9,482 36,747 6,147 23,818 6,341 24,568: 449,279 ,1,740,956 i 504,896, 1,953,354; 559,727: :2,165,672 420,598 1,631,179 >' 738,816 2,858,078 674,545 2,605,789; 678,653; 2,696,642 Total Amount of Gold Expoeted, 4,066,680 Ounces. Total Value of Gold Expoeted, £15,807,317.

FINANCIAL STATEMENT.

27

B.—No. 1a

Return III. RETURN of the VALUE of IMPORTS and EXPORTS for each PORT of NEW ZEALAND for the Year ending 30th June, 1868.

RETURN of the VALUE of IMPORTS and EXPORTS for each PROVINCE for the Year ending 30th June, 1868.

Poets. Vamje oj? Impoets. Valttb op Expoets. Auckland Wangarei Russell Mongonui Holcianga Kaipara New Plymouth ... Wanganui Wellington Napier Wairau Picton JTayelock Nelson Westport Brighton Greymouth Hokitika Okarito Lyttelton and Christchuroh Akaroa Timaru ... ... Oamaru Dunedin Invorcargill Bluff Harbour ... Biyorton Chatham Islands 500,929 £ 298,549 632 378 702 18,750 56,396 461,861 78,539 11,794 3,568 116 375,837 106,396 1,596 187,990 582,853 4,281 521,501 3,607 36,996 22,204 1,521,190 115,065 27,405 9,965 43 628 151 7,014 1,120 631 15,487 184,328 45,332 35,842 4,042 149 72 427 511^725 168,375 439,953 812,836 30,857 490,198 18 131,251 4,374 1,067,458 160,704 4,459 20 £4,650,594 '£4,487,928 Custom House, William Seed, Wellington, 6th August, 1868. • Secretary and Inspector.

Peovihce. Value op Impoets. Value op Expoets. Auckland Taranaki Wellington Hawke's Bay Marlborougn Nelson Canterbury Otago Southland Chatham Islands £ 502,641 18,750 518,257 78,539 15,478 483,829 1,337,228 1,543,394 152,435 43 £ 307,462 631 199,815 45,332 40,033 752,527 1,805,113 1,071,832 165,163 20 £4,650,594 £4,487,928 Custom House, "William Seed, Wellington, 8th August, 1868. Secretary and Inspector.

B.—No. la.

RETURN showing the ANNUAL EXPENDITURE authorized by the General Assembly for PROVINCIAL SERVICES, out of the ORDINARY REVENUE, for the Financial Years from 1858-9 to 1867-8.

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 1867-8.

28

FINANCIAL STATEMENT.

1860-1. 1861-2, 1862-3. 1863-4. 1864-5. 1865-6. 1866-7. (a.) 1867-8. Totals. 1858-9. 1859-60. £ s. a. £ a. a. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Auckland Taranaki Hawke's Bay Wellington ... Kelson Marlborough Canterbury ... Westland 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 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 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 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 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 28,954 8 10 3,344 0 10 3,633 18 4 12,258 17 6 6,843 16 4 3,462 19 10 23,852 6 10 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 33,509 19 4 3,994 15 1 5,765 11 2 16,658 14 3 9,214 2 0 6,048 4 4 52,860 8 10 36,097 10 10 3,706 10 0 7,890 3 8 20,448 14 5 13,199 17 6 4,239 18 10 37,197 7 10 6,417 18 5 46,458 2 6 7,519 17 6 239,192 19 3 27,078 8 7 37,825 9 5 120,410 10 10 75,017 7 10 31,873 15 2 228,667 10 10 6,417 18 5 360,864 6 8 64,225 2 9 5,915 19 6 3,868 1 4 3,651 0 3 5,798 4 1 452 9 8 18,289 3 2 1,995 13 2 44,832 2 9 4,626 1 9 57,262 6 11 17,256 3 0 48,815 18 3 10,228 6 1 76,850' 11 2 14,097 15 10 55,038 16 3 8,048 15 9 ... Total 37,467 6 2 47,372 13 11 74,233 4 8 110,014 19 4 149,696 12 1 141,394 12 10 219,710 5 11 191, 169 7 0 183,176 1 6 1,191,573 9 9 37,338 6 4 (a.) This a >lumn is corrected according to the published accounts of the year 1866-7 including amounts added to expenditi re of that year by the reconstruction of the Accounts. Treasury, 17th August, 1867. J. WOODWAED, Assistant Treasurer.

1861-2. 1862-3. 1863-4. 1864-5. 1865-6. 1866-7. (»•) 1867-8. Totals. 1858-9. 1859-60. 1860-1. ' I I £ s. d. £ s. a. £ s. a. £ a. a. £ s. a. £ s. a. £ b. d. | £ a. a. £ s. a. £ a. a. £ s. d. Civil List Permanent Charges, Interest, &e. Annual Appropriations 19,000 0 0 20,565 19 1 27,717 12 0 19,000 0 0 21,591 8 3 30,207 18 1 19,000 0 0 20,901 2 10 65,772 9 7 19,000 0 0 35,473 0 11 92,226 17 8 25,000 0 0 79,139 8 4 108,437 7 5 27,500 0 0 96,055 4 5 152,242 6 8 27,500 0 0 \ 27,500 0 0 108,196 1 2 186,451 8 8 jl20,794 1 1 1329,623 9 6 27,500 0 0 287,745 19 0 444,086 5 7 19,031 4 3 243,062 16 9 176,012 18 2 230,031 4 3 1,099,182 9 5 1,547,121 5 9 Total 67,283 11 1 70,799 6 4 105,673 12 5 146,699 18 7 212,576 15 9 275,797 11 1 256,490 2 3 543,574 18 2 759,332 4 7 438,106 19 2 2,876,334 19 5

B— Mo, la.

Return V. RETURN showing the ANNUAL AMOUNT distributable out of the ORDINARY REVENUE as SURPLUS REVENUE, to the credit of the PROVINCES, for the Financial Years from 1858-9 to 1867-8.

RETURN showing the ANNUAL AMOUNT distributed out of the ORDINARY REVENUE as SURPLUS REVENUE, to the credit of the PROVINCES, for the Financial Years from 1858-9 to 1867-8.

29

FINANCIAL STATEMENT.

1858-9. 1859-60. 1860-1. 1861-2. 1862-3. 1863-4. 1864-5. 1865-6. 1866-7. (6.) 1867-8. Totals. Auckland Taranaki Hawke's Bay Wellington ... Nelson Marlborough Canterbury ... Westland Ota-go Southland ... £ s. a. 20,643 6 2 2,069 7 6 1,442 7 0 20,664 3 9 4,553 3 6 £ s. d. 31,620 13 7 2,557 1 7 3,721 7 4 17,656 3 1 7,168 4 6 118 10 2 17,87-1 14 10i £ s. d. 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 £ s. d. 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 £ s. a. 43,758 3 11 2,746 2 5 2,898 14 11 18,130 19 8 9.967 17 7 60 16 11 28,362 19 10 £ s. a. 62,387 7 H 4,823 15 9 4,813 12 3 21,064 1 6 11,476 14 0 Dr. 18 13 10 39,820 9 6 £ s. a. 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 £ s. el. 28,098 1 8 2,651 8 1 5,533 8 9 24,690 19 7 15,550 15 7 Dr. 6,623 13 11 72,979 0 9 £ s. a. 18,534 8 3l 1,061 16 9 2,814 12 4 17,872 0 4 14,880 17 6 Dr. 2,852 14 7 45,625 0 2 £ s. a. £ s. a. 36,936 13 6 404,828 5 11 1,192 0 7 31,929 6 6 5,796 4 5 j 41,678 12 8 33,928 15 3 I 214,192 7 2 38,697 19 8 I 134,168 19 0 378 1 0 Dr. 4,601 1 9 69,747 9 2 j 373,372 7 10 25,401 4 0 ! 25,401 4 0 85,322 15 8 I 547,667 4 4 10,823 15 11 ! 77,330 8 9 14,653 12 Hi 6,533" 15 1 14,270 18 5 15,733 8 7 338 16 7 76,388 17 8 3,605 15 8 103,832 11 1 20,027 11 3 114,235 5 2 24,931 6 5 103,016 5 8 15,203 7 9 Dr. 310 19 4 Dr. 2,494 4 6 28,644 6 4 4,893 19 8 1 ... Total... 70,559 15 Hi 94,987 13 6§ 283,533 18 8 131,474 6 d 308,224 19 2 | 1,845,967 14 5 76,930 5 0 169,252 12 10 229,785 17 7 341,143 8 3 140,074 16 8 !

1858-9. 1859-60. 1860-1. 1861-2. 1862-3. 1863-4. I 1864-5. 1865-6. (a.) 1866-7. (5.) 1867-8. I Totals. Auckland Taranaki Hawke's Bay Wellington ... Nelson Marlborougli Canterbury ... Westland ... Otago Southland ... ... £ s. d. £ s. d. £ s. a. 18,466 16 3 21,780 14 9 34,817 12 11 1,825 8 10 2,045 17 10 4,237 6 11 1,258 9 2 2,676 2 5 2,551 9 0 15,801 2 5 14,614 17 10 j 18,274 9 2 5,671 3 9 5,547 16 7 i 7,305 6 4 j 229 14 4 | 601 18 0 11,854 14 61 12,919 11 9 20,688 16 3 5,737 6 6 9,066 15 7 19,687 2 1 £ s. d. 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 £ s. d. 42,120 13 0 3,169 16 3 3,376 16 0 15,779 7 6 8,925 11 4 £ s. d. ! £ s. d. £ s. d. £ b. d. ' £ s. d. 57,457 16 4 74,208 7 1 68,508 12 2 50,772 3 7 i 6,365 13 6 4,088 5 5 ! 6,470 12 2 6,184 17 6 4,904 5 3 : 1,030 17 3 4,752 9 8 i 7,065 8 2 j 9.072 9 8 I 8.679 17 1 i 4.766 6 1 17,766 16 8 31,694 4 5 | 32,570 2 1 35^521 9 7 : 81,245 16 5 ! 11,359 8 3 13,387 13 10 | 20,340 6 0 24,178 16 4 i 41,979 11 4 ! 1.918 16 4 I 2,433 16 5 J 2,363 12 5 i 551 4 3 37,151 8 5 | 43,463 2 9 83,869 10 0 j 100,835 16 8 [ 65,545 19 0 ! 21,447 18 8 121,239 3 9 ! 98,695 10 4 i 72,380 4 5 82,676 18 0 ! 78,385 19 11 29,145 12 10 ! 12,359 11 0 I 11,987 16 5 12,969 10 3 ! 9,364 6 0 £ s. a. 403,279 1 8 36,803 14 2 47,379 1 8 227,541 8 9 146,553 11 2 8.498 16 11 419,642 14 3} 21,447 18 8 640,088 5 6 93,514 4 2 26,496" 18 5 51,804 5 4 3,439 17 7 100,414 19 7 14,247 10 1 ... Total... 60,615 1 5| 68,881 11 1 l 60,615 1 5| 68,881 11 1 108,174 0 8 129,378 7 11 282,961 1 4 289,273 6 1 307,347 14 8 j 322,902 9 2 260,683 12 5 ! 2,044,748 16 11| 214.531 12 2 (a.) This column is increased by the amounts paid in ] 866-7 for the previous year. The amounts paid for the year 1866-7 are similarly diminished. (b.) These columns are corrected according to the published accounts of the year 1866-7. Treasury, 17th Au; J. "WOODWAED, ;ust, 1867. As* igi: