FINANCIAL STATEMENT (In Committee of Ways and Means, Tuesday, 6th August, 1878). BY THE COLONIAL TREASURER, THE HONORABLE J. BALLANCE.

Appendix to the Journals of the House of Representatives, 1878 Session I, B-02

8.-2

1878. NEW ZEALAND. FINANCIAL STATEMENT (In Committee of Ways and Means, Tuesday, 6th August, 1878). BY THE COLONIAL TREASURER, THE HONORABLE J. BALLANCE.

Mr. O'Eorke, — In submitting the Annual Statement of the finances of the colony, it is necessary to trespass somewhat on the forbearance of the Committee, but I trust its indulgence will be readily extended when I state that I shall labour to be brief without becoming obscure, and that the proposals I have to submit on this occasion exceed, in the importance of the subject to be brought under consideration, even many of the important Statements we have had the pleasure of listening to in recent years. I have brought down the Statement at as early a period of the session as the course of public business would permit, in order to place the Committee in possession at the earliest possible moment of the transactions of the year which is past, and of the proposals we have to make with respect to the future. This year has been looked forward to with more than ordinary interest by the people of the colony as one in which large and extensive reforms are to be inaugurated, especially in questions of finance and taxation, when inequalities are to be removed and grievances redressed. Before proceeding, however, to indicate at length this portion of our policy, I shall follow the ordinary custom of reviewing the expenditure and revenue of the past year, and placing before the Committee the proposals we have to make for the year on which we have just entered. I may here explain that I have deviated from the usual plan of incorporating some of the tables in the Statement, and shall thus be able to avoid a number of details in figures which are hardly necessary to a comprehensive view of the position. These tables will be found in the Appendix. Before entering upon the details of the Budget, I have a few words to say as to THE PUBLIC ACCOUNTS. The financial arrangements of last session have enabled the Public Accounts to be very greatly simplified. The necessity under former arrangements of keeping separate accounts of the receipts and charges on the Land Eund of each provincial district, the allocation to each district of the Interest and Sinking Eund on its share of the Public Debt, and the maintenance of the charge of 2 per cent, upon the railway expenditure in each district, involved a large amount of careful labour, and added much to the complexity of the accounts. This has, however, disappeared with the legislation which gave rise to it; for the Committee must bear in mind that the form in which our accounts present themselves is entirely governed by the laws which regulate our finance, an intricate system of finance necessarily producing an intricate account. I—B. 2

8.—2

2

A Table which I shall lay before you, presents, in a condensed form, the total receipts and disbursements of the year. A large number of transfers, with which the accounts themselves are necessarily burdened, have been omitted in this table. The transfers of the Special and Trust Eund Accounts, necessitated by the Act to which I have just referred are, however, shown, as supplying useful information. It will be obvious that the change of system under that Act, operating as it did in the middle of the financial year, has prevented the accounts being stated with that simplicity which they will assume at the end of the present year. The Committee will see, from the tables, that I have adopted a classification which is intended to distinguish the different kinds of revenue. I have divided the Ordinary Eevenue into two classes, viz., Eevenue raised by taxation, and Eevenue received for Departmental Services. The former embraces Customs and Stamps; the latter comprises Railways, Postal, Telegraphic, Judicial, Land Transfer, Registration and other fees, Marine, and Miscellaneous. The Land Transfer now includes Deeds Registry, and all fees come under one heading. By this system, taxation proper will be distinguished from income from services established for the direct benefit of the public; while Land, which is a diminishing quantity and of the nature of capital, stands by and will compare with itself. It must be noted that the returns of Revenue and Expenditure, which I have to place before the Committee, represent the net totals. It was the practice of former Treasurers to deduct from the expenditure the sums recovered or received for credit of the several votes, and thus to show the net expenditure. But the revenue of the colony has always been stated in the gross —refunds made in respect of that revenue being shown on the opposite side of the account as disbursements. I have, however, deducted from the several items of revenue the refunds made in respect thereof, and shall thus state the net revenue as well as the net expenditure. Sir, it has been frequently asserted that, from the system of dealing with the liabilities and assets, the accounts of the year never represent the income and expenditure under the several heads. In Victoria, for this reason, the Treasurer has abolished a system corresponding to our own, and adopted the practice of distributing the liabilities among the several votes to which they are appropriate, while the assets are in the same way made part of the estimated revenue under the several heads. Assets and liabilities are thus got rid of, and the accounts, as they are stated in detail, represent the actual transactions of the financial year. I have, however, adhered to the system which has prevailed for many years in this colony, as the question of altering that system is one which requires further consideration, and as I desire to preserve as far as possible the means of comparison. The detailed statement of the Fublic Accounts of the financial year 1876-77 will be laid upon the Table in the course of a few days ; but these accounts, like those which have preceded them, will probably be regarded as of little interest. To us who are always looking forward, the transactions of two years ago belong almost to a remote past. I trust I shall be able, in a few weeks, to lay before the House detailed accounts of the transactions of the year just closed. It will be the first time that the accounts in detail have been presented to Parliament in the session following the close of the financial year, and. honourable members will thereby be enabled to obtain an intimate knowledge of the transactions of the year, as epitomised in the tables which I shall lay before the Committee as an Appendix to this Statement. EXPENDITUEE OF THE TEAB 1877-78. I shall now bring to the notice of the Committee the estimated expenditure and the actual expenditure for the past financial year. A tabulated statement, which I shall lay before you, shows the comparisons between the different heads of expenditure. In referring to the ordinary expenditure and income, I propose to exclude the Provincial Liabilities, which I shall deal with specially further on. The total ordinary expenditure of the year was £3,030,211 125., against an estimate of

Table C,

Sable D

3

8.—2

3,20 6,188 9s. lid. So that, as regards the appropriations made by the House for the services of the year, there remains a net saving or unexercised power of expenditure of £175,946 17s. lid. The net savings under the head of Public Departments amount to £8,960. The Postal and Telegraphic show also a reduction on the estimate of £16,368; Customs, £8,073 ; Militia and Volunteers, £6,680; and Armed Constabulary, £6,022. The expenditure of the Crown Lands Department is less than the estimate by £51,037 ; and the saving on Miscellaneous is £62,329. There has been a small excess of expenditure in the Law and Justice and in the Native Departments. The increase on Education is shown at £29,261. It will be seen that the vote taken last session for Education proved inadequate to the requirements ; but some of the circumstances are exceptional. Through an inadvertence the capitation grant was fixed by the Appropriation Act at £3 10s., the Education Act fixing it at £3 15s. Then the estimate of the average daily attendance was 40,000, while the actual exceeded 44,000. The reserves, which were estimated at £20,000, yielded only £11,295 3s. 4d. Some of the Boards required temporary assistance to enable them to discharge old liabilities and meet current expenditure. Erom these, and minor causes, the excess of expenditure charged to "Unauthorized" has reached the amount I have stated. It must be understood that, for the first half of the year, money was paid out upon the requisition of the Boards without that check which returns of the average daily attendance would have afforded. The Act came into force on the Ist of January, and since then all the data on which the payments are required to be made, have had to be collected. It might be said that before the month of January educational finance was in a state of chaos. Since then much has been done towards the organization of the present system. A position of certitude has now been attained in the payments ; and the money voted by Parliament will be paid to the Boards on previously ascertained returns of an accurate character. Honorable members will find detailed information on this subject in the Eeport on Education which has been laid on the table. The expenditure just referred to does not, however, include the total disbursements of the year. There is, first, the Land Eevenue paid to local bodies under the Financial Arrangements Act; an amount expended on account of railway stores and workshops, £62,199; repayment of an advance obtained on the Lyttelton Harbour Loan, £100,000; advances made to Land Eund in 1876-77 repaid, £47,500 ; surplus land revenue of the periods ending 30th June and 31st December, 1877 paid to counties, £465,093 ; as well as several smaller payments set forth in the table of expenditure. These several disbursements make up a total of £725,307 14s. 3d.; and, added to the expenditure of £3,030,241 12s. already referred to, make up a sum of £3,755,549 6s. 3d. If we add to this sum the gold duty, license fees, &c, paid over to local bodies, amounting to £213,691 10s. 10d., we have a total disbursement from the Consolidated Eund in the year of £3,969,240 17s. Id. The sum of £62,199 13s. 7d., charged as expenditure on account of railway stores and workshops, represents the balance of disbursements made during the year, after crediting the account with the stores issued to the several lines. It has been found that the practice of passing all stores through this account produces a large amount of clerical labour without any corresponding advantage, and it is accordingly proposed to close the account, and in future to provide for this expenditure in the votes for the several lines. The repayment of the advance of £100,000 on the bonds of the Lyttelton Harbour Board was made out of the Consolidated Eund, no special provision having been made by the Legislature. This sum was neither in its character nor by law a colonial liability; and the Government, no other means of providing for it having been made, and the course seeming to be equitable, applied an equivalent amount of the surplus land revenue of Canterbury to meet the liability falling due at the Bank ia London in the month of January. The amount was accordingly paid out of the general balance of the Consolidated Eund, in which the Surplus Land Eund Account is now included. I shall, however, ask the

Table B. and Table H.

8.—2

4

House to sanction the payment as a specific charge on the Surplus Land Eund Account, it being properly a charge on the land revenue of the provincial district. While referring to this subject, I will take the opportunity of explaining another matter which will be of special interest to the districts concerned. I refer to the retention of certain sums out of the surplus Land Fund of the Provincial Districts of Hawke's Bay and Canterbury. An estimate has been formed in the SurveyorGeneral's Department that the cost of bringing up the arrears of survey, outstanding on the Ist January, in the Provincial Districts of Hawke's Bay and Canterbury will be about £5,700 and £127,000 respectively. These arrears had not been provided for among the Provincial Liabilities, and, as the surplus Land Eund was the actual proceeds of the land to be surveyed, it appeared to the Government that that fund was the proper source from whence to defray the charge. The sum of £1,512 Is. 10d., (being all that was available) in the case of Hawke's Bay, and of £127,114 15s. 3d. in the case of Canterbury, were accordingly retained for the purpose of meeting the charges referred to; and we propose that a sum shall be appropriated each year, according to the estimate required for arrears of survey within the year in the provincial district, until either the money be exhausted or the surveys completed. The estimate of the work to be done this year will require £34,512 Is. 10cl., and this has been placed on the Estimates for appropriation. We propose that the amount in excess of this sum be placed in the Bank as a fixed deposit, the accruing interest to be handed over to the counties interested, together with any balance of the principal not required for the work. EEVENUE OP THE TEAB 1877-78. I shall now, Sir, .proceed to place before the Committee the estimated and actual revenue of the past financial year. The surplus brought forward from the previous year was estimated by the then Treasurer at £148,220 Bs. sd. Of the sum so estimated, only £123,110 7s. 9d. has proved to be realizable, being £25,110 os. Bd. less than the estimate. The revenue of the current year was estimated by the late Government at £3,153,685 —consisting of Ordinary Eevenue, £2,263,160; and Territorial Eevenue, £890,525. The net revenue actually collected amounted to £3,915,315 155., consisting of Ordinary Eevenue, £2,328,752 15s. 7d., and Territorial, £1,586,562 19s. 5d., showing an excess on the estimate of £761,630 15s. In the figures which I have just quoted I have referred only to the Eevenue proper, or income of the colony for the year 1877-78, forming part of the Consolidated Fund; but that fund has been augmented by the absorption of the balances of several accounts amounting to £190,922 os. 5d., transferred thereto on the Ist July, 1877. The Public Eevenues Act of last Session required that on the Ist January certain accounts should merge in the Consolidated Eund; and the several balances, including the balance of the Land Fund subsequently paid over to the Counties, were accordingly transferred on that date. In the account of Eeceipts and Expenditure of the Consolidated Fund, which I shall lay before the Committee, the balances quoted as transferred to that fund are the balances of the several accounts as they stood on the Ist July, 1877, and not those which were actually transferred on the Ist January, 1878. It will be evident to honorable members that, so far as regards the position of the accounts on the 30th June last, the result in either case is identical. The plan adopted has, however, the great advantage of being the most perspicuous, since it has enabled the receipts and disbursements of the Land Fund and of the other accounts transferred, to be shown in one sum and in one place —the Consolidated Fundinstead of in two sums and in several places, as must have happened had the accounts expressed the transactions as they actually occurred. If we add this amount, £190,922 os. 5d., and the balance with which we commenced the year, £123,110 7s. 9d., to the Ordinary and Territorial, we have a total of £4,229,348 3s. 2d. I shall also include revenues collected for local bodies, amounting to £216,212 2s. 4d., thus producing a grand total of receipts for the year of £4,445,560 ss. 6d.

Table J.

Table C.

Table E,

5

8.—2

This increase, however, though indicating general progress, does not imply a corresponding or equivalent gain to the consolidated revenue. It will be interesting to the Committee to know what benefit the exchequer has derived from the colonialization of the Land Fund in the year. The land revenue for the halfyear ending June was £650,172; and if we deduct the charges that would have been met out of this source had the old system continued, but which have been paid out of the Consolidated Fund, we shall have a close estimate of the gain. Adding together, then, the interest on provincial debts and on railways, the cost of lands and surveys, subsidies to local bodies, balances due to the Consolidated Fund in respect of advances in aid, and the 20 per cent, payable to counties, we have a sum of £558,431, leaving a positive gain from the colonialization of the land revenue of £91,740. From the tabular statement accompanying the summary of the receipts of the year, the Committee will see the relation between the estimated and actual revenue under each head. The Customs revenue reached £1,272,961, showing an increase on the estimate of £72,961. The whole of the increase was received in the three first quarters of the year. Stamps far exceeded all anticipation, yielding £151,068 16s. 9d., or in excess of the estimate £27,068. This extraordinary result is chiefly due to the unusual number and amount of the legacy duties paid during the year, though the largest amount of legacy duty yet accruing from a single estate, was not paid within the year owing to a technical difficulty causing delay. Bostal revenue exceeds the estimate by £6,358 Bs. 10d., and Telegraphic by £2,361; Land Transfer, above the estimate, £7,078 3s. 9d.; while Miscellaneous shows a surplus of £15,074 4s. The Eailways have not reached the estimate, but the deficiency, £53,991, arises from certain lines not having been opened for traffic during the year as anticipated. The estimated income was £600,450, and the actual £540,458. It will be seen, however, that the expenditure, by a proportionate amount, is also less than that estimated. The income from Eailways, including assets £15,000, was £561,458; and the expenditure, including liabilities £35,000, was £116,307. The profit thus shown for the year on Eailways is £145,151, against £84,182 last year. The Land revenue has far exceeded the different estimates formed during last session, and is the largest amount yet collected in any one year. Comparing the revenue received last year with that of the previous year, the result is equally favourable, the net increase in favour of the later period in Ordinary Eevenue alone being £423,919, and in Territorial £580,707, —or a total increase of £1,004,626. But, in order that the comparison may be complete, as an indication of progress, we must include the increase in the revenues of Local Bodies, which amounted to £75,784. The net increase on all revenues collected by the Government thus amounted to £1,080,411 over the previous year. Having stated the expenditure and income of the year, I have now to place the Committee in possession of the final result. The receipts for the year, as already stated, amounted to £4,445,560 ss. 6d. The expenditure was £3,969,210 17s. Id.; the excess of receipts over expenditure being £476,319 Bs. sd. The actual balance in the Consolidated Fund on the 30th June was £629,705 6s. 5d., but this Avas reducible by a sum of £5,733 95., brought from Loan in aid of Brovincial Liabilities; by the balance of the Deposit Account, £93,069 17s. 2d. ; and by sums held at credit of several Counties, £54,582 lis. lOd. Deducting these sums from the total just referred to, there remains £476,319 Bs. 5d., agreeing with the excess of receipts over expenditure. To this we add the assets realizable, £44,453 3s. 9d., making £520,772 12s. 2d. The liabilities to be provided for out of this sum consist of 20 per cent. Land Fund, and other moneys payable to Counties, or available for special services, £279,134 17s. 2d., and the ordinary departmental services, £121,169 Is. lOd. These sums amount to £400,303 19s. and, deducting them from the balance of £520,772 12s. 2d., there remains £120,468 13s. 2d., the surplus of the year 1877-78. Considering that the effect of the financial changes at the close of last session was to produce a large estimated deficiency, this surplus is as unexpected as it is gratifying. The question then arises, how should we dispose of it ? The Government believe that if the railway system is to be extended and carried on without

Table E.

Table F.

Table C.

Table L. Table X

8.—2.

6

interruption until it connects every part of each Island, public loans must be largely aided from some other source. I refer here only to railways which should be undertaken by the colony. For several years a moiety of the Stamp Duties was set aside for the purpose, but, as I think rightly, the policy was discontinued. A surplus seems to be exactly one of the services from which such aid ought to flow, and we propose to place £100,000 of the surplus of the past year to the credit of the Bublic Works Account, leaving a balance of £20,468 13s. 2d. to be brought forward to the credit of Ordinary Account of the present year. If the Committee approve of this mode of applying a surplus, any extraordinary increase on the estimate of Land Eevenue will in the future be applied to supplement the fund available for the prosecution of public works. PEOVINCIAL LIABILITIES. The Committee will remember that, under the provisions of the Public Eevenues Act of last session, the Erovincial Liabilities Account forms part of the Consolidated Fund, which was supplemented, to meet this service, by a loan of £300,000 raised under " The Loan Act, 1877," and for this reason I have thought it proper in my remarks on the subject to exclude the transactions in this account from those of the general receipts and expenditure. The amount appropriated for Erovincial Liabilities last session was £327,846 18s. 9d., and the amount which was actually paid within the financial year was £333,187 18s. 10d., showing an excess on appropriation of £5,311 os. Id. To meet the expenditure, there were the several sums at the credit of the Erovincial Liabilities Account, the particulars of which are shown in the tables, and amounting to £118,921 7s. lOd. To supplement this sum, bills to the amount of £220,000 have been drawn on the Crown Agents, against the sum of £300,000 authorized by the Loan Act. The Erovincial Liabilities remaining unpaid amount, so far as they have been ascertained, to £223,158 19s. 2d., and we have included them in the ordinary Estimates of the year, getting rid of the peculiar character of the expenditure under this head. They will be found to include, amongst other items, a sum of £50,000 for paying off the ultimate balance of the Provincial overdrafts at the bank, a sum of £85,000 for repayment of the money borrowed on the Wellington reclaimed land, and £23,800 for redemption of Otago Dock Bonds—as to which I may explain that these bonds are the outstanding balance of two parcels of debentures, one of £50,000, and one of £10,000, issued by the Otago Dock Board. The whole of the bonds fall due on the Ist November next, and as they are not a convertible security, being in the form of mortgage bonds, it is proposed to redeem them and cancel the debt. The Government propose to ask the consent of the Legislature to the sale of the Wellington reclaimed land to the Corporation for £89,000, and this amount added to the sum in hand, £5,733, the balance of the £300,000 yet to be brought to account—namely, £80,000 —a sum of £15,970 receivable from the Wellington Trust and Loan Company, and other sums which will presently be available, amounting to £5,000, will give £195,703, which may be considered specially available to meet the estimated liabilities of £223,158 19s. 2d., the difference falling on the ordinary resources of the Consolidated Fund. LOANS. Immediately after the close of last Session the Government took measures for the raising of the loan then authorized, sending Home the necessary powers to the Agents appointed under the Act, and leaving them to use their discretion as to the opportune time for placing the Loan on the market, the currency of the debentures, and the rate of interest. The Government, however, intimated that, unless the Agents saw good reason to the contrary, the rate should be 4s\ per cent. The Agents appointed were Sir Julius Vogel, the Hon. Mr. Larnach, Sir E. Julyan, and Captain Ommaney. About the time the Agents received their authority to act, the crisis in English politics on the Eastern Question occurred, and the excitement which prevailed in all quarters, especially in the monetary world, prevented the possibility of then placing the loan on the market with a fair chance of success. The Agents, as we thought, with commendable prudence, awaited a lull in the storm before venturing publicly to announce the Loan. In

Table C.

8.-2

7

this decision they were supported by the advice of the most competent financial authorities. The opportunity occurred upon the arrangements to hold a Congress being concluded, when subscriptions to the Loan were opened. Upon the intimation of Mr. Larnach that the Government were desirous to try a new source of issue for the loan, Sir E. Julyan made proposals to the Bank of England, who are bankers to the Crown Agents' Department; and, an agreement was made that the Bank should undertake the issue for a commission of \ per cent.—terms which must be considered favourable. As the Agents desired to be assured in advance of at least a major portion of the loan being subscribed, a fixed price at par was adopted, with a 5 per cent, rate of interest. The result was an entire success, the total amount subscribed being about 8f millions. I think the Committee will concur in the expression of opinion that the Agents deserve the thanks of the colony for the judgment and zeal they displayed under unusually adverse circumstances. The amount raised was three and a half millions, one million under the Loan Act of 1876, to meet the advance on short-dated debentures falling due at the end of this and the beginning of next year; and two and a half millions under the Loan Act of last Session. The net amount of the loan available for public works is £2,200,000, £300,000 being apportioned to Erovincial Liabilities. The Guaranteed Debentures released we propose shall, as in the past, remain available as a security on which to obtain temporary advances in London. THE PUBLIC WOBKS ACCOUNT. I have now to state the position of the Eublic Works Account. The amount appropriated for Eublic Works and Immigration last session was £2,293,740 9s. 9d., and the expenditure £1,167,583 ss. 6d., showing a balance unexpended of £1,126,157 4s. 3d. The amount unexpended out of that appropriated may appear large, but the circumstances causing the delay in raising the loan would probably have justified the Government in restricting the expenditure to a greater extent than they have done. The funds brought to the credit of the Account consist of the following items : —Balance from previous year, £652,989 13s. Id.; temporary advance on security of Guaranteed Debentures, £275,000; transfer from Loan of 1876, £48,051 3s. lid.; sales of allotments of land, £1,641 75.; the account closing with a nominal overdraft of £200,051 ss. 6d., which is in reality covered by proceeds of the Loan not yet brought to account. The several items just quoted make up a total of £1,177,733 9s. 6d., which has been expended on public works and immigration during the year. It will be interesting to know the position of the Eublic Works Account,' dating from its commencement in the year 1870. The total amount of the Loans raised for Immigration and Eublic Works, including the Loan recently announced, i 5£13,700,000. This amount has been supplemented by a moiety of stamp duties, £264,657 16s. 4d., and contributions and transfers amounting to £75,963 Is. 3d., showing a total of £14,040,620 17s. 7d. The expenditure up to the end of the financial year was £12,038,472 3s. Id., reducible by a sum of £54,791 13s. 4d. repayable to the account, and leaving a balance of £2,056,940 7s. lOd. available for appropriation. DEBT OE THE COLONT. The gross debt of the colony on the 30th June, including the loan just raised, but exclusive of the guaranteed debentures, was £22,491,111. The Sinking; Fund accrued amounted to £1,584,992 6s. Id., and if we deduct this from the gross debt, we have a net indebtedness of £20,906,118 13s. lid., the annual charge on the 30th June, for interest and sinking fund, being £1,195,318 lis. lOd. TEEASUET BILLS. The Committee would, no doubt, like to be informed of the position of the securities existing in the form of Treasury bills. The total issue outstanding of these securities amounts to £832,000. Of this, the Commissioners of the different

Table M.

Table 0.

Table O.

Tablo A.

8.—2

8

trust funds in the colony hold £330,000. I shall explain presently the action taken to convert the bills thus held into Inscribed Stock. The Bank of New Zealand is the holder of the remainder under various conditions, which I shall state to the Committee. Bills amounting to £232,000 are held by the Bank in London as security for an advance of like amount, bearing interest at 5 per cent., and repayable in February, 1879. Bills amounting to £170,000 are held by the Bank in Wellington as security for advances of £110,000 at 6 per cent., and £60,000 at 5 per cent.; but, under an arrangement whereby £170,000, part of the balance in the Eublic Account, is held as a deposit not bearing interest, no interest is paid to the Bank on the sums advanced, both of which are repayable in February, 1879. And bills representing £100,000 were purchased by the Bank, and fall due in November of the present year. The Bank of New Zealand holds altogether Treasury bills amounting to £502,000. The Government think the consolidation of these securities is desirable, and have taken steps accordingly. CONVEESION OE STOCK. The Government have thought it wise to bring into force the provisions of the Consolidated Stock Act, and have delegated full authority to the Agents appointed for the purpose, to convert, on terms to be arranged by them, any part or all of the loans of the colony, with the acquiescence, of course, of the bondholders. As Mr. Larnach was visiting the mother country, and knew the mind of the Ministry on the subject, he was appointed one of the Agents for the purpose. It appeared to the Government that not only was it expedient to give the loans of the colony the character of uniformity, but that it would be also desirable to release the accrued Sinking Fund. This fund has lost its value in the eyes of the capitalist as an instrument of security, and might be most usefully employed in the advancement of our public works. The new Stock will also be eligible for inscription with the Bank of England under the provisions of the Act. The Government have not yet been advised as to the nature or extent of the operations which the Agents have undertaken, but as soon as information is received on the subject it will be laid before the House. An estimate, however, has been formed of the cost of converting two and a-half millions this year, which, on the basis agreed upon between the Agent-General and the Bank of England, we have stated at £14,000. Except with respect to certain securities in the Trust Funds, to be explained presently, we do not estimate as available for the accounts of the year any portion of the accrued Sinking Fund in the hands of the Commissioners. The operation is too uncertain to entitle us to estimate the amount which may be released. But there is a transaction in process, of which I can speak with more precision. Authority has been sent to the Agents to effect the conversion of the colonial securities held in trust in the colony. The Bostmaster-General holds convertible securities to the amount of £641,300; the Government Insurance Commissioner, £239,400; and the Eublic Debts Sinking Fund Commissioners, £97,100, the total amounting to £977,800. Of this sum, £330,000 is represented in Treasury bills, which we thus purpose transforming into consolidated stock. As the authority of the holders of the securities has been given to their conversion, we assume, for the purposes of this Statement, that the operation is complete, and we propose to ask authority to place the accrued Sinking Fund, and a sum paid by the Manchester Corporation, amounting in all to £67,694, now standing against these securities, to the credit of the Eublic Works Account. It has been intimated to the Agents that stock of a uniform description bearing one rate of interest, and of an equivalent value to that at present held, are the main conditions the managers of the various trust funds desire to see observed. MEETING OP BAELIAMENT. My predecessor, Mr. Larnach, in his Financial Statement last Session, pointed out what he held to be a defect in the present system of voting the supplies of the year, by which the expenditure is carried on for several months of the year without any appropriation being made, and incurred solely on the authority of Imprest Supply Acts. To cure the defect, which the Committee I think will admit, he

9

8.—2

suggested two alternative plans : either to alter the time of the commencement of the financial year, or for the Assembly to meet not later than the first week in June. Sir, I would venture to submit, for the approval of the Committee, another means by which the result desired may be attained. If the Estimates are passed at the beginning of the Session instead of towards the end, the Committee will regain the control which it partly waives by deferring the time of dealing with them, while it will be following the practice of the House of Commons. The Government will ask the Committee to give effect to this suggestion, and Supply will be moved for at the earliest possible moment. ESTIMATED EXPENDITUEE, 1878-79. Having dealt with the past, I have now to state the expenditure which we estimate will have to be met during the current year. The expenditure seems to be naturally divisible under two heads —namely, the Bermanent Appropriations '• and the Annual Charges. The former of these heads includes the Civil List, Interest and Sinking Fund, Subsidies to Local Bodies, Land Eevenue payable to Counties—the expenditure being made under Acts of the Assembly. The second head is Annual Charges, embracing the Departments and Miscellaneous. Following this distinction, the Bermanent Appropriations are estimated at £1,809,767 15s. 9d., and the Annual Charges at £2,183,741 12s. 9d., making, with the fees, &c, payable to local bodies £200,000, a total estimated expenditure for the year of £4,193,509 Bs. 6d. The Interest and Sinking Fund on the public debt, including provision for the last loan, is stated at £1,225,129. The subsidies to local bodies require this year £255,000, against £170,371 paid last year. The estimate of the amount payable to counties, under the 20 per cent, arrangement, is £220,000. This estimate contains all the elements of uncertainty, and will be modified according to the extent of the land sales. With this exception, all the items under the head of Bermanent Appropriations are of that nature which cannot be subjected to reductions, unless the amount of the subsidies to local bodies should be brought under review. The Agent-General's Department has hitherto been subjected to a process of analysis, and the cost distributed among a number of services, on the principle that it performed work for each, with the result that it was difficult to discover the total cost of the department. It has now found a local habitation, is seen under one head, and is met out of revenue. The cost of this department has been greatly reduced, the vote asked for this year being £4,000, against an expenditure last year of £5,972. In only one administrative department is there an appreciable increase. The vote asked for Lunatic Asylums is £36,202, against £32,481 last year. The large influx of patients has made this increase a necessity. Education requires a sum of £217,370 this year, against an actual expenditure last year, including liabilities, of £213,278 18s, Bd. This amount is not likely to be exceeded, the average daily attendance having been carefully estimated. We think, Sir, the great increase in the attendance, which the Education Eeport shows is taking place, is sufficient reason for giving the present system a fair trial, and paying liberally for the results. We propose asking for £100,000 this year out of loan for new school buildings, the demand for which has been expressed in nearly every Education district. The important reforms which the Government are inaugurating in the Law and Justice Department, tending as they are in the direction of economy, have led to a considerable reduction in several branches. The Native Department has also been subjected to the pruning knife, the estimate being less than that of the previous year. The amount estimated for salaries and contingencies is £16,887, against £20,322 last year. There has been an increase for Native schools, amounting to about £1,500; but the extension of the means of education to Native children, and the evident appreciation on their part of what is being done, is a most satisfactory feature of our educational system. 2—B. 2.

fable P.

8.—2

10

The Customs Department will not bear any great reduction, but it has been instrumental in effecting a number of economies. In most of the land districts the Collectors of Customs have been made the Receivers of Land Revenue, by which a saving of £775 a year in salaries has been attained. They also collect liconse fees for the municipalities, and, as revenue officers, if our proposals are adopted, will undertake still further duties of an important nature without extra cost. The Postal and Telegraphic Departments show the increases which are required by the extension of the services. The estimated expenditure on the working railways is £187,203, an amount of course largely affected by the mileage of railways opened. My colleague, the Minister for Pubiic Works, be able to show that the change which has been made in the management of the railways has already led to large savings, and is calculated to promote still greater ecomony in the future. The Miscellaneous is estimated at an unusually large amount this year, in consequence of including therein provincial liabilities and votes for special services. But, as I have shown when alluding to the subject of the Provincial Liabilities, there are items of receipt to the extent of £195,703 specially available to meet these extraordinary demands. In the estimates will be found an item of £44,000 for the purchase of heavy ordnance, and the construction of defensive works in the principal harbours of the cclony. The amount is based on an estimate formed by a Military Commission in England. I shall not do more here than refer to a possible objection to the charge being met out of revenue. On this I would merely remark that we think the time has come when loans should be entirely applied to works of a reproductive character, and calculated to develop the resources of the colony. A large number of charges formerly made against loan will in future be met out of revenue, leaving free for railway construction and great colonial works the proceeds of loans which the Legislature may at any time sanction. The expenditure on the whole has been framed to make ample provision for the wants of the different services, and to provide for charges which, it is anticipated, will have to be met during the year; but it is hardly necessary to observe that the first object of judicious administration is to effect those savings on the estimates which can be done without destroying confidence in the good faith of the colony, or impairing the usefulness of the public service. ESTIMATED EEVENUE, 1878-79. In estimating the revenue for the present year, I am not taking into account any alterations we have to propose in the tariff, but am dealing with the revenue to be raised under the existing law. Ereserving the distinction, to which I have already drawn the attention of the Committee, between the different kinds of revenue, the amount estimated from taxation this year is £1,490,000. The Customs are expected to yield £1,320,000, and Stamps £170,000, both being calculated from information carefully prepared. Under the head of "Receipts for Services Rendered," we anticipate a revenue of £1,112,145, or a total ordinary revenue of £2,602,145. Included under the last head, the amount estimated from Eailways is £710,000, or in excess of the returns of the previous year by £148,542. The other services show an estimate of increase on the revenue of the past proportionate to our progress. The next great head is " Territorial Eevenue," from which, keeping our expectations fairly within the bounds of moderation, we hope to receive £1,229,677. From receipts specially applicable we shall get £230,215. Adding these amounts together, the total estimated revenue for the year is £4,062,037, or —including the fees, &c, payable to local bodies, estimated at £200,000 —- £4,262,037. To this amount I add the balance of the surplus of last yaar, £20,468 13s. 2d.; and we have a total of £4,282,505 13s. 2d. as the estimated receipts of the year. Deducting the estimated expenditure, £1,193,509 Bs. 6d., we have a surplus of £88,996 4s. Bd., available to meet supplementary votes or contingent expenditure. THE PUBLIC WOBKS ACCOUNT, 1878-79. Before passing from the accounts of the year, I will state the position of the Public Works Account, as it will be affected by the proposals which I

Table Q,

11

8.—2

have made for supplementing it out of sources other than loans. The account Avill be enlarged by certain amounts I have treated of in my revieAV of the financial operations of the past year. I refer to the Sinking Fund and repayments accrued against the securities held in trust and authorized for conversion amounting to £67,094, and the sum of £100,000, part of the surplus of the past year. The amount of these sums is £167,691, and this Aye propose to place to the credit of the Public Works Account, adding it to the amount shown to be available on the 30th June, which Avill then give a grand total of £2,224,634 7s. 10d., for appropriation for Public Works, including re-votes for outstanding liabilities. PUBLIC TBUSTS. The transactions of the Post Office Savings Bank during the year ending the 31st December, 18.77, show a steady increase of deposits. The total sum to the credit of depositors was £767,375, against £723,910 for ls76—an increase of £13,465. The excess of deposits over withdrawals for the year AA ras £11,271, against an excess of withdrawals over deposits for 1876 of £32,146. The interest credited depositors AA ras £29,193, against £28,762 for the previous year. The Public Trust Office has now under administration 22 Estates under Avill or deed, 894 Intestate estates, 85 Estates of Lunatics, and 18 Trust Fund accounts. It has funds invested to the amount of £65,176, and had cash in the bank on the Ist July last £12,287 10s. 6d. That this office is becoming a very great convenience to the public is shown by the fact that solicitors are advising their clients to transfer to its management trusts that are of long duration, or in which complicated arrangements arc involved. The office is not only self-supporting, but a sum is accumulating from the profits of the department Avhich will form a Eeserve Fund in case losses should occur. In the Government Insurance Department the past year's business has been very satisfactory. The number of policies issued b"ing in the proportion of 10 to 7 o\ rer that of the previous year, and much above the aA rerage of the last five years. They represent £680,000. There are nearly 9,000 policies in force; yet the death claims Avere only 37 in number, against 39 the previous year, both being far less than the expectation, according to the best tables of mortality. The sum of £67,799 has been invested during the past year.

PBOGEESS OF THE COLONY. The tables accompanying and illustrating this Statement have been revised and rearranged in harmony with the institutions of the colony. The comparative returns of the three principal Australasian Colonies have been produced to show, not the natural productions only, but the whole import and export trade of each, thus affording a more reliable index of their prosperity. The comparisons shown convey a different lesson from those conveyed by the tables of previous Statements. The most gratifying feature to the people of this colony is the remarkable increase of exports for the year ending December, 1877, which stand at £(5,327,472, against £5,673,465 in the previous year —an increase of £654,007. The imports, unnaturally inflated in 1874 to upwards of £8,000,000, have fallen to £6,973,418, indicating probably a more healthy condition. The quantity of wool exported in the' calendar year 1877 exceeded that of the preceding year by about four and a-half million pounds weight, the value showing an increase of £203,122. The value' of gold exported in the past financial year Avas £1,475,609, against £1,407,247 in the previous year, the increase being £68,422. The export of grain slightly declined in the year ending December, 1877, the return being £290,415, against £314,142 in 1876.

Tabla p

Table T.

Table v.

TableW'

ex-

BEFOBM OF THE TAEIFF. I have now to state the proposals Aye intend to make, respecting the tariff. Sir, every observer of the effect of the system of ad valorem duties, which was applied to a multitude of articles in 1873, has been led to condemn it. It is a remarkable fact that the revenue derived from these duties has shown no increase, the returns of last year standing at the amount derived in the year when the

12

8.—2

change took place, allowing for the portion of the year during which the measurement system prevailed. I have had returns compiled to enable the Committee to see at a glance the non-progressive character —notwithstanding the unprecedented prosperity of the Colony—of the revenue collected under the ad valorem system. A few r comparisons will demonstrate the position. In the year ending June, 1875, during the whole of which the 10 per cent, ad valorem duties w rere in force, the revenue derived from this source was £364,558. For the year ending June, 1878, the revenue from the same duties Avas only £330,770, a falling off of £33,788. During the same period all the other great items of revenue showed a large increase, presenting a remarkable contrast to those subject to the ad valorem system. The duty on tea, for instance, increased in the same time from, in round numbers, £68,000 to £80,000; on sugar, from £114,000 to £131,000; and on goods by weight from £63,000 to £77,000. We may, or may not, accept the theory, that these different results are to be only accounted for by a large proportion of fraudulent entries at the Customhouse, for which the ad valorem system gi\'es superior facility; but the figures I have stated, of themselves point to the necessity for reform, and justify the Government in proposing a change, even though necessarily incomplete, in the present Session. The object Aye have in vieAV is to change the ad valorem into specific duties ; but Aye cannot, with the data and time at command, do more than make a beginning this year. It is no part of our proposals to increase the total revenue, but to make the specific duty yield as near as possible the amount derived under the ad valorem. The folloAA ring are the articles on which the change will take place : —Wool-packs, corn-sacks, flour-bags, carbonate of soda, cream of tartar, tartaric acid, fish, potted and preserved, jams, &c, bottled fruits, mustard, pickles, sauces, starch and blue, lead piping, naphtha, nails, wrapping paper, and paper bags. Naphtha was formerly on the free list, but we have included it because of its relation to other dutiable articles. The total Eevenue received from these articles last year was £23,291, and Aye anticipate about the same amount under, specific duties. To complete the list we propose to include boots and shoes, the revenue from which last year was £18,295, and the specific duties on which are fixed on a scale well understood in the trade. Papers showing the proposed duties will be laid on the table. The effect of these changes is calculated to relieve trade from some of the opprobrium it was certain to incur under a system which has been condemned in nearly all commercial countries ; while care has been taken that the young- and growing industries of the colony are not injured but rather fostered. The tariff at present comprises two hundred and fifty specified headings, of which ninety-one are fixed rates, and one hundred and fifty-nine ad valorem. If our proposals are adopted, twenty headings will be taken from the ad valorem list and added to the fixed ; and if the remission of duties be carried out, thirty-eight headings will be altogether removed from the tariff.

Table Y.

Table Z.

TAXATION. I now approach the question of taxation. The House has decided, and the country has endorsed the decision, that our taxation bears with unequal pressure on different classes of the community, and that the time has arrived when Aye should address ourselves to the task of readjusting the burden which the colony is called upon to sustain. In one respect the time for accomplishing this object could hardly be more favourable than it is at this moment. It is in periods of prosperity we are freest to consider what, in questions of taxation, is just, as well as what is expedient, and when changes can be effected with least apprehension of unfavourable results. The colonialization of the Land Eevenue has placed in the hands of the Government and the House a powerful reserve force, capable of immediate expansion in emergencies; but Aye must also recognize that it is a force which may be easily abused. The Government accept the position that this great source of income should not possess entirely the character of ordinary revenue, or be dealt with as if it were a fountain never to be exhausted. Attached to the revenue from land sales there are obligations which we cannot overlook in the changes we intend to propose. It might be

13

8.—2

comparatively easy to remit a number of taxes which are either oppressive or irksome, making good the loss to the exchequer by increasing the land sales; but the unwisdom of thus dissipating our capital without regard to the primary interests of beneficial occupation would be at once apparent. We assume then, Sir, that the Land Fund was not colonializcd in order to supply deficiencies in the ordinary revenue, or to prevent a reconsideration of the question of taxation. If this view of the character of the Land ReA renue be generally entertained, Aye shall be able to approach the question of a change in the incidence of taxation with our minds free from considerations about the probable amount likely to be derived from that source in the future.' Exceptionally favoured years in respect of land sales will mean simply that a large auxiliary aid to the prosecution of public works Avill be forthcoming. With this distinction between land and general revenue understood, I may at once state that Aye do not see our way, even w Tere it desirable, to propose large remissions without at the same time providing a means of compensating the revenue. On this point I will have something more to say as I proceed to develop our proposals, and I shall refer now to reductions. It often folloAvs that if the remissions of Customs duties are gradually and judiciously made, the consumer is relieved, while the revenue soon, recovers itself. This experience, hoAvever, does not apply to total remission; but I would point out that the revenue derives less benefit from a great number of trifling duties, than trade sustains injury by their imposition. Having briefly alluded to the principles on which we have proceeded, the Committee will be prepared to hear our proposals. We propose, then, to abolish altogether certain Customs duties which either fall on the necessaries of life, or clog the wheels of industry, or render more complex and costly the system of collection, the list embracing the following:—The duty on grain, which yields £3,930 ; the duty on flour, which yields £5,080 ; on maizena and corn flour, £545 ; on sago, £299; on arrowroot, £206 ; on bacon and hams, £136 ; on butter and cheese, £64; on artizans' tools, £249 ; on building materials not otherwise enumerated, £161; on axles, axle-arms, and boxes, £316; on cart-shafts, spokes, &c, £100 ; on photographic goods, £237 ; on baskets and wicker-ware, £103; on perambulators, £125; on steel, £117; on iron fencing-wire, £5,038; on paints wet or dry, £2,051; and on twenty-four minor articles, the duty on Avhich yields £939. The total of these remissions amounts to £19,726. The Tea and Sugar Duties, though last on our list, are first in point of importance. The demand for " a free breakfast-table " may not at first sight appear to have the same meaning in the colony as in the mother country; but Avhen we consider the immense proportion of the taxation which these articles yield, and that the labouring classes are the principal consumers, we may be able to realize the justice of the complaint of the breakfast-table. If we do not at once grant complete emancipation to the breakfast-table, Aye shall show our sincerity by giving substantial relicf —as much relief as Aye can afford in the present year, and therefore, keeping in view the stability of our finance, as much as would promote the welfare of the classes particularly affected. I have estimated the revenue on tea this year at £84,000, and Aye propose to reduce the duty from 6d. to 4d. per lb., giving a relief to the tea-drinkers of £28,000 a year. Tea being a universal beverage, I have not estimated any recovery from increased consumption. The Sugar Duty mainly bears on the same classes as does the duty on tea, but it affects a number of industries which require special consideration. A reduction of duty, in the first place, might possibly tend to prevent or retard the cultivation of sugar in the colony. To Avhatever extent it would in this way operate the existing rate now offers prospective protection. The benefit in thus encouraging the establishment of the industry is, perhaps, more hypothetical than real; for it is probable that in but few instances is the amount of protective duty to be placed in comparison with soil, climate, the price of labour, and other circumstances, in determining the success of such an industry. Whether this will cA rer be a sugargrowing country or not, it is likely to have an increasing commercial intercourse Avith those countries which can produce sugar under the most favourable influences, and the exchange of productions with them will be stimulated by the invitation to reciprocity which we hold out by the reduction of our import duties, The reduction in the price of sugar Avould probably largely

8.—2

14

influence the success of the fruit-preserving industry, which at present exists, and Avill become important if our manufacturers are able to compete with those of other countries. I should not omit mentioning that a reduction of duty would be a direct relief to the beer-drinkers and the brewers, .vhose responsibility to the Treasury 1. shall refer to presently. But, Sir, sugar is one of the common commodities of life, an article of food necessary to the comfort and happiness of all; and the Government have had no difficulty in deciding as to what should be done in this matter. The duty on sugar is now a penny per lb., and Aye propose to reduce it to a halfpenny. The estimated revenue from sugar this year is £137,000, and the relief to the consumer under our proposal will he £68,500. We estimate the increased consumption Avill reduce someAvhat the loss to the revenue on this item, but the effect will probably not be great during the present year. WINE. The duty on Australian wine Aye also propose to reA'ise. Before the year 1873, memoranda were sent home from this colony to the Secretary of State urging the right of our Legislature to establish differential duties on articles the products of the Australasian colonies. Honorable members will recollect that the question Avas urged with more than usual energy, indicating that the matter was thought to be one of some importance to the colony. The result of the correspondence Avas that, in 1873, the Imperial Legislature passed the Australian Colonies Duties Act, which enabled any or all of the Australian Colonies to establish with each other, and with New Zealand, differential duties applicable to their natural productions. But strange to say, no action up to the present has been taken by this colony to give effect to a system about which, at one time, it displayed unusual earnestness ; yet it has appeared to the Government that the reasons for a reduction of the duty on Australian wine are as strong to-day as they appeared in 1871. The quantity of Australian wine imported into the colony in the year 1877 was 12,075 gallons, yielding in duty at 4s. a gallon £2.415. The amount of the duty is almost prohibitive; and its reduction on this article would, from the stimulus given to increased consumption, probably not entail a loss to the revenue. We propose this year to reduce the duty to 2s. a gallon, estimating the same amount of revenue as when the duty stood at the higher rate. The Government are not without • hope that the reduction of duty on Australian Avine will tend to promote a spirit of reciprocity in the sister colonies towards NeAV Zealand, and that some of the duties which prevent the development of trade and limit the export of our productions thither, will be reduced or abolished. We believe that this will be the case at least Avith NeAV South Wales, whose Postmaster-General recently paid a visit to our shores, and Avhose desire to see established a closer commercial alliance and a more friendly intercourse between the two colonies, Avas earnestly expressed. I have now to deal briefly Avith another article of the same class. If it he true that duties should bear some proportion to value, and that luxuries should be taxed higher than articles of general consumption, the Committee will, I trust, concur in the equal justice of increasing the duty on sparkling Avines from 4s. to 6s. a gallon. This duty is that fixed in most of the Australian colonies, and is a reasonable demand on those Avho will pay it. As there is not likely to be a decline in the quantity consumed, Aye expect £1,300 additional from this source, or a total revenue from this description of Avir.e of £3,900. To sum up the effect of these changes, —Aye propose to abolish altogether the duties on a great number of the conveniences and necessaries of life, with a loss to the revenue, and a gain to the consumer, of £19,726. The remission of 2d. a pound on lea is £28,000; and the reduction in the Sugar Duty from Id. to -gd. a pound will benefit the consumer to the extent of £68,- r)0o. The remission on Australian Wine is £1,207, the amount being recovered to the revenue from the increased consumption. The total amount of taxation thus remitted is £117,433, or, in round numbers, £117,000. As I have shown to the Committee, nearly the whole of this taxation is taken off those commodities which are consumed principally by the great body of the people; or, as in some cases, a number of articles Avhich yield hardly any revenue is struck off, with the object of simplifying the tariff,

15

8.—2

This, then, Sir, is the nature and the extent of the relief which the Government see their Avay to afford in the present year, and we think the Committee will at once recognize that the relief has been given with no niggard hand. That we have not passed the bounds of prudence, it Avill be for our proposals, when vieAved as a whole, to establish. As the remissions are intended to take place from the first of January, 1879, the loss to the revenue in the present financial year will be about £58,000. LAND TAX. And iioav, Sir, I shall ask the attention of the Committee to the proposals we have to make on the subject of fresh taxation. The policy of opening up for settlement the lands of the colony by means of railways, roads, and other Avorks, executed out of loans contracted in the foreign market, has entailed upon the colony a heavy responsibility in the form of interest, which has reached on the total debt a sum of about a million and a quarter annually. On the other hand, one of the most marked effects of that policy has been to enhance the value of all property — especially land—Avhich derives a permanent benefit from the extension of the railway system and other means of communication. The increase in the value of land is due to the additions which the population has received by means of assisted immigration in a degree scarcely inferior to that caused by public Avorks, and as the same cause will continue in existence a similar result may confidently be expected. The exemption of this accumulating wealth, land, from'contributing to the general revenue of the colony, has been condemned by the House as unjust to those who have been paying on the perishable necessaries of life the principal portion of the taxation. We propose, therefore, to extend the taxable basis, with the double object of establishing more firmly the finance and credit of the colony, and of fairly adjusting the fiscal burdens according to the capacity of the different classes to bear them. And, here, I may take the opportunity of disclaiming and repudiating the charge which is sometimes made, that the Government have in contemplation a class tax. The very contrary is the fact. We hold that the system which we propose to correct has Avorked unfairly in the past; that it has favoured the escape from taxation of the greater portion of the wealth of the colony, and has implanted a strong sense of injustice in the minds of the wages class. The readjustment we hope to effect will tend to efface the inequalities I have referred to; and, instead of promoting hostility between classes, Avill remove the causes which have been gradually estranging them. The worst enemies of the privileged classes are those Avho, while crying out against class legislation, are intent on preventing any settlement of grievances; for, the longer the readjustment is delayed, the more violent Avill be the remedy when the time comes, as come it must, for its application. We believe that no form of wealth is more legitimately called upon to contribute a portion of the public revenue of the colony than the value of land minus improvements, Avhich for brevity I shall call, the unimproved value, as no other commodity incraases so rapidly in value from the increase of population and the natural progress of a country. By exempting improvements, we award a premium to industry, and discourage a system of speculation aalucli thrives only upon the labour of others. Noav, Sir, there arc two methods by Avhich the unimproved value of land may be found. The first is classification, with a fixed and arbitrary value attached to each class, as in Victoria, AAdiere the distinction is arrived at by estimating the sheep-carrying capacity of the land. At first sight this system appears simple and easy of application. It has the obvious effect of discouraging the holding of large areas, unless the quality of the soil is good, and there is abundance of capital to Avork it. The principal objection to it is, that, with a given number of classes, it does not recognize the position-value of urban and suburban property, or sufficiently distinguish betAveen the capacity of the holder of poor land, and the holder of rich land, to contribute the tax; betAveen property in proximity to railways and roads, and property isolated from arterial lines of communication. But, perhaps, the strongest objection is that the tax is comparatively stationary, and does not bring under it the increment of unimproved value which takes place betAveen one period and another.

8.—2

16

The system to which these objections do not hold good, and which has recommended itself to the Government, after much consideration, as the fairest, is founded on a direct valuation according to the market value, deducting improvements. Here every holding would have its own special value, derived from position and quality, including accessibility to market, situation in towns or suburbs, the productive capacity of the soil, and other natural advantages. The principle, then, we propose is, to tax the actual value to sell, minus improvements, embracing both town and country, with a re-valuation every third year. The natural increase of wealth, thus ascertained, from one period to another, will indicate one peculiar and remarkable kind of progress—namely, that arising from the general prosperity of the community, apart from the enhanced value wliich labour gives to the land, itself. A man in making improvements will know that he is not at the same time SAvelling the exactions of the tax-gatherer, but that the reward of his industry is altogether his OAvn. We propose to follow the precedent of the Income Tax in England, in exempting values below a certain amount. Every holder will be entitled to claim an exemption to the extent of £500 on the total value of all his holdings, and no one will be called upon to pay the tax the value of whose property is not more than that sum. The leaseholder, except where the lease is held" from the Crown, Avill have the right to deduct from his rent at the time of payment the amount of the tax. The minimum unimproved value of land will be fixed at a pound an acre. The measure Aye shall introduce to giAre effect to these proposals, will })rovide for a system of assessment Avithin each county and municipality, setting forth the improved and unimproved value, and it will empoAver the local bodies, at their option, to accept the valuations required under the Eating Act. The Committee will observe that the owner of landed property Avill not begin to contribute under the tax until two deductions or exemptions of a very material character are made. By the exemption of improvements, the industry of the improving settler escapes taxation; and by not taxing the first £500 of unimproved value, tho settler commencing Avith small means is left unburdened until in making a start in life he rises above his difficulties, while the classs character of the exemption is destroyed by making it universal. I now come, Sir, to the question of results, after having explained the principle and basis on AAdiich Aye propose to proceed. The present local valuations for rating purposes are probably not entitled to the most implicit confidence, but they constitute the only data from which I am able to estimate the value of improved land in the colony. The annual valuation of HigliAvay and Local Boards this year is £2,343,249, and the Municipalities £1,467,746; giving a total annual value of £3,810,995. The Highway valuations are incomplete, and the annual value may with moderation be taken at £4,000,000. This, capitalized at 5 per cent., gives £80,000,000 as the improved capital value of the real property of the Colony. It may be more, as the valuations seldom reach the market value; but we accept it as the basis. I deduct for improvements three-sixteenths, or £15,000,000, and for the exemptions of £500, another £15,000,000, leaving £50,000,000 of a taxable value under our proposal. The estimate of the amount deducted for exemptions I have taken at Avhat may be considered the minimum, so that the reA^enue expected, and wliich Aye think ought to be derived from this source, may not prove excessive, or be more than to meet our requirements; the principle being kept in view that in imposing a neAv'tax before all the statistics relating to it can be collected, it is preferable to obtain less, not more, than the amount of revenue anticipated. We propose that property under this head shall contribute a halfpenny in the pound, which on £50,000,000 will yield to the revenue a sum of £104,166, or in round' numbers say £100,000. The net gain to the revenue will, hoAvever, not reach this amount by £10,000 —the estimated cost of valuations and collection. The Government believe their proposals on this subject will be received as characterized by fairness and moderation, as founded on 'a principle just in itself, and so applied as to inflict the least hardship on any class of the community.

17

8.—2

JOINT-STOCK COMPANIES. We propose, Sir, to equalize the burdens of taxation still further, by imposing an Income-Tax on Joint-stock Companies transacting business in the colony. The first and greatest objection to a general income-tax, that of false declarations, does not apply to companies Avhose profits require to be published. The capital, moreover, invested in companies differs from the capital a private individual employs in his business ; the first being generally the accumulated savings of the investor, over and above wdiat he requires in his trade or profession. In the credit and prosperity of the colony these companies directly participate, while many of their shareholders live out of the colony, and, without effort or responsibility to other forms of taxation, continue to draAV away their profits. We think, Sir, that to impose a tax of 3d. in the pound on the net profits of all jointstock companies registered or trading in the colony, will not slioav any want of appreciation of their value or enterprise, or in the least discourage this form of cooperation; but that, on the contrary, more than a corresponding benefit will be returned in the prosperity and contentment of the people. A careful estimate of the paid-up capital and profits of the companies shows an annual income of £800,000; and 3d. in the pound, or 1£ per cent., will yield £10,000 to the revenue. There is a large proportion of the companies which pay no dividends, and any attempt to tax the paid-up capital by means of an increased stamp duty (an alternative plan) would fall with great severity; but no company, shoAving a net profit for disposal at the end of the year, can reasonably object to pay in taxation so small a percentage as 3d. in every pound of their income. We have no doubt, Sir, but that the companies will admit we have treated them with consideration, and with a due regard for the important interests involved. BEEB TAX. I have referred to the relief given to the breAvers by the remission of one-half the Sugar Duties. The quantity of sugar returned as used in the breweries of the colony in 1876 was 2,271,600 lbs., yielding in. duty £9,465. Supposing the same quantity consumed, the relief to this industry is £4,732. The total duty paid by the breAvers under the existing tariff, on the materials, malt, hops, and sugar, is about 2s. Bd. per hogshead. If the average value per hogshead be £5, the duty paid but slightly exceeds 1\ per cent.; and, with the remission on Sugar, the duty Avill be reduced to less than 2 per cent. Noav, we are able to compare the position of the beer-drinkers in the colony with those of the mother country, where the different taxes on materials, and licenses, constitute a duty of from 18 to 23 per cent, on the trade prices of beer. If the position A\ rere reversed, the colonial consumer would have no right to complain, for the wages test would still be in his favour. At present he almost escapes taxation on this article. The amount of duty paid by the brewers on malt in 1876 was £2,654, and on hops £4,832. Now, the importations of malt are declining, £1,593 having only been collected on this head last year, and on hops £4,136, and in a few years it is probable the whole of the malt used will be produced within the colony. The production of colonial hops is also progressing, so that the duty derived from the importation of these articles is not likely to be maintained. It will thus be seen that from all but a revenue point of view these facts are satisfactory. Well, Sir, Aye think the beer-drinker will concur in the great moderation of our proposals if Aye ask him to contribute a beer tax of l|d. a gallon. It may be said that the consumer Avill not pay the tax at all, but that it will come out of the profits of the brewer, or of the retailer. It is only in accordance with sound economic doctrines to suppose that all such changes ultimately affect the consumer only, and Ido not wish to reason away tho conclusion. Hoav, then, will he stand ? He may certainly save his tax by drinking so much less beer; but, as the habit of indulgence is stronger than self-denial, there is no ground to anticipate in that respect an appreciable falling off. The tax on beer will then stand at 6\ per cent., in addition to the 2 per cent, at present contributed indirectly on the materials, or a total duty of 8-J per cent. —a per centage considerably less than one-half the duty received from the same source from the people of England. I estimate the consumption in the colony at 5,000,000 gallons, though there is some ground for 3—B. 2.

8.—2

18

thinking it may be more ; but as our statistics are incomplete, I have taken the lowest calculation. This quantity, at l-§d. a gallon, would yield a revenue of £31,250, or, say, in round numbers, £30,000. We propose to allow the brewers a draAvback of the duty on all beer exported from the colony. The mode of collection will be arranged to give the least trouble to the payer of the tax —the system of stamps prevailing in the United States recommending itself by its simplicity and directness. The Customs Department will assume control of this item of Inland Revenue, and I do not expect any considerable increase to the staff in consequence. I submit this tax to the Committee as one which, while touching with great lightness the contributor, is calculated to strengthen, as it will augment, the finance of the colony. FINANCIAL BESULTS. Sir, I have approached that point w rhen I may bring together our different proposals, and present the results in a condensed form to the Committee. The annual amount of the Land Tax I have estimated at £100,000. The Income Tax from Joint-stock Companies will, I expect, yield £10,000. From Beer brewed in the colony Aye hope to obtain £30,000; and from Sparkling Wines, say, £1,000. These different sums make up a total, in fresh taxation, of £141,000. Deducting from this the total of remissions, £117,000, there is a margin of £24,000 AAdiich the new taxes are calculated to bring in above the revenue remitted. But there will stand against this margin the departmental expenses incurred over the Land Tax, which Avill probably be not less than £10,000 the first year. But, as the Land Tax, and the tax on joint stock companies Avill not come into force before the Ist January next, the result for this year must be modified accordingly. The amount receivable from these taxes during the present financial year will therefore be £55,000. The Beer Tax will be receivable at once, and will yield, for eleven months, £27,273. For the same time the increase on sparkling Avines will give £1,000, making a total from the new taxes in the present financial year of £83,273. Deducting from this the estimate of the loss from remissions for the half-year, £58,000, we have a surplus of £25,273; and, if Aye subtract the £10,000 estimated departmental cost of collecting the Land Tax, there remains a net surplus in favour of revenue of £15,273. Now, Sir, although w re do not ask that the total of taxation should be increased, Aye propose that this margin should be allowed to stand. It Avould be over-refining the position to make the remissions and the new taxes exactly equal, the data, as I have said, being in many respects incomplete. Nor should it be forgotten that the work of effecting a thorough reform is not to be achieved in a single year. While we think the new taxes proposed will be sufficient, with continued progress and the increasing nature of the revenue, to yield all that will be demanded from the same sources, we are not without hope that the state of the revenue at the end of the present financial year will enable us to make still further remissions on the necessaries of life, and to proceed yet a considerable distance in reducing the length of the tariff. Sir, one of the principal aims of the Government, since the termination of last session permitted them to devote attention to the question, has been to render simple and clear the financial position. The magnitude of the labour requires time for its entire accomplishment; but I trust it has been within my scope to state, with some precision and accuracy, the actual state of the public accounts, to remove unnecessary distinctions, and establish others which may appear natural and obvious; to bring into a focus and under survey the whole field of colonial finance. The credit of a British colony depends as much upon the openness and publicity given to its financial operations, even to their weaknesses and defects, as upon the traditional honesty and industry of the race. It is, at the same time, a fortunate circumstance that, looking back over the field, there is nothing to disturb the faith which is reasonably reposed in our continued industrial, commercial, and financial prosperity. The changes we propose to inaugurate are, we believe, strongly calculated to accelerate this prosperity — which moves only with certain step AA rhen public right and justice are respected and jealously guarded. To maintain, for instance, those inequalities of taxation, which we propose to remedy, would benefit no man who intended to remain and

8.—2

19

make his permanent home in the colony. It would be vain to expect that all interests can be blended in mutual compromise, or to suppose that human nature can be changed to break down the lines of demarcation between the allies of resistance and the advocates of progress; but we can easily imagine a progressiveness arising from the constitutional conflict of both elements ; the common object being the welfare of the colony, and the difference only as to the means by which that object may, in the highest degree, be obtained. The policy I have the honor to submit on this occasion embraces questions of the largest interest to this colony, We have proposed to free commerce from unnecessary restrictions, and to relieve it from the ban of a system which offers a premium to dishonesty by making it difficult of detection. We have given direct encouragement to industries which are taking root in the colony, hy striking off the duty on articles used in manufactures. Foreign trade Avill be encouraged by the offer of reciprocity, which we advance without stipulations, leaving it to be determined by the mutual interest of those concerned. Some luxuries are brought further within the range of taxation. On articles of every day consumption, and among the necessaries of life, we haA^e proposed that the duty shall be either altogether remitted or substantially reduced. The accumulations of wealth in the form of real estate and joint-stock capital will be placed, for the first time, on the same level as tea and sugar, and be made to contribute a fair and not burdensome proportion of the revenue of the colony. We are convinced, Sir, that these proposals, if adopted, will give a fresh impetus to the march of progress in New Zealand, as they will show a country inviting labour as well as capital from all parts of the world by the justice and liberal character of its legislation. It cannot be doubted that the colony possesses inexhaustible resources : it is true that Nature has bestowed upon it the most lavish gifts; but the bounty of Nature must be matched by the beneficence of our institutions, and the equity of our public policy. To this end our purpose has been directed, and we ask the Assembly to give it form. Sir, the Committee has shoAAm great indulgence in permitting me to go through a labyrinth of figures, which is always trying to the patience, and only tolerable in a statement of the public accounts ; and I have to express my deepest thanks for the attention which has been accorded to me.

8.—2

DELIVERED BY THE COLONIAL TREASURER, THE HOST. JOHN BALLANCE, IN COMMITTEE OE AVAYS AND MEANS, TUESDAY, 6th AUGUST, 1878. CONTENTS. Page A.—The Public Debt of New Zealand ... ... ~. ... ~. ... 23, 2_ B. —General Balance-sheet and Summary of Transactions of the Public Account ... ... 25 C. —Receipts and Expenditure of the Public Account ... ... ... ... ... 26-33 D. —Statement showing the Total Expenditure of the Consolidated Eund for the Einancial Year 1877-78, with a comparison of tho Sums voted and expended in each Class ... 34 ]__. —Comparative Statement of the Estimated and Actual Bevenues of the Colony for the Financial Tear 1877-78 ... ... ... ... ... ... ... 35 ]?.—Comparative Statement of the Actual Bevenues of the Colony for the Einancial Tears 1876-77 and 1877-78 ... ... ... ... ' ... ... ... 36 G-. —Statement of the Consolidated and Land Bevenue (exclusive of Gold Eields Bevenue) received during the Nine Tears commencing 1869-70 ... ... ... ... 36 _EL —Comparative Statement of the Net Expenditure of the Consolidated Fund and the Sums voted under " The Appropriation Act, 1877 " ... ... ... ... ... 37—41 I. —Statement of tho Unauthorized Expenditure of the Consolidated Eund Accounts of the several Erovincial Districts in respect of the period ended 31st December, 1877 ... 42, 43 J. —Land Fund Accounts of the several Provincial Districts for the Financial Tear 1877-78, in respect of the period from Ist July to 31st December, 1877 ... ... ... '44 X. —Statement of Balances at Credit of Accounts of Local Bodies on 30th June, 1878 ... 45 L. —Statement of Balances at Credit of Deposit Accounts on 30th June, 1878 ... ... 45 H. —Comparative Statement of the Net Expenditure of the Public Works Account and the Sums voted for tho Tear 1877-78 ... ... ... ... ... ...46-48 ]ST. —Statement of the Unauthorized Expenditure of the Public Works Account ... .., 49 O. —Statement showing the Total Ways and Means of the Public Works Account, the Total Expenditure to 30th June, 1878, and the Balance on that date available for Appropriation ... ... ... ... ... ... ... ... 50 P. —Statement of the Estimated Expenditure out of tho Consolidated Fund for the Financial Tear 1878-79 ... ... ... ... ... ... ... ... 51 Q,. —Statement'of tho Estimated Receipts of the Consolidated Fund for the Financial Year 1878-79 ... ... ... ... ... ... ... ... ... 52 3J. • —Comparative Eeturn of tho Duties of Customs collected at the several Ports of New Zealand for the Financial Tears 1876-77 and 1877-78 ... ... ... ... 53 S. —Return of the Gross Duties of Customs for each Financial Year from 1865-76 to the • ' Tear ended 30th June, 1878 ... ... ... ... ... ... 53 T. —Return of the Value of Imports and Exports at each Port of New Zealand for the Financial Year ended 30th June, 1878 ... ... ... ... ... ... 53 XJ. —Comparative Beturn of the Total Value of all Imports ami Exports of Victoria, New South Wales, and New Zealand, for the Eleven Tears ended 31st December, 1876 ... 54 "V". —Table showing the Quantity and Value of Wool Exported from New Zealand during the Tears ended 31st December, 1876, and 31st December, 1877 ... ... ... 55 W. —Beturn of the Quantity and Value of Gold Entered for Duty for Exportation during Financial Tear 1877-78, as compared with the previous year ... ... ... 55 X. —Beturn of tho Quantity and Value of Flour and Grain Imported into and Exported from New Zealand, for the Tears ended 31st December, 1876, and 31st December, 1877 ... 55 Y. —Comparative Statement of Ad Valorem Duties collected during the Five Financial Tears ending 30th June, 1878, with the amounts collected on similar articles by means of Weight and Measurement Duties during the preceding Five Tears ... ... 56 Z. —Comparative Beturn of Customs Bevenue collected during the Five Financial Years ended 30th June, 1878 ... ... ... ... ... ... ... 56

APPENDIX TO THE FINANCIAL STATEMENT,

8.—2.

23

Table A. THE PUBLIC DEBT OF NEW ZEALAND on 30TH JUNE, 1878.

4s—B. 2.

Annual Charge. Debentures and Teeasuey Bills in Circulation. Loans. Sinking Funds Accrued. Net Indebtedness. Interest. Sinking Fund. Total. Amount. When Redeemable. Amount. Bate. | Kate. Amount. £ s. d. j ). cent. £ s. d. £ s. d. Undue Acts o_ the Colonial Goveenment, — Ordinance of Legislative Council... New Zealand Loan Act, 1856 ... < £ 375,000 - 25,000 50,000 50,000 £ 311 Y 500,000 On presentation January, 1888 October, 1888 October, 1889 June, 1894 £ s. d. I 313,209 12 10 £ s. d. 311 0 0 186,790 7 2 p. cent.! 4 i 30,000 0 0 20,000 0 0 2 | 10,000 0 0 j New Zealand Loan Act, 1860 New Zealand Loan Act, 1863 ... «{ 488,000 " 500,000 201,500 236,000 93,900 4,583,100 64,000 13,000 93,100 "1 Y 1,519,400 ! 1 July, 1891 15 July, 1914 1 November, 1915 15 March, 1891 15 June, 1891 15 December, 1891 51,103 8 9 h J- 337,362 9 8 41,996 11 3 1,182,037 10 4 6 f 5 4 - 6 6 16 5,586 0 0 24,400 0 0 20,000 0 0 12,090 0 0 14,160 0 0 5,634 0 0 I 2 1.862 0 0 1 4,880 0 0 1 5,000 0 0 2 4,030 0 0 2 4,720 0 0 2 ! 1,878 0 0 7,448 0 0 29,280 0 0 25,000 0 0 16,120 0 0 18,880 0 0 7,512 0 0 J Consolidated Loan Act, 1867 ... \ I 4,660,100 36 vcars from issue 1 January, 1893 15 April, 1913 r 5 5 4 229,155 0 0 ! 3,200 0 0 520 0 0 : 1 I 45,831 0 0 274,986 0 0 3.200 0 0 '520 0 0 ... | ... r i i Defence and Other Purposes Loan Act, 1870 <J 600,000 50,000 20,000 75,000 5,000 250,000 j. 1,000,000 J 36 years from issue 31 December, 1878 1 July, 1880 15 April, 1913 25 June, 1881 15 July, 1906 5 5_ - 4 4| 5 30,000 0 0 2,750 0 0 900 0 0 3,000 0 0 225 0 0 12,500 0 0 1 | 6,000 0 0 36,000 0 0 2,750 0 0 900 0 0 3,000 0 0 225 0 0 12,500 0 0 750,200 0 0 8,107,700 0 0 i i r Immigration and Public Works Loan Act, j 1870 2,100,000 372,100 25,700 200,000 500,000 Y 3,197,800 J 36 years from issue 15 April, 1913 15 April, 1882 1 June, 1907 1 February, 1904 5 4 4. 4 L4i 105,000 0 0 14,884 0 0 1,156 10 0 8,000 0 0 22,500 0 0 1 21,000 0 0 I 126,000 0 0 14,881 0 0 1,156 10 0 8,000 0 0 22,500 0 0 North Otago District Public Works Loan Act, 1872 Immigration and Public Works Loan Act, ( 1873 ... ... { 1,500,000 500,000 43,900 | 2,000,000 1 November, 1902 1 February, 1904 15 July, 1906 6,781 2 8 ! 37,118 17 4 5 I 5 2,195 0 0 67,500 0 0 25,000 0 0 10* 7,000 0 0 9,195 0 0 67,500 0 0 25,000 0 0 2,000,000 0 0 r G-eneral Purposes Loan Act. 1873 -{ 12,300 49,500 20,900 18,500 6,200 142,600 500,000 |. 750,000 13,764,611 15 May, 1914 15 December, 1881 15 October, 1883 15 October, 1913 15 October, 1885 Various 15 July, 1906 1 r 4 • 4 5 15 492 0 0 2,475 0 0 836 0 0 740 0 0 i 279 0 0 7,130 0 0 25,000 0 0 667,307 10 0 492 0 0 2,475 0 0 836 0 0 740 0 0 279 0 0 7,130 0 0 25,000 0 0 779,508 10 0 J- 750,000 0 0 L 1 1 — 1 Carried forward 1,458,656 13 11 12,305,954 6 1 112,201 0 0 ... * This rate is payable on the amount of the original issue, viz., £70,000,

8.—2

24

Table A— continued. THE PUBLIC DEBT OF NEW ZEALAND on 30TH JUNE, 1878— continued.

Annual Chaege. Debentures and Treasury Bills in Circulation. Loans. Sinking Funds Acceued. Net Indebtedness. Interest. Sinking Fund. Amount. When Redeemable. Total. Rate. Amount. Rate. Amount. Brought forward ... £ £ 13,764,611 £ s. a. 1,458,656 13 11 £ s. d. 12,305,954 6 1 p. cent. £ s. d. 667,307 10 0 p. cent. ... £ s. d. 112,201 0 0 £ s. d. 779,508 10 0 Under Acts oe the Colonial Goveenment — continued. Westland Loan Act, 1873 Immigration and Public Works Loan Act, 1874 Wellington Debts Act, 1876 ... J. 50,000 4,000,000 15 April, 1894 1 February, 1905 30 June, 1878 30 June, 1879 30 June, 1882 1 March, 1918 556 7 0 49,443 13 0 4,000,000 0 0 5 4i 2,500 0 0 180,000 0 0 2,500 0 0 180,000 0 0 ... 16,500 25,000 16,500 I 58,000 I *58,000 0 0 5 2,900 0 0 2,900 0 0 New Zealand Loan Act, 1877 ... 2,500,000 2,500,000 0 0 5 125,000 0 0 125,000 0 0 Treasury Bills, — Treasury Bills Extended Currency Act, < 1873 ... ... I Financial Arrangements Act, 1876 100,000 180,000 126,100 23,900 V 430,000 1 November, 1878 1 November, 1882 1 November, 1880 1 November, 1881 430,000 O 0 p. diem 3fd. 22,071 1 10 22,071 1 10 Under Acts or Ordinances oe the late Provincial Governments, — Auckland Loan Act, 1863 Wellington Loan Act, 1866 Nelson Waterworks Loan Act, 1864 Nelson Loan Act, 1874 Lyttelton and Christchurch Railway Loan Ordinance, 1860 Canterbury Loan Ordinance, 1862 Otago Loan Ordinance, 1862 31,600 13,500 6,200 18,000 h Y 286,500 33 years from issue 1 July, 1886 1 January, 1881 7,218 8 3 5,178 1 2 5,097 8 0 24,381 11 9 8,321 18 10 1,102 12 0 18,000 0 0 6 8 8 7 1,896 0 0 1,080 0 0 496 0 0 1,260 0 0 2 2 2 632 0 0 270 0 0 124 0 0 2,528 0 0 1,350 0 0 620 0 0 1,260 0 0 77,700 22,800 116,700 I 30 years from issue 50 years from issue 1 July, 1898 24,024 7 1 1,302 18 8 24,958 2 0 53,675 12 11 21,497 1 4 91,741 18 0 6 6 6 4,662 0 0 1,368 0 0 7,002 0 0 2 1 1 1,554 0 0 228 0 0 1,167 0 0 6,216 0 0 1,596 0 0 8,169 0 0 Advances on Security oe Debentures and Treasury Bills, — New Zealand Loan Act, 1876 Treasury Bdls, — Treasury Bills Extended Currency Act, 1873 Treasury Bills Extended Currency Act, 1876 Appropriation Act, 1876 21,089,111 1,017,542 11 10] 1,584,992 6 1 19,504,118 13 11 116,176 0 0 1,133,718 11 10 I I 1,000,000 1,000,000 0 0 5 50,000 0 0 50,000 0 0 120,000 172,000 110,000 £22,491,111 120,000 0 0 tl72,000 0 0 £110,000 0 0 5 5 6,000 0 0 5,600 0 0 6,000 0 0 5,600 0 0 ... | ... £1,584,992 6 1 £20,906,118 13 11 £ 1,079,142 11 10, £ 116,176 0 0 £1,195,318 11 10 * The Sinking Funds actually accrued amount to £60,357 3s., being £2,357 3s. in excess of the amount of the outstanding t Interest is payable on £112,000 only. % No interest is payable. debentures.

25

8.—2

Table B. GENERAL BALANCE-SHEET and SUMMARY of TRANSACTIONS of the PUBLIC ACCOUNT for the FINANCIAL YEAR ended 30th JUNE, 1878.

Transactions. De. Balances on 30th June, 1878. Ob. Balances on 30th June, 1877. Ob. Balances on 30th June, 1878. Cash : Imprests to be accounted toe. in the Bank of j New Zealand. Imprestees i in the Colony. Agent-General. Dr. Cr. Receipts and Transfers. Disbursements and Transfers. Totals. Agent-General. £ s. d. 80,057 12 10 £ s. d. 5,678,379 1 7 £ s. d. 6,228,026 15 2 £ s. d. 629,705 6 5 £ s. d. 461,362 3 11 £ s. d. 42,656 3 4 £ s. a. 125,686 19 2 £ s. d. 629,705 6 5 Consolidated Fund Public Woeks Accoukt ... 652,989 13 1 2,027,733 9 6 1,174,692 10 11 Di-200,051 5 6 Cr 356,311 13 11 29,868 8 1 126,392 0 4 & 200,051 5 6 Receipts in Suspense 377 6 3 29 5 3 348 1 0 348 1 0 348 1 0 Special Funds :— 37,632 0 8 37,632 0 8 Consolidated Loan Act, 1867 Defence and Other Purposes Loan Act, 1870 35,416 18 9 35,416 18 9 Wellington Debts Act 1872 Redemption Account 2,059 9 11 5,444 1 9 3,384 11 10 North Olago District Public Works Loan Act, 1872 ... 540 3 4 9,686 12 0 9,146 8 8 Westland Loan Act 1873 Redemption Account 425 3 3 478 18 3 53 15 0 State Forests Account 2,226 13 3 2,226 13 3 New Zealand Loan Act, 1876 59,901 11 11 69,901 11 11 ... New Plymouth Harbour Board Endowment Account 1,688 9 6 1,688 9 6 Provincial Liabilities 45,888 3 8 45,888 3 8 I Counties Separate Account 12,641 18 9 12,641 18 9 ... Gold Fields Revenue Account 2,865 12 9 2,865 12 9 ... Gold Duly Account 3,732 10 5 3,732 10 5 Waitara Bridge Endowment Account 9 0 0 11 10 0 2 10 0 Land Fund 115,646 7 9 115,646 7 9 Tbust Fund 67,115 14 11 1,324,434 13 2 1,257,318 18 3 I I I I Totals i 1,119,526 1 6 9,363,837 18 11 8,674,313 19 4 430,002 1 11 105,398 11 0 105,398 11 0 72,524 11 5 252,078 19 6 430,002 1 11

8.—2

26

Table STATEMENT of RECEIPTS and EXPENDITURE of the PUBLIC

£ s. d. £ s. d. £ b. d. RECEIPTS. CONSOLIDATED FUND. ASSETS OF THE TEAR 1876-77 s— Revenue, — Postal Telegraphic ... Registration and other Fees Railways 22,457 14 3 153 14 5 40 17 4 26,031 18 8 48,684 4 8 Recoveeies, — Advances to Land Fund ... ... ... Unauthorized Expenditure ... ... .... Penalty under San Francisco Mail Contract Emigrant and Colonist's Aid Corporation,— Temporary advance ... £5,000 0 0 Promissory Notes for Interest ... .1,475 16 1 Advances under section 53 of " The Counties Act, 1876 " ... Miscellaneous 47,500 0 0 7,743 2 6 5,000 0 0 6,475 16 1 435 17 11 4,720 18 9 71,880 15 3 120,564 19 11 FINANCIAL YEAR 1877-78 :— Revenue, — Ordinary, —- Raised by Taxation, — Customs ... ... ... £1,272,961 5 3 Stamps ... ... ... 151,068 16 9 1,424,030 2 0 Receipts for Services rendered, — Railways ... ... ... 516,458 12 10 Postal ... ... ... 113,358 8 10 Telegraphic ... ... 72,361 1 7 Judicial ... ... ... 46,797 10 7 Land Transfer ... ... 36,578 3 9 Registration and other Fees ... 27,603 0 8 Marine ... ... ... 19,491 11 4 Miscellaneous ... ... 42,074 4 0 904,722 13 7 Territorial, — Land Sales ... ... ...£1,440,824 4 5 Depasturing Licenses and Assessments 94,224 2 2 Miscellaneous ... ... ... 51,514 12 10 2,328,752 15 7 1,586,562 19 5 Balances transferred to Consolidated Fund by the operation of "The Public Revenues Act, 1877":— Land Fund Consolidated Loan of 1867 Defence and Other Purposes Loan of 1870 State Forests 3,915,315 15 0 • 115,646 7 9 37,632 0 8 35,116 18 9 2,226 13 3 190,922 0 5 Carried forward 4,106,237 15 5 120,504 19 11

B-—2

27

C. ACCOUNT for the FINANCIAL YEAR ended 30th JUNE, 1878.

£ s. d. s. d. £ s. d. EXPENDITURE. CONSOLIDATED FUND. LIABILITIES OF THE YEAR 1876-77 :— Permanent Appropriations,— Civil List Interest and Sinking Fund Under Special Act s of the Legislature ... Subsidies to Local Bodies 836 19 8 227 0 0 1,149 12 2 479 11 9 Annual Appropriations,— Miscellaneous Services 2,693 3 7 64,298 19 11 Accounts of Local Bodies, — Balances of Revenue Accounts on 30th June, 1877, paid over 10,525 1 6 FINANCIAL YEAR 1877-78 :— Permanent Appropriations,— Civil List Interest and Sinking Fund Under Special Acts of the Legislature Subsidies to Local Bodies Land Revenue, — Twenty per cent, paid to Counties ... One-tliiid of proceeds of Sales on Deferred Payments ... New Plymouth Harbour Board Endowment ... Board of Education, Nelson 25,920 17 7 1,077,633 0 3 42,3(59 14 1 158,870 19 4 77,512 5 0 42,175 15 5 123 15 6 2,283 14 2 46 12 7 1,349,424 8 11 Annual Appropriations,— Class I. —Public Departments „ II.—Law and Justice ... „ III. —Postal and Telegraphic ,, IV. —Customs ,, V. —Education „ VI.—Native „ VII. —Militia and Volunteers „ VIH. —Constabulary and Defence ... „ IX.—Domains and Buildings ,, X.—Railways ,, XI.—Miscellaneous Roads in Native Districts Lands and Surveys 195,484 9 8 142,073 0 11 215,956 19 1 72,541 18 2 194,048 18 8 35,506 13 11 24,641 13 11 132,602 11 0 ■26,066 13 5 381,307 12 8 61,905 7 3 5,720 15 11 218,937 15 5 1,706,794 10 0 43,143 7 3 Less in excess of Votes Unauthorized Expenditure, — In excess of Votes Services not provided for 1,663,651 2 9 43,143 7 3 18,2 10 9 61,795 18 0 Railway Stores and Workshops Account, — Issues Less Transfers to Votes 204,008 13 10 141,809 0 3 62,199 13 7 Redemption of Debentures issued under "The Wellington Loan Act, 1862" ... Land Revenue transferred to Provincial Liabilities Account Repayment of Advance obtained on Debentures of Lyttelton Hirbour Loan Advances to Land Fund in 1876-77 repaid ... Surplus Land Revenue paid to Counties, —■ Canterbury,— Balance to 30th June, 1877 Financial Year 1877-78 ... Over-payment to County of Vincent 2,000 0 0 3,080 16 8 100,000 0 0 47,500 0 0 108,697 17 11 347,668 0 6 340 19 10 ♦ Otago,— Financial Year 1877-78 ... 8,727 16 1 465,434 14 4 Bank of Issue Winding-up Account, Balance transferred to Revenue 462 12 0 Carried forward 3,755,549 6 3 77,512 5 0

8.—2.

28

Table STATEMENT of RECEIPTS and EXPENDITURE of the PUBLIC

RECEIPTS. £ s. d. £ b. d. £ s. d. Brought forward CONSOLIDATED FUND—continued. FINANCIAL YEAR 1877-78— continued. Provincial Liabilities, — Balance on 30th June, 1877, in Special Fund Account, transferred to Consolidated Fund by the operation of "The Public Revenues Act, 1877" Miscellaneous Receipts Receipts in Aid, —■ Transfer from New Zealand Loan, 1876 Loan on Reclaimed Land, Wellington Bills PayableDrafts on the Crown Agents on account of £300,000 authorized under " The New Zealand Loan Act, 1877" 4,106,237 15 5 120,564 19 11 45,888 3 8 47,710 16 2 11,850 8 0 13,472 0 0 220,000 0 0 4,445,159 3 3 Receipts in Aid, — Treasury Bills renewed ... Temporary Advances from Public Works Account 338,921 7 10 472,000 0 0 300,000 0 0 772,000 0 O Accounts of Local Bodies, — Revenue Accounts, — License Fees, &e. Sales, &e., of Lands made over to Local Bodies Gold Fields Revenue, — Balance on 30th June, 1877 ... £2,865 12 9 Receipts ... ... ... 21,424 0 5 56,045 16 10 95,320 16 3 Gold Dutv — Balance on 30th June, 1877 ... £3,732 10 5 Receipts ... ... ... 36,823 5 8 24,289 13 2 40,555 16 1 Counties Separate Account, — Balance on 30th June, 1877 ... £12,64118 9 Receipts ... ... ... 490,389 17 5 503,031 16 2 Deposits 719,243 18 6 171,058 13 6 Total Receipts 890,302 12 0 Balance on 30th June, 1877, — Cash in the Public Account Advances to be accounted for, — Imprestees in the Colony ... Agent-General 33,159 11 7 6,228,026 15 2 28,233 4 1 18,664 17 2 46,898 1 3 80,057 12 10 Total £6,308,084 8 0 PUBLIC WORKS ACCOUNT. FINANCIAL YEAR 1877-78 — Temporary Advances obtained on security of Guaranteed Debentures Transfer from New Zealand Loan of 1876 375,000 O 0 48,051 3 11 Temporary Advances to Consolidated Fund repaid ... Sales of Allotments of Land ... Bills Payable,— Drafts on Crown Agents on account of proceeds of Loan of 1877 423,051 3 11 300,000 0 0 1,641 7 0 450,000 0 0 Balance on 30th June, 1877, — Cash in the Public Account ... Advances to be acconnted for, — Colonial ... ... Foreign 1,174,692 10 11 519,548 0 5 652,989 13 1 21.306 9 3 112,135 3 5 133,441 12 8 Carried forward 1,827,682 4 0

29

8.—2

C—continued. ACCOUNT for the FINANCIAL YEAR ended 30th June, 1878.

EXPENDITURE. £ s. d. £ s. d. | £ s. d. Brought forward CONSOLIDATED FUND-cB»l«a„. 3,755,549 6 3 77,512 5 0 FINANCIAL YEAR 1877-78— continued. Provincial Liabilities, — Expenditure under Votes In excess of Votes 323,109 0 0 10,078 18 10 333,187 18 10 Receipts in Aid, — Treasury Bills redeemed Temporary Advances from Public Works Account repaid ... 4,088,787 5 1 472,000 0 0 300,000 0 0 772,000 0 0 Accounts of Local Bodies, — Revenue Accounts, —• License Fees, &c.... Sales, &c, of Lands made over to Local Bodies, — EllcsmcreandForsythReclamation £12,175 15 0 Canterbury College Reserves ... 81,090 0 0 Patea Harbour Board Endowment 915 16 2 Hokitika „ 58 19 2 Bluff „ 296 19 0 Conservators, Clutha River ... 648 12 9 55,684 11 10 95,186 2 1 23,255 6 4 38,899 4 3 448,449 4 4 Gold Fields Revenue Gold Duty Counties Separate Account Advances Account, — Expenditure on behalf of Local Bodies, recoverable 666 6 4 662,140 15 2 Deposits 77,988 16 4 740,129 11 6 Total Expenditure 5,678,379 1 7 Balance on 30th June, 1878, — Cash in the Public Account, — Advances to be accounted for, — Imprestees in the Colony ... .., Agent-General 42,656 3 4 125,686 19 2 461,362 3 11 629,705 6 5 168,343 2 6 Total £6,308,084 8 0 PUBLIC WORKS ACCOUNT. FINANCIAL YEAR 1877-78 — Class I.—Immigration „ II. —Public Works Department „ III. —Railways IV—Roads „ V. —Land Purchases, North Island „ VI.—Waterworks on Gold Fields „ VII.—Coal Mines „ VIII.—Telegraph Extension „ IX.—Public Buildings „ X.—Lighthouses „ XI. —Miscellaneous Public Works 116,227 16 9 16,222 14 2 713,469 1 3 33,953 11 0 46,132 9 11 39,645 17 7 574 19 4 33,182 2 10 105,167 13 3 18,310 16 2 44,696 3 3 Less in excess of Votes ... 1,167,583 5 6 11,055 6 0 Charges and Expenses of raising Loans ... Unauthorized Expenditure,— la excess of Votes For Services not provided for 1,156,527 19 6 2,404 18 4 11,055 6 0 4,775 13 6 15,830 19 6 1,174,763 17 4 Carried forward

30

8.—2

Table STATEMENT of RECEIPTS and EXPENDITURE of the PUBLIC

RECEIPTS. £ s. d. £ s. d. £ s. d. Brought forward 1,827,682 4 0 PUBLIC WORKS ACCOUNT— continued. FINANCIAL YEAR 1877-78— continued. Balance on 30th June, 1878, — Public Account —Nominal Overdraft* Less Advances to be accounted for ... Colonial Foreign 350,311 13 11 29,868 8 1 126,392 0 4 156,260 S 5 200,051 5 6 Total... ■£2,027,733 9 6 Accounts Closed by TnE Operation oe "The Public Revenues Act, 1877." SPECIAL FUNDS:— I Consolidated Loan Act, 1867, — Balance on 30th June, 1877 37,632 0 8 Defence and Other Purposes Loan Act, 1870,— Balance on 30th June, 1877 35,416 18 9 Wellington Debts Act 1872 Redemption Account, — Sales of Land Balance on 30th June, 1877 3,384 11 10 2,059 9 11 Noeth Otago District Public Works Loan Act, 3872, — Sales of Land, &c. Balance on 30th June, 1877 5,444 1 9 540 3 4 BS 15 0 9,146 8 8 540 3 4 9,686 12 0 Westland Loan Act 1873 Redemption Account, — Sales of Land Balance on 30th June, 1877 os io u 425 3 3 53 15 0 425 3 3 478 18 3 State Forests Account, — Balance on 30th June, 1877 2,226 13 3 New Zealand Loan Act, 1876, — Balance ou 30th June, 1877 59,901 11 11 New Plymouth Harbour Board Endowment Account, — Receipts 1,688 9 6 Provincial Liabilities Account, — Balance on 30th June, 1877 45,888 3 8 Counties Separate Account, — Balance on 30th June, 1877 12,641 18 9 Gold Fields Revenue Account, — Balance on 30th Juno, 1877 2,865 12 9 Gold Duty Account, — Balance on 30th June, 1877 3,732 10 5 Waitaea Bridge Endowment Account, — Rent Balance on 30th June, 1877 2 10 0 9 0 0 2 10 0 9 0 0 11 10 0 Total Special Funds ... £217,615 1 8 _. * Covered by proceeds of New Zealand Loan of 1877 not yet brought to account.

8.—2

31

C—continued. ACCOUNT for the FINANCIAL YEAR ended 30th June, 1878.

£ s. d. £ s. d. s. d. EXPENDITURE. 1,174,763 17 4 Brought forward PUBLIC WORKS ACCOUNT. FINANCIAL YEAR 1877-78— continued. 2,279 7 10 377 15 10 312 8 6 Proceeds of Sales of Allotments of Land, transferred as under — To Vote for Immigration To Provincial Liabilities, Wellington To Land Revenue, Wellington Temporary Advances to Consolidated Fund, under section 4 of " The Public Revenues Act, 1876 " ... 2,969 12 2 300,000 0 0 Repayment of Temporary Advances obtained on security of Guaranteed Debentures ... 100,000 0 0 Bills Payable, — Drafts on Crown Agents retired 450,000 0 0 2,027,733 9 6 Total... j£2,027,733 9 6 Accounts Closed by the Operation of " The Public Revenues Act, 1877." SPECIAL FUNDS i— Consolidated Loan Act, 1867, — Transferred to the Consolidated Fund ... 37,632 0 8 Defence and Other Purposes Loan Act, 1870, — Transferred to the Consolidated Fund 35,416 18 9 Wellington Debts Act 1872 Redemption Account,— Paid over to the Commissioners of the Public Debts Sinking Funds 5,444 1 9 North Otago District Public Woeks Loan Act, 1872,— Paid over to the Commissioners of the Public Debts Sinking Funds 9,686 12 0 Westland Loan Act 1873 Redemption Account,— Paid over to the Commissioners of the Public Debts Sinking Funds 478 18 3 State Forests Account, — Transferred to the Consolidated Fund ... 2,226 13 3 New Zealand Loan Act, 1876, — Transfers, — To Consolidated Fund for Provincial Liabilities To Public Works Account 11,850 8 0 48,051 3 11 59,901 11 11 New Plymouth Harbour Board Endowment Account — Preliminary Survey of New Plymouth Harbour ... Balance transferred to Deposits, Consolidated Fund 752 13 11 935 15 7 1,688 9 6 Provincial Liabilities Account, — Transferred to the Consolidated Fund 45,888 3 8 Counties Separate Account, — Transferred to the Consolidated Fund ... 12,641 18 9 Gold Fields Revenue Account, — Transferred to the Consolidated Fund ... 2,865 12 9 Gold Duty Account, — Transferred to the Consolidated Fund ... 3,732 10 5 Waitara Bridge Endowment Account, — Transferred to Deposits, Consolidated Fund 11 10 0 Total Special Funds ... £217,615 1 8 5—B. 2,

8.—2

32

Table STATEMENT of RECEIPTS and EXPENDITURE of the PUBLIC

RECEIPTS. £ s. d. £ s. d. £ b. d. Accounts Closed by the Operation of "The Public Revenues Act, 1877 " — continued. 115,646 7 9 LAND FUND ACCOUNT,— Balance on 30th June, 1877 Total Land Fund 115,646 7 9 TRUST FUND :— Deposits received Investment Accounts, — General Account, — Treasury Bills transferred to Government Insurance Account Balance on 31st December, 1877 Government Insurance Account, — Treasury Bills redeemed Balance on 31st December, 1877 Nelson Riile Prize Fund Account __ 110,696 7 9 45,300 0 0 680,922 10 6 180,000 0 0 239,400 0 0 1,000 0 0 1,146,622 10 6 1,257,318 18 3 67,115 14 11 Balance on 30th June, 1877 Total Trust Fund [£1,324,434 13 2

33

8.—2

C—continued. ACCOUNT for the FINANCIAL YEAR ended 30th June, 1878.

EXPENDITURE. Accounts Closed by the Operation of "The Public Revenues Act, 1877 "—continued. £ s. d. £ -e. d. £ a. d. LAND FUND ACCOUNT — Transferred to Consolidated Fund ... 115,646 7 9 £115,646 7 9 Total Land Fund TRUST FUND,— Deposits withdrawn Investment Accounts, — Government Insurance Account, — Treasury Billsrenewed Treasury Bills transferred from General Account 84,104 3 8 180,000 0 0 45,300 0 0 225,300 0 0 Balances on 31st December, 1877, transferred to the undermentioned Accounts, — Consolidated Fund Account, —■ Under section 9 of "The Appropriation Act, 1877" Government Insurance Account, — Under section 5 of " The Public Revenues Act, 1877" Public Trust Office, — Under section 6 of " The Public Revenues Act,1877" Post Office Account, — Under section 4 of "The Public Revenues Act, 1877" 35,673 9 4 241,983 4 6 23,356 1 3 714,017 14 5 Total Trust Fund 1,015,030 9 6 £1,324,434 13 2

8.—2

34

Table D. STATEMENT showing the TOTAL EXPENDITURE of the CONSOLIDATED FUND for the Financial Year 1877-8, with a comparison of the sums voted and expended in each Class.

DlFFEl lences. _"et Expenditure. Estimated Expenditure. In Excess of Estimate. Less than Estimate. Civil List Interest and Sinking-Fund Under Special Acts of the Legislature ... Subsidies to Local Bodies Appropriations,— Class I.—Public Departments II.—Law and Justice I JI. —Postal and Telegraphic ... IV.—Customs V.—Education VI.—Native VII.—Militia and Volunteers \ 7I1L—Constabulary and Defence IX.—Public Domains and Buildings X.—Railways XL —Miscellaneous ... Roads in Native Districts, North Island Lands and Surveys Services not provided for £ s. d. 25,920 17 7 1.077,633 ° 3 42,369 14 1 158,870 19 4 £ s. d. 29,750 o o 1,116,191 9 11 34,946 o 8 130,000 0 o £ s. d. £ s. d. 3,829 2 5 38,558 9 8 7,42.3 13 5 28,870 19 4 195,484 9 8 142,073 o 11 215,956 19 1 72,541 18 2 194,048 18 8 35,506 13 11 24,641 13 11 132,602 11 o 26,066 13 5 381,307 12 8 6i,9°5 7 3 5,720 15 11 218,937 15 5 18,652 10 9 204,444 12 o '39,745 3 7 232,325 o o 80,614 19 7 164,787 o o 33,96.3 '9 7 31,322 12 10 158,625 10 o 28,869 4 o 434-393 o o 124,234 14 6 12,000 o o 269,975 3 3 2,327 17 4 8,960 2 4 16,368 on 8,07,3 1 5 29,261 18 8 1,542 14 4 6,680 18 11 6,022 19 o 2,802 10 7 S3,o85 7 4 62,329 7 ,3 6,279 4 I Shotf 7 !0 18,652 10 9 Total Ordinary Expenditure 3,030,241 12 O 3,206,188 9 11 88,079 i.3 JO 264,026 n 9 Land Revenue, — Twenty per cent, paid to Counties ... One-third of Sales on Deferred Payments New Plymouth Harbour Board Board of Education, Nelson Railway Stores and Workshops Redemption cf Debentures Repayment of advance on Lyttelton Harbour Loan Debentures Land Revenue transferred to Provincial Liabilities... Advances to Land Fund repaid Surplus Land Revenue Ditto overpaid to County of Vincent ... Bank of Issue, winding-up Account 42,175 15 5 123 15 6 2,28,3 '4 2 46 12 7 62,199 *3 7 2,000 o o 100,000 o o 3,080 16 8 47,500 o o 465,093 14 6 340 19 10 462 12 o Local Bodies, — Sales of Lands ... License Fees, &c. Advances recoverable Gold Fields Revenue Gold Duty 3,755,549 6 3 95,186 2 1 55,684 11 10 666 6 4 23,255 6 4 .38,899 4 3 3,969,240 17 1 333,'87 18 10 Provincial Liabilities 327,846 18 9 5.341 o 1 Total Expenditure 4,302,428 15 11 3,534,035 8 8 93,420 13 II 264,026 11 :9

35

8.—2

Table E. COMPARATIVE STATEMENT OF THE ESTIMATED AND ACTUAL REVENUES OF THE COLONY FOR THE FINANCIAL YEAR 1877-78.

DlFFEl -EXCES. Estimated. Actual. In Excess of Estimate. Less than Estimated. Ordinary Revenue, — Raised by Taxation, — Customs Stamps Receipts for Services rendered,— Railways Postal Telegraphic Judicial Land Transfer Registration and other Fees Marine Miscellaneous ... £ s. d. 1,200,000 o o 124,000 o o 600,450 o o 107,000 o o 70,000 o o 53,000 o o 29,500 o o 34,210 o o 18,000 o o £ s. d. 1,272,961 5 3 151,068 16 9 546,458 12 10 113,358 8 10 72,361 1 7 46,797 10 7 36,578 3 9 27,603 o 8 19,491 11 4 42,074 4 o £ s. d. 72,961 5 3 27,068 16 9 6,358 8 10 2,361 1 7 £ s. d. 53,99' 7 2 6,202 9 5 7,078 3 9 6,606 19 4 27,000 o o 1,491 11 4 15,074 4 o Totals, Ordinary Revenue 2,263,160 o o 2,328,752 15 7 132,393 " 6 66,800 15 n Net amount in excess of Estimate 65.592 '5 7 j Territorial Revenue, — Land Sales Depasturing Licenses and Assessments ) Miscellaneous ... ... ... J l_ 743,000 o o 1,440,824 4 5 f 94,224 2 2 (. 51,514 12 10 697,824 4 5 I - 147,525 o o 1,786 5 o Totals, Territorial Revenue 890,525 o o 1,586,562 19 5 697,824 4 5 1,786 5 o Net amount in excess of Estimate 696,037 19 5 Ordinary Revenue (as above) Territorial Revenue „ 2,263,160 o o 890,525 o o 2,328,752 15 7 1,586,562 19 5 65,592 15 7 696,037 19 5 Revenues of Local Bodies, — Fees, &c. From Lands handed over ... Gold Fields Revenue Gold Duty ... ... ... "' 3,153,68,; o o 3,915,315 '5 o 761,630 15 o *56,045 16 io *95,32o 16 3 38,000 o o 34,000 o o 56,045 16 10 95,320 16 3 21,424 o 5 36,823 s 8 '6,575 19 7 2,823 5 8 Totals 3>377,°5' "3 » 4,124,929 14 2 764,454 o 8 l6,57S 19 7 Total, net amount in excess of Estimate 747,878 1 1 * No estimate was made of the receipts from th. -eceived are here inserted. :se sources ; but for the purposes of this Statement the amounts actual)

8.—2.

36

Table F. COMPARATIVE STATEMENT OF THE ACTUAL REVENUES OF THE COLONY FOR THE FINANCIAL YEARS 1876-77 AND 1877-78.

Table G. STATEMENT of the CONSOLIDATED and LAND REVENUE (exclusive of Gold Fields Revenue) received during the Nine Years commencing 1869-70.

1876-77. 1857-78. Increase. Decrease. Ordinary Revenue, — Raised by Taxation, — Customs Stamps Receipts for Services rendered,— Railways Postal Telegraphic Judicial Land Transfer Registration and other Fees Marine Miscellaneous ... £ s. d. £ s. d. £ s. d. £ b. d. 1,199,378 '5 o 122,670 18 9 1,272,961 5 3 151,068 16 9 73,582 10 3 28,397 '8 o 285,220 3 10 86,547 14 o 63,983 13 I .7,73- 17 2 30,129 7 II 24,686 14 9 16,927 16 3 27.553 o 3 £46,458 12 10 113,358 8 10 72,361 1 7 46,797 10 7 36,578 3 9 27,603 o 8 19,491 n 4 42,074 4 o 261,238 9 o 26.810 14 10 8,377 8 6 6,448 i_ 10 2,916 511 2,563 15 1 14,522 3 9 939 6 7 Totals, Ordinary Revenue 1,904,834 1 o 2,328,752 15 7 424,858 939 1 2 6 7 939 6 7 Net increase 423,918 14 7 Territorial Revenue, — Land Sales Depasturing Licenses, &c. ... Miscellaneous 870,819 8 7 98,834 16 1 36,201 8 5 1,440,824 4 5 94,224 2 2 51,514 12 10 570,004 15 10 4,610 13 n 15,3 '3 4 5 Totals, Territorial Revenue 1,005,855 13 1 1,586,562 19 5 585.318 o 3 4,610 13 11 Net increase 580,707 6 4 Ordinary Revenue (as above) Territorial Revenue ,, 1,904,834 1 1,005,855 13 o 1 2,328,752 15 7 1,586,562 19 5 423,918 14 7 580,707 6 4 Revenues of Local Bodies, — Fees, &c. From Lands handed over ... Gold Fields Revenue Gold Duty 2,910,689 14 1 3,9'5,3'S '5 o 1,004,626 O II 45,102 7 1 18,026 13 6 37,145 o 10 33.555 " " 56,045 16 10 95,320 16 3 21,424 o 5 36,823 5 8 10,943 9 9 77,294 2 9 I5,72i o 5 3,267 13 9 Totals 3,044,5'9 7 5 4,124,929 '4 2 1,096,131 15.721 7 2 o 5 Total Net Increase 1,080,410 6 9 * Inclusive of £5,031 6s. lid., Fees and Duties mder the Native La: ids Act.

Financial Year. Consolidated Revenue. Land Revenue. Total. 1869-70 1870-71 1871-72 1872-73 1873-74 1874-75 1875-76 1876-77 1877-78 £ s. d. 1,048,175 o 7 936,188 5 10 1,031,082 18 7 1,119,904 3 4 1,420,216 17 3 1,605,002 16 5 1,703,190 3 11 1,904,834 1 o 2,328,752 15 7 £ s. d. 209,623 3 6 208,091 5 o 336,311 o 6 889,642 14 1 1,066,744 7 3 773,263 17 9 857,990 18 1 1,005,855 13 1 1,586,562 19 5 £ s. d. 1,257.798 4 1 1,144,279 10 10 1.367.393 '9 1 2,009,546 17 5 2,486,961 4 6 2,378,268 14 2 2,561,181 2 o 2,910,689 14 1 3,9iS>3i5 '5 o

8.-i

Table H. STATEMENT showing the NET EXPENDITURE of the CONSOLIDATAD FUND, as compared with the Sums voted for the Financial Year 1877-78 under "The Appropriation Act, 1877."

37

Expended. Expended in Excess. Voted. Amount Unexpended. Expenditure. Credits. Net Expenditure. LIABILITIES OF 1876-77. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. (1. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 10 17 IS 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Vote No. I.,— Liabilities and Engagements, 30th June, 1877, — Legislative Executive ... Stamp ... Printing Geological and Meteorological ... Electoral Crown Lands Inspection of Machinery Lunatic Asylums Charitable Supreme Court District Courts Resident Magistrates' and Wardens' Courts Petty Sessions Courts Criminal Prosecutions Coroners Act, 1867 ... Contingencies Prisons Land Transfer ... ... Deeds Registry Postal ... ... ... "., Telegraphic Customs Marine ... Native ... Native Schools Militia and Volunteers Constabulary Contingent Defence ... Public Buildings Railways Miscellaneous Counties, Boroughs, and Road Boards 145 3 11 659 5 4 41 15 1 788 10 10 180 1 9 1,144 17 1 24 13 6 46 12 3 2,748 2 7 6,732 13 0 85 3 7 122 17 10 1,014 13 8 64 16 11 500 8 9 472 5 4 674 19 5 1,687 6 8 267 14 5 304 1 3 7,024 12 0 2,928 4 10 275 4 10 2,160 4 4 2,764 0 7 1,408 6 0 545 13 10 16,038 17 8 496 17 11 4,817 8 4 13,415 18 4 3,801 4 0 46 IS 3 2 5 0 3 10 0 84 13 7 45 5 6 10 6 0 75 0 0 450 0 C 50 0 0 450 0 0 165 0 0 1,100 0 0 25 0 0 50 0 0 2,500 0 0 6,000 0 0 90 0 0 130 0 0 800 0 0 60 0 0 500 0 0 350 0 0 550 0 0 1,600 0 0 275 0 0 300 0 0 6,000 0 0 1,S00 O 0 350 0 0 2,500 0 0 2,500 0 0 1,300 0 0 350 0 0 15,500 0 0 500 0 0 4,500 0 0 10,500 0 0 2,750 O 0 300 O 0 64,293 19 11 76 0 1 50 14 0 630 9 9 12 0 0 175 3 6 1,000 5 6 7,068 17 4 5 5 9 46 16 3 Total Liabilities oe 1876-77 73,429 12 1 9,135 12 2 64,293 19 11 64,370 0 0 76 0

8.-2

38

Table H— continued. STATEMENT showing the NET EXPENDITURE, &c.— continued.

d Expended. Voted. Amount Unexpended. Expended in Excess. o Expenditure. Credits. Net Expenditure. FINANCIAL YEAR 1877-78. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 2 3 4 5 6 7 8 9 10 11 Class I.—Public Departments :— Legislative Department ... Executive Stamp Printing Geological and Meteorological Electoral Crown Lands Inspection of Machinery Lunatic Asylums Charitable 39,005 12 2 30,814 19 11 4,486 13 4 13,968 7 5 3,574 16 9 4,369 16 2 15,621 10 8 1,763 8 5 33,077 6 4 56,041 17 0 3 0 0 436 19 2 6 5 0 855 11 4 ... 39,002 12 2 30,378 0 9 4,480 8 4 13,112 16 1 3,574 16 9 4,369 16 2 15,621 10 8 1,763 8 5 29,222 17 10 53,958 2 6 37,999 0 0 32,584 0 0 4,517 10 0 12,527 10 0 3,450 0 0 5,090 0 0 23,094 15 0 2,100 0 0 32,481 17 0 50,000 0 0 2,205 19 3 37 1 8 720 3 10 8,073 4 4 336 11 7 3,258 19 2 1,003 12 2 585 0 1 124 16 9 ... 3,854 8 6 2,083 14 6 3,958 2 6 Total Class I. 202,724 8 2 7,239 18 6 195,484 9 8 204,444 12 0 14,631 19 10 5,671 17 6 12 13 14 15 16 17 TS 19 20 21 22 23 24 25 Class II. —Law and Justice -.— Department of Justice ... Crown Law Office Land Claims Office Supreme Court District Courts Resident Magistrates' and Wardens' Courts Petty Sessions Courts Criminal Prosecutions, Witnesses and Jurors Coroners Act, 1867 Contingencies ... ,,. Native Land Court Prisons ... ... ... ... Land Transfer Department ... Deeds Registry ,,, .,, .., 1,307 4 0 2,108 13 4 350 0 0 8,293 10 10 5,807 10 3 43,266 4 11 140 15 9 9,244 14 7 2,324 15 0 3,428 13 2 8,551 11 6 41,360 0 8 9,005 14 9 9,961 11 9 91 13 4 46 7 0 3 17 0 10 5 0 13 15 0 1,307 4 0 2,017 0 0 350 0 0 8,293 10 10 5,807 10 3 43,219 17 11 140 15 9 9,240 17 7 2,314 10 0 3,414 18 2 8,551 11 6 38,447 18 5 9,005 14 9 9,961 11 9 1,320 0 0 2,010 0 0 350 0 0 7,661 0 0 5,550 0 0 43,413 11 6 200 0 0 8,600 0 0 2,200 0 0 2,000 0 0 7,182 9 7 40,998 2 6 9,060 0 0 9,200 0 0 12 16 0 193 13 7 59 4 3 7 0 0 632 10 10 257 10 3 640 17 7 114 10 0 1,414 18 2 1,369 1 11 2,912 2 3 2,550 4 1 54 5 3 761 11 9 Total Class II. 145,151 0 6 3,077 19 7 142,073 0 11 139,745 3 7 2,870 3 2 5,198 0 6 26 27 28 Class III. —Postal and Telegbaphic :— Postal Department Telegraphic Department... Subsidy for Australian Cable 127,118 13 9 84,985 2 1 5,208 6 8 729 1 11 626 1 6 126,389 11 10 84,359 0 7 5,208 6 8 141,418 0 0 85,667 0 0 5,240 0 0 15,028 8 2 1,307 19 5 31 13 4 ... Total Class III. 232,325 0 0 16,368 0 11 217,312 2 6 1,355 3 5 215,956 19 1

39

8.—2.

Table H— continued. STATEMENT showing the NET EXPENDITURE &c. — continued.

O'I 6 EH Expenditure. Expended. Voted. Amount Unexpended. Expended in Excess. Credits. Net Expenditure. Class IV. —Customs Deeaetment :— Customs Marine £ s. d. 39,186 8 5 33,742 18 5 72,929 6 10 £ a. d. 51 17 10 335 10 10 £ s. d. 39,134 10 7 33,407 7 7 £ s. d. i 41,103 16 6 ! 39,511 3 1 £ s. d. 1,969 5 11 6,103 15 6 £ s. d. 29 30 Total Class IV. 387 8 8 72,541 18 2 80,614 19 7 8,073 1 5 Class V.—Education :— Education ... 31 194,048 18 8 194,048 18 8 164,787 0 0 29,261 18 8 Total Class V. 194,048 18 8 194,048 18 8 164,787 0 0 29,261 18 8 32 33 34 35 Class VI.—Native Depaetment :— Salaries and Contingencies Native Schools " Native Lands Frauds Prevention Act, 1870 " ... Wairarapa 5 per cent. Land Purchase Account ... 23,348 4 0 12,012 3 0 348 0 3 191 4 1 98 14 3 296 3 2 23,251 9 9 11,715 19 10 348 0 3 191 4 1 20,322 6 3 13,071 13 4 420 0 0 150 0 0 1,355 13 6 71 19 9 2,929 3 0 41 4 1 Total Class VI. 35,899 11 4 392 17 5 35,506 13 11 \ 33,963 19 7 1,427 13 3 2,970 7 7 Class VII. —Militia and Volunteep.s :— Militia and Volunteers ... 36 25,095 11 11 453 18 0 24,011 13 11 31,322 12 10 6,680 18 11 Total Class VII. 25,095 11 11 453 18 0 24,641 13 11 31,322 12 10 6,680 18 11 37 38 Class VIII. —Constabulaey and Defence :— Constabulary Contingent Defence 133.271 8 6 3,278 5 2 3,855 9 0 91 13 8 129,415 19 6 3,186 11 6 133,625 10 0 5,000 0 0 4,209 10 6 1,813 8 6 Total Class VIII. 136,549 13 8 3,947 2 8 132,602 11 0 138,625 10 0 6,022 19 0 39 40 41 Class IX.—Public Domains and Buildings: — Government Domains Public Buildings Office of the Colonial Architect 1,144 0 11 23,539 7 3 1,408 14 8 25 9 5 1,144 0 11 23,513 17 10 1,408 14 8 1,191 4 0 25,628 0 0 2,050 0 0 47 3 1 2,114 2 2 641 5 4 Total Class IX. 26,092 2 10 25 9 5 26,066 13 5 2,802 10 7 28,869 4 0

8.—2.

40

Table H— continued. STATEMENT showing the NET EXPENDITURE, &c.— continued.

6 O Expenditure. ! Credits. Expended. j Net Expenditure, j Voted. Amount Unexpended. Expended in Excess. 42 Class X.—Railways :— Eailways £ s. d. 3S3,462 7 10 £ s. d. 2,154 15 2 £ s. d. 381,307 12 8 £ s. d. 434,393 0 0 £ s. a. 53,085 7 4 £ s. d. Total Class X. ... 383,462 7 10 2,154 15 2 | 381,307 12 8 431,393 0 0 i 53,085 7 4 Class XL —Miscellaneous, Special, and Tempoeaey Objects :— Miscellaneous, Special, and Temporary Objects... Exchange and Commission .,, Museum ... ... ... ... Public Libraries I *112,140 19 6 62,370 10 3 f6,593 15 0 500 0 0 5,000 0 0 41 3 0 ! 50.994 10 1 6,834 18 0 500 0 0 5,000 0 0 43 44 45 46 1,224 0 10 '. 200 0 0 49,770 9 3 6,631 18 0 500 0 0 5,000 0 0 Total Class NL 63,329 8 1 1,424 0 10 I 61,905 7 3 I 124,234 14 6 I 62,370 10 3 i 41 3 0 i 47 Roads in Native Disteicts, Noeth Island 5,730 13 0 15 17 1 5,720 15 11 5,720 15 11 j ■ i i ! 12,000 0 0 ; 6,279 4 1; 12,000 0 0 | 6,279 4 1 j Total Roads in Native Districts, North Island 5,736 1.3 0 | 15 17 1 I 48 49 50 52 54 55 50 57 Peovincial Liabilities :— Auckland Taranaki Wellington Nelson Canterbury Westland Otago Auckland and other Provincial Districts 442 3 0 2,412 13 11 5,000 0 0 5 0 0 31 3 6 264 2 8 11,954 0 6 327,382 7 0 ... ... ... 442 3 0 2,412 13 11 5,000 0 0 5 0 0 31 3 6 264 2 8 11,954 0 6 313,078 15 3 947 3 0 2,870 0 0 . ,000 0 0 50 0 0 550 0 0 374 16 7 13,054 19 2 §303,000 0 0 505 0 0 457 6 1 2,000 0 0 45 0 0 518 16 6 110 13 11 1,100 18 8 ... ... 14,303 11 9 ... 10,078 15 3 10,078 15 3 Total Provincial Liabilities Account 347,491 10 7 14,303 11 9 333,187 18 10 327,846 18 9 4,737 15 2 * The sum voted was £113,640 19s. 6d. ; but this sum has been reduced by £1,500, transferred to Vote 44 under an Order ii f Inclusive of the £1,500 above referred to. J The sum voted was £10,000; but this sum has been reduced by £3,000, transferred to Vote 57 under an Order in Cor § Inclusive of the £3,000 above referred to. i Council, vide seeti mcil, vide section 3 ion 30 cf " The Public Revenues Act, 1867." 10 of " The Public Revenues Act, 1867."

41

8.—2

Table H— continued. STATEMENT showing the NET EXPENDITURE, &c.— continued.

Expenditure. Expended. Voted.' I Amount Unexpended. I Expended in Excess. Credits. Net Expenditure. Lands and Surveys :— 58 . Crown Lands Department 59 Surveys 60 Survey Offices '.'.'. ." \" 61 Miscellaneous Total of Lands and Surveys 58 59 60 61 £ s. d. ... | 20,841 14 6 ... I 149,430 14 6 ... j 378 16 10 ... j 61,944 14 11 ... | 232,596 0 9 £ a. d. 420 6 6 11,511 7 9 1,726 11 1 £ a. d. £ s. d. £ s. d. 420 6 6 20,421 8 0 22,547 12 0 11,511 7 9 137,919 6 9 163,922 3 10 378 16 10 4,540 0 0 1,726 11 1 60,218 3 10 78,965 7 5 13,658 5 4 218,937 15 5 269,975 3 3 £ s. d. 20,421 8 0 137,919 6 9 378 16 10 60,218 3 10 £ s. d. 22,547 12 0 163,922 3 10 4,540 0 0 78,965 7 5 £ a. d. 2,126 4 0 26,002 17 1 4,161 3 2 18,747 3 7 51,037 7 10 £ a. d. £ s. d. 2,126 4 0 26,002 17 1 4,161 3 2 18,747 3 7 13,658 5 4 | 218,937 15 5 51,037 7 10 269,975 3 3 SUMMARY. Liabilities oe 1876-77 Financial Yeae 1877-78 :— Class I.—Public Departments ,, II. —Law and Justice „ III. —Postal and Telegraphic .j IV. —Customs ,, V.—Education ,, VI. —Native Department VII.— Militia and Volunteers ,, VIII. —Constabulary and Defence... „ IX. —Public Domains and Buildings X. —Railways ,, XL —Miscellaneous, Special, and Temporary Objects Roads in Native Districts, North Island ... Provincial Liabilities Lands and Surveys 76,138 15 0 202,724 8 2 145,151 0 6 217,312 2 6 72,929 6 10 194,048 18 8 35,899 11 4 25,095 11 11 136,519 13 8 26,092 2 10 383.462 7 10 63.329 8 1 | ... I 5,736 13 0 | ... ! 347,491 10 7 ... I 232,596 0 9 I 1 I 11,844 15 1 64,293 19 11 64,370 0 0 7,239 18 6 195,484 9 8 204,444 12 0 3,077 19 7 142,073 0 11 139,745 3 7 1,355 3 5 215,956 19 1 232,325 0 0 387 8 8 72,541 18 2 80,614 19 7 194,048 18 8 164,787 0 0 392 17 5 35,506 13 11 33,963 19 7 453 18 0 24,641 13 11 31,322 12 10 3,947 2 8 132,602 11 0 138.625 10 0 25 9 5 26,066 13 5 28,869 4 0 2,154 15 2 381,307 12 8 434.393 0 0 1,424 0 10 61,905 7 3 124,234 14 6 15 17 I 5,720 15 11 12,000 0 0 14,303 11 9 333.187 18 10 327,846 18 9 13,658 5 4 218,937 15 5 269.975 3 3 64,370 0 0 204,444 12 0 139,745 3 7 232,325 0 0 80,614 19 7 164,787 0 0 33,963 19 7 31,322 12 10 138.625 10 0 28,869 4 0 434.393 0 0 124,234 14 6 12,000 0 0 327,846 18 9 269,975 3 3 76 0 1 1.31 19 10 2,870 3 2 16,368 0 11 8,073 1 5 1,427 13 3 6,630 18 11 6,022 19 0 2,802 10 7 53,085 7 4 62,370 10 3 6,279 4 1 4,737 15 2 51,037 7 10 76 0 1 14,631 19 10 2,870 3 2 16,368 0 11 8.073 1 5 1,427 13 3 6,630 18 11 6,022 19 0 2,802 10 7 53,085 7 4 62,370 10 3 6,279 4 1 4,737 15 2 51,037 7 10 5,671 17 6 5,198 0 6 29,261 18 8 2,970 7 7 41 3 0 10,078 15 3 Totals ... i 2,164.557 11 8 60,281 2 11 ; 2,104,276 8 9 2,287,517 18 1 236,463 11 10 53,222 2 6

42

23.—2

Table I. STATEMENT of the UNAUTHORIZED EXPENDITURE of the CONSOLIDATED FUND for the FINANCIAL YEAR ended 30th JUNE, 1878.

FOR SERVICES NOT PROVIDED FOR :— Subsidies to Local Bodies : — Counties, — Buller ... ... ... £347 15 6 Hokianga ... ... ... 75 3 11 Lake ... ... ... 1,333 12 4 Maniototo ... ... ... 1,428 1 0 Tuapeka ... ... ... 1,479 11 4 Vincent ... ... ... 1,621 12 1 Waimate ... ... ... 3,962 13 4 Wairoa ... ... ... 549 19 8 £ s. d. £ s. d. £ s. d. Road Boards, — Tuapeka ... ... ... 473 19 10 Waitahuna ... ... ... 162 16 4 10,798 9 2 636 16 2 65 9 10 Township of Inglewood Miscellaneous : — Running expenses of s.s. steamer " Ilinemoa " Inspection of New Zealand Harbours, — Payment to Sir J. Coode Travelling expenses Taking soundings, Westport Roadstead 11,500 15 2 3,464 3 6 1,000 0 0 37 13 3 40 0 0 Great South and other Roads in the Auckland District, repairs, collection of tolls, &c. ... Compensation for loss of office, — Goods Managers, Canterbury Railways Warders, Dunedin Gaol ... ... ..; Messenger, Government House... 1,077 13 3 54S 19 11 612 14 6 20 12 4 97 10 0 730 16 10 I i Platelayer, Foxton Railway, compensation for injuries received... Mrs. E. Deck, half-pension of her late husband, P. A. Deck, June quarter, 1878 ... Housekeeper, Parliament Buildings, salary from 4th December to 30th June, 1878 Grants in aid to St. Mary's School, Nelson ... Grant in aid to Board of Wardens, Waitahuna . Conveyance of Volunteers, &c, to Richmond ... Refund of fee on inspection of Steam Fire-engine, Christchurch ... Carriage of Deer by rail for the Acclimatization Society, Auckland Expenses of inquiry in connection with Volunteer Engineer Militia, Thames Payment to Ruihi and Aporo Hare, in settlement of all claims of the late Ilui Tc Miha to land in jthe Middle Island ... Lessee of Newmarket Slaughterhouse, compensation for infringement of lease ... Captain T. Logan, s.s. " Hero," compensation in connection with proceedings re breach of Passenger Act Lithofracteur for Martin's Bay Expenses connected with exhibits, Paris Exhibition Amounts written olf, — Balance of Imprest Account, E. n. Bold ... W. B. D. Mantell ,, Late J. G. Johnson Amount owing to Eailway Department by Dunedin Jockey Club Bank note lost by Railway Department in transmission from Auckland to Wellington Travelling expenses of Mr. H. T. Clarke, attending sitting of Supreme Court, Dunedin Extra mileage paid to witnesses attending sitting of Supreme Court, Nelson Rent of land leased under " The Sawyer's Bay Lands Leasing Ordinance, 1874," for thc use of Friendly Soeieties, half-year to 1st March, 1877 Payments to the Public Trustee, to satisfy claims on the under-mentioned intestate estates transferred to Re10 0 0 6 0 0 143 16 4 294 10 0 20 0 0 14 5 0 2 0 0 1 15 0 210 0 0 100 0 0 50 0 0 200 0 0 79 11 6 8 10 6 0 9 11 25 3 6 4 4 6 10 2 6 20 0 0 60 0 5 12 17 0 20 11 0 10 7 6 venue, — Estate of Guiseppo della Vedova ,, John Jones ,, John Lavcry 19 7 4 13 9 7 25 19 9 58 16 8 Carried forward 18,625 10 10

43

8.—2

Table I — continued. STATEMENT of the UNAUTHORIZED EXPENDITURE— continued.

£ a. d. £ s. d. 18,625 10 10 £ a. d. Brought forward FOR SERVICES NOT PROVIDED FOR— continued. Miscellaneous — continued. Cash stolen from safe in Kaitoke Railway Station Balance of deficiencies of Goods Clerk, Railway Department, Auckland Rents on agricultural leases embezzled by late Receiver of Gold Revenue, No Town J. Rogan, Judge, Native Land Court, forage allowance, June, 1877 Payments on behale oe Local Bodies :—• Counties, — Collingwood, stationery Manawatu, labour, Gorge Road, &c. Vincent, travelling expenses Borough of Palmerston, election expenses Takaka Road Board, salary of ferry-keeper to 3rd July, 1877 ... Collingwood Highway District, advertising ... Counties, — Raglan, subsidy, Tu Rori Ferry Waipa, „ „ 16 3 22 11 0 4 14 0 10 9 6 6 0 1 2 18 7 9 13 9 0 0 3 15 0 12 6 6 5 0 6 5 0 56 8 3 Deduct recoveries ... 18,708 19 0 56 8 3 Imprest Advances Local Bodies, Advance Account, —• Amount issued Less recoveries 427 1 9 18,652 10 9 2,781 10 11 2,128 4 6 653 6 5 1,080 8 2 Total for services not provided for 19,732 18 11 IN EXCESS OF VOTES :— Final Charges. Class I. —Public Departments : — Vote No. 2—Legislative ... ... £1,003 12 2 5—Printing ... ... 585 6 1 6—Geological ... ... 124 16 9 11—Charitable ... ... 3,958 2 6 Class II.—Law and Justice : — Vote No. 13—Crown Law Office ... 7 0 0 ,, 15—Supreme Court ... 632 10 10 „ 16—District Courts ... 257 10 3 „ 19—Criminal Prosecutions ... 640 17 7 20—Coroners ... ... 114 10 0 „ 21 —Contingencies ... 1,414 18 2 22—Native Land Court ... 1,369 111 ,, 24—Land Transfer „ 25—Deeds Registry ... 761 11 9 Class V. —Education :— ■ Vote No. 31—Education ... ... 29,26118 8 Imprests. Total. 1,003 12 2 585 6 1 124 16 9 4,270 15 11 312"13 5 46319 2 7 0 0 632 10 10 257 10 3 1,104 16 9 114 10 0 1,414 18 2 1,656 14 2 10 5 5 761 11 9 287 12 3 10 5 5 29,261 18 8 Class VI. —Native: — Vote No. 32 —Salaries and Contingencies 2,929 3 6 „ 35—Wairarapa 5 per cent. Land Purchase Account 41 4 1 272 4 7 3,201 8 1 41 4 1 Class VII. —Militia and Volunteers : — Vote No. 36—Militia and Volunteers ... 286 16 6 286 16 6 Class VIII.— Constabulary and Deeence :— Vote No. 37 —Constabulary and Defence 2,375 1 11 2,375 1 11 Class XLVote No. 44—Exchange, &c. ... 41 3 0 41 3 0 Provincial Liabilities -. — Vote No. 57—Miscellaneous ... 10,078 15 3 1,479 1 5 11,557 16 8 £53,222 2 6 5,487 14 8 Total in excess of Votes 58,709 17 2 Total £78,442 16 1

8.—2.

44

Table J. LAND FUND ACCOUNTS of the several PROVINCIAL DISTRICTS, for the FINANCIAL YEAR 1877-78, in respect of the period from 1st JULY to 31st DECEMBER, 1877.

AUCKLAND. Taeanaki. Wellington. Hawse's Bay. Nelson. Marlboro'. Canteebury. Westland. Otago. Totals. RECEIPTS. £ s. d. £ s. d. £ s. d. £ s. d. £ B. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Revenue, — Land Sales Depasturing Licenses and Assessments, &c. ... Treasury Bills transferred from the account of Hawke's Bay 5,616 3 6 483 10 8 3,429 1 6 164 17 11 36,631 7 5 79 7 0 20,762 3 6 455 1 2 3,310 2 5 3,077 14 7 942 6 7 198 2 9 680,730 0 3 424 13 2 906 9 7 908 6 11 107,502 16 8 77,394 3 8 859,830 11 5 83,185 17 10 7,300 0 0 7,300 0 0 ... Balances on 30th June, 1877 13,399 14 2 2,498 8 6 3,593 19 5 96 2 7 36,710 14 5 117 0 0 21.217 4 8 632 13 3 6,387 17 0 853 6 6 1,140 9 4 665 19 11 681,154 13 5 108,697 17 11 1,814 16 6 62 5 5 184,897 0 4 716 13 11 950,316 9 3 114,340 8 0 Total 1,877 1 11 185,613 14 3 |l,064,656 17 3 15,898 2 8 3,690 2 0 36,827 14 5 21,849 17 11 7,241 3 6 1,806 9 3 789,852 11 4 EXPENDITURE. Permanent Appropriations, — ■ Interest and Sinking Fund on Permanent Debt Interest on Railway Expenditure ... New Plymouth Harbour Board Endowment ... Board of Education, Nelson Subsidies to Local Bodies ... Annual Appropriations, — Crown Lands Department _Surveys Miscellaneous Refunds of Revenue Repayment of Advances from Consolidated Fund in 1876-77 Surplus Land Revenue paid to Counties —- Balances on 30th June, 1877 On account of tho Year 1877-78 Treasury Bills transferred to account of Auckland 26,589 16 6 8,780 0 0 6,899 18 10 1,837 12 2 1,181 7 6 1,857 17 0 778' 17 l 11,770 3 7 9,736 9 6 6,558' 16 7 3,545 15 8 6,063 10 7 3,451 18 0 2,976 3 6 46 12 7 1,135 8 8 2,049 9 0 293 10 9 531 8 7 1,413 11 6 5,791 14 1 197 11 6 237 12 5 2,426 13 0 687 13 0 1,523 16 6 1,593 "9 10 4,901 13 6 18,661 3 6 9,19o" 6 2 8,765 3 8 2,110 5 0 535 18 8 32,487 10 11 23,576 4 0 9,139 '5 4 96,648 19 7 71,997 7 6 1,857 17 0 46 12 7 37,881 10 2 928 7 9 15,103 10 5 1,001 6 2 303 17 5 588 13 9 5,576 2 10 1,168 4 8 1,117 13 7 6,669 16 3 180 0 5 379 15 1 1,058 15 2 32 8 0 28 10 8 1,478 4 9 16,898 4 2 50,229 17 10 5,012 7 9 674 8 0 3,864 19 6 74 12 4 340 17 0 4,517 3 8 11,005 3 3 2,017 1 5 1,594 1 0 10,509 5 11 67,381 17 2 55,138 14 9 9,706 6 10 5,400 0 0 6,100 0 0 I ... 36,000 0 0 47,500 0 0 i 108,697 17 11 347,668 0 6 8,727 "l6 1 108,697 17 11 356,395 16 7 7,300 0 0 7,300' 0 0 ..'. Add —Advances from Consolidated Fund in 1876-77 not repaid 65,006 17 1 12,988 15 0 42,132 19 11 117,337 16 1 ; 20,123 3 9 5,304 8 3 562,737 16 1 16,366 4 2 129,064 5 8 871,062 6 0 400 0 0 ! 2,700 0 0 1,000 0 0 100 0 0 4,200 0 0 [ i 875,262 6 0 Balances on 30th June, 1878— Debit Balances Credit Balances 65,006 17 1 13,388 15 0 42,132 19 11 17,337 16 1 22,823 3 9 6,304 8 3 562,737 16 1 16,466 4 2 129,064 5 8 49,108 14 5 9,698 13 0 5,305 5 6 15,582 0 3 4,512 1 10 4,497 19 0 227,114 15 3 14,589 2 3 56,549" 8 7 j 189,394 11 3| ... ... Totals 15,898 2 8 36,827 14 5 21,849 17 11 j 7,211 3 6 1,877 1 11 1,064,656 17 3 ! 3,690 2 0 1,806 9 3 789,852 11 4 185,613 14 3

8.—2.

Table K. STATEMENT OF BALANCES at CREDIT of ACCOUNTS OF LOCAL BODIES on 30th June, 1878.

Table L. STATEMENT OF BALANCES at CREDIT of DEPOSIT ACCOUNTS on 30th June, 1878.

45

£ s. d. Revenue Accounts— License Fees, &c. Sales, &c. of Lands made over to Local Bodies Gold Fields Revenuo Gold Duty 361 5 0 134 14 2 1,034 6 10 1,656 11 10 Counties' Separate Account 54,582 11 10 Advance Account— Expenditure on behalf of Local Bodies, recoverable Dr. . 666 6 4 Total ... £57,103 3 4 I.

Armed Constabulary Reward Fund Bay of Plenty Districts Greymouth-Brunner Coal Field Railway Hurunui-Greta Bridge Nelson Rifle Prize Fund ,, ,, Investment Otago Educational Reserves Outlying Districts Sale of Spirits Act Railway Servants Fund Temporary Deposits ... Unclaimed Balances ... Unclaimed Property ... Waiau Sheep Dip Waimakariri Bridge ... Waitara Bridge Endowment Westland Loan Act 1872 Redemption Westport-Ngakawau Coal Field Eailway £ s. d. 1,823 16 1 46 5 0 3,090 13 7 1,725 1 10 923 18 7 Dr. 1,000 0 0 968 10 0 3 10 0 147 15 4 78,500 10 1 2,199 16 2 233 9 0 133 9 8 680 8 0 11 10 0 51 16 2 3,529 7 8 Total ... £93,069 17 2

8.—2.

Table M. STATEMENT showing the NET EXPENDITURE of the PUBLIC WORKS ACCOUNT as compared with the SUMS VOTED for the FINANCIAL YEAR 1877-78, under "The Immigration and Public Works Appropriation Act, 1877."

46

Vote No. Expended. Estimates. Amount Expended. Expended in Excess. Expenditure. Credits. Net Expenditure. £ s. d. £ s. d. £ s. d. £ a. d. £ s. d. £ s. d. PUBLIC WORKS ACCOUNT. 64 65 Class I.—Immigration :— Immigration Advances for Immigration purposes 126,728 16 7 1,746 18 11 11,751 11 6 496 7 3 114,977 5 1 1,250 11 8 134,626 0 0 14,330 13 7 19,648 14 11 13,080 1 11 Total Class I. 128,475 15 6 12,247 18 9 116,227 16 9 148,956 13 7 32,728 16 10 Class II. —Public Woeks Department :— r 06 67 68 Head Office Agent-General's Department,' London Photo-Lithographic and Lithographic Branches 13,290 0 11 1,329 4 8 2,306 13 8 684 3 1 i. 2 0 12,605 17 10 1,329 4 8 2,287 11 8 14,775 0 0 1,677 10 0 2,525 10 0 2,169 2 2 348 5 4 237 18 4 Total Class II. 16,925 19 3 703 5 1 16,222 14 2 18,978 0 0 2,755 5 10 Class III: —Railways :— 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 Kawakawa Kaipara-Puniu Napier-Manawatu Wellington-Masterton ... Waitara- Patea Patea-Manawatu North Nelson-Foxhill Picton-Blenbeim Bruimer-Greymouth ... Westport-Ngakawau Amberley-Waitaki and Northwards Waitaki-Bluff with Branches Winton- Kingston Western Railways Surveys of New Lines and Roads ... Additional Cost of Lands 716 10 0 76,777 1 7 30,155 18 10 92,193 2 3 25,518 6 11 81,950 3 1 742 5 9 1,764 16 3 24,799 12 11 29,043 10 7 120,911 2 2 249,243 16 5 26,677 1 4 15.950 3 1 10,881 10 7 3.515 13 8 572 10 3 5,584 10 1 1,916 1 7 18.878 2 7 444 13 2 2,149 9 3 375 14 2 432 0 3 1,070 14 10 399 5 3 17,942 3 4 20.879 7 6 1,503 16 3 2,6S6 10 3 143 13 9 71,192 11 6 28,239 17 3 73,314 19 8 25,073 13 9 79,800 13 10 366 11 7 1,332 16 0 23,728 18 1 28,644 5 4 102,968 18 10 228,364 8 11 25,173 5 1 13,263 12 10 10,881 10 7 979 4 3 6.113 0 0 142,830 0 0 75,633 0 0 162,677 0 0 50,000 0 0 141,956 0 0 11,083 0 0 29,235 0 0 35,006 0 0 38,234 0 0 182,754 0 0 365,488 0 0 39,296 0 0 37,587 0 0 10,000 0 0 43,208 0 0 5,969 6 3 71,637 8 6 47,393 2 9 89,362 0 4 24,926 6 3 62,155 6 2 10,716 8 5 27,902 4 0 11,277 1 11 9,589 14 8 79,785 1 2 . 137,123 11 1 14,122 14 11 21,323 7 2 881 10 7 2,5.6 9 5 42,228 15 9 Total Class III. 790,840 15 5 77,371 14 2 713,469 1 3 1,371,100 0 0 658,512 9 4 881 10 7 Class IV. —Roads :— 85 S6 87 83 North Island Nelson South- West Gold Fields ... Westland ... ... ... ... Hokitika —Christchurch 14,611 18 9 4,679 6 1 7,065 10 8 7,749 9 7 124 17 1 20 0 0 7 17 0 14,487 1 8 4,679 6 1 7,045 10 8 7,741 12 7 32,071 0 8 17,801 5 4 19,163 4 3 6,000 0 0 17,583 19 0 13,121 19 3 12,117 13 7 1,741 12 7 . Total Class IV. 34,106 5 1 152 14 1 33,953 11 0 75,035 10 3 42,823 11 10 1,741 12 7

8.—2

47

Table M— continued. STATEMENT showing the NET EXPENDITURE of the PUBLIC WORKS ACCOUNT— continued.

Vote No. Expended. Net Expenditure. Estimates. Amount Unexpended. Expended inExcess. Expenditure. Credits. tcPUBLIC WORKS ACCOUNT— continued. £ s. d. £ s. d. £ a. d. £ s. d. £ s. d. £ s. d. Class V.—Land Purchases, North Island 49,873 5 6 3,740 15 7 46,132 9 11 91,825 19 9 45,693 9 10 89 Total Class V. 49,873 5 6 3,740 15 7 46,132 9 11 91,825 19 9 45,693 9 10 Class VI. —Waterworks on Gold Fields :— 90 Water-races, North Island 40,030 16 4 384 18 9 39,645 17 7 90,907 6 2 51,261 8 7 Total Class VI. 40,030 16 4 384 18 9 39,615 17 7 90,907 6 2 51,261 8 7 Class VII. —Coal Mines :— 91 Prospecting and Developing Coal Mines 574 19 4 574 19 4 1,000 0 0 425 0 8 Total Class VII. 574 19 4 574 19 4 1,000 0 0 425 0 8 Class VIII. —Telegraph Extension :— Telegraph Extension 33,954 16 3 772 13 5 33,182 2 10 26,700 0 0 6,482 2 10 92 Total Class VIII. 33,954 16 3 772 13 5 33,182 2 10 26,700 0 0 6,482 2 10 Class IX. —Public Buildings :— 93 94 95 96 97 98 99 100 Judicial Postal and Telegraph ... Customs Offices for Public Departments Lunatic Asylums School Buildings - ... Hospitals ... Miscellaneous 6,309 1 9 9,019 11 5 3 3 9 30,155 10 4 4,478 8 7 63,928 18 1 3,252 17 11 4 14 6 10 6 11,978 18 1 6,309 1 9 9,019 11 5 3 3 9 30,154 9 10 4,478 8 7 51,950 0 0 3,252 17 11 33,142 0 0 11,315 0 0 1,150 0 0 37,475 0 0 41,800 0 0 50,000 0 0 6,000 0 0 6,645 0 0 26,832 18 3 2,295 8 7 1,146 16 3 7,320 10 2 37,321 11 5 2,747 2 1 6,645 0 0 1,950 0 0 4 14 6 Total Class IX. 117,152 6 4 11,984 13 1 105,167 13 3 187,527 0 0 84,309 6 9 1,950 0 0 Class X. —Lighthouses :— 101 Lighthouses 18,310 16 2 18,310 16 2 18,310 16 2 33,800 0 0 15,489 3 10 ... Total Class X. 18,310 16 2 33,800 0 O I 15,489 3 10 I ... 102 Class XL—Miscellaneous Public Works: — Miscellaneous 44,696 3 3 ... 44,696 3 3 247,910 0 0 44,696 3 3 247,910 0 0 203,213 16 9 Total Class XI. 44,696 3 3 203,213 16 9 ... ...

8.—2

48

Table M— continued. STATEMENT showing the NET EXPENDITURE of the PUBLIC WORKS ACCOUNT— continued.

Expended. Expenditure. Net Expenditure. Unexpended. Expended in Excess. Credits. _ I SUMMARY. Public Works Account: — £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Class I.—Immigration 128,475 15 6 16,925 19 3 12,247 18 9 703 5 1 116,227 16 9 148,956 13 7 32,728 16 10 „ IL—Public Works, Departmental 16,222 14 2 18,978 0 0 2,755 5 10 ,, III. —Railways ! 790,840 15 5 77,371 14 2 713,469 1 3 1,371,100 0 0 658,512 9 4 881 10 7 IV.—Roads I 34,106 5 1 152 14 1 33,953 11 0 75,035 10 3 42,823 11 10 1,741 12 7 » Y.—Land Purchases, North Island i i 49,873 5 6 3,740 15 7 46,132 9 11 91,825 19 9 45,693 9 10 VI.—Waterworks on Gold Fields 40,030 16 4 384 18 9 39,645 17 7 90,907 6 2 51,261 8 7 ! VII.— Coal Mines 574 19 4 33,954 16 3 772 13 5 574 19 4 1,000 0 0 425 0 8 „ VIII. —Telegraph Extension 33,182 2 10 26,700 0 0 6,482 2 10 „ IX. —Public Buildings 117,152 6 4 11,984 13 1 105,167 13 3 187,527 0 0 84,309 6 9 1,950 0 0 „ X. —Lighthouses 18,310 16 2 18,310 16 2 33,800 0 0 15,489 3 10 „ XL —Miscellaneous Public Works 44,696 3 3 44,696 3 3 247,910 0 O 203,213 16 9 Totals 1,274,941 18 5 107,358 12 11 1,167,583 5 6 2,293,740 9 9 1,137,212 10 3 11,055 6 0

49

8.—2

Table N. STATEMENT of the UNAUTHORIZED EXPENDITURE of the Public Works Account for the Financial Year ended 30th June, 1878.

£ a. d. £ s. a. £ s. d. FOR SERVICES NOT PROVIDED FOR :— Class II. —Public Works Department : — Engineer-in-Chief's retiring allowance Superintending Engineer for Middle Island, ditto 1,054 3 4 637 15 7 1,691 18 11 Class III.—Railways :— Exploration, Feilding, Murimolu, &c. 109 15 11 Class IV.—Roads, North Island : — E. H. Bold's retiring allowance Amount overpaid to a contractor, recoverable out of proceeds of land ... ■... 200 0 0 345 16 8 145 16 8 Class XL —Miscellaneous Public Works: —. Bannockburn Bridge, purchase of Services of Mr. T. Mackay, in connection with the Westland and Nelson Coal Fields Administration Act... 2,500 0 0 128 2 0 2,628 2 0 Total for services not provided for 4,775 13 6 IN EXCESS OF VOTES :— Final Charges. Class IL— Railways :— Vote No. 83—Surveys of new Lines and Roads • ... ... £881 10 7 Imprests. Total. 270 13 10 1,152 4 5 Class IV.—Roads :-— Vote No. 88—Hokitika-Christchurch 1,741 12 7 1,741 12 7 Class VIII.— Telegraph Extension:— Vote No. 99—Telegraph Extension ... 6,482 2 10 5,908 0 8 12,390 3 6 Class IX. —Public Buildings :— Vote No 98—School Buildings ... 1,950 0 0 1,950 0 0 £11,055 6 0 6,178 14 6 Total in excess of Votes 17,234 0 6 Total £22,009 14 0

8.—2

50

Table O. STATEMENT showing the Total WAYS and MEANS of the PUBLIC WORKS ACCOUNT, the Total EXPENDITURE to 30th June, 1878, and the Balance on that date available for Appropriation.

Wats and Means. Loans : — Immigration and Public Works Loan, 1870 Immigration and Public Works Loan, 1873 Immigration and Public Works Loan, 1874 General Purposes Loan, 1873 New Zealand Loan, 1876 New Zealand Loan, 1877 £ s. d. £ s. d. 4,000,000 0 0 2,000,000 0 0 4,000.000 0 0 750,000 0 0 750.000 0 0 2,200,000 0 0 13,700,000 0 0 Receipts in Aid : — Contribution of Canterbury for Railways Stamp Duties to 31st December, 1876 ... Transfer from Confiscated Lands Liabilities Account 56,000 0 0 264,657 16 4 19,963 1 3 ■ 340,620 17 7 Recoverable erom Consolidated Fund, — Amount of Expenditure under Class XII. 14,040,620 17 7 54,791 13 4 £14,095,412 10 11 Expenditure. Class I.—Immigration, including location II. —Departmental, Public Works ... III. —Railways IV.—Roads" V.—Land Purchases, North Island VI.—Water Supply on Gold Fields VII—Coal Mines VIII. —Telegraph Extension IX. —Public Buildings ... X.—Lighthouses XI.—Miscellaneous Public Works ... XII.'—Advance to Province of Otago XIII. —Charges raising Loans Interest and Sinking Eund ... £ s. d. £ s. d. 1,634,037 5 7 117.016 11 5 6,843,499 5 7 928,870 12 3 581,041 4 6 444,709 6 5 10,835 8 0 299,652 0 6 283,635 11 7 71,673 3 6 47,324 5 3 54,791 13 4 502.S85 15 2 218,500 0 0 Balance on 30th June, 1878, — Proceeds of the under-mentioned Loans yet to be received — Immigration and Public "Works Loan, 1870 £2,200 0 0 New Zealand Loan, 1877 ... ... 2,200,000 0 0 , 12,038,472 3 1 2,202,200 0 0 Deduct Cash issued out of proceeds of Drafts drawn on Crown Agents, in anticipation of raising Loan of 1877 356,311 13 11 Advances in the hands of officers of the Government— In the Colony ... ... £20,868 8 1 In England ... ... ... 126,392 0 4 1,845,888 6 1 Recoverable from Consolidated Eund, — Amount of Expenditure under Class XII.... 156,260 8 5 54,791 13 4 2,056,940 7 10 £14,095,412 10 11

51

8.—2

Table P. STATEMENT of the ESTIMATED EXPENDITURE out of the CONSOLIDATED FUND for the FINANCIAL Year 1878-79.

Permanent Appropriations— Civil List Interest and Sinking Eund Under Special Acts of the Legislature Subsidies to Local Bodies Land Eevenue Payable — To Counties, 20 per cent. To Counties, Deferred Payments for Land To New Plymouth Harbour Board £ s. d. 29,750 0 0 1,225.129 15 1 47,488 0 8 255,000 0 0 220.000 0 0 7,400 0 0 25,000 0 0 £ s. d. 1,809,707 15 9 Annual Appropriations— Class I. —Public Departments „ II. —Law and Justice ... „ III. —Postal and Telegraphic „ IV. —Customs V.—Marine „ VI.—Education VII.—Native „ VIII. —Militia and Volunteers ,, IX.—Constabulary and Contingent Defence ... „ X. —Railways „ XI.—Public Domains and Buildings ,, XII. —Crown Lands, Survey, and Gold Eields ,, XIII.—Miscellaneous ... 188,570 19 2 143.91,9 7 4 243,954 0 0 40,906 13 1 45,999 14 10 217.370 0 0 31,857 5 0 24.678 12 0 137,774 10 0 487.203 2 10 32,341 4 0 231,219 15 0 357,9-0 9 6 2,183,741 12 9 Total 3,993,509 8 G Eees, Duties, and Receipts, payable to Local Bodies— Gold Eields Revenue Gold Duty License Eees, Sec. Proceeds Sales of Lands specially set apart 47,000 0 0 38,000 0 0 65,000 0 0 50,000 0 0 200,000 0 0 Total Estimated Expenditure £4,193,509 8 6 £4,193,509 8 6

Br—2,

Table Q. STATEMENT of the ESTIMATED RECEIPTS of the CONSOLIDATED FUND for the FINANCIAL YEAR 1878-79.

52

Ordinary Revenue :— Raised by Taxation, — Customs Stamps £ 1,320,000 170,000 £ £ 1,490,000 Receipts for Services rendered, — Railways Postal Telegraphic Judicial Land Transfer ... Registration and other Eees... Marine Miscellaneous 710,000 121,500 76,000 50,000 32,500 32,745 22,400 67,000 1,112,145 Total Ordinary ... 2,602,145 Territorial Revenue: — Land Sales Land Sales on deferred payments 1,100,000 22,000 Depasturing Licenses and Assessments Miscellaneous 1,122,000 106,277 1,400 Total Territorial 1,229,677 Total Revenue £3,831,822 Receipts Specially Applicable:— Amount required, out of the surplus Land Revenue of 1877, to provide for Arrears of Surveys, — Hawke's Bay Canterbury... £4,512 30,000 Provincial Liabilities, — Balance on 30th June, 1878... , ... Receivable from Loan of 1877 Receivable from Wellington Trust and Loan Company, under arrangement with late Provincial Government Receivable from Corporation of Wellington for Reclaimed Land Miscellaneous £5,733 80,000 15,970 89,000 5,000 34,512 195,703 230,215 4,062,037 Revenue payable to Local Bodies, — Gold Eields Revenue Gold Duty License Eees, Sec Proceeds of Sales of Lands specially set apart £47,000 38,000 65,000 50,000 200,000 Total Revenue and Receipts £4,262,037

8.—2.

Table R. COMPARATIVE RETURN of the DUTIES of CUSTOMS Collected at the several Ports of New Zealand for the Financial Years 1876-77 and 1877-78.

Table T. RETURN of the VALUE of IMPORTS AND EXPORTS at each Port of New Zealand for the Financial Year ended 30th June, 1878.

53

Financial Yeae Financial Yeae 1876-77. 1877-78. Poets. Increase. Decrease. £ a. d. i £ s. d. ; £ s. d. £ s. d. Auckland ... ... ... ... 197,641 18 5 210,041 10 6 ' 12,399 12 1 Thames ... ... ... ... 9,590 11 7 8,620 4 5 ! ... 970 7 2 Bus-ell ... ... ... ... 1,222 2 8 1,075 0 3 ... 147 2 5 Mongonui ... ... ... ... 396 16 11 366 17 3 ... 29 19 8 Hokianga ... ... ... ' ... 1,850 12 7 1,596 3 10 ... 254 8 9 Kaipara ... ... ... ... ... 311 5 11 311 5 11 Tauranga ... ... ... ... 1,695 7 1 1,458 0 5 ... 237 6 8 Poverty Bay ... ... ... 9,434 10 11 10,792 12 11 1,358 2 0 New Plymouth ... ... ... 8,131 9 1 8,726 6 8 594 17 7 Wanganui ... ... ... ... 22,061 9 2 23,601 8 3 1,539 19 1 Wellington ... ... ... ... 167,855 0 10 185.884 12 0 18,029 11 2 Napier ... ... ... ... i 39,653 5 10 40,785 19 2 1,132 13 4 Wairau ... ... ... ... 4,686 16 1 5,278 14 7 591 18 6 Picton ... ... ... ... 937 12 11 1,010 8 3 72 15 4 Havelock ... ... ... ... 845 16 6 802 15 10 ... 43 0 8 Kaikoura ... ... ... ... 1,074 11 6 983 6 3 ... 91 5 3 Nelson ... ... ... ... I 34,533 4 2 35,041 0 9 507 16 7 Westport ... ... ... ... 12,996 18 5 13,415 12 10 418 14 5 Greymouth ... ... ... ... 40,458 8 4 39,276 12 7 ... 1,181 15 9 Hokitika ... ... ... ... 35,099 1 8 29,639 5 7 ... 6,359 16 1 Lyttelton and Christchurch ... ... 195,247 10 4 223,457 1 3 28,209 10 11 Akaroa ... ... ... ... 219 14 3 81 18 0 ... 137 16 3 Timaru ... ... ... ... 19,590 0 7 18,396 16 7 ... 1,193 4 0 Oamaru ... ... ... ... 11,275 0 1 15,140 8 6 3,865 8 5 Dunedin ... ... ... ... 345,910 10 9 356,221 10 8 10,310 19 11 Invercargill and Bluff... ... ... 31,830 3 6 38,726 17 11 6,896 14 5 Kiverton ... ... ... ... 4,000 9 11 3,723 13 10 ... 276 16 1 Chathams ... ... ... ... 7 10 0 *1 15 0 ... 6 10 £ s. d. 12,399 12 1 311 5 11 1,358 2 0 594 17 7 1,539 19 1 18,029 11 2 1,132 13 4 591 18 6 72 15 4 £ s. d. 970 7 2 147 2 5 29 19 8 254 8 9 237 6 8 43 0 8 91 5 3 507 16 7 418 14 5 1,18- 15 9 6,359 16 1 28,209 10 11 137 16 3 1,193 4 0 3,865 8 5 10,310 19 11 6,896 14 5 276 16 1 6 10 Totals ... ... ... 1,199,147 0 1 1,274,458 0 0 86,239 19 8 10,928 19 9 1,274,458 0 0 10,928 19 9 86,239 19 8 1 Increase, £75,310 19s. lid. * Chatham Islands return for June quarter, 1878, not received. Table S. RETURN of the Gross Duties of Customs for each Financial Tear, from 1865-1876 to the Tear ended 30th June, 1878. Financial Year 1865-66 ... £796,2271 Einancial Year 1870-71 ... £733,300",| „ 1866-67 ... 864,668 „ 1871-72 ... 775,993 „ 1867-68 ... 793,394 j- £4,066,915 „ 1872-73 ... 855,812 [ £4,697,058 1868-69 ... 804,204 „ 1873-74 Net 1,108,677 1869-70 ... 808,422J „ 1874-75 ... 1,223,276^ Financial Year 1875-76 Net £1,225,313) „ 1876-77 ... ... ... „ 1,199,147 _ £3,698,918 1877-78 „ 1,274,458)

Poets. Value oe Imports. Value o_ Exports. Auckland Thames Bussell Mongonui Hokianga Kaipara Tauranga Poverty Bay New Plymouth... Wanganui Wellington Napier Wairau Picton Havelock Kaikoui-a Nelson Westport Greymouth Hokitika Lyttelton Akaroa Timaru Oamaru Dunedin Invercargill and Bluff Harbour Riverton Chatham Islands £ 1,223,237 18,653 2,568 2 £ 666,450 408 3,335 296 8,244 35,553 1,997 883 21,223 23,734 63,772 1,233,071 159,757 8,535 1,679 113 456 221,807 47,932 155,850 114,262 1,477,288 859 83,370 54,590 2,304,133 167,633 3,682 45,977 893,849 388,232 28,911 3,110 188,807 143,266 1,818,844 17,693 17,168 1,653,950 308,617 Totals 7,391,086 6,222,710 Year 1876-77 ... 6,894,380 5,476,749

54

8.—2.

Table U. RETURN of the TOTAL VALUE of all IMPORTS and EXPORTS of VICTORIA, NEW SOUTH WALES, and NEW ZEALAND, for the Eleven Years ended on the 31st December, 1876.

Victoria. New South Wales. New Zealand. Years. i _ . Population. Value of Imports. Bate per Head. Value of Bate per Exports. Head. tionValue of Bate per Imports. Head. Value of Exports. Bate peiHead. Population. Value of Imports. Bute per Head. Value of Exports. Bate peiHead. 1866 1867* 1868* 1869 . ... 1870 Average of 5 years, 1866 to 1870 1871 1872 1873* 1874 1875 Average of 5 years, 1871 to 1875 1876 1877 636,982 651,571 674,614 699,790 726,599 I 677,911 752,445 770,727 790,492 808,437 823,272 £ 14,771,711 11,674,080 13,320,662 13,908,990 12,455,758 13,226,240 12,341,995 13,691,322 16,533,856 16,953,985 16,685,874 £ s. d. £ 23 3 9_! f 12,086,313 17 18 4 12,724,427 19 14 10J 15,593,990 19 17 6 12,260,579 17 2 10 11,414,047 19 10 2i 12,815,871 16 18 0_ 12,428,187 17 15 3i 12,504,679 20 18 3j 15,302,454 20 19 5 13,240,548 20 5 41 12,227,295 19 6 31 13,140,632 18 13 9. 11,936,316 £ s. d. 18 19 51 19 10 6| 23 2 31 17 10 4f 15 14 2 18 18 1 16 10 4 16 4 5| 19 7 14 16 7 6i 14 17 0i 431.312 417,620 466,765 485,356 502,861 466,783 519,182 539,190 560,275 581,278 606,652 £ £ s. d. j £ £ s. d. 9,403,192 21 16 Oi 1 9.913,839 22 19 8| 208,682 j 6,599,804 14 14 101 6,880.715 15 7 5 218,668 ! 8,051,377 17 4 llf 7,192,904 15 8 21 226,618 I 8,392,753 17 5 10 9,933,442 20 9 3f 237,249 | 7,757,281 15 8 6i 7,990,038 '. 15 17 9i 24S,400 8,040,881 17 4 6J 8,382,187 17 19 If 227,923 9,609,508 18 10 2 11,245,032 21 13 2 266,986 | 9,208,496 17 1 6| 10,447,049 19 7 6 279,560 10,471,433 I IS 13 9. 9,387,873 16 5 li 295,946 11,293,739 19 6 7 12,315,603 21 2 7 341,860 ' 13,490,200 22 4 8f 13,671,580 20 _ Of 375,856 10,814,685 19 4 11 11,419,427 20 6 5i: 312,041 £ £ s. d. 5,894,863 28 4 Hi 5,341,607 24 8 9f 4,985,748 22 0 0 4,976,126 20 19 5J 4,639,015 18 13 6 5,168,072 22 13 5f 4,078,193 15 5 5| 5,142,951 18 7 H 6,464,687 21 16 10. 8,121,812 23 15 If 8,029,172 21 7 2| 6,367,363 20 8 lii £ 4,520,074 4,044.678 4,429,198 4,221,860 4,822,756 4,528,313 5,282,084 5,190,665 5,610,371 5,251,269 5,828,627 £ s. d. 21 13 2i 21 4 9! 19 10 10J 17 16 0 19 8 31 19 17 4 19 15 8 18 11 4 18 19 If 15 7 21 15 10 If I 789,074 15,241,406 16 13 0i 561,915 5,432,603 17 18 2i 840,300 15,705,354 14 4 1 629,776 13,672,776 j 21 14 21 13,003,941 | 20 12 11* 399,075 J408.818 6,905,171 17 6 0i 6,973,418 17 1 1| 5,673,465 6,327,472 14 4 3f 15 9 61 ... * No account was kept of the overland traffic between New South Wales aud Victoria during the years 1867, 1868, and 1873. t The value of the wool received in Victoria overland from New South Wales, excepting for the years 1867, 1838, and 1873, has been deducted from the value of Victorian General Exports, among which it is included. J The last census return shows that the estimate of the population made at the end of December, 1877, was in excess of the actual population. The figures here given have been corrected by the result of the census of 3rd March, 1878. NEW ZEALAND, including- Aboriginal Natives (46,000 in Number to end of 1873; 45,470 in 1874 and 1875, and 45,000 in 1S76 and 1877). Years. Population, European and Aboriginal. Value of Imports. Bate per Head. Value of Exports. Bate per Head. 1866 ... 1867 ... 1863 ... 1869 ... 1870 ... Average of 5 years, 1866 to 1870 ... 1871 ... 1872 ... 1873 ... 1874 ... 1875 Average of 5 years, 1871 to 1875 ... 1876 ... 1877 254,682 264,668 272,618 283,249 294,400 273,923 312,986 325,560 341,916 387,330 421,326 357,829 444,075 453,818 £ 5,894,863 5,341,607 4,985,748 4,976,126 4,639,015 5,168,072 4,078,193 5,142.951 6,161,687 8,121,812 8,029,172 6,367,363 6,905,171 6,973,418 £ s. d. 23 2 11 20 3 10i 18 5 9 17 11 4i 15 15 If 18 17 4 13 0 7 15 15 Hi 18 18 li 20 19 4i 19 1 11 17 15 101 15 10 llf 15 7 3f £ 4,520,074 4,614,678 4,429,198 4,224,860 4,822,750 4,528,313 5,282,084 5,190,665 5,610,371 5,251,269 5,828.627 5,432,603 5,673,465 6,327,472 £ s. d. 17 14 Hi 17 10 llf 16 4 Hi 14 18 3f 16 7 7| 16 10 7§ 16 17 6i 15 18 101 16 8 11 13 11 If 13 16 8 15 3 71 12 15 6 13 18 10i

55

8.—2.

Table V. TABLE showing the QUANTITY and VALUE of WOOL EXPORTED from NEW ZEALAND during the Years ended 31st December, 1876, and 31st December, 1877.

Table W. RETURN of the QUANTITY and VALUE of GOLD ENTERED for DUTY for EXPORTATION from NEW ZEALAND during Financial Year 1877-78, as compared with the Previous Year.

Table X. RETURN of the QUANTITY and VALUE of FLOUR and GRAIN IMPORTED into and EXPORTED from NEW ZEALAND, for the Years ended 31st December, 1876, and 31st December, 1877.

7. 1876. ExpoETiNa Poets. Quantity. Value. Quantity. Value. Auckland Hussell Poverty Bay New Plymouth ... Wellington Napier Nelson Westport Greymouth Hok'itika Ly ttelton Punedin Inyercargill lb. 2,140,788 970,463 13,946,610 5,480,445 13,279 2,084 42,620 64,493 17,101,431 19,743,621 4,975,490 £ 127,730 49^370 754,971 333,355 1,291 68 2,047 3,425 981,874 1,119,359 285,448 lb. 1,878,461 7,000 1,093,577 1,136 10,770,437 2,911,130 53,261 3,000 25,601 93,812 20,305,217 17,675,505 5,035,317 £ 114,615 350 61,021 68 624,227 169,195 2,924 150 912 5,169 1,099,736 1,023,998 293,451 Totals 64,481,324 3,658,938 59,853,454 3,395,816

'iNANCIAL YEAE E ibd 30th June, Exporting- Poets. 18' r8. 1877. Quantity. Value. Quantity. Value. Auckland Kcton Nelson Westport Greymouth Hokitika Dunedin Invercargill Oz. 78,977 5,864 18,669 80,064 60,903 114,318 9,423 £ 316,872 23,135 74,758 320,250 243,595 459,084 37,975 Oz. 93,479 870 6,046 21,714 78,563 44,691 96,435 8,250 £ 379,292 3,197 23,797 86,933 314,268 178,757 387,869 33,134 1,407,247 Totals 368,218 1,475,669 350,048

187' .876. iMPi ESPOBTS. Impi Expi IE1S. IETS. IETS. Quantity. Value. Quantity. Value. Quantity. Value. Quantity. Value. Flour ... ... tons of 2,000 lb. 4,804| and 3,110 bags 87,486 960| £ 14,319 4,103 £ 55,392 497* £ 7,057 Grain— 925 107,707 23,872 62J 20 218,558 42,592 Barley ... bushels 3,372 Maize ... „ 64,949* 14,942 15 4 61,263i 11,794 728 180 Oats ... „ 10 2 354,694 47,776 99 25 1,263,957 141,082 Wheat ... „ 97,785f 31,713 859,795 204,157 59,4124 15,712 686,059 153,167 Other Kinds ... packages 241 357 283 and 2 tons 287 832 and 25 cwt. 555 246 64 Total Value 135,425 290,415 83,498 344,142 8—B. 2.

8.—2

56

Table Y. RETURN showing AMOUNTS of Ad Valorem DUTIES COLLECTED during the Five Financial Years ended on the 30th JUNE, 1878, compared with Amounts Collected on Similar Articles by means of WEIGHT AND MEASUREMENT DUTIES during the Preceding Five Years.

Note. —Measurement duties were abolished by " The Customs Tariff Act, 1873," which imposed an ad valorem duty of 10 per cent, in lieu of them and of the duty by weight on hardware, &c, from the 29th July, 1873.

Table Z. COMPARATIVE RETURN of CUSTOMS REVENUE collected during the FIVE FINANCIAL YEARS ended 30th JUNE, 1878.

FINANCIAL YEARS ENDED— 30th June, 1874. Ad valorem 10 per cent, (and 5 per cent, on some goods during July, 1873) Goods at per cwt. Goods at per cubic foot (during July, 1873) ... £307,133 3,615 12,110 £322,858 FINANCIAL YEAKS ENDED— 30th June, 1869. Ad valorem 10 and 5 per cent. Goods at per cwt. ... ... •■• Goods at per cubic foot £1,942 21,052 115,797 £138,791 30th June, 1875. 30th June, 1870. Ad valorem 10 and 5 per cent. Goods at per cwt. Goods at per cubic foot £2,428 20,178 132,213 Ad valorem 10 per cent. £364,558 £154,819 30th June, 1876. 30th June, 1871. Ad, valorem 10 and 5 per cent. Goods at per cwt. Goods at per cubic foot £2,190 20,212 111,996 Ad valorem 10 per cent. £326,642 £134,368 30th June, 1877. 30th Jbnb, 1872. A3, valorem 10 and 5 per cent. Goods at per cwt. Gooda at per cubic foot £3,123 14,717 114,893 Ad valorem 10 per cent. ... ... £295,702 £132,733 30th June, 1878. Ad valorem 10 per cent. £330,770 30th June, 1873. Ad valorem 10 and 5 per cent. Goods at per cwt. Goods at per cubic foot £3,961 21,292 147,034 £172,287

PlNAN0IA.li YeAKS ENDED '.0th June Heads of Beybnue. ( 1874. 1875. 1876. 1877. 1878. Spirits £ 314,182 23,526 £ 349,812 23,963 £ 371,001 12,630 £ 367,251 7,412 £ 379,461 4,315 „ New Zealand ... Cigars and Snuff Tobacco ... ,, Slieepwash ... Wine Ale and Beer, in bottle ,, in wood Tea Coffee, Cocoa, &c. ,, roasted Sugar and Molasses ... Opium Goods, by measurement „ by weight Ad valorem Other Duties 337,708 15,383 101,162 293 38,085 20,019 3,417 60,635 6,4.93 71 103,183 2,468 12,110 56,878 307,133 43,639 373,775 16,191 108,046 394 39,708 21,308 3,227 68,076 6,613 114 114,299 2,479 383,631 15,919 121,939 244 38,678 20,748 3,171 71,193 7,138 67 122,449 2,663 374,663 18,406 126,734 90 37,093 19,663 3,966 76,516 8,883 35 126,883 2,926 383,776 19,433 131,337 265 37,073 21,413 4,609 80,978 8,392 31 131,539 2,609 63,473 304,558 41,015 71,559 326,642 39,272 68,874 295,702 38,714 77,860 330,770 43,473 Totals 1,108,677 1,223,276 1,225,313 1,274.458 1,199,148

57

8.—2,

LIST OF ARTICLES, now SUBJECT to AD VALOREM DUTY of 10 PER CENT., which it is proposed to charge with FIXED RATES of DUTY.

Articles. Proposed Fixed Kates. Annual Bevenue now Collected on these Articles. £ 350 Bicarbonate of Soda 2s. per cwt. Cream of Tartar ... Id. per pound 65 Tartaric Acid Id. per pound 420 Eish, Potted and Preserved ... Sardines Id. per pound (or reputed package of that weight). Id. per half-tin 3,057 Jams, Jellies, and Marmalade ... Id per pound (or reputed package of that weight). ! 3,506 Bottled Emits „. Is. per dozen Mustard 2d. per pound Quarts (or reputed packages of that quantity), 2s. per dozen. 650 Pickles 875 Pickles Pints, ditto, Is. per dozen. Sauces ... 2s. per dozen reputed pints, and so in proportion per dozen of greater or less reputed quantities. 850 Starch } 1,039 4s. per cwt. Blue Id. per pound Lead and Composition Piping 2s. per cwt. 40 Nails 2s. 3,453 Wrapping Paper, Brown 2s. } 608 „ Other Kinds Paper Bags Wool-packs Corn Sacks 3s. 6s. 2s. 6d. per dozen ... 840 2,711 9d. „ „ 4,048 Elour Bags Boots and Shoes — 3d. „ „ 779 Men's, No. 6 and upwards Youths', Nos. 2 to 5 Boys', Nos. 7 to 1 "Women's, No. 3 and upwards 12s. „ „ 10s. „ „ 6s. „ 8s. „ „ Girls', Nos. 11 to 2 Girls', Nos. 7 to 10 7s. 6d. „ „ 6s. „ „ 18,295 Children's Nos. 0 to G ... OS. ,, ,, "Women's Lasting and Stuff Boots ... Goloshes of all kinds 8s. „ 2s. 6d. „ „ Slippers —Men's, "Women's, and Children's, No. 7 upwards ... OS. „ „ Wines, Sparkling 6s. per gallon. £41,586

8.—2.

LIST of ITEMS PROPOSED to be STRUCK OUT of the TARIFF, and of AMOUNTS that will be ANNUALLY LOST TO THE REVENUE thereby.

58

£ £ Accoutrements ... ... 8 Brought forward ...10,527 Arrowroot, in bottles, jars, and tins ... ... 140 Gutta Percha Manufactures, not being Wearing Apparel, and not otherwise enumerated 45 Arrowroot, in bulk ... 66 Arsenic ... ... 8 Iron Wire ... ... 5,038 Axles, Axle-arms and Boxes ... 316 Maccaroni ... ... 65 Bacon and Hams... ... 136 Maizena and Corn Elour ... 545 Baskets and Wickerware ... 103 Paints, wet or dry ... 2,081 Beef, Salted ... ... 13 Peas, Split ... ... 58 Perambulators ... ... 125 Bellows ... ... 65 Building Materials, not otherwise enumerated ... 161 Photographic Goods ... 237 Pitch and Tar ... ... 35 Butter ... ... 10 Pork, Salted ... ... 11 Candlenut Oil ... ... 10 Posts and Rails ... ... 120 Carriage and Cart Shafts, Spokes, Eelloes, and Naves, in the rough ... ... 100 Provisions, Preserved, not otherenumerated ... ... 6 Sago, in bottles, jars, and tins 40 Chains, of iron ... ... 107 Sago, in bulk ... ... 259 Cheese ... ... 54 Saltpetre ... ... 45 Spirits of Tar ... Nil. Steel ... ... 117 Clogs and Pattens ... Nil. Cork Soles ... ... 60 Eireworks ... ... 33 Swords ... ... 5 Grain ... ... 3,930 Tapioca, in bottles, jars, and tins 15 Grain, Ground ... ... 5,080 Tapioca, in bulk ... ... 72 Groats, Prepared... ... 110 Tools, Artificers' ... ... 249 Glue ... ... 17 Vegetables, Dried ... 21 Vermacelli ... ... 10 Carried forward ... 10,527 £19,726 By Authority: George Didsbury, Government Printer, Wellington. —1878. •rice 2s. 3d.]f