FINANCIAL STATEMENT (In Committee of Ways and Means, Tuesday, 10th May, 1887.)

Appendix to the Journals of the House of Representatives, 1887 Session I, B-06

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1887. NEW ZEALAND.

FINANCIAL STATEMENT (In Committee of Ways and Means, Tuesday, 10th May, 1887.)

M THE COLONIAL TREASURER, THE HONOURABLE STR I YOGEL.

Mr. Hamlin, — I venture to hope that honourable members will listen with attention to the information and the proposals it will be my duty to lay before them this evening. The Financial Statement was made last year much earlier than usual, and before the session closed I informed the House that I feared the estimate of the revenue for the year would not be realized. Notoriously this has been the case, and I have not this evening to make the announcement, so pleasant on these occasions, of a surplus. On the contrary, I have to tell the Committee that the transactions of the year just passed leave a deficit. THE EXPENDITDEE FOE THE FINANCIAL YEAE 1886-87. I have pleasure in stating that the expenditure during the last financial year showed a saving of .£98,626 on the amount estimated. The savings of all kinds amounted to £129,880, the excesses to £31,254, resulting in a net saving to the extent I have just indicated. The largest items were Eailways £65,511; Public Works (Consolidated Eevenue Account), £12,035 ; Education Department, £11,886 ; Customs, £10,839; Defence, £8,982; and Mines, £7,411. The excesses in expenditure were principally £14,338 for services not provided for, and .£10,023 for the Postal service. The latter chiefly arose through additional cost of sea services because of large premiums earned, and through underestimated expenditure for the maintenance of telegraph lines. There was a saving on the estimate for subsidies to local bodies, but the expenditure will come in during this year. As I shall have occasion to repeat later the Government have in every way exerted themselves to conduct the expenditure on the most economical scale. THE EEVENUE OF THE YEAE 1886-87. The revenue showed a less amount than estimated of £192,493. The following were the principal items of deficiency : Customs £124,235, Stamps £16,337, and Eailways £157,813. The Customs duties I shall again refer to. As there was a saving on the estimate of railway expenditure of £65,511, the net loss on the railway estimate amounts to £92,302. The loss arose principally during the earlier portion of the year. Towards the end the traffic^showed a marked increase. The loss on stamp revenue I attribute to diminished business. The Post Office and Telegraph services are considered to have earned about £10,500 over the i—B. 6.

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returns estimate.!, but it is difficult to exactly determine the amount of stamps sold for postal and for other purposes. The augmented business of the post and telegraph offices, notwithstanding the large use of delayed telegrams, is one of the most satisfactory features of the year. The depasturing licenses yielded £6,266 more than was anticipated. The miscellaneous revenue shows a large excess on the estimate—no less than £101,231. It arose in this way. The accumulated sinking funds on some of the English loans were much above what was required to meet the respective debts to which they belonged. I asked the Agent-General to call the attention of the Trustees of the Sinking Funds of the loan of 1863 to the fact, and they, in conformity with the law, released £104,749 under the Act of 1868, being the excess accumulated up to 1884, and they released £39,755 under the Act of 1884 on account of the excess since that period. The amount set free under the Act of 1868 reverts to the consolidated revenue; that belonging to the subsequent period is applicable to paying off the debentures created in the colony, and the amount has accordingly been so applied. Some doubt is felt in the Treasury as to whether £9,000 released under the Act of 1868 should not have come under the later Act. I have called the attention of the Agent-General to the circumstance, and possibly the sum in question may have to be transferred. It is perhaps right to add that I have no official control whatever over the Trustees of the Sinking Fund in England. They released the amount under the authority of an Act passed nearly twenty years since—in fact, a year before I first took office. My part in the matter, therefore, consisted of bringing it under their notice and accepting the transfer. As regards the debentures created here on account of the accrued Sinking Fund, I am pleased to be able to state that out of the amount already mentioned as released under the Act of 1884, and from the result of the drawings of the bonds we hold by conversion, we have paid off no less than £302,600 of the debentures created. Out of a total of £750,900 created since 1884, we have paid off already no less than £343,400. Efforts are so frequently and perseveringly made to discredit the operation by which the revenue is put in funds to the extent of the accruing Sinking Fund that it is desirable I should specially refer to the subject. Statements have been put forth to the effect that New Zealand securities have fallen in value because of what has unwarrantably been termed the seizure of the Sinking Fund. There is not a particle of truth in the allegation. The plan, after it became law in 1884, was explained by the Agent-General to the London market, and did not affect either the loan then negotiated or a subsequent one. To suppose that it affected the third loan is absurd. There is no necessity to justify to this Committee a measure which, in the face of opposition, and after abundant discussion, was accepted and became law by the authority of the present House. As long as it is correctly described, frequent reference to it is immaterial, for no one is justified in taking exception to it. I venture to place the matter once more before you in its true light. Parliament in 1884, having its attention called to the fact that the accumulations of the Sinking Fund were so large as to practically amount to yearly paying off a considerable portion of the public debt, decreed that the consolidated revenue should be recouped by the issue of fresh debentures to the extent of the fresh accumulations of the Sinking Fund. There is no more _ impropriety in doing this than there is in reborrowing to pay off a loan which is about to fall due. As by the operation of conversions portions of the Sinking Fund have been set free, debentures issued on account of the increases in the fund have been paid off, and the result of three years is that only £407,500 remain outstanding. If the process is truthfully described, it may be proclaimed from the housetops without injuring the credit of the colony. When account is taken of the Supplementary Estimates brought down after the Financial' Statement last year was delivered, my expectations amounted to a small surplus of £I^soo. I greatly regret there is instead a deficiency, but, considering the fears which have been expressed of its amounting to a very large sum, honourable members will, I believe, be glad to learn that it

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amounts to no more than .£92,293. I cannot accept any blame for this result. The circumstances which usually lead to the estimated revenue falling short have been conspicuously present; moreover, I informed the House before last session terminated that I feared the expected revenue would not be realized. This is the first deficit since I resumed office in 1884, and I think I have reason to be gratified that such is the case, and that the present amount is comparatively so small seeing how huge have been the disappointments during this period in other places. The amount of the deficiency can be identified in the statement of the revenue and expenditure of the Consolidated Fund by deducting the credit balance of £186,805 from the outstanding deficiency bills of £279,100. LAND FUND. The deficiency in the Land Fund has increased. I shall have to explain later that the change in the land policy is accountable for the result, and that it is necessary to make some permanent provision to meet the altered financial condition of this class of revenue. THE PUBLIC WOEKS FUND, 1886-87. Last year a new and important departure was made by placing under distinct amounts the residue of the old loans and the amounts to severally arise from the North Island Trunk Loan and from the loan authorized during the session. I took credit in my last Statement for a balance of £768,780 remaining out of the old loans, and said that when recoveries were made on its account from the North Island Trunk Loan there would be more than £800,000 " to be voted as the House pleased on other purposes than railways, such as buildings, purchase of Native lands, roads and other works on goldfields, roading, &c." I added, "We look to its yielding at least two years' provision." Subsequently, in the Public Works Statement, my colleague more particularly described, the transfers proposed both for rolling-stock and for the purchase of Native lands. These transfers have amounted to £350,780, and, together with £8,312 realized under " The Consolidated Stock Act, 1884," have raised the amount of the old loans available for expenditure to £1,127,872. The expenditure has amounted to £636,626, so that there is a balance of £491,246 available for expenditure this year. It will be remembered that exception was taken to my statement that over £800,000 would be available to expend as the House pleased on the purposes named. I have already read the passage. The argument was that there were liabilities exceeding the amount, and that the House would have to find nearly another million if the proposal was to be carried out. I explained that the column of liabilities on public works was always included in the expenditure of the fresh year, and, as those liabilities sometimes extended over more than that period, it was not without precedent that the whole expenditure of a year, including liabilities and new votes, was less than the nominal liabilities left undischarged at the end of the previous twelve months. We took last session fresh votes for the liabilities and many new works in addition, and the whole expenditure has been little more than the amount of the liabilities. We have expended, however, somewhat in excess of half of the amount available for the two years, which I stated would be more than £800,000, and which proved to be over £1,100,000, so that we unquestionably made increased provision for the period. But the increased provision was not made because liabilities were overlooked, and I was only following previous practice in including" liabilities in the expenditure for the year. Later on, when I speak of this year's Public Works expenditure, I shall include liabilities in it, and, though we contemplate some fresh votes, we shall not ask for a total provision much exceeding the nominal liability. The North Island Trunk Loan has not been floated yet. Honourable members will recollect that I expressly kept it out of-the market until its proceeds were ear-marked by the legislation of last year. There now stands charged against it £325,685, including an expenditure of £70,378 on the purchase of Native land to serve as an endowment for promoting settlement along the line. There is thus about £675,000 of

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it still available for expenditure. The loan of £1,325,000 authorized last year was negotiated at a little over .£97, a price which is not satisfactory when the condition of the market at the time the loan was emitted is taken into consideration. I shall refer later to the causes that contributed to the low price; but, meanwhile, it is right I should say that the Loan Agents were not responsible for it. Indeed, such were the difficulties with which they had to contend, that I feel their ability and resource were even more called into requisition than on previous occasions when better results rewarded their exertions. In the published accounts it will be observed that the full receipts on this loan had not at the close of the financial year passed to credit in the colony. When all the instalments pass to credit, as since the end of the year they have done, the balance left unexpended will amount to £713,755, the expenditure during the year having been £555,765. PUBLIC DEBT AND LOAN CONVEESIONS I have already referred to the issue of the last loan. I need not detain the Committee with any remarks on the loan conversions, as, owing to the unfavourable state of the market, nothing further has been done during the past year in that direction. FUTURE EXPENDITUEE. The Government have constantly had in consideration the question of reducing the public expenditure. It has necessarily come before them because of the diminished revenue, as also because of the very strong opinion on the subject expressed in Parliament. No excuse need be made for asking honourable members to allow me to go rather fully into the question. It is evident that retrenchment in the public service may be of two distinct characters —one comprising a reduction of the services provided, the other a reduction in the way the services are carried out. Ministers have not thought themselves justified in depriving the colony of any of the services to which it has been accustomed, and which Parliament has sanctioned. They have, however, in every case which seemed to them practicable, diminished the expendikire without impairing the efficiency. There are three classes of public service—first, the class exclusively engaged in collecting revenue; second, the class which renders services and receives in the aggregate remunerative payment for the same; third, the class which undertakes useful duties for which little or no revenue is collected. The Customs aptly illustrates the first, the Post Office the second, and the Departments of Justice and of Education two kinds of the third class. It is evident that as regards the first of the three classes there is no possibility of abolition, the one object in the interest of retrenchment is to carry on such services as cheaply as is consistent with efficiency. The same remarks apply to the second class, only with regard to that class there arises the question of the extent to which consideration should be given to sparselypopulated districts. The extent and nature of the departments coming within the third category must entirely depend upon the decision of Parliament. No Government has the right to alter their character without the sanction of the Legislature. It will be understood that, as regards all three classes, I admit there may be economies consistent with efficiency, and of these I will shortly separately speak. At present lam dealing with the questions relating to the extent of the services. When I tell you that the Post Office and Telegraph Department have set up the hard standard, regarding new post offices in the country districts, of requiring such offices not to leave a loss, that, with the desire to avoid spending money, remunerative extensions of the telephone and telegraph have frequently to be refused, and that as regards the Customs several stations are rapidly being closed, the Committee will see that there remains little to be said regarding reducing the services of the departments coining within the two first categories. The third category depends on the will of Parliament, and it would be unconstitutional that their nature should be materially affected by the action of the Government unsanctioned by the wishes of the representatives of the people.

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So that there should be no mistake, I will give a list of nearly all the services which come within the range of the third class to which I am now alluding, and which could be curtailed or abolished without apparently direct injury to the revenue —but I do not say without injury to parts of the colony. I shall omit those for which permament appropriation has been made—such as charitable aid—as evidently the Government could not if they wished reduce them, and I shall add some which apparently come within the class, though I shall afterwards argue that they do not really do so. The list then is as follows : The Legislative, the Audit, the Electoral, the Lunatic Asylum services, and those that come within the Departments of Justice, Education, Native Affairs, Mines, and Defence. I must again remind honourable members that I am merely bringing into a focus the cost of the public service. I would be reluctant indeed to have it supposed that I doubt the necessity of the services alluded to for the peace, order, and good government of the colony. The point at issue is whether the scope and extent of any of the services enumerated can be beneficially reduced. I will briefly remark on each : The Legislative Department is in the hands of the Legislature, and the votes submitted are open to consideration. The view of the Government is that reductions might be made, especially by allowing officers, who can be spared, to follow other avocations during the recess. Some permanent officers are undoubtedly necessary; but, where it can be avoided, it is not right to compel idleness for the major portion of the year. It is proposed to refer the subject to a Select Committee. Meanwhile, the Estimates are presented as sent in by the Speakers. Although I have included the Audit Department in the class of non-revenue departments, it must not be supposed that this service does not benefit the revenue. Most decidedly it does benefit the revenue, and—which is equivalent to the same thing—it also saves expenditure. The audit and control system of the colony has been built up with consummate labour and ability, and I am convinced honourable members would not be willing to see its usefulness impaired. I well remember the time before the present audit system was established. The session used to be largely occupied by continually-reiterated complaints of the powerlessness of Parliament to control the expenditure. Although the same complaint is occasionally heard now, it is but a faint echo of the dissatisfaction of former times. Besides, the remedy rests with Parliament. It is that body which gives to the Government certain powers of distributing and transferring votes, and it is within the competence of the Legislature to limit the powers. Concerning the Electoral service, there is need only to observe that it is an essential part of the machinery of the government of the country. I will not affront honourable members by dwelling on the argument that no temporary difficulty should induce us to lessen the accommodation or assistance we render to the unhappy beings who require to be incarcerated in lunatic asylums. The cost does not require justification. The expenditure under the head of Justice is in great measure to provide for an essential part of the machinery of government, as in the case already referred to. The Native Department is similarly necessary to a considerable percentage of the inhabitants of the colony—its reduction would much affect their interests. As regards the Educational Department there are few, if any, persons who fail to recognize that in the interests of the near and of the remote future of the colony it is imperatively necessary its people should be educated. I need not enter into the diversified views of those who think the towns enjoy too much, the country districts too little consideration, or of those who consider that private enterprise is unduly repressed; suffice it that the great majority of the people of this country regard education by whatever means provided as an essential feature of the good government of the colony. Although the Mines Department only directly raises a small revenue, its importance is infinitely great as regards the indirect effect it has both on the public revenue of the colony and the private revenues of the colonists. For example, it notably affects the Customs, the stamp and property duties, and it greatly inrluences the commerce of the country by its bearing on the earnings of

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persons following many different pursuits and occupations. The Defence Department, excepting the police, is one which at first sight appears capable of curtailment. But before arriving at such a conclusion it is necessary to remember that each time that a tolerably well-founded rumour of war circulates an irresistible demand arises for a thorough system of defence. The expense entailed by the hasty provisions demanded in times of emergency is much greater in amount and less useful in result than that which it is necessary to employ to keep up a regular and properly trained force. It would be a false economy, now that this system has been attained, to relinquish it because the air is less full than usual of warlike echoes. Any retrenchment of the kind might, and probably would, be followed by a greater expenditure on a recurrence of warlike prognostications. The Committee will, I think, agree with me that the usefulness of the revenue-yielding departments, and of those that neither directly nor indirectly yield revenue, cannot be reduced, or, in other words, that the public service must be maintained at not less than its present standard of efficiency. We now come to the question common to all the branches of the public service—Can the same efficiency be obtained at less than the present cost ? This opens a wide field of inquiry, and the Government have been unceasingly engaged in studying it since Parliament last separated. The subject involves the consideration of the numerical strength of the Civil servants, of the amount of their salaries, and of the nature and conditions of their engagements. And when a conclusion with respect to the past character of the service has been arrived at there remains the difficult task of determining in what respect there should be a change in the future. In the past the New Zealand, like other Civil Services, was meant to be a profession jealously guarded with privileges. It grew out of the type common to all the English colonies before they became self-governing. Gradually the feeling with regard to the service moved in the direction of freeing it from special privileges and of treating the public servants more as if they were employed in private establishments. The status of the service, however, has as yet far from arrived at that level, and it seems desirable to fix what its condition should be in the future rather than to let it indefinitely drift. To illustrate what I have said, I may point to the various Civil Service Acts, and the gradual abolition of pensions and large allowances. Last year we passed an Act of great bearing on the future of the service, and it has amazed, me to hear it spoken of as a measure of no importance. Probably such was the prevailing impression when the former Civil Service Acts were passed. We have learned to feel their importance, if not to like them, now that we have to pay the pensions and the allowances they entail. I use the word we in the sense of the general opinion—for I confess that individually I feel a doubt if it is wdse to go the length in reducing the status of the service to which public opinion unquestionably points. We rail against the pensions; do we quite appreciate the long and able services that have been rendered ? From the point of view from which I regard the Civil servants —as tried and trusty aids to the good government of the country —it does not seem to me we should grudge a retiring pittance to those whose lives have been devoted to public pursuits. But the decree has otherwise gone forth. The country has determined against the undoubtedly increased expense of a service protected and privileged beyond a reasonable extent. The Government do not, however, precisely understand the wash to be that the tenure of the public servants should be quite on the level with that of private employes, but something approaching to it. The Act of last session, as I have said, w 7as very important in this direction, for it provided that all Civil servants in future appointed shall be entitled to only three months' notice, and, in order to provide that they shall have some means at their command on leaving, five per cent, of their salaries is to be impounded and handed to them improved at compound interest on their retirement. A more radical alteration could scarcely have been decided on ; and it was the reflection of the stern determination of Parliament in favour of retrenchment. The Government went into recess with the duty before them of giving effect to

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the wish of the Legislature. I have already explained that they were unable to discover that a reduction ol the existing services was required. It was their more economical management that was demanded. Exclusive of small but necessary savings of an extraneous character, to all of which the Government have given their attention, the chief saving to be effected was in the number and salaries of the Civil servants; In studying what could be done of this nature, Ministers were confronted with the consequences of bygone engagements in the shape of pensions and retiring allowances to which Civil servants who might be dispensed with would be entitled. Each case has to be considered on its own merits, for in many instances, where the natural growth of a service is certain, it would be a loss to part with a good man on heavy terms of compensation when fresh assistance would soon be required. But again, in some cases it appeared likely the permanent dimensions of the service could be limited, and consequently could with advantage be at once curtailed. Besides present reductions, the Government have laid the train for large savings of expense in the future. Before detailing these steps, I wish to say that, in my opinion, ten years hence the difference in the cost of the Civil Service, between Avhat it would have been under the provisions prior to last year and under the new conditions, will be equal to a reduction of 20 to 25 per cent., supposing, of course, the new conditions will be maintained. The reductions the Government have made occur principally under the following heads:— (a.) Reduction on travelling expenses. (b.) Doing away with offices and dispensing with officers. (c.) Amalgamation of offices. (d.) Savings in appointments to vacated offices. Under these heads the alterations already made will result in a considerable saving, and the steps taken to continue efforts in the same direction will lead to yet larger savings in the future. To secure these the Government have determined that when vacancies occur the office vacated shall, if possible, be amalgamated with some other office, or, failing this being practicable, that there shall be a considerable saving in the salary attached to the appointee to the vacant office. The scale of such reductions has been laid down, and many honourable members will appreciate the importance of the further provision made by Ministers (which however is, of course, open to remission by future Governments), that where any departure is proposed from the conditions just mentioned the Cabinet shall be consulted. A classification list has, moreover, been drawn up. It will be found attached to the tables circulated with the Financial Statement. After the session an endeavour will be made to place each officer in the service within one of the divisions set forth. The classification will confer no claim to yearly increase or to promotion by seniority, but, other things the same, it will tend to more consistent dealing with the Civil servants. Hitherto, owing to the disparity of their positions and the difficulty of comparing them, there has existed more or less dissatisfaction at supposed inequality of treatment. Departmentalism, if I may use such a word to express the exclusiveness of departments, places difficulty in the way of amalgamation of services, especially in the kind of amalgamation suitable to country districts, where one officer might act for several departments. The Government are averse to assigning separate salaries for special duties. As a means of breaking down the walls of division, the Committee will see by the Estimates that we have amalgamated under the one head of Treasury and Inland Revenue the several departments of the Treasury, Customs, Marine, Stamps, Property-tax, Lands and Deeds Registry, and Post Office and Telegraphs. The chief officer of each branch and the Minister or Ministers will form a Board, which will sit periodically with the view to find means of enabling the etnployes of the different branches to act interchangeably. It will not be necessary that one Minister only should preside over all the branches. If the members of the present or a future Government desire to redivide the departments over which Ministers at present preside, it will still be open to them to maintain the consolidation of this great department.

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The Government have very carefully considered whether it was desirable that a rateable reduction .should be made in the salaries of the Civil servants. They felt reluctant to adopt this course, because of its wearing the appearance of specializing one class of the community for subjection to an income-tax. But the House has indicated its resolve that the cost of the service should be reduced. One of two courses only was open: either to arbitrarily lessen the salaries of some officers, trusting to their not being in a position to refuse to accept the lower salary offered, or to make a fairly-graduated reduction all round. The latter seemed the more considerate course, because of its probably proving of a temporary character. This year there will be large retiring allowances to pay; besides that, the effects of the new conditions which I have explained will only be partly felt. A reasonable rateable deduction need not be permanent. Moreover, the Civil servants must be aware that there has of late been a general fall in the rate of salaries outside the Government service, and they must also know that the cost of living and commodities has become so much less during the last few years that any amount they receive now represents as compared with the same salary a few years back a larger purchasing power. The reduction contemplated is not of an extent to fall heavily on the officers, especially those receiving low rates of remuneration. Salaries up to £150 will not be affected. On over £150 and not exceeding £200, a reduction of 3 per cent, is proposed. £200 „ £300, „ 4 £300 „ £400, „ 5 £400 „ £500, „ 6 £500 „ 7^ The deductions in any one class are not to make the salaries smaller than the last salary in the class preceding. The plan will not apply to the officers in the Agent-General's Department, as they are subject to the English income tax, neither will it include policemen or men in the Permanent Militia, nor men on wages, whether weekly or monthly, in any department, nor gaol or lunatic warders. It will not apply to persons whose salaries are permanently fixed by Acts. Ministers, however, accept it as regards their own salaries. It will rest with members to apply it to their honorarium if they see fit. They may desire that a percentage shall be deducted corresponding with that levied on similar amounts. The total amount the deductions are expected to yield is about £20,000.

PROPOSED EXPENDITURE THIS YEAR. The estimates of proposed expenditure this year are as follows:—

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Estimatd , 1887-88. Voted, 1880-87. Expended. ORDINARY REVENUE ACCOUNT. Civil List ... Interest and Sinking Fund Under Special Acts ... £ 29,750 1,764,793 232,867 £ £ 29,750 1,654,500 231,054 £ 31,015 1,642,876 232,189 2,027,410 Legislative Departments Colonial Secretary's Department Treasury and Eevenue Departments ... Justice Department... Education Department Native Affairs Department Mines Department ... Working Railways Department Public Buildings and Domains Depart1,915,304 1,906,080 17,000 130,515 407,838 110,170 381,509 17,828 28,983 748,000 17,810 163,236 457,323 118,084 383,489 22,830 40,104 761,282 17,626 162,940 455,609 118,571 371,603 26,836 32,693 695,772 ments Defence Department ■"... 35,850 186,201 40,210 191,551 27,961 182,569 2,063,894 2,195,919 2,092,180 Services not provided for Deduct from Salaries 4,091,304 4,111,223 3,998,260 14,338 20,000 4,071,304 4,012,598

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After deducting the item of interest from both Estimates the votes we submit this year are less than those of last year by the large sum of £150,212. The amount for interest has increased by £110,000. It will be remembered that in connection with the loan conversions I stated that of the reduction of £240,524 (which was the result of the operations as between the two respective years 1883-84 and 1885-86), there was some £45,000 which represented interest for a broken period, and which would be thrown on to the expenditure of this year. For the three years 1883-84-85-86 there was a net saving of £454,024. The £45,000 added to the interest on the new loan £62,712, and the interest on the District Railway purchases, which is, however, partly recouped by railway profits and by collections from the ratepayers, represent about the amount of additional interest this year. I say about, because it is impossible to exactly compute the interest payable as part of it depends on the time during which the deficiency bills are current within the year. Some of it depends.on the ability to avoid interest by keeping a portion of the Public Works Fund invested. The saving of interest during the year just passed amounted to £11,624. Honourable members will wish me to run through the Estimates and to explain some of the savings that are proposed. lam sorry to say the G-overnment do not see their way to making the new subsidies to Local Bodies at more than half the rate of last year, and with the same conditions as to payment. The full amounts due on the liabilities of last year will be paid, but including them a reduction of £20,000 appears in the estimate of consolidated revenue, and in that of the public works. The subsidies altogether from both sources will be £110,000 instead of £150,000. The estimate of charitable aid subsidies coming in for payment shows an increase of £14,000. In the Permanent Charges there is a new item under the Rabbit Nuisance Act of last session of £7,500. But in the Stock Estimates there is a reduction of £10,000 in the item expenses of working cattle, Rabbit, Sheep, and Brands Acts, and of £2,000 for a number of Inspectors dispensed with. The Stamp and Deeds Branches show reductions of nearly £3,000. There are large reductions in the Treasury Miscellaneous and Property-tax Estimates, but they are due to services not required, such as the London Exhibition and cost of property-tax valuations. In all these departments savings have been made wherever feasible. The same remark applies to the Post Office, Savings have been made on the vacancies occurring, and as further vacancies occur, they will be filled by reducing other offices where the extent of business will justify it. But the total postal and telegraph business has largely increased. We reckon the returns last year to have been nearly £10,500 in excess of the estimate, and we expect a larger revenue this year by several thousand pounds. The telegraph work has greatly increased, and it is necessary to enlarge the vote for " extra labour and materials for repairs" by £5,000. On account of the expense I was deterred last year from bringing the inland parcel post system into force ; it is, however, so much needed that I shall introduce it this year as soon as the necessary arrangements can be effected. On conveyance of inland mails we have made a saving of nearly £2,000. There is one reduction I regret we find it desirable to make. The island service performed by the " Janet Nicol " comes to an end next month. It costs £4,200, and we do not propose to renew it; we take a vote to June only. lam trying to make arrangements with the London Post Office to sort the mails by the American route, so as to enable me to dispense with sending mail agents by the San Francisco route. In the Customs I have effected material reductions amounting to no less than £5,630. They may be considered genuine annual reductions of a permanent nature, arising from officers retiring and dispensed with, and from promoting junior officers to vacancies at small salaries. The dismantlement of the " Hawk" schooner forms part of the reduction. I regret to announce that Mr. Seed retires by his own wish in June. It is due to him to remind the Committee of the many years of able and arduous service he has given to the colony, and of the excellent organization into which he has brought the Customs Department. In the marine branch several substantial departmental reductions have been effected. I have to announce that the Government have determined to lay up one of the""Government steamers for the remainder ii—B. 6.

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of the year, and to use only one vessel. The Marine department will show eL reduction altogether of nearly £11,000. In the Justice Department there is a saving of £8,000. In the department of Education the amount is about the same as last year. The public library vote has been lessened by £2,000, and Is. of the ss. extra capitation allowance has been deducted. There is a substantial reduction in the Native Department of £5,000, of which £3,000 may be deemed departmental. In various items and rearrangements there is the large reduction of over £11,000 in the Mining Department, of which a considerable portion may be set down as savings on expenditure * In the Eailway Department the estimated expenditure is £13,300 less than was estimated last year. I need scarcely say the railway expenditure depends very much on the revenue, if careful vigilance is exercised, as was the case last year. We anticipate a better net revenue from railways this year. The Defence Department estimate of expenditure is less by over £7,850. Fifteen thousand pounds of the cost of the Permanent Militia will be charged to the Harbour Defence Vote, instead of £12,500 as last year. This is thoroughly legitimate, as the Permanent Militia are to complete the defence works, as stated in the Speech from the Throne, and their labour will add to the capital value of the works more than the amount stated. With these remarks, I think I may leave the further study of the Estimates to honourable members. It would certainly have been impossible for any Government to frame them with a greater regard to economy or a more lively sense of the good old maxim " economy is itself an income." FUTUEE EEVENUE. There may not this year be much material natural increase in any item of revenue; whilst, with the same causes still at work, quite independent of the prosperity of the country, there may be less collected on some items. So that, with Estimates of expenditure, such as I have explained, and similar revenue, and without the £100,000 unexpectedly obtained, there is obviously likely to be a considerable deficit for the year, independent of the deficit of the past year. Viewing the large deficits in almost every country and every colony in the world, and the complacent manner in which they have been held over until a return of better times, we might regard the adoption of a similar course as one not without ample precedent. But, essentially, Ido not recommend this mode of action. The depression existent in this colony is nothing compared with what other countries have had to contend, and although it has undoubtedly affected our revenue to some extent, the cause of a considerable portion of the loss of revenue has nothing to do with the depression, but is consequent upon circumstances of a quite satisfactory nature. We have not, therefore, I think, any good excuse for postponing the equalization of revenue and expenditure, were there even no especial reason for its being desirable to avoid postponement. Honourable members have heard a great deal about the depreciation in the value of New Zealand stocks, and the harsh things which have been said about the colony. Without going into the often-discussed question of who is responsible for the statements, it is beyond doubt they have been used to " bear " New Zealand stocks. The price has considerably recovered, but the market is still sensitive. In ordinary circumstances accumulating a deficiency, as has been done on a large scale by other colonies, would excite little or no remark, much less disapproval. But, after all that has been said of New Zealand, it is, in my opinion, expedient that the colony should show that it can make its revenue meet its expenditure. The Government urge this consideration on honourable members as a duty demanding their attention. The Customs revenue last year was £124,235 less than the estimate, and that estimate was less than the actual receipts of the previous year by some £4,000, so that the Customs revenue for 188C-87 is less by more than £129,000 than the -receipts of 1885-86. It is still more deficient when we consider that the Customs is the main branch of revenue, and that it ought to show a natural increase corresponding with the increased population and the increased services necessary to meet its wants. The Customs revenue in 1882-83 was £1,494,000, whilst for 1886-87 it was only £1,289,000.

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I draw particular attention to the following return: —

Statement of Duty collected on Spirits during the under-mentioned Financial Years.

Honourable members will observe there has been a continued falling off each year compared with the previous one, as follows:— 1883-84... ... ... ... ... ... 7,006 1884-85... ... ... ... ... ... 25,804 1885-86... ... ... ... ... ... 17,916 1886-87... ... ... ... ... ... 20,070 So that the duty for the year just past, notwithstanding that its rate has been increased, is £70,796 less than the duty collected in 1882-83, with a tendency still downwards, whereas under ordinary conditions we might have looked for .4100,000 increase. The use of beer has also greatly fallen off: during 1882 the consumption was 8-7 gallons per head, during 1883 it was B'l, during 1884 it was 7-3, during 1885 it was 7-0, and during 1886 it was 6-7. It has been said that the reduced use of strong drinks is as much due to the depression as to the growth of temperance habits, because an increased consumption of tea and coffee is not simultaneously visible. A few years since the Eevenue Commissioners of Great Britain took a similar view, though I believe they have since modified it. I may be wrong, for I am unable to speak from experience, and I submit myself to correction from those who have a larger knowledge of the subject; but it seems to me that, because a person in the self denial of temperance habits consumes less alcohol, there is no reason to conclude that he will fly to tea for comfort. With a diminished use of ardent spirits the human frame can do with less liquid nourishment. If the falling-off were really only the consequence of less power of expenditure, and not due to the spread of temperance, I should expect to see a considerable increase in the consumption of beer. On the other hand I would look to the use of beverages like ginger beer and fruit syrups rather than to tea as a proof in the direction of temperance. We are not able to gauge the consumption of these delicacies, and however large it may be it is not a financial compensation for the revenue lost on alcohol. Surely no one will declare that there is reason other than for rejoicing that the colonists have been spared the absorption of a quantity of fiery liquid that, put into one receptacle, would make a small lake. 1 really think the Colonial Treasurer is the one unfortunate being in the colony who has to grieve over what should rejoice him, for he lias to make up for the deficiency, and is met with insinuations that he is increasing the taxation of the colony. The falling-off in duties is not confined to spirits. There is a deficiency as between 1885-86 and 1886-1887 of close on £25,000 on cigars, tobacco, wine, and beer ; of over ,£19,000 on goods by weight (excepting sugar, on which there is an increase of .£7,000); of £65,000 on ad valorem goods, and of £6,000 on other duties. On a considerable portion of these goods the consumers have saved a great deal more than the duties, in the diminished prices at which the commodities have been landed in the colony. I have had some particulars collected showing the smaller values of 1880 as compared with 1880. Had the prices of 1880 ruled during 1886, the value of imports during the year, which amounted to ,£6,759,013, would have been £8,060,198, so that people saved last year, because of the fall in the prices compared \vith~lBBo, no less a sum than £1,301,185

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Financial Year. Rate of Duty. Quantity. Duty. Gallons. £ 1882-83 ... 1883-84 ... 1884-85 ... 1885-86 ... 1886-87 ... 21/, 14/, 12/ 585, 576, 539, *21/, 14/6 500, 468, 21/, 14/, 12/ If *21/,"l4/6 585,462 576,232 539,692 500,545 468,241 410,506 403,500 377,696 359,780 339,710 It * Prom the 20th June, 1885.

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I should observe that on goods paying duties by quantity, exact particulars as to the value were procurable in the department, but with regard to other commodities, the information has been obtained by careful investigation. The Government deem it necessary to strongly urge an immediate increase in the Customs duties, and they wish to record their opinion that the tariff, with the increases proposed, will not be so severe on the colonists as the tariff in force in years past. The alterations we propose are for revenue purposes. Each item is more or less calculated to add to the returns. The Committee, however, should be glad to learn that many of the changes are of a character likely to stimulate local production. People are in the habit of comparing New Zealand with other colonies, without remembering the difference in its position. It has not the land revenue of those colonies, and it started in the race handicapped with large expenditure, consequent upon Native affairs. Some idea of the difference with regard to land revenue may be gathered from the following, which is as correct a return as I can obtain of the land revenue of the Australasian colonies during the last six years. It will be seen New Zealand stands fifth on the list: — £ New South Wales .... .... .... 12,008,572 Victoria .... .... .... .... 4,699,714 South Australia .... .... .... 3,307,789 Queensland .... .... .... 3,290,163 New Zealand .... .... .... 2,560,492 Tasmania .... .... .... 385,710 Western Australia .... .... .... 362,071 I shall have something else to say about the financial results consequent upon the land policy pursued in the colony, but, in connection with the present topic, it is only necessary to point out that we have much less use of this sort of revenue than the other colonies ; in fact the expenditure exceeds the revenue. It means, of course, leaving a large source of revenue to the future, and as regards its effects on our loans I do not know that lenders of money, who ponder over the question should think worse of a colony that reserves its capital and does not use it for yearly revenue purposes. An increase in the Customs revenue naturally brings us to a consideration of the system of direct taxation, by means of the property-tax. Had I, as Colonial Treasurer, a fresh field to start on I should recommend a land-tax and an income-tax in lieu of a property-tax, though I am not blind to the fact that there is a great deal to be said on each side. The chief objections to a propertytax are that it taxes unproductive property, discourages investment, and leaves untouched, incomes upon which savings are not made. The chief objections to a land and an income-tax are, that the first leaves unaffected a really beneficial owner in the soil—the mortgagee; and that the second would, in a large number of cases, leave real incomes to escape, and would mainly reach those whose incomes arose from that uncertain commodity—brains. There is, of course, a vast deal more to be said about all these questions, and especially it may be urged in favour of the present system that people are accustomed to it, that contracts have been made depending on it (such as those between mortgagors and mortgagees), and that an alteration should not be lightly made. At any rate, as the Government do not now propose a substitution, I need not discuss it; but, clearly with the contingency of increasing the property-tax before us, we are bound to consider its present operation from various points of .view. A favourite alteration of the property-tax, and one frequently mentioned, is repealing the exemptions. It often happens with public affairs that something becomes fixed almost by accident, and that round it grow so many interests as to make any alteration impossible which ignores them. The exemptions now granted are a case in point. On whatever principle they were first framed they have grown into an adopted custom, the alteration of which involves considerations not taken into account.at the outset. They act as a much larger

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means of relief to poor people than to rich. To the person who pays on £100 or less it means that if he owns £600 he pays on only a sixth of that sum. If the exemption were removed he would pay six times the present amount for which he is liable. On the other hand, to the man paying on, say, £50,000, there would be an addition of only 1 per cent, to his taxation. I have had some calculations made which show how materially the exemptions work in the direction I have indicated. The removal of the present exemption would mean that 21,591 taxpayers would pay an average increase of 83*1 per cent, on their present taxation, whilst it would also mean that 6,235 of the richer taxpayers would increase their payments by only 3'B per cent. It was not, I believe, intended that the exemptions should operate in the nature of a progressive tax, but it cannot be overlooked that this has been the effect, and it must be taken into account in any changes made. The Gfovernment consider that, together with an increase in the Customs duties, there should be a larger revenue raised by the property-tax. There is more relation between the two taxes than at first sight appears. The Customs tax affects most severely the men w 7ho spend the whole of their incomes, whilst the property-tax affects most those who save and are thrifty. Whilst admitting these facts it does not follow that the property-tax is amenable to such an amount of condemnation as to forbid its use. In dealing with theoretical questions there is often left out of sight the necessity of comparing and of attaching to each tendency the proper strength that belongs to it. It may be argued justly enough that the tendency of a tax on property is to discourage thrift and the accumulation of capital, but may it not be the case that its tendency in these directions is of an infinitesimal character ? lam not now discussing the question of the amount taken from income or capital, but the discouragement that the tax may give to thrift. As regards the incidence of the tax on income or capital there is, I think, little room in a young country, in which realized wealth is comparatively small, to make the distinction or to base anything on it if made. A generally received authority has indeed said, "To provide that taxation shall fall entirely on income, and not at all on capital, is beyond the power of any system of fiscal arrangements. There is no tax w 7hich is not partly paid from what would otherwise have been saved, no tax the amount of which if remitted would be wholly employed in increased expenditure, and no part whatever laid by as an addition to capital. All taxes, therefore, are in some sense partly paid out of capital." If, then, we leave the incidence on one side and come to the presumed evil tendency of a tax that appears to punish thrift and therefore discourages it, I ask what is the tendency or the discouragement worth ? May it not be of imperceptible weight. Can we imagine one person out of ten thousand, or a hundred thousand, who, because the tax-gatherer asks him for less than a half of one per cent, on his wealth, would say, " There is such discouragement to me to be thrifty and saving that I will squander the other ninety-nine and a half per cent." We can fancy that many taxpayers may consider it necessary to save because of the tax, but that the tendency to discourage thrift should find its effect in the tax leading to extravagance is a theory of a microscopically attenuated nature. I am far from saying that the consequence may not be to drive capital into a different direction, and that the tax does not operate mischievously as a burden on industry. These are not points lam discussing, and it is useless to raise them in a House which summarily rejected our proposals for exempting agricultural improvements and machinery. Members may ask why, then, am Iso pursuing the point of the tax not tending to discourage thrift ? The reply is, that I want to dispose of the argument that the State is not justified in asking from the rich-a.larger contribution than from the comparatively poor. As far as I understand the authorities wiio adopt this conclusion, they chiefly base their arguments on the mischief of discouraging saving habits. You actually punish the man for being wealthy, they say, and discourage his exercise of thrift. They go so far, indeed, as to point to the conclusion that the poorer classes should be taxed proportionately in excess of the rich. J! have endeavoured to show that the discouragement is more imaginary than real, and that, paradoxically, it acts in the way of inducing, rather than diminishing saving.

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On the other hand there is a grim indirect reality in the theory that the persons who live on their incomes and do not economise should suffer in taxation more than those who save part of their annual revenues. It is not through the same source of taxation they suffer, but from a different one —the Customs. Beyond question the operation of the tariff is such as to punish more severely the man who spends than the property-tax punishes the man who saves. Suppose two men with families with an income of .£l,OOO each, and that one spends it all, the other puts half by, and pays a property-tax of Id. on £500, equal to £2, Is. Bd.; it is a moderate estimate that the other man in Customs duties will pay 5 per cent, on the ,£5OO he does not save, equal to £25. Eeally therefore our system of taxation deals with the men of moderate means through the Customs, and with those better off through the property-tax. Now we propose to increase the Customs duties, and we think the property-tax should be simultaneously increased. I have already shown to the Committee how the exemptions work in diminishing the percentages of payments of the poorer taxpayers. In making a change in the direction of diminishing the exemptions, it would be grossly unfair to refuse to take into consideration the effect of the alterations on the possessors of different means. Close attention has been given to many varieties of modification. We desire to avoid raising the tax beyond a penny to anyone, and to take into account the weight with which any change will fall on the contributor. The conclusion we have come to is to propose that properties worth not exceeding £2,500 shall enjoy the same exemption of £500 as at present, and be subject on the balance to the present tax of thirteen-sixteenths. But w Te propose that there shall be no exemption allowed on properties exceeding £2,500 in value, and that the tax on them shall be one penny.

ESTIMATED REVENUE OF THE YEAR 1887-88. With the additions I have asked to the Property-tax and Customs, I estimate the following revenue for the year:—

in justice to myself I must point out that these anticipations are made under circumstances of peculiar difficulty. In the first instance they are arrived at long before the usual time. Scarcely a month has passed since the commencement of the year, while generally three months elapse before the Statement is made. Again, apart from the early period, circumstances render it particularly arduous to come to an accurate conclusion this year. The amount of public expenditure, the price "of produce, the contingency of peace or war, and the prosperity or depression of the neighbouring colonies more than usually affect the results of the revenue during the year" on which, we have entered. I count on the consideration of honottrable members should it prove that my calculations are

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Revenue. Estimated, 1887-88. Estimated, 1886-87. Actual, 1886-87. Customs Stamps, including Post and Telegraph cash Property-tax Beer duty Eailways Registration and other fees Marine ... Miscellaneous £ 1,460,000 615,000 385,000 54,000 1,100,000 38,500 16,500 38,000 £ 1,410,000 617,500 312,000 55,000 1,150,000 36,000 13,000 44,000 £ 1,285,765 601,162 310,897 53,494 992,187 37,034 13,071 145,232 Depasturing licenses, rents, &c. Debentures for increases of sinking fund 3,707,000 191,000 258,184 3,637,500 186,320 251,100 3,438,842 192,586 251,000 Total Eevenue 4,156,184 4,074,920 3,882,428

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greatly disturbed ; but, so far as I am now permitted to judge, I think they will prove correct. The Customs and Property-tax estimates are based, as I have already said, upon the increases I propose. I have set down a little more to the stamp duties than the actual revenue of last year on account of the increased postal business. The other items scarcely call for remark, excepting that each has been carefully considered. The reason for the disparity between the actual Miscellaneous last year (which included the £100,000 already explained) and the estimate for this year is apparent. EESULTS OP THE YEAE. The proposed expenditure being .€4,071,304, and the anticipated revenue £4,156,184, a surplus of £84,880 is the result. As regards the £92,300 deficiency of last year, although I hope to be able to pay it off this year out of the surplus and the savings on votes, I do not like to undertake to do so. I propose asking that it stand over until after the end of next session. If the year's transactions enable it to be sooner extinguished, as I hope may be the case, I shall be glad to pay it off. THE LAND EEVENUE AND EXPENDITUEE. I now come to the subject which is the most difficult of all the topics with which I have had or shall have to deal to-night. I have already pointed out that the land finance is getting into a condition that makes it necessary to place it in a settled position without delay. The cause is not unsatisfactory, and the House cannot think it so, since it enjoys Parliament's own sanction. We are making efforts to settle people on the soil after a systematic plan or plans of Avhich there is no example in the previous history of the colony. The importance of doing the work has always been represented. Surveying the last quarter of a century, I can never remember a time at which the necessity of promoting settlement was not recognized. There were at an early period the homestead and pensioner systems adopted in Auckland; there were the negotiations to carry out Godefroi and Company's scheme ; there was the absolute trial of Domett's military settlements, which by the way added another to the many proofs history has already afforded that warlike and peaceful pursuits do not march well together; there were a number of miscellaneous special settlements of Germans and Scandinavians ; and the last Government gave [attention to pushing a system of special settlement on a small scale. Immigration, too, has occasionally been conducted with an especial view to settlement, as witness the Tauranga settlements and the shipload of farmers which was despatched out when I was Agent-General. But all these attempts have been more or less desultory compared with the organized enthusiasm, if I may use such an expression, with which systematic efforts are now being made to place the people on the land in large numbers. The present work is not confined to trying to bring settlers out, but its main weight is directed to settling on the land people already in New Zealand, including that very valuable class the young men born in the colony, who are growing up to an age at which they can take charge of their own future. It may be asked, How is it that more is being done now than formerly ? I do not believe that greater weight is attached to the progress of settlement than during the many years of the past. Ido not recollect any public man who has refused to recognize its importance. The solution of the query is to be found in the fact that in the past the difficulties surrounding the question have stood in the way of its being disposed of. The greatest of these difficulties has always been the infinite variety of opinion on the subject of how the waste lands should be dealt with. I cannot say whether there is now a less difference of opinion, or what really amounts to the same, a larger concentration in one direction. Be that as it may, extraordinary efforts are being made, siich as hitherto have only been talked of. Even those who are doubtful of the results would scarcely have

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the courage of their opinions sufficiently to wish that so vigorous an attempt in a direction fraught with innumerable advantages should be arrested without ample trial. At any rate it is embarked in with the full knowledge and approval of the House. The system involves not only a virtual suspension of cash sales, but also the necessity of spending much money in giving an impetus to settlement by roading, clearing, and general aid. My opinions are well known that no great principle is involved in the leasing system. I regard it as a temporary arrangement, subject, sooner or later, to that complete title in the land the desire for which is an implanted instinct in man. At present, however, or in the near future, it matters little whether the tenure is a lease or a freehold —conditional on future payments —either way money requires to be found for the aid which is being given to settlers. It is of no use to allow deficiencies to accumulate, and to regard them as unexpected, when we deliberately adopt a policy to lead to them. The Government think that for a term of years, until the increasing revenue will permit otherwise, the deficiency between the land revenue and the land expenditure should be made up by charges on the land supplied by such local borrowing as may be required. The rents arising from the land are consolidated revenue, and out of them it is proposed that the interest of any amounts borrowed shall be paid, and the principal recouped by yearly allocations. Under this proposal, the cost of the Land Department, including roading and special aids, will go on the one side, the receipts on the other, and in a very few years they should be equalized. When the Bill is introduced I shall be able to explain the details more exactly. Included either in the same or in a separate Bill we propose to make similar provisions for acquiring and dealing with Native lands. PUBLIC WOEKS EXPENDITURE. There was a balance on the 31st of March, as already stated, to the credit of the old loans account, of £491,245. This amount may be swelled by the produce, if they be negotiated, of the debentures or the inscribed stock which the local bodies were authorized by the Act of last year to give in exchange for the debentures they had issued under the Eoads and Bridges Construction Act. Of the loan of last year there was, on the 31st of March (including an amount still to come in, and since received), a credit balance of about .£713,055 ; and there was left of the North Island Trunk Loan, after deducting the advances made on its account about'£67s,ooo, which, however, will be reduced by the cost of raising the loan when it is negotiated. The Estimates are not finally decided, but I shall not be much out when I state that the proposed expenditure (apart from authority to incur liabilities) out of the North Island Trunk Loan, will amount to about £180,000, and out of the loan of last year to about £487,400. As regards expenditure out of the old loans account, it will partly depend on whether we pass the measure dealing with the cost of roads and roading to which I have referred, and to whether early effect can be given to it. It will also, in part, depend on whether we pass another measure we propose to introduce to enable public buildings to be erected by means of shortdated annuities. We think the system of borrowing in anticipation large sums for public buildings, has led, and is calculated to lead, to extravagance. On the other hand, it appears to us that if the cost of interest and redeeming the principal has each year to appear as part of the estimates of the respective departments, it will result in less ambitious expenditure. If these measures become law, and speedy effect can be given to them, they will lighten the charge on the old loans account. Otherwise the proposed expenditure for the year will absorb fully the amount remaining to credit of the old loans account, and the balance, about £79,000, coming to it from the commuted securities tinder the Eoads and Bridges Construction Act. The Minister for Public Works will, in due time, furnish the House with further details. Members will, however, be able to conclude, from what I have said, that the Government consider that it is expedient to limit the issue of loans in the London market, and that for the present it is not desirable to undertake fresh railways beyond those already in hand.

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STATE OP THE COLONY. Before I conclude, honourable members will permit me to say something regarding the state of the colony. I gather from the speeches of several public, men, and from articles in some of the newspapers, that the opinion prevails in various quarters that the colony has serious financial difficulties with which to contend. I will assume that party feeling has less to do with these opinions than genuine conviction, and I will take leave to discuss them. As regards the deficit of last year, and the extra taxation required, I deny that these are evidences of want of means on the part of the colony. We have already seen that the chief failure of revenue has arisen through causes that are of benefit to the people, such as the less cost of goods on which ad valorem duties are collected, and the less use of intoxicating drinks. There is again a reduction of revenue owing to the more thrifty habits of tlie people. There cannot be any doubt that less money is spent in luxuries and keeping up appearances. The failure then of the revenue to come up to the amount anticipated is significant only to the extent, if any, that the reductions alrea !, mentioned, and others not alluded to, may arise not from a less inclination to spend, but from a less power to do so. This we will discuss directly. I believe it is a small and not large element of the loss in revenue, and if, for the moment, we eliminate it, we are able to say that the reduced revenue is in every way most satisfactory, because of the causes from which it arises, and that it is entirely free of a suspicion of financial difficulty. If the revenue of New Zealand is too little, or its expenditure too great, neither necessarily evidences any embarrassment. I assert positively that its people are able, if required, to add to the revenue such amount as may be requisite. That to have to do so is unpleasant goes without saying. New Zealand is not so highly taxed per head now as it was when it was destitute of the great railways, roads, and bridges, that add probably an average of 25 per cent. to the value of its produce to the producers. Let us go back to that period of 1870, when the colony was really in an alarming condition. It was handicapped with great liabilities on account of Native affairs, its population was small, and the want of means to open up the country was driving colonists away. There was nothing to be done then but to mortgage the credit of the colony, and to borrow money to bring out immigrants, and to construct public works. Do honourable members think there was any doubt of the necessity when I remind them that the largest measure, as compared with, the smallness of the population, which has, I believe, ever been passed in any country was made law by a moribund Parliament on the eve of a general election with the hearty approval of the people. The country is now comparatively opened up, and there is room, as it at present exists, for some millions of population, if they are accompanied with adequate capital to pursue the industries to which the resources of the country' invite them. The taxation now means that, as the capital of the colony in the shape of its waste lands is no longer being converted into revenue, it has to depend for its annual expenditure on other sources. It is in the position in which most of the old countries have been when they had small populations. Consider the taxation to which Great Britain w Tas subject when it had only a few millions of people, and how the money had to be found when there were none of the great adjuncts to civilization which science has placed at the command of the present young communities. We might, it is true, save other taxation by making heavier charges on the railways, but we should do so at the expense of injuring the producing interests. As to the capacity of the people to meet the taxation required there is not any doubt. But I must now consider that element I eliminated when speaking of the revenue, the extent, if any, from which the revenue suffers on account of the diminished power of expenditure of the people. I believe there is a diminished power of expenditure arising from several causes. One of these is, that in past times money was so easily obtainable that people were led into borrowing it for the purpose of speculating in land. By this means land was forced up beyond its intrinsic value —that is to say, beyond the capitalized value of what would represent a rack rent. I need scarcely say that, whilst these colonies iii—B. 6.

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were founded on the basis of their absorbing the spare population and spare capital of older States (the Mother - country especially), nothing could be more undesirable than that capital should be borrowed for the purpose of land speculation. A moment's consideration will show that obtaining capital for such a purpose means one of two things—either a loss of some of the money, or that the interest on it whilst the land remains unproductive falls more or less on the whole population until an individual comes forward to recoup the cost of the years during which the capital has remained unproductive. Again, the colony suffers from the smaller individual profits of all classes of the community. Not only does the interest on the speculative purchases still held in suspense weigh on the people, but competition is much larger in business and the profits are less, besides being shared by more people. This is another way of saying that the producing and manufacturing industries have not increased commensurately with the number of persons who live on the profits of interchange. Let us gauge the extent of these evils. They mean, probably, that some losses have to be shared between a comparatively few individuals and a few capitalists. They are in process of being written off, and when the task is completed, money will be available for the legitimate purpose of improving land, instead of for transferring liabilities from one person to another, with improvements delayed. The diminished profits will be remedied as a larger variety of means of employing industry and capital become available, and as the population increases. Smaller nominal profits even now partly represent in purchasing power the larger profits of former days; notwithstanding the taxation, the cost of living has materially decreased, and probably will continue to do so. The same nominal sum gives perhaps 20 to 25 per cent, more purchasing power than formerly. Ido not say this is better. It is in part a result of the gold appreciation, and at any rate is a symptom of it, and it tends to discourage enterprise, but we are not to say a thing is bad because we might wish it better. I am pointing out that affairs are not in some respects so advantageous in New Zealand as they were; but, if it is any consolation, I might add that the falling off here is fractional to the falling off in other countries. It seems to me to be opposed to all the teaching of experience to consider that the depression which has existed or still exists is likely to be permanent. The recuperative power of communities is marvellous, and to some extent it is in the inverse ratio to the ill to be overcome, just as the convalescence of an individual is more wonderful in proportion to the severity of the malady from which he has suffered. If New Zealand's recovery appears less striking than that of other countries, it will be because it lias much less from which to recover. To me it seems the problem lies in a nutshell. Either the whole world is to continue stagnant and stationary, which is an impossibility, or the favoured countries must progress. That is all New Zealand requires to know, for then it can rely on the unquestionable fact that in climate, in fertility of soil, in mineral wealth, in manufacturing capabilities, and in vast and varied resources by land and sea it possesses such a multiplicity of advantages as are not excelled, if even equalled, by any portion of the globe. THE WEALTH OF THE COLONY. It will be seen from my remarks that I consider the colony is, to some extent, in a transition state as regards the occupations of the people and the remuneration they enjoy. Profits have either become less or are more widely divided. The rate of salaries and of wages is also showing a tendency to reduction. The falling-off is partly compensated by the less cost of commodities, which enables the same income to have a larger purchasing power, but the net result is not pleasing to those who have to submit to it. The larger purchasing power is altogether lost sight of; the diminished earnings remain an abiding cause of complaint. When we survey, however, the aggregate position of the colony, it would be difficult to find much reason for complaint. The property-tax assessment lately made was much more exhaustive and accurate than those previously compiled. A copy of the principal results will be circulated with the other papers connected with the Statement. The results of previous assessments also appear. The information

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thus obtained is very interesting, but not so much by way of comparing the present and past valuations as that the one now prepared may be accepted as a reliable return of the assets and liabilities of the colony. The value of all real property in the colony, exclusive of Native land situated beyond five miles of any road suitable for horse traffic, is £116,376,659, and the value of the personal property is .£82,540,315, making together .£198,916,974, which is exclusive of the value of public works. The amount is thus represented:— £ Crown lands .... .... .... .... .... 13,675,516 Native lands within five miles of a road suitable for horse-traffic .... .... .... .... .... 5,847,105 Education, municipal, and other reserves, exclusive of church reserves which are included in taxable real estate .... .... .... .... .... 7,252,273 Taxable real estate .... .... .... .... 47,277,142 Non-taxable real estate .... .... .... .... 42,324,623 £116,376,659 Personal property— £ Taxable .... .... .... .... .... 43,505,538 Non-taxable .... .... .... .... .... 25,139,277 Allowed for exemptions at present, but which, by our present proposals, will be somewhat eliminated 13,895,500 £82,540,315 The gross return shows an increase on the 1882 assessment of £15,376,659 real property, and of personal property .£18,540,315. I do not, however, consider that there has been altogether this increase of wealth. The assessments, as I have said, have been more careful and searching. The taxable real property shows an increase on the assessment of 1882 of £2,277,142, and there is an increase on the similar returns of personal property of .£3,505,538, together making an increase of taxable property amounting to £15,782,680. Personal property in produce, agricultural implements, bank deposits, and vessels —steam and sailing—amounting to £7,830,891, is not included in owners' statements. Public property to the amount of £19,377,985 is recorded, but many millions expended on roads and bridges are altogether omitted. The Government property making up the amount I have just mentioned is as follows : — £ Eailways, cost .... .... .... .... .... 13,453,363 Telegraphs, &c, cost .... .... .... .... 523,727 Lighthouses, cost .... .... .... .... .... 150,895 Buildings .... .... .... .... .... .... 2,250,000 Harbours .... .... .... .... .... .... 2,500,000 Water-supply, goldfields .... .... .... .... 500,000 There are 27,826 property-tax payers, and as no one pays who has less than £500, it follows that there are that number of persons possessed of .£5OO and over. I find that the 27,826 tax-payers include 5,998 widows, spinsters, trusts, absentees, and companies ; the balance of 21,828 represents the male taxpayers. There are 157,503 adult males in the colony by the late census, so that an average of one male adult in a little over seven is the possessor of at least .£5OO. The calculation is liable to slight rectification to meet the separate returns of firms, which cannot be distinguished. Ido not think, however, it would much affect the result. First in the list of callings come the taxpayers under the head of graziers, sheepfarmers, farmers, settlers in country, dairy-men, &c. ; their number is 9,747. Next come tradesmen (wholesale and retail shopkeepers, storekeepers, carriers, &c), 4,330. Widows, wife trustees, spinsters, &c, come in third, with 3,049. We

XIX

8.—6

all, I think, would like to see them more forward in the race for wealth; and the same remark applies to the next in order —working storemen, mechanics, labourers, shepherds, miners, sailors, &c, who are enumerated at 2,088. Professional men, including authors and editors, number 1,226; merchants, importers, warehousemen, contractors, &c, 1,231, of whom 282 are firms; and agents, auctioneers, clerks, book-keepers, teachers (not under Educational Board), merchants captains, &c, 1,134. 1 need not quote the other numbers excepting, perhaps, to state that the Civil servants, officers of local bodies, teachers under Board of Education, &c, number (549. I have had a return very carefully prepared, showing the assets and liabilities of the colony; it does not include such works as roads and bridges. It shows, under the head of assets, real property, .£116',376,659 ; personal property, £82,540,315 ; Government property, £19,377,986 : making a total of .£218,294,959. On the other side —liabilities: Debt of the colony, less sinking fund, £31,688,349 ; debts of local bodies, £5,616,273 ; debts represented by mortgages, £31,821,109; indebtedness, exclusive of mortgages, £20,365,593: amounting in all to £89,491,324, and leaving a surplus of £128,803,635, or divided amongst the population, exclusive of Maoris, it shows a surplus of £223 for each man, woman, and child in the colony. It has also to be remembered that Native lands outside the five-mile limit are not included in the assets. I ask honourable members to ponder over these facts themselves. It is unnecessary for me to draw deductions from them. I cannot, however, resist reading a few extracts from the remarks of the expert, Mr. Proctor Baker, who was appointed by the Eoyal Commissioners to report on the grain sections in the late Colonies and Indian Exhibition :— "The average produce of over twenty-six bushels per acre of wheat, and over thirty-two bushels of barley, places New Zealand in the position of being among the most prolific countries in the world. . . . The samples of wheat shown in sheaf by the Canterbury Association are so remarkable as to deserve to be placed on record. . . In fact nothing finer than these wheats has probably ever been seen. The wheats of commerce which are shipped to England do not approach in quality these fine specimens. . . . The samples of barley were simply magnificent, and such barleys as the Chevalier would bring in enormous prices in England. If anything like the quality exhibited can be produced in quantity and delivered in England in good condition a ready market would be found for it, and (supposing the produce in beer be equivalent to the appearance of the barley) at very high prices. ... In the quality of its oats again New Zealand is in the front rank. . . . The samples of potato oats are unsurpassable. . . . Whether such splendid grain as is here exhibited is common and. can be obtained in quantity is doubtful. But still the fact remains that in all the chief grains New Zealand has shown by these samples a production of superb quality and in prolific quantities." No one, I hope, can have listened to this criticism, without feelings ot pride, that such a magnificent encomium can. be passed on the colony by a competent and unprejudiced judge. Eemarks like these should prove strong incentives to those interested in New Zealand, and inducements to persons in other countries, who are looking out for "fresh fields and pastures new." A propos of our agricultural capabilities, a few words should be said concerning the lately-compiled statistics. They record an increase of 647 freehold, 420 rented, and 502 part freehold and part rented holdings of over an acre in extent, or what may be considered an addition of 1,569 settlers. The average yield per acre of wheat, oats, barley, and potatoes, has in every case increased. Excepting in barley, there was also a larger production of these articles, amounting in net value to £680,000. CONCLUSION. I have occupied honourable members' attention at such length that something in the form of an epitome of what I have said may be convenient. After taking into account the various savings-in expenditure and the losses and gains of revenue, there was a deficit in the transactions of last year of £92,300. Additions

XX

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XXI

to the Customs and Property-tax will enable the revenue to meet the expenditure of this year, and leave a surplus of £85,000. Exclusive of the permanent charge for interest, the Estimates disclose reductions amounting to £150,000, and steps have been taken which will lead to still larger saving in the public service I have explained also that we propose to lessen future borrowing in England ; and that we recommend that the railways in hand should be further proceeded with before undertaking fresh responsibilities. The Public Works Department is sufficiently provided with means to meet the expenditure of the financial year ending March next, and to leave a surplus for a portion of the works in progress. The falling off in revenue has arisen from the spread of temperance habits, and from the reduced cost of commodities affecting the ad valorem duties. I have referred to the efforts of the Government to aid the attachment of settlers to the land on small farms. The property assessment lately taken discloses a large increase in the total gross value and in the taxable value of real and personal property. One out of every seven male adults in the colony is proved by the property-tax returns to be worth property of a value exceeding ,£SOO. A carefully prepared balance-sheet proves that the assets of the colony are fully worth .£218,000,000, whilst the liabilities, exhaustively considered, amount to only g89,000,000, showing a surplus of £128,000,000', or equivalent on the Census return to £223 to every man, woman, and child in the colony, exclusive oi the Maoris, whose land, excepting a small portion, is not included in the assets. In other respects I have discussed the prospects of the colony, and endeavoured to prove that the depression which, has affected it is less than that from which other countries have suffered, and that it must pass away. Some honourable members whom I am addressing may, in the old days, when steam was less in use, have passed through the experience of being on board a ship becalmed in the tropics, surrounded by numerous sailing vessels in like difficulty. For days the unhappy passengers remain beneath a burning sun and cloudless sky, gazing on the motionless sea, " As idle as a painted ship upon a painted ocean." At last on the distant horizon a tremor is observed on the waters, and, as the welcome wind comes up, the sails fill out and vessel after vessel gaily continues on her course. The great and small countries of the world have been becalmed for a long while, but at length there are signs of the favouring breeze. In America, England, and elsewhere commerce and production are beginning once re ore to speed onward, and I cannot think that the movement will stop short of this colony. I have the honour to submit the following resolutions : —

8.—6.

Besolved, That, in lieu of the duties of Customs now charged on the under-mentioned articles, the following duties of Customs shall, on and after the eleventh day of May, one thousand eight hundred and eighty-seven, be charged thereon on importation into New Zealand, or on being cleared from any warehouse for home consumption, namely :—

Articles. Rate of Duty. £ S. d. Acid, acetic ... ... ... ... ... 001 per lb. „ tartaric ... ... ... ... 0 0 2 „ Apples, dried ... ... ... ... ... 0 0 2 Candles, stearine ... ... ... ~. 0 0 1| „ „ paraffin or wax ... ... ... ... 0 0 2 „ „ not otherwise enumerated ... ... ... 0 0 2 „ Cement ... ... ... . ... ...|O2O per barrel. Chocolate, confectionery, and all preparations of cocoa or I chocolate other than for use as a beverage ... ... 0 0 3 per lb. Fish, dried, pickled, or salted ... ... ... 050 per cvvt. Fruit, pulp, and boiled fruit ... ... ... 002 peril). Fish, preserved ... ... ... ... 0 0 11 „ Iron, galvanized, plain, sheet ... ... ... 016 per cwt. Maccaroni, vermicelli, sago, tapioca, and semolina ... 0 0 2 per lb. Maizena and cornflour ... ... ... ... 0 0 U „ Mustard ... ... ... ... ... 0 0 2" Paints and colours ground in oil ... ... ... 020 per cwt. „ mixed ready for use ... ... 0 4 0 „ Rice (including ground rice) ... ... ... 001 per lb. Starch ... ... ... ... ... 0 0 1 Varnish ... ... ... ... ...010 per gallon. Cordage and rope, including houseline, marline, ratline,) n u r hambroline, spunyarn ... } U ' b per cvvt. Pickles ... ... ... ... ... 013 per doz. pints. Sauces ... ... ... ... ... 0 2 6 Glue ... ... ... ... ... 0 0 1 perlb. Barbed-wire (fencing) ... ... ... ... 0 16 per cwt. Paper bags ... ... ... ... ... 0 7 6 „ Honey ... ... ... ... ... 001 per lb. Doors, plain ... ... ... ... ... 030 each. „ glazed ... ... ... ... ... 0 6 0 Sashes, unglazed ... ... ... ... 030 the pair. glazed ... ... ... ... ... 0 6 0 Matches, of all kinds ... ... ... ... ... Is. per gross of boxes containing in each box 100 matches or under, and so on per gross of boxes for each additional 100 matches or part thereof. Spirits, under proof ... • • ... ... 014 6 per liquid gallon.

XXII

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Fruits, fresh ... ... ... ... ... ... ...~\ Carriage- and cart-shafts, spokes, felloes, and naves, and bent carriage timber ... Calico, white and grey, in the piece ... ... ... ... ... Coloured cotton and union shirtings ... ... ... ... ... § ? Cotton dress-prints, the invoice value of which does not exceed sd. per yard ... ... " ~.§ Eough brown hollands ... ... ... ... ... ■.. § Gas pipes and machinery ... ... ... ... ... ■■ • o Water-pipes ... ... ... ... ... ... ...

Vegetables, fresh ... ... ... ... ... ... ... ~S B oheep-dip ... ... ... ... ... ... • • • r 2 °"5 Leather not otherwise enumerated ... ... ... ... ... &~

Aerated and mineral waters ... ... ... ... ... •-•&.£ Twine of all kinds ... ... ... ... ... ... ■ •■ »o "a-i i— l CD <3

Basket and wickerware ... ... ... ... ... Boots and shoes Marble and stone, wrought Paper-wrapping Earthen drainage-pipes, garden-tiles, and fire-bricks ... Iron bridges and girders, and columns for buildings, and other structural ironwork Iron castings Forged or worked iron, of whatever shape or in whatever stage of manufacture, not otherwise enumerated Ornamental iron-work and wire-work ... ... ... ... ... g Iron doors for safes and vaults ... ... ... ... ... ... | Gates and gate-posts ... ... ... ... ... ... 'g Lamp-posts ... ... ... ... ... ... ... * Wheelbarrows of iron ... ... ... ... ... ... - c Crab winches, cranes, and capstans ... ... ... ... ... -» Chaff-cutters ... ... ... ... ... ... ... 53 Corn-crushers ... ... ... ... ... ... ... h Horse-rakes ... ... ... ... ... ... ... & Lifting-jacks ... ... ... ... ... ... ... o Crowbars, picks, and mattocks ... Pumps and other appliances for raising water Fittings for pumps, engines, and machinery Steam-engines (other than for agricultural purposes), not exceeding thirty-horse power, and parts of same Brass cocks, valves, unions, lubricators, and whistles ... Calendars, show-cards, and other pictorial lithographs and prints... Perambulators

All articles not otherwise enumerated which are now chargeable with duty at 15 per cent. ad valorem ... ... ... ... ... ... ... 20 per cent, ad

valorem. Patent and proprietary medicines and preparations ... ... ... ... 25 per cent, ad valorem.

Resolved, That, in the event of any of the duties hereby imposed not being confirmed, or of reductions being made in the rates specified above, the amounts levied, collected, and paid in excess of the duties, as may be imposed by the Customs Act based on these resolutions, shall be refunded to the persons who paid the same.

XXIII

8.—6.

TABLES TO ACCOMPANY THE FOREGOING STATEMENT.

PAGH Table No. I.—Abstbact of Receipts and Expenditure of the Financial Year ended 31st Maboh,lBB7 2 Table No. 2.—Statement showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to 31st March, 1887 .. .. .. .. .. 11 Table No. 3.—The Public Debt on 31st March, 1887 .. .. .. .. .. .. 12 Table No. 4. —Statement op the Estimated Liabilities of the Consolidated Fund outstanding on 31st March, 1881, 1882, 1883, 1884, 1885, 1886, and 1887 .. .. .. .. 14 Table No. s.—Statement of the Estimated Liabilities of the Public Works Fund outstanding on 31st March, 1881, 1882, 1883, 1884, 1885, 1886, and 1687 .. .. .. .. 15 Table No. 6. —Memorandum of Classification of the Civil Service .. .. .. .. .. 10 Table No. 7. —Assets and Liabilities of the Colony on 31st March, 1886 .. .. .. .. 17 Table No. 8.—Returns relating to Property and to Property-tax .. .. .. .. .. 18

I—B. 6.

8.—6.

STATEMENT of the RECEIPTS and EXPENDITURE of the ORDINARY REVENUE

2

RECEIPTS. Balance on 31st March, 188G, — Cash in the Public Account Advances in the hands of Officers of the Government,— In the Colony In London £ s. d. 9,914 2 2 30,310 18 10 £ s. d. 66,633 9 2 £ s. d. 40,225 1 0 112,858 10 2 Ordinary Revenue, — Customs Stamps, including Postal and Telegraph Cash Receipts .. Property-Tax Beer Duty Railways Registration and other Pees Marine Miscellaneous 1,285,764 13 0 601,162 12 8 310,897 2 3 53,493 19 4 992,186 17 4 37,034 11 7 13,070 11 5 145,231 12 3 Territorial Revenue, — Depasturing Licenses, Rents, &c. Miscellaneous 3,438,841 19 10 187,343 1 11 5,242 9 2 192,585 11 1 Debentures issued under " The Consolidated Stock Act, 1884," for increases of Sinking Fund for the current year 251,000 0 0 '3,882,427 10 11 Sinking Funds set free — Applicable to the redemption of Debentures issued under " The Consolidated Stock Act, 1884," in respect of,— The Consolidated Loan Act, 18G7 The Wellington Loan Act, 1880 The New Zealand Loan Act, 1863 123,300 0 0 2,190 0 0 38,627 11 8 164,117 11 8 Debentures issued under " The Public Revenues Act, 1886,"— To redeem Deficiency Bills as per contra 150,000 0 0 Deficiency Bills issued and outstanding on the 31st March, 1887 279,100 0 0 Total £ 4,588,503 12 9 LAND FUND Land Sales, — For Cash On Deferred Payments 48,691 0 3 48,855 10 4 Recovery from Public Works Fund in respect of rates paid on Native Lands from this account 97,546 10 7 22,508 15 0 Balance on 31st March, 1887 — Cash overdrawn Less Advances in the hands of Officers of the Government, — In the Colony In London 56,239 14 10 120,055 5 7 1,864 1 9 112 10 0 1,976 11 9 54,203 3 1 « Total £174,318 8 8

8.—43.

No. 1. CONSOLIDATED FUND for the Financial Year ended 31st March, 1887. ACCOUNT.

3

EXPENDITURE. Permanent Appropriations,— Civil List Interest and Sinking Fund .. .. .. Under Special Acts of the Legislature .. Moiety of Subsidies payable under "The Local Bodies Finance and Powers Act, 1885 " One-fourth of Rents paid over to Local Bodies under " The Land Act 1877 Amendment Act, 1884 " Endowments, — New Plymouth Harbour Board Greymouth Harbour Board Westport Harbour Board £ s. d. 31,015 2 0 1,642,876 2 1 161,134 15 5 49,800 9 2 £ s. d. £ s. d. 284 19 3 206 4 1 10,328 11 8 10,427 18 3 Annual Appropriations,— Class I.—Legislative ,, II.—Colonial Secretary ,, III.—Colonial Treasurer ,, IV.—Minister of Justice ,, V.—Postmaster-General ,, VI.—Commissioner of Trade and Customs ,, VII.—Commissioner of Stamps .. ,, VIII. —Minister of Education ,, IX.—Minister of Native Affairs .. ,, X. —Minister of Mines ,, XL—Minister for Public Works.. ,, XII.—Minister of Defence 1,906,080 2 5 17,626 3 8 162,727 6 9 54,690 17 3 118,570 19 7 290,046 2 7 80,751 4 0 30,120 2 11 371,602 11 11 26,836 0 6 32,693 7 4 723,945 19 7 182,568 17 5 Services not provided for .. 2,092,179 13 1 14,337 19 7 4,012,597 15 1 Redemption of Debentures issued under, — "The Consolidated Stock Act, 1884" (colonial issue) 164,100 0 0 Redemption of Deficiency Bills as per contra 150,000 0 0 Deficiency Bills outstanding on the 31st March, 1886, redeemed 75,000 0 0 Balance on 31st March, 1887, — Cash in the Public Account Advances in the hands of Officers of the Government, —■ In the Colony In London 8,502 13 7 20,120 17 4 158,176 6 9 28,629 10 11 Total 186,805 17 8 £ 4,588,503 12 9 ACCOUNT. Balance on 31st March, 1886,— Cash overdrawn Less advances in the hands of Officers of the Government, —. In the Colony In London 4,961 7 10 111 14 8 25,457 3 2 5,073 2 6 Permanent Appropriations,— One-third of proceeds of Land sold on Deferred Payments paid over to Local Bodies Amount paid under Section 7 of "The Local Bodies Finance and Powers Act, 1885 " Amount paid under clause 40 of " The Special Powers and Contracts Act, 1886 " New Plymouth Harbour Board Endowment 14,568 4 2 122 1 3 20,384 0 8 394 17 11 3,852 7 9 Annual Appropriations, — Class XIII.—Minister of Lands ,, XIV. —Rates on Crown Lands 18,937 11 1 97,836 13 4 36,156 0 6 133,992 13 10 1,004 3 1 Services not provided for .. .. .. .. 153,934 8 0 Total £174,318 8 8

8.—6.

Table STATEMENT of the RECEIPTS and EXPENDITURE of the STATE FORESTS

Treasury, Wellington, 16th April, 18S7. Examined ana found correct as regards the railway receipts. J. P. MAXWELL, , General Manager, New Zealand Railways,

4

RECEIPTS. Balance on 31st March, 1886 — Cash in the Public Account Advances in the hands of Officers of the Government,— In the Colony £ s. d. £ s. d. £ s. d. 379 6 1 108 6 7 487 12 8 Rents from Lands set apart Miscellaneous 109 10 4 3,764 5 1 3,873 15 5 Balance on 31st March, 1887,— Cash overdrawn 1,478 11 2 Total £5,839 19 3 ACCOUNTS OF Balance on 31st March, 1886, — Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony 7,357 18 2 9 4 3 Revenue appropriated to Local Bodies, — Fees, Fines, &c. Endowments of Land, &c. Goldfields Revenue Gold Duty 2,375 16 11 8,433 9 5 14,319 19 3 22,583 1 8 7,367 2 5 Counties Separate Accounts, — Revenue of Counties in which " The Counties Act, 1876," is not in full operation 47,717 7 3 80 4 0 47,797 11 3 Total £55,164 13 8 DEPOSIT Balance on 31st March, 1886,— Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony In London 100 0 0 16,022 15 5 41,965 6 2 16,122 15 5^ Lodgments,— Armed Constabulary Reward Fund Armed Constabulary Reward Fund Investment Emigrants' Deposits General Assembly Library Fund Miscellaneous Moeraki Harbour Board Fund Moeraki Harbour Board Fund Investment Native Laud Act, 1878 (No. 2) .. Native Land Purchases Nelson Rifle Prize Fund New Zealand University Endowment, Canterbury New Zealand University Endowment, Westland Thermal-Springs Districts Act, 1881 Westland Loan Act, 1873, Redemption 80 11 0 2,000 0 0 8,800 0 0 110 0 0 40,675 19 7 1,725 0 0 1,200 0 0 162 10 0 1,778 9 0 66 0 0 150 0 0 15 5 0 266 5 3 133 11 3 58,088 1 7 57,163 11 1 Total .. .. £115,251 12 8

8.—6.

No. 1— continued. CONSOLIDATED FUND for the Financial Year ended 31st March, 1887. ACCOUNT.

JAMES C. GAVIN, Secretary to the Treasury. 1 JAMES B. HEYWOOD, Assistant Secretary and Accountant. Examined and found correct, except as regards the railway receipts, which are not examined by the Audit Office. JAMES EDWARD FITZGEBALD, Controller and Auditor-General.

5

EXPENDITURE. £ s. d. £ s. d. £ s. d. Annual Appropriations,—■ Class XV. —Minister of Lands 5,769 19 11 Permanent Appropriations,— Interest on Debentures, £1,500 69 19 4 5,839 19 3 Total £5,839 19 3 LOCAL BODIES. Revenue paid over to Local Bodies, — Fees, Fines, &o. Endowments of Land, &c. Goldfields Revenue Gold Duty 2,868 1 0 8,303 18 4 15,118 9 2 23,104 6 1 Counties Separate Accounts, —■ Amount distributed amongst Road Boards where ".The Counties Act, 1876," is not in full operation 48,889 14 7 246 1 9 Advance Accounts, — Net amount paid on behalf of Local Bodies 512 12 5 Balance on 31st March, 1887, — Cash in the Public Account 49,648 8 9 5,516 4 11 Total £55,164 13 8 ACCOUNTS. Withdrawals, — Armed Constabulary Reward Fund Auckland Museum Endowment Emigrants' Deposits General Assembly Library Fund Miscellaneous Moeraki Harbour Board Fund Moeraki Harbour Board Fund Investment Native Land Act, 1878 (No. 2) .. Native Land Purchases Nelson Rifle Prize Fund Thermal-Springs Districts Act, 1881 Westland Loan Act, 1873, Redemption 2,351 15 8 23 6 3 8,800 0 0 110 0 0 23,397 4 2 225 0 0 1,725 0 0 112 10 0 1,281 18 9 GO 0 0 327 7 9 147 18 9 Balance on 31st March, 1887 — Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony In London .. .. 38,568 1 4 62,657 13 8 3 2 3 14,022 15 5 14,025 17 8 76,683 11 4 Total £115,251 12 8

8.—(5.

Table STATEMENT of the RECEIPTS and EXPENDITURE of the PUBLIC

6

Part I.-Ch argeable to tl e Unexpende RECEIPTS. Balance on 31st March, 1886,— Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony .. .. .. .. . ■ ! In London .. .. .. .. . ■ I £ s. d. £ s. d. 174,075 7 9 £ s. d. 16,002 15 9 60,853 11 4 77,456 7 1 517,247 19 5 768,779 14 3 Investments Debentures created for purchase of District Railways,— Duntroon and Hakateramea Railway Thames Valley and Rotorua Railway Waimate Railway Waimea Plains Railway (proceeds of £34,000) 61,100 0 0 40,187 7 11 33,900 0 0 31,000 0 0 Sinking Funds released, under " The Consolidated Stock Act, 1884,"— In respect of " The Wellington Loan Act, 1866 " 166,187 7 11 8,311 17 9 Amounts transferred, in respect of expenditure of previous years, — From Part II., for Construction and Permanent-way Material From Part III., for Permanent-way Material 137,779 13 1 213,000 0 0 350,779 15 1 525,279 0 9 Total £1,294,058 15 0 Part II.—Chargeable ;o the £1,000,000 authoriz id to be raise Temporary advances from Part I. .. 331,383 15 10 Total £331,383 15 10 Part III.—O: Largeable to t e £1,325,00' authorized tc " New Zealand Loan Act, 1886,"— Part proceeds of Loan in 4-per-cent. Inscribed Stock 1,176,500 0 0 Total £ 1,170,500 0 0

«

No. 1—continued. WORKS FUND for the Financial Year ended 31st March, 1887. Balance on the 31st March, 1886.

7

EXPENDITURE. Annual Appropriations, — Class I.—Immigration „ II. —Public Works, Departmental ,, III.—Railways „ IV.—Roads .. „ V. —Waterworks on Goldfields .. „ VI. —Purchase of Native Lands, North Island ,, VII. —Telegraph Extension „ VIII.—Public Buildings .. „ IX.—Lighthouses, Harbour Works, and Defences ,, X.—Contingent Defence „ XI.—Rates on Native Lands „ XII.—Thermal Springs £ s. d. 12,453 17 11 12,895 12 3 16,728 14 7 264,716 19 10 7,665 7 8 18,457 5 10 18,951 14 8 89,498 5 1 143,705 4 3 12,500 0 0 25,138 18 1 7,813 14 5 ii s. d. £ a. d. 630,525 14 7 Services not provided for Purchase of District Railways,— Duntroon and Hakateramea Railway Thames Valley and Rotorua Railway (balance) Waimate Railway Waimea Plains Railway 61,100 0 0 40,187 7 11 33,900 0 0 31,000 0 0 6,100 0 0 166,187 7 11 Balance on 31st March, 1887, — Investments Advances in the hands of Officers of the Government, — In the Colony In London 587,643 12 3 802,818 2 6 4,727 1 9 44,298 3 4 49,025 5 1 331,383 15 10 Temporary advance to Part II.. Less cash drawn against Investments 908,052 13 2 470,807 0 8 491,245 12 6 Total £1,294,058 15 0 under " The North Island Main Trunk Railway Loa: Act, 1882." Annual Appropriations, — Class I.—Public Works, Departmental Class II.—Railways Class III.—Purchase of Native Lands 2,772 14 4 252,533 16 2 ! 70,378 12 4 j —— 325,685 2 10 Balance on 31st March, 1887, — Advances in the hands of Officers of the Government, — In the Colony 5,698 13 0 Total £331,383 15 10 >e raised under " The New Zealand Loan Act, 1886 J) Annual Appropriations, — Class I.—Railways .. „ II. —Charges and Expenses of raising Loan, and Contingencies 543,495 4 3 12,270 11 8 555,765 15 11 Balance on 31st March, 1887,— Cash in the Public Account Advances in hands of Officers of the Government, — In the Colony In London 463,546 17 5 4,541 8 7 22,587 7 2 27,128 15 9 Investments 130,058 10 11 620,734 i 1 Total 1,176,500 0 0

8.—6.

Table STATEMENT of the RECEIPTS and EXPENDITURE of the PUBLIC CONVERSION

Treasury, Wellington, 20th April, 1887.

8

RECEIPTS. Balance on 31st March, 1886 — Cash in the Public Account Advances in the hands of Stock Agents Advances in the hands of Crown Agents £ s. a. £ s. d. £ s. 254,761 16 5 55,300 0 0 11,439 10 0 310,061 16 5 321,501 6 5 Proceeds of Sale of 4 per cent. Inscribed Stock Debentures issued under "The Consolidated Stock Act, 1884" (Colonial issue) 1,064,775 0 0 13,500 0 0 1,078,275 0 0 Total £ 1,399,776 6 5 LOANS TO LOCAL " The Government Loans to Local Bodies Act, 1886," — Debentures created 50,000 0 0 Total £50,000 0 0

9

8.—6

No. 1—continued. WORKS FUND for the Financial Year ended 31st March, 1887. ACCOUNT.

JAMES C. GAVIN, Secretary to the Treasury. JAMES B. HEYWOOD, Assistant Secretary and Accountant. Examined and found correct: JAMES BDWABD FITZGERALD, Controller and Auditor-General.

2—B. G.

EXPENDITURE. Debentures issued under " The Wellington Loan Act, 1866," redeemed Five per cent. 5-30 Debentures called in for payment on 15 January, 1885 Four and a half per cent. 5-30 Debentures called in for payment on 1 August, 1886 £ s. a. 13,500 0 0 300,800 0 0 £ s. d. 1,133,700 0 0 £ s. d. 819,400 0 0 Expenses Account, — Discount Commission Brokerage Stamp Duty Office Expenses 26,500 0 0 14,322 6 2 1,520 1 7 24,569 17 6 7,749 6 9 74,661 12 0 Balance on 31st March, 1887 — Cash in the Public Account Advances in the hands of Stock and Crown Agents,— Stock Agents Crown Agents 15,239 18 11 86,300 0 0 89,874 15 6 1,208,361 12 0 101,539 18 11 191,414 14 5 Total 1,399,770 6 5 BODIES' ACCOUNT. Payments to,— Counties, —■ Manawatu Patangata Waipawa Wairarapa North 2,000 0 0 5,000 0 0 3,500 0 0 4,170 0 0 Road Board, — Taratahi-Carterton 14,670 0 0 600 0 0 Balance on 31st March, 1887 — Cash in the Public Account 15,270 0 0 34,730 0 0 Total £50,000 0 0

8.—6.

Table No. 1 — continued. GENERAL BALANCE-SHEET AND SUMMARY OF TRANSACTIONS— continued. SUMMARY of Balances on the 31st March, 1887.

10

A Funds. Balances. Consolidated Public Works Fund. Fund. Suspense Account. Total. £ s. a. £ s. d. £ s. d. £ s. d. £ s. d. & s. a. Consolidated Fund :— Ordinary Revenue Account Land Fund Account State Forests Account Accounts of Local Bodies Deposit Accounts 186,805 17 8 I Dr.54,263 3 1 I Dr. 1,478 11 2 5,516 4 11 76,083 11 4 213,263 19 8 Cash .. Advances Investments 168,631 19 4 44,632 0 4 111,344 12 3 183,392 12 9 717,702 3 2 1,688 7 1 281,664 18 8 228,024 13 1 717,702 3 2 Public Wobks Fund :— Part I. . III. Conversion Account Loans to Local Bodies Account 491,245 12 6 Dr 325,685 2 10 620,734 4 1 191,414 14 5 34,730 0 01 Suspense Account ± ,u_L.s, aoa o a 1,688 7 1 Total Total : 1,227,391 14 11 213,263 19 8 1,012,439 8 2 1,688 7 1 1,227,391 14 11

8.—6.

Table No. 2. STATEMENT showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to the 31st March, 1887.

11

WAYS AXD MEANS. NET EXPENDITURE. £ s. d. £ s. d. £ s. d. £ 8. d. Loans :— Immigration and Public .Works Loan, 1870 Immigration and Public Works Loan, 1873 Immigration and Public Works Loan, 1874 General Purposes Loan Act, 1873 .. Now Zealand Loan Act, 1876 New Zealand Loan Act, 1877 New Zealand Loan Act, 1879 New Zealand Loan Act, 1882 New Zealand Colonial Inscribed Stock Loan Act, 1882 New Zealand Loan Act, 1884 New Zealand Loan Act, 1886 District Railways Purchasing Acts, 1885-86 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 5,000,000 0 0 3,000,000 0 0 250,000 0 0 1,500,000 0 0 1,325,000 0 0 354,487 7 11 Expenditure on — Immigration Public Works, Departmental Railways, including Surveys of New Lines Roads Land Purchases Waterworks on Goldfields Telegraph Extension Public Buildings Lighthouses, Harbour Works, and Defences Contingent Defence Rates on Native Lands .. .. .. ; Thermal Springs Charges and Expenses of raising Loans Coal Mines Interest and Sinking Fund 2,118,071 2 2 283,063 9 8 12,623,942 3 4 3,124,299 6 1 1,115,644 14 11 558,925 19 6 538,978 15 8 1,597,371 18 9 745,299 11 0 429,718 19 3 25,138 18 1 7,813 14 5 857,113 11 1 10,835 8 0 218,500 0 0 87 7 11 Receipts in Am :— Contributions of Canterbury Province for Railways .. Stamp Duties to 31st December, 1870 Transfer from Confiscated Lands Liabilities Account Proceeds of Railway Material handed over to Cook County Council Special Receipts under section 9 of "The Railways Construction Act, 1878 " Sinking Funds released .. 56,000 0 0 264,657 16 4 19,963 1 3 Purchase of District Railways, — Duntroon and Hakateramea Railway Rakaia-Ashburton Porks Railway Thames Valley and Rotorua Railway Waimate Railway .. Waimea Plains Railway 61,100 0 0 73,300 0 0 155,187 7 11 33,900 0 0 31,000 0 0 24,254,717 11 11 4,963 7 4 354,487 7 11 60,616 3 0 8,311 17 9 il 5 8 Balance on 31st March, 1887, — Advances in the hands of officers of the Government Investments Balance of £1,325,000 to be credited.. £148,500 0 0 Less cash drawn against Investments 13,260 3 3 81,852 13 10 717,702 3 2 24,609,204 19 10 135,239 16 9 934,794 13 9 _ _ £25,543,999 13 7 £25,543,999 13 7

8.—6.

Table No. 3. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1887.

12

Amount outstanding. Due Date. Sinking Funds ACCRUED (estimated). Indebted- \ Eate NESS. I ! Int. | S.F. Annual Charge. llEMARKS. Amount. When payable. New Zealand Loan Act, 185G .. -j 300,000 25,000 25,000 50,000 50,000 50,000 i £ I 500,000 1 Jan., 1888 1 Oct., 1888 1 Jan., 1889 1 July, 1889 1 Oct., 1889 1 July, 1894 £ 1 _ i £ Cr. 12,290 /o To £ The accumulations of the sinking fund of this loan now enable the Trustees -j not only to dispense with further contributions from the Treasury, but to pay the interest of the loan. Now Zealand Loan Act, 1860 74,100 1 July, 1891 70,563 3,537 5,928 1 Jan. and 1 July 6 2 Now Zealand Loan Act, 18G3 .. J 378,800 500,000 154,800 188,400 73,800 ]• 1,295,800 J 15 July, 1914 1 Nov., 1915 15 Mar., 1891 15 June, 1891 15 Dec, 1891 72,495 182,606 [ 318,383 300,305 317,394 5 4 6 6 6 1 1 2 2 2 22,728 25,000 12,384 15,072 5,904 15 Jan. „ 15 July 1 May , 1 Nov. 15 Mar. „ 15 Sept. 15 June „ 15 Dec. 15 June „ 15 Dec. Consolidated Loan Act, 18G7 Immigration and Public Works Loan Act, 1870.. 3,210,600 1,000,000 Ann. drawing 1 June, 1907 1,937,900 143,577 98,617 I 1,272,700 j 856,423 | 5 4 1 2 •233,361 60,000 Quarterly, 15 Jan., &c. 1 June and 1 Dec. Sinking Fund payable 13 Mar. and 13 Sept. ! Auckland Loan Act, 18G3 Lyttelton and Christohurch Railway Loan, I860 Canterbury Loan Ordinance, 18G2 Otago Loan Ordinance, 18G2 31,600 77,700 22,800 116,700 1 June, 1896 30 years 50 years 1 July, 1898 17,157 54,617 4,548 52,074 14,443 23,083 18,252 64,626 6 6 G 6 2 2 1 2,528 6,216 1,596 8,169 1 April „ 1 Oct. 30 June „ 31 Dec. 30 June „ 31 Dee. 1 Jan. „ 1 July *6% on £7,283,100 = £430,986 Less Interest at 5 % on £4,072,500, representing bonds converted .. 203,625 j Ordinance of Legislative Council Consolidated Loan Act, 1807 64!000 13,000 0,329,300 311 Presentation 1 Jan., 1893 15 April, 1913 3,366,210 2,963,084 311 64,000 13,000 3,200 520 £233,361 1 77,000 5 4 1 Jan. „ 1 July 15 April „ 15 Oct. Immigration and Public Works Loan Act, 1870 '. 372,100 27,900 1 400,000 15 April, 1913 15 April, 1913 372,100 27,900 4 4* 14,884 1,255 15 April „ 15 Oct. 15 April „ 15 Oct. | Defence and Other Purposes Loan Act, 1870 -, 25,000 75,000 1 100,000 1 July, 1910 15 April, 1913 25,000 75,000 4 1,125 3,000 30 June „ 31 Doc. 15 April „ 15 Oct. .1 Carried forward 0,906,611 3,366,210 3,540,395 422,870

13

8.—6

Table No. 3— continued. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1887— continued.

Annual Chakge. Sinking Funds Amount outstanding. Due Date. INDEBTEDRemabks. accrued ,te. NESS. Amount. When payable. (estimated). Int. S.F. Brought forward General Purposes Loan Act, 1873 Westland Loan Act, 1S73 Kelson Loan Act, 1874 New Zealand Loan Acts, 1876-77 New Zealand Loan Act, 1879 Colonial Inscribed Stock Act, 1882 District Railways Purchasing Act, 1885 Public Revenues Act, 1886 ! t £ & I 6,90G,611 12,300 \) 49,500:^ -.o.-ooo 18,500 :i "• J.°uo 54,700 J 50,000 15,000 2,207,300 388,000 250,000 114,687 100,000 ,1 50,000 \f ld0' 000 i 22,495,255 4,214,100 1 i 257 70 43,COO ;) i'Zol' lW 313,100 1 _« m 275,900 1 •>«».""" j 37,558,553 15 May, 1914 15 Dec, 1888 15 Oct., 1913 28 Nov., 1914 15 April, 1894 23 Mar., 1896 1 Mar., 1918 1 Nov., 1889 1 Nov., 1888 1 April. 1905 10 Oct., 1891 10 Oct., 1891 3,3G6,216 £ o/ 3,540,395 12,300 ! 4 49,500 5 18,500 4 54,700 i 5 50,000 5 15,000 7 2,207,300 i 5 388,000 5 250,000 5 114,687 4 100,000 4i 50,000 ■ 5 o/ /o 422,870 492 2,475 740 2,735 2,500 1,050 110,365 19,400 12,500 4,587 4,500 2,500 15 May and 15 Nov. 15 June „ 15 Dec. 15 April „ 15 Oct. 15 May „ 15 Nov. 15 April „ 15 Oct. 1 Mar. „ 1 Sept. 1 Mar. „ 1 Sept. 1 May „ 1 Nov. 1 May „ 1 Nov. 1 April „ 1 Oct. 10 April „ 10 Oct. 10 April „ 10 Oct. Known as the 10-40s. Balance of Five-million Loan. Consolidated Stock Act, 1877 Consolidated Stock Act, 1884— 1 Nov., 1929 22,495,255 ; 4 899,810 1 May „ 1 Nov. Convertible into stock at 107. Convertible into stock at 110. English Issue i 1892 1892 4,214,100 i 5 43,600 I 5 210,705 2,180 Quarterly, 15 Jan., &e. 15 Jan. „ 15 July Colonial Issue 1 28 Nov., 1891 28 Nov., 1891 313.100 U 275,900 5' 14,0S9 13,795 28 May „ 28 Nov. 28 May . 28 Nov. Totals 1,727,293 3,366,216 34,192,337 .. The whole of the Imperial Guaranteed Loan of 1870 is included herein, although only £200, 000 has actually been raised ; the unsold debentures are used for the purpose of obtaining temporal advances from time to time. Deficiency bills are not included.

B.—o.

Table No. 4. STATEMENT of the Estimated Liabilities chargeable on the Consolidated Fund outstanding on the 31st March, 1881, 1882, 1883, 1884, 1885, 1886, and 1887.

14

31st Mai'ch, 1881. 31st March, 1882. 31st March, 1883. 81st March, 1884. 31st March, 31st March, 1885. 1886. 31st March, 1887. £ s. a. £ s. a. £ s. a. £ s. a. £ s. d. £ s. d. £ s. a. Ordinary Revenue Account. Permanent Appropriations,— Civil List Interest and Sinking Fund Under Special Acts of the Legislature Moiety of Subsidies „ Endowments Land Act, 1885 300 0 0 108 0 0 24,000 0 0 165 0 0 4,470 0 0; 957 0 0 421 0 0 350 0 0 383 0 0 430 0 0 2,719 12 11 9,009 13 0 34,695 0 0 225 0 0 584 0 0i os4 o o; 490 6 10 25,808 0 0 4,049 7 0 1,311 13 0 525 0 0 24,108 0 0 5,592 0 0 1,005 0 0 1,034 0 0 32,102 7 4 46,914 0 5 Annual Appropriations,— Class I.—Legislative „ II. —Colonial Secretary „ III.—Colonial Treasurer „ IV.—Minister of Justice „ V. —Postmaster-General „ VI.—Commissionerof Customs „ VII.—Commissionerof Stamps „ VIII.—Minister of Education.. ! „ IX.—Minister of Native Affairs „ X. —Minister of Mines „ XI.—Minister for Public Works „ XII.—Minister of Defence .. 22,490 0 0 2,164 0 0 5,110 0 0 8,100 0 0 4,334 0 0 521 0 0 3,550 0 0 1,207 0 0 7,820 0 0; 86,596 0 0 22,971 0 Oj 25 0 0 14,881 0 0 707 0 0 3,305 0 0 12,939 0 0; 1,849 0 0 1,150 0 0 2,340 0 0 2,737 0 0 8,550 0 0 71,754 0 0 19,578 0 0 719 0 0 16,604 0 0 0,480 0 0 3,016 0 0 9,920 0 0 3,394 0 0 1,326 0 0 2,500 0 0 1,939 0 0 6,805 0 0! 82,735 0 0 35,500 0 0 19,802 0 0 1 1,765 0 o! 2,010 0 0J 3,850 0 0, 4,310 0 0 1,871 0 Oi 4,080 0 0, 1,415 0 O! 2,437 0 0! 103,109 0 0, 19,831 0 0 1 ■ 17,174 0 0 j 1,295 0 0 3,111 0 0 i 5,862 0 0 ; 2,689 0 0 2,122 0 0 3,578 0 o' 700 o o: i 3,270 0 0 ;106,244 0 0 14,888 0 0 16,314 18 1 12,401 10 0 2,680 6 0 10,134 8 2 1 3,925 17 4 2,307 6 7 2,251 0 0 1,000 0 0 6,284 0 0 87,797 10 5 13,013 5 10 112 15 8 9,160 10 0 971 13 8 3,172 12 5 5,352 10 1 4,043 3 4 540 0 7 5,780 0 0 657 0 0 5,977 5 10 86,294 19 1 12,474 18 8 104,989 0 0, ,139,875 0 0; ;170,938 0 0! !165,752 0 O; 160,933 0 0 158,176 3 5; 134,538 1 4 Services not provided for 351 0 0 5 7 10 Totals, Ordinary Revenue Account 165,514 0 0 104,394 0 0 176,530 0 0 100,757 0 0 161,907 0 0 190,283 18 7 181,452 7 9 £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. a. Land Fund Account. Annual Appropriations,— Class XIII.—Minister of Lands .. „ XIV.—Colonial Treasurer .. 8,950 0 0 11,805 0 0 13,331 0 0 16,072 0 0 7,610 0 0 12,302 0 0 23,258 0 0 11,937 8 3 18,700 0 0 3,454 0 3 8,556 19 0 8,956 0 0 11,805 0 0, 13,331 0 0 23,082 0 0 35,020 0 0 30,037 8 3 12,011 4 3 Special Appropriations,— Subsidies paid to Local Bodies, 1880-81 One-third of Land Sales on Deferred Payments New Plymouth Harbour Board Ellesmere and Forsyth Reclamation and Akaroa Railway Trust Local Bodies' Finance and Powers Act, 1885, section 7 .. 100 0 0 12,020 0 0 15,019 0 0 13,384 0 14,109 0 0 9,895 0 0 10,495 0 0 2,054 0 0 12,129 16 9 1,582 19 7 10,527 10 5 1,498 13 9 207 0 0 1,830 0 0 214 14 3 122 1 8 28,000 0 0 13,384 0 0 14,109 0 0 9,895 0 0i 14,379 0 0 14,079 11 10 12,020 10 2 Totals, Land Fund Account 37,502 0 0 25,189 0 0 27,440 0 0 33,577 0 0 49,999 0 0 44,717 0 1 24,037 14 5 State Forests Account. Annual Appropriations,— Class XV.—State Forests 850 0 0

8.—6.

Table No. 5. STATEMENT of the Estimated Liabilities chargeable on the Public Works Fund outstanding on the 31st March, 1881, 1882, 1883, 1884, 1885, 1886, and 1887.

15

31st March, 1881. 31st March, 1882. 31st March, 1883. 31st March, 1884. 31st March, 1885. 31st March, 1886. 31st March, 1887. Annual Appropriations. £ s. c"l. £ s. a. £ s. d. £ s. d. P s. el. £ s. a. £ s. a. PAET I. Class I.—Immigration „ II. —Public Works, Departmental „ III. —Railways .. .. ... „ IV. —Surveys of New Lines of Eailway V.—Roaas „ VI. —Lana Purchases VII.—Waterworks on GoiafieUls .. „ VIII. —Telegraph Extension IX.—Public Buildings .. „ X. —Lighthouses ana Harbour Works „ ' XI. —Rates on Native Lanas XII.—Thermal Springs Contingent Defence Miscellaneous Public Works 664 1 6 647 18 3 428,687 1 8 406 6 8 74,411 2 5 997,725 0 0 11,029 17 8 110 8 3 255 11 1 320,019 11 10 234 15 0 117,840 15 -2 338,876 10 3 6,065 16 9 3,500 0 0 84,457 9 1 7,554 11 8 20,565 0 0 902 7 5 533,243 16 7 1,600 14 6 186,365 15 8 309,299 0 0 16,659 14 2 9,000 0 0 82,862 2 3 10,661 17 2 51,000 0 0 619 6 9 728,955 12 5 8,197 10 9 144,397 8 7 285,400 0 0 7,382 13 0 8,000 0 0 778 14 3 490,593 3 11 931 15 11 214,124 3 2 173,200 0 0 7,369 0 0 6.000 0 0 10,424 1 7 119,220 6 11 7,000 0 0 718 16 11 386,345 8 9 1,246 12 9 254,350 0 11 238,600 0 0 14,963 0 0 3,700 0 0 23,255 5 9 164,410 10 3 5,000 0 0 56 8 2 1,364 17 11 173,680 12 6 120,144 0 0 1,485 10 1 3,983 0 0 55,161 2 9 80,724 0 0 10.66S 0 0 2,500 0 0 33,249 18 5 100 0 0 41,752 10 10 15,138 2 4 38,591 8 10 761 0 9 Totals 1,585,512 15 5 880,276 9 10 1,171,160 7 9 1,282,843 4 8 1,036,641 5 9 1,094,589 15 4 454,767 11 5 PART II. Class II. —Railways .. „ III. —Lana Purchases 158,300 5 9 29,621 0 0 Totals 187,981 5 9 PART III. Class I.—Railways .. „ II. —Costs ana Contingencies 326,290 6 0 360 13 6 Totals 326,650 19 6

B.—6 S

Table No. 6. MEMORANDUM OF CLASSIFICATION OF THE CIVIL SERVICE.

16

1st Division. .€450 to £800. Classes to bo arranged subsequently. 2nd Division. £ Class A.—Salary .... .... .... .... 440 „ B. „ ' .... .... .... .... 415 „ C. „ .... .... .... .... 390 „ D. „ .... .... .... .... 365 3rd Division. Class A.—Salary .... .... .... .... 340 „ B. „ ' .... .... .... .... 320 „ C. „ .... .... .... .... 300 „ D. „ .... .... .... .... 280 4th Division. £ Class A.—Salary .... .... .... .... 265 „ B. „ ' .... .... .... .... 250 „ C. „ .... .... .... .... 235 „ D. „ .... .... .... .... 220 5th Division. £ Class A.—Salary .... .... .... .... 210 „ B. „ ' .... .... .... .... 200 „ C. „ .... .... .... .... 190 „ D. „ .... .... .... .... 180 6th Division. Class A.—Salary .... .... .... .... 170 „ B. „ ' .... .... .... .... 160 „ C. „ .... .... .... .... 150 „ D. „ .... .... .... .... 140 7th Division. £ Class A.—Salary .... .... .... .... 130 „ B. „ .... .... .... .... 120 „ C. „ .... .... .... .... 110 „ D. „ .... .... .... .... 100 8th Division.—Cadets. Jlass A.—Fourth year, £75 per annum, and if living away from home £15 extra ,, B.—Third year, £60 per annum, and if living away from home £20 extra. ,, C. —Second year, £45 per annum, and if living away from home £25 extra ,, D. —£35 per annum, and if living away from home £25 extra.

B.—B.

Table No. 7. ASSETS AND LIABILITIES OF THE COLONY. 31st March, 1886.

J. Sphere y, Commissioner. Property-Tax Department, Wellington, 5th May, 1887.

3—B. 6,

17

X kj. Real Property Personal Property 116,376,659 82,540,315 Eailways 13,453,363 Telegraphs Lighthouses Buildings 523,727 150,895 2,250,000 Harbours 2,500,000 Water-supply, Goldfields ... 500,000 19,377,985 Total £218,294,959 LIABILITIES. Debt of the Colony, deducting Sinking Fund Debts of Local Bodies ... 31,688,349 5,616,273 Mortgages Indebtedness, exclusive of Mortgages 31,821,109 20,365,593 Total - £89,491,324 Surplus ... £128,803,635 £128,803,635 European Population, March, 1886, 578,482 Surplus per head £223

8.—6

18

Table No. 8. RETURNS RELATING TO PROPERTY AND TO PROPERTY-TAX.

VALUE OF PUBLIC WOEKS, MAECH, 1886. Railways (cost) ... ... ... ... ... ... £13,453,363 Telegraphs, &c. (cost) ... ... ... ... .. 523,727 Lighthouses (cost) ... ... •... ... ... 150,895 Buildings ... ... ... ... ... ... 2,250,000 Harbours ... ... ... ... ... ... 2,500,000 Water-supply, Goldfields ... ... ... ... ... 500,000 £19,377,985

* Church Eeserves, 1885, included in " Taxable Eeal Estate."

Retuen No. 1. Eetuen showing the Value of all Eeal Property in New Zealand (exclusive of Native land situated beyond five miles of any road suitable for horse traffic), Value of all Personal Peopeety, and Value of Public Works. Eeal Estate, exclusive of Native lands Assessment, 1882. Assessment, 1885. situated five miles beyond a road suitable for horse traffic ... ... £101,000,000 £116,376,659 Personal Property ... ... ... 64,000,000 82,540,315 £165,000,000 £198,916,974 £198,916,974 Crown Lands ... ... ... £8,500,000 £13,675,516 £13,675,516 Native Lands within five miles of a road suitable for horse traffic ... ... 5,750,000 5,847,105 5,847,105 Education, Church, Municipal, and other Eeserves ... ... ... 11,750,000 7,252,273* 7,252,273* Taxable Eeal Estate... ... ... 45,000,000 47,277,142 47,277,142 Non-taxable Eeal Estate ... ... 30,000,000 42,324,623 42,324,623 ■ £101,000,000 ■ £116,376,659 i £116,376,659 Personal Property — Taxable ... ... ... £40,000,000 £43,505,538 £43,505,538 25,139,277 13,895,500 Non-taxable ... ... ... 11,000,000 25,139,277 Allowed for Exemptions ... ... 13,000,000 13,895,500 £64,000,000 1 ■ £82,540,315 £82,540,315

8.—6.

Table No. 8— continued. Return No. 2. RETURN OF PERSONAL PROPERTY, PREPARED FROM OWNERS' STATEMENTS.

PEESONAL PEOPEETY NOT INCLUDED BY OWNEES IN THEIE STATEMENTS. Assessment, Assessment, 1882. 1885. Produce ... ... ... ... ... ... ... £1,338,356 £1,003,767 Agricultural Implements ... ... ... ... ... 547,040 601,000 Vessels, Steam and Sailing 1,600,000 1,226,124 Estimate of Proportion of Invested Capital that escapes Taxation by reason of Life Interest only in it being taxable... ... ... 500,000 Deposits in Banks in Excess of Amounts returned by Owners in their Statements .. ... ... ... ... ... ... 5,000,000 Totals £3,985,396 ; £1 1 830,891

Eetuen No. 3. STATEMENT OF MOBTGAGES. Assessment, 1882. Assessment, 1885. Mortgages (Foreign capital) ... ... ... ... £15,018,904 £16,832,507 Mortgages (Colonial capital) 14,997,557 14,988,602 Totals £30,016,461 JE31.821.109 INDEBTEDNESS OF PEOPLE IN NEW ZEALAND, EXCLUSIVE OF MOETGAGES. 1882. 1885. Debts deducted by Taxpayers ... ... ... ..". £13,040,000 £17,540,282 Debts deducted by Non-taxable.Persons (estimated for 1882) ... 1,500,000 2,825,311 Totals „ £14,540,000

19

Assessment, 1882. Assessment, 1885. Borses, Cattle, Sheep, and other Live Stock Wool, Grain, and other Produce Merchandise, including Goods on Consignment and Stock-in-trade ... Furniture and Household Goods, including Musical Instruments, Plate, Jewellery, Works of Art, Books, Carriages, Stores Hash in hand of Persons making Statements, Cash at a Bank, or deposited with a Building or other Society, Shares in Building Societies £8,542,117 795,058 9,710,794 4,062,738 5,731,251 £8,634,188 854,481 9,199,121 4,288,124 5,584,212 \Joney owing to Persons making Statements, secured on Mortgage ... Debts owing to Persons making Statements Ul other Property belonging to Persons making Statements, except Exempt Property 19,423,585 10,259-, 921 1,462,968 26,181,610 8,822,153 11,145,535 Totals ... £59,988,432 j74,709,42

8.—6.

Table No. 8—continued. Return No. 4. COMPARATIVE STATEMENT OF RESULTS OF PROPERTY ASSESSMENT.

20

laxpayers. Number of Taxpayers, 1882-83 Number of Taxpayers, 1883-84 22,087 25,460 Number of Taxpayers, 1886-87 27,826 Property. Taxable Eeal Property, 1882-83, assessed in 1879 Taxable Personal Property, 1882-83, assessed in 1879 £35,000,000 37,500,000 £72,500,000 Taxable Eeal Property, 1883-84, assessed in 1882 Taxable Personal Property, 1883-84, assessed in 1882... £44,810,000 40,190,000 £85,000,000 Taxable Eeal Property, 1886-87, assessed in 1885 Taxable Personal Property, 1886-87, assessed in 1885... £47,277,142 43,505,538 £90,782,680 Total Eeal Property, 1880 ... £93,000,000 Total Eeal Property, 1883 ... £101,000,000 Total Eeal Property, 1886 ... £116,376,659 Tax. Tax at Id. in the pound on £72,500,000, 1882-83 „ Fire Insurance Companies, £1 2s. 6d. per cent, on £406,040 £151,043 4,568 Premiums £155,611 Tax at |d. in the pound on £85,000,000, 1883-84 £265,675 „ Fire Insurance Companies, £1 2s. 6d. per cent, on £397,427 4,471 Premiums £270,146 Tax at {-gd. in the pound on £89,158,301, 1886-87 „ Fire Insurance Companies, £1 4s. 5d. per cent, on £450,456 £301,838 5,499 Premiums £307,337 Tax payable, 1883-84 and 1886-87,— By Persons ... 1883-84 at fd. : £202,955 1886-87 at i|d. £221,348 Companies Banks 51,312 11,355 63,288 12,820 Insurance Companies 4,471 -12,544 Totals £270,093 £310,000 Actual Receipts. Actual Eeceipts to date for 1886-87, including Arrears of 1885-86 £310,522 * Includes Life Insurance Companies.

8.—6.

Table No. 8— continued. Return No. 5. NUMBER OF OWNERS OF PERSONAL PROPERTY CLASSIFIED ACCORDING TO AMOUNT, 1886.

CLASSIFICATION OF TAXPAYERS BY VALUE OF THEIR TAXABLE PROPERTY, REAL AND PERSONAL, 1886 AND 1883.

CLASSIFIED STATEMENT OF AMOUNTS PAID BY TAXPAYEES. 1883. 1886. 8,698 pay under £1 ss. Computed at £d. 10,362 pay under £1 7s. Id. Computed at £§d. 4,926 „ £1 5 0 and under £2 10 0 5,208 „ £1 7 1 and under £2 14 2 5,774 „ 210 0 „ 6 5 0 6,021 „ 214 2 „ 615 5 2,846 ~650 „ 12 10 0 ~ 2,887 „ 615 5 „ 13 10 10 2,673 „ 12 10 0 „ 62 10 0 2,800 „ 13 10 10 „ 67 14 2 543 „ 62 10 0 and over. 548 „ 67 14 2 and over.

21

Under £100 £100 and under 200 300 400 500 600 700 800 900 1,000 2,000 3,000 4,000 5,000 10,000 20,000 50,000 .00,000 100,000 and over £200 300 400 500 600 700 800 900 1,000 2,000 3,000 4,000 5,000 10,000 20,000 50,000 100,000 200,000 Persons. 20,782, 10,677 5,646 3,427 2,318 1,855 1,384 1,050 929 729 3,775 1,479 712 497 945 475 208 53 22 3 Compan 42 12 14 7 5 7 6 5 8 4 27 19 7 7 23 46 28 15 17 21 mes s. Totals. 20,824 10,689 5,660 3,434 2,323 1,862 1,390 1,055 932 733 3,802 1,498 719 504 968 521 236 68 39 24 56,966 315 57,281

Number of Taxpayers, 1880. Number of Taxpayers, 1883. Taxable Value of Property. 2,954 2,045 Under £100 3,033 2,674 2,189 £100 and under 200 200 300 2,401 1,974 1,790 300 400 1,537 1,491 400 500 1,477 1,402 500 600 1,171 1,023 1,060 600 700 973 700 800 863 786 800 900 727 744 900 1,000 2,000 1,000 2,000 3,000 4,431 4,244 1,871 1,799 1,016 1,047 3,000 4,000 700 664 4,000 5,000 1,409 1,339 5,000 10,000 691 670 10,000 20,000 359 357 20,000 50,000 106 112 50,000 100,000 48 44 100,000 200,000 35 30 200,000 and over. 27,826 25,460

BV-6.

Table No. 8— continued. Return No. 6. FREEHOLDERS OF LAND OUTSIDE BOROUGHS, TOWN DISTRICTS, AND TOWN-SHIPS, CLASSIFIED BY AREA, SHOWING TOTAL VALUE OF EACH CLASS, FOR 1886 AND 1883.

22

Persons. Companies. 'otale. Area. Year. I s s 'A Value. I Value. y, | B y, Value. Year. 5 acres and under 10 ■. \ 1880 1883 2,111 1,411 £ 577,023 296,538 2 5 £ 475 6,598 2,113 1,416 £ 577,498 303,136 1886 1883 10 . 20 .. ■ 1886 1883 2,410 1,924 736,684 579,137 9 7 12,479 1,825 2,419 1,931 749,163 580,962 1886 1883 20 . 30 .. | 1886 1883 2,104 1,854 654,106 580,810 6 G 5,648 1,820 2,110 1,860 659,754 582,630 1886 1883 30 „ 40 .. | 1886 1883 1,235 1,075 509,064 445,492 6 1 27,268 2,980 1,241 1,070 536,332 448,472 1886 1883 40 „ 50 ..]i 1886 1883 2,217 1,991 626,664 538,389 1 3 2,500 1,570 2,218 1,994 629,164 539,959 1886 1883 50 . 00 .. | 1886 1883 2,324 2,187 832,984 799,878 1 1 672 98 2,325 2,188 833,656 799,976 1886 1883 60 . 70 .. | 1886 1883 1,411 1,277 517,734 456,756 3 1 4.010 llOOO 1,414 1,278 521,744 457,756 1886 1883 70 , 80 ..{ 1886 1883 1,028 970 525,239 507,416 'i 770 1,028 971 525,239 508,186 1886 1883 80 , 90 .. | 1886 1883 1,337 1,274 516,489 502,925 2 18,780 1,339 1,274 535,269 502,925 1886 1883 90 , 100 ..] 1886 1883 866 777 457,338 442,874 2 1 9,132 100 808 778 466,470 442,974 1886 1883 100 , 200 .. | 1886 1883 7,280 6,745 4,795,828 4,791,026 8 C 61,542 10,429 7,288 6,751 4,857,370 4,801,455 1886 1883 200 „ 320 .. | 1886 1883 4,154 3,887 4,211,058 4,342,292 4 3 10,472 5,270 4,158 3,890 4,221,530 4,347,562 1886 1883 320 „ 500 .. | 1886 1883 2,117 1,953 3,015,055 3,503,704 2 4 12,154 92,509 2,119 1,957 3,627,209 3,596,213 1886 1883 500 „ 640 .. I 1886 1883 861 737 2,038,443 1,777,274 2 1 18,188 500 863 738 2,056,631 1,777,774 1886 1883 040 , 1,000 ..{ 1886 1883 1,039 926 3,347,702 3,344,357 4 5 30,307 29,197 1,043 931 3,378,009 3,373,554 1886 1883 1,000 , 2,000 .. | 1886 1883 906 812 4,516,147 4,322,082 10 4 48,404 9,932 916 816 4,564,551 4,332,014 1886 1883 2,000 „ 3,000 .. | 1886 1883 266 243 2,255,589 2,331,213 3 2 57,130 40,400 269 245 2,312,719 2,371,613 1886 1883 3,000 „ 4,000 .. ■[ 1886 1883 142 142 1,461,593 1,583,515 2 4 12,984 30,935 144 146 1,474,577 1,614,450 1886 1883 4,000 „ 5,000 .. I 1886 1883 94 73 1,337,228 1,138,590 2 1 32,919 5,500 96 74 1,370,147 1,144,090 1880 1883 5,000 „ 6,000 .. | 1886 1883 72 65 1,248,956 1,202,475 3 3 48,868 61,938 75 68 1,297,824 1,264,413 1886 1883 g;ooo „ 7,000 .. I 1886 1883 49 47 946,998 944,148 1 1 14,920 0,649 50 48 961,918 950,797 1886 1883

8.—6.

Table No. 8—continued. FREEHOLDERS OF LAND OUTSIDE BOROUGHS, TOWN DISTRICTS, AND TOWN-SHIPS, ETC.— continued.

SUMMARY OF ABOVE.

23

jrsons. impanles, 'otala. Area. i Year. I 3 2 ft Value. $4 CD | 'A Value. .a g Value. Year. l 7,000 acres and uncler 8,000 .. j jggg 42 37 £ 791,001 886,200 3 05,237 I 45 37 850,238 886,200 1886 1883 8,000 , 9,000 .. f JH2 I looo 29 2G 702,008 782,840 3 1 51,590 4,960 32 27 754,204 787,800 1886 1883 noon looon -' 1880 J,uuu , ju.uuu .. ( lgg3 16 21 349,992 555,230 3 2 85,795 I 00,900 18 23 435,787 010,202 1886 1883 ( 1 QQfi 10,000 , 20,000 .. -! i"gq ( looo 141 138 5,005,003 5,171,701 10 3 319,057 71,486 151 141 5,324,660 5,243,247 1880 1883 20,000 , J0.000 .. ' Jggg 42 40 2,348,237 2,652,992 1 8 15,288 ] 35,821 ' 43 49 2,303,525 2,088,813 1886 1883 30,000 „ 40,000 .. \ I qo2 ( looo 26 23 1,809,375 2,058,085 5 268,951 ; 81 23 2,078,320 2,058,085 1886 1883 • • 40,000 , 50,000 .. { J^q (l 18So 4 8 470,543 032,825 1 3 81,492 153,874 5 11 552,035 78G.699 1886 1883 50,000 „ 75,000 .. { }ohq { looo 14 9 1,594,675 1,090,423 5 3 638,070 541,916 19 12 2,233,345 1,638,339 1886 1883 75,000 , 100,000 ..] }?!„ 3 0 075,388 1,146,797 3 1 614,798 370,777 b 7 1,290,180 1,517,574 1880 1883 100,000 „ 150,000 . . I jggg 1 42,828 1 2 319,513 ! 604,035 j 2 2 302,341 004,035 1886 1883 150,000 and over .. .. j \^ 2 2 1,251,208 1,782,295 2 2 1,251,268 1,782,295 1886 1883 Grand totals Jggg 1886 1883 34,340 30,084 49,518,172 49,414,062 110 80 4,140,517 3,930,150 34,450 30,704 53,058,089 53,350,812 1880 1883

Year. Area. Persons. Companies. Totals. 1886) 1883}'• 5 acres and under 100 acres ) I 17,043 14,740 32 26 17,075 14,766 1886] 18831- '■ 100 „ 1,000 „ 1 ) 15,451 14,248 20 19 15,471 14,267 1886) 1883r" 1,000 „ 10,000 „ 1 1,615 1.46G 30 18 1,645 1,484 1886) 1883J'--' 10,000 „ 50,000 „ ! 213 215 17 9 230 224 1886) 1883}-' • 50,000 „ and over | 18 15 11 8 29 23 1886) 18831"' Totals , 1 J 34,340 30,684 110 80 34,450 30,764 NOTEeountry Is 1885 asses; —Total number of freeholders in colony : 1882 assessment —71,240, of whom 30,764 own 5 Hid, that is, outside boroughs and town districts, and exclusive of land classed as iment —80,527, of whom 34,450 own 5 acres and over of country land. icres and over of iownship lands.

8.—6.

Table No. 8—continued. Return No. 7. INDEBTEDNESS OF COUNTIES, BOROUGHS, ROAD, TOWN, RIVER, HARBOUR, AND DRAINAGE BOARDS

Return No. 8. PROPERTY ASSESSMENT. Classification of Taxpayers by Occupation, showing Designation and Number.

J. Sperrey, Wellington, sth May, 1887. Property Tax Commissioner.

By Authority: George Didsburt, Government Printer, Wellington.—lBB7.

24

Local Body. Loans, Foreign. Loans, Colonial. Other Liabilities. Totals. bounties — At 31st March, 1886 „" 1883 £ £ 3,510 7,800 & 185,389 124,953 £ 188,89' 132,75: Boroughs — At 31st March, 1886 1883 1,521,400 1,917,996 736,375 40,550 253,093 166,347 2,510,861 2,124,89: toad and Town Boards— At 31st March, 1886 1883 23,850 14,270 104,861 37,996 128,71: 52,261 liver Boards— At 31st March, 1886 „ 1883 21,000 30,430 50,530 4,638 7,933 56,06! 58,46: larbour Boards — At 31st December, 1885 ... 1882 ... 2,374,500 1,456,400 40,445 52,500 125,022 116,720 2,539,96' 1,625,621 Ihristchurch Drainage Board— At 31st March, 1886 „ 1883 191,760 200,000 191,761 200,001 Totals ... {{HI 4,108,660 3,574,396 834,610 165,650 673,003 453,949 5,616,27: 4,193,99,

Designation. Number. 'rofessional: Clergymen, Lawyers, Doctors, Authors, Editors, Scientific Men, &c, and Engineers, Surveyors, and Architects (not Government)... !ivil Servants, Officers of Local Bodies, Teachers under Board of Education, &c. 1,226 G49 Retired Professional Men, Gentlemen, retired Merchants, Others retired from Business, Capitalists, &c. lerchants, Importers, Warehousemen, Contractors, &c. — Firms ... ... ... ... ... ... ... 282 865 Persons ... ... ... ... ... ... ... 949 1,231 'radesmen (wholesale and retail), Shopkeepers, Storekeepers, Carriers, &c. Vorking Storemen, Mechanics, Labourers, Shepherds, Miners, Sailors, &c. 4,330 2,088 lanufacturers, Brewers, Millers, Founders, Sawmillers, Shipbuilders, &c... 558 rraziers, Sheepfarmers, Farmers, Settlers (in country), Dairymen, &c. jand, Commission, or General Agents, Auctioneers, Accountants, Brokers, Commercial and other Managers, Clerks, Bookkeepers, Teachers (not under Education Board), Merchant Captains, &c. ... Vidows, Wives' Trustees, Spinsters, &c. Kher Trust Estates, and Estates of Deceased Persons, &c. 9,747 1,134 3,049 1,429 ibsentees 1,140 Jompanies —Loan ... ... ... ... ... ... ... 37 Mining ... ... ... ... ... ... 91 Manufacturing... ... ... ... ... .. 64 Insurance: Life, Fire, &c. ... ... ... ... 43 Banks and others ... ... ... ... ... 145 380 Total 27,826