NEW ZEALAND GOVERNMENT LOAN OF £1,500,000 (CIRCULAR ISSUED BY THE AGENT-GENERAL RELATIVE TO).

Appendix to the Journals of the House of Representatives, 1895 Session I, B-15

B.—l/5

1895. NEW ZEALAND.

NEW ZEALAND GOVERNMENT LOAN OF £1,500,000 (CIRCULAR ISSUED BY THE AGENT-GENERAL RELATIVE TO).

Laid on the Table by the Hon. Mr. Ward, with the, Leave of the Rouse. " The Govebnmbnt Advances to Settlees Act, 1894." The proceeds of this loan will be applied towards providing funds for advances to bond fide settlers in New Zealand on the security of their landed property, such property to be free of all encumbrances, liens, and interests, other than leasehold interests. The granting of the advances is under the direct control of the non-political Board which has hitherto most successfully controlled the investment of the funds of the Government Insurance and Public Trust Departments. Under the Act no advance can be granted for an amount exceeding three-fifths of the value of the security, and provision is made for repayment of a portion of the principal in each year. With respect to the present issue, although charged on the consolidated revenue, and ranking as regards security pari passu with the colony's public liabilities, the money raised will not impose any actual additional burden on the revenue of the colony, as its annual interest charge will be provided for out of the interest received from those to whom the advances will be made. The colony, in adopting this mode of providing advances for settlers at a low rate of interest, stands between the investors in this country and those to whom the money is advanced, thus guaranteeing to the investors, without any risk or trouble on their part, the punctual payment of interest and principal. Financial Position of New Zealand. Opportunity is taken of presenting the following figures, as regards the public finance of the colony : — The balances of revenue over expenditure for the last five years are as follows : — 1890-91 ... ... ... ... ... ... ... £143,965 1891-92 ... ... ... ... ... ... ... 195,573 1892-93 ... ... ... ... ... ... ... 483,780 1893-94 ... ... ... ... ... ... ... 550,458 1894-95 (the financial year just ended) ... ... ... ... 430,000 In 1890-91, £78,600 of revenue was taken for the purpose of paying off the balance of the deficit at the 31st March, 1888. In 1891-92 £30,000' of revenue was applied in the construction of roads and bridges, and a further sum of £100,000, also out of revenue, was used towards paying off the deficits of previous years. In 1892-93 a further sum of £200,000 out of revenue was applied in the construction of roads and bridges and other works of a similar description. In 1893-94, a further sum of £250,000, and in 1894-95, the financial year just closed, another sum of £250,000 from the same source were contributed towards the same objects. Thus within four years the aggregate amount of upwards of three-quarters of a million out of revenue has been applied in the permanent improvement of the national landed estate. Public Debt. New Zealand has not raised any loan in this country (excepting those for conversion purposes) since 1888. The gross amoiuit of the public debt on the 31st March, 1889, was £38,375,050, and the annual interest-charges thereon amounted to £1,646,318; while on the 31st March, 1894, the gross amount was £39,826,415, with an annual interest-charge of £1,603,467. Although, therefore, the nominal amount of the public debt has increased, the annual interest.charge has been considerably reduced.

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The increase in the gross amount of the debt is due principally to the operations under which •debenture loans have been converted into inscribed stock bearing a reduced rate of interest, the remainder of the increase being represented by loans to local bodies and purchase of Native and other lands for settlement, upon which direct returns more than equal to that which is paid out are being paid into the Treasury. It is right also to state that included in the gross amount of the public debt as stated above are £800,000 4-per-cent. debentures, guaranteed by the Imperial Government, which are still in possession of the Government, being deposited in London to the order of the Agent-General to meet any possible unexpected financial contingency. These debentures, if issued at the present time, would realise quite a million of money. New Zealand has always stood in an exceptionally strong financial position by the fact that these debentures are thus held. It should also be remembered that over £15,000,000 of the New Zealand public debt is represented by the Government railways of the country, which earn over 3 per cent, per annum on their cost, a fact which is often lost sight of when comparing the colony's public debt with those of the United Kingdom and other countries, such as Canada. The capital represented by the railways of the United Kingdom is now approaching, if it does not already exceed, £1,000,000,000's of money : add that amount to the national debt of this country, and the comparison between it and the New Zealand debt can then be made on more equal grounds. Conversions and Sinking Funds. It has been represented that the present New Zealand Government have adopted the policy of releasing the sinking fund of the public debt and applying the proceeds to ordinary revenue purposes. But such an assertion is entirely contrary to the facts of the case. The policy which provided for the release and disposal of the sinking funds was deliberately adopted by the New Zealand Legislature in 1884, and the mode in which any released sinking fund is applied is regulated by statute, and under such regulation no part of the sinking fund can possibly be used for ordinary revenue purposes. This is a fact which ought to be understood by every one interested in the finance of the colony, and it has been more than once fully set forth in the official statements made by the representative of the New Zealand Government in London, and freely circulated in this country, notably in the statements issued by the late Agent-General (Sir P. D. Bell) in January, 1885, and again in May, 1888. The conversion of the public debt into stock bearing a lower rate of interest than that charged on the original debt has been successfully effected to a very considerable amount, and the result has been advantageous to the colony, inasmuch as it has largely reduced the amount of interest payable thereon. Progress of the Colony. It is only necessary, in order to produce satisfactory evidence of the progress of the colony, to call attention to the statistics given below. These statistics for the most part speak for themselves. Special attention is, however, called to those relating to the postal service of the colony, the very large increases in the number of letters and telegrams received and despatched affording striking evidence of the commercial progress of the colony. It is also worthy of special remark, as regards the exports of the colony, that during the time when there has been a continuous fall in the prices of produce yet the value of the exports are still on the increase, showing that the increase in actual amount of produce exported is much larger than would at first sight have been supposed, judging from the small increase of value. Notwithstanding the low price of produce, and the depression caused thereby all over the world, New Zealand, by reason of its superior climate, its fertility of soil, and its great agricultural, pastoral, and mineral resources, holds its own in favourable contrast with other countries.

New Zealand—Table of Statistics, showing the Progress of the Colony.

Population. Years. 1854 .. .. .. .. .. 88,554 1867 .. .. ■■ •• •■ 260,668 1878 .. .. .. .. -. 456,412 1888 .. .. .. .. .. 649,380 1894 .. .. .. .. .. 728,221 Public Revenue. Years. , £ 1853 .. .. .. .. .. 146,855 1858 .. .. .. .. .. 341,125 1867 .. 1,787,314 1878 .. .. ... .. .. 4,167,889 1888 .. .. .. .. .. 3,859,000 1894 .. .. .. .. .. 4,368,537 Savings-bank Deposits. Years. £ 1858 .. .. .. .. •■ 7,862 1868 243,615 1878 .. .. .. .. .. 1,043,204 1887 .. .. .. .. .. 2,407,776 1893 3,241,998

Postal. Letters. Years. Received. Despatched. 1858 .. .. 254,605 .. .. 228,251 1867 .. .. 2,408,331 .. .. 2,402,909 1878 .. .. 8,236,062 .. .. 7,288,699 1886 .. .. 19,896,448 .. .. 18,188,144 1893 .. .. 27,650,272 .. .. 27,132,287 Newspapers. Years. Received. Despatched. 1858 .. .. 346,603 .. .. 337,745 1867 .. .. 1,670,520 .. .. 1,390,368 1878 .. .. 5,097,907 .. .. 4,312,459 1886 .. .. 7,479,209 .. .. 6,844,838 1893 .. .. 10,699,299 .. .. 8,856,731 Telegraphs. v „„„„ Miles of Number of * eala ' Line. Messages. 1860 .. .. 699 .. 27,407 1871 .. .. 1,976 .. .. 312,874 1874 .. .. 2,530 .. .. 752,899 1882 .. .. 3,974 .. .. 1,570,189 1887 .. .. 4,646 .. .. 1,835,394 1893 .. .. 5,513 .. .. 2,069,691

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New Zealand—Table of Statistics— continued.

Expobts (op all Descbiptions). Years. £ 1841 .. .. .. .. .. 17,717 1851 .. .. .. .. .. 84,160 1858 .. .. .. .. .. 458,023 1861 .. .. .. .. .. 1,370,247 1874 .. .. .. .. .. 5,251,269 1881 .. .. .. .. .. 6,060,866 1888 .. .. .. .. .. 7,767,325 1894 .. .. .. .. .. 9,239,277 Imposts (of all Descriptions). Years. £ 1841 .. .. .. .. .. 13,358 1851 .. .. .. .. .. 349,540 1858 .. .. .. .. .. 1,141,273 1861 .. .. .. .. .. 2,493,811 1874 .. .. .. .. .. 8,121,812 1881 .. .. .. .. .. 7,457,045 1888 .. .. .. .. .. 5,941,900 1894 .. .. .. .. '.. 6,788,863 Hemp Expoets. (N.Z. Flax or Phormium tenax.) Years. £ 1864 .. .. .. .. .. 170 1867 .. .. .. .. .. 4,256 1871 .. .. .. .. .. 90,011 1874 .. .. .. 37,690 1881 .. .. .. .. .. 27,699 1888 .. .. .: .. .. 76,282 1893 .. .. .. .. .. 219,375 Railways. Length of Line opened. Years. Miles. 1873 .. .. .. .. .. 145 1878 .. .. .. .. .. 1,078 1881 .. .. .. .. .. 1,333 1888 .. .. .. .. .. 1,910 1894 .. .. .. .. .. 1,948 Cost of Construction. £15,137,036. Wool Exports. Years. Lb - Val ™- -1858 .. .. 3,810,372 .. .. 254,025 1861 .. .. 7,855,920 .. .. 532,728 1867 .. .. 27,152,966 .. .. 1,580,608 1874 .. .. 46,848,735 .. .. 2,834,695 1881 .. .. 59,415,940 .. .. 2,909,760 1886 .. .. 90,853,744 .. .. 3,072,971 1888 .. .. 83,226,033 .. .. 3,115,008 1893 .. .. 109,719,684 .. .. 3,774,738 1894 .. .. .. .. .. 4,834,740 Gold Export. Years. £ 1857 .. .. .. .. .. 40,422 1864 .. .. .. .. .. 1,857,847 1878 .. .. .. .. .. 1,244,190 1888 .. .. .. .. .. 914,309 1893 .. .. .. .. .. 915,921 1894 .. .. .. .. .. 887,865 Total value exported from 1857 (gold first discovered) to 31st March, 1894, £49,566,878.

Kauri-gum Exports. Years. Va - e f--1853 .. .. .. .. .. 15,972 1858 .. .. ~ .. .. 20,037 1864 .. .. .. .. .. 60,590 1871 .. .. .. .. .. 167,958 1878 .. .. .. .. .. 132,975 1881 .. .. .. .. .. 253,788 1880 .. .. .. .. .. 257,653 1.888 .. .. .. .. .. 380,933 1893 ... .. .. .. .. 510,775 Butter and Cheese Export. 1884. £ Total Butter .. .. .. 66,593 Cheese .. .. .. 25,074 £91,667 1888. £ Total. Butter .. .. .. 118,252 Cheese .. .. .. 78,918 £197,170 1894. £ Total. Butter .. .. .. 251,280 Cheese .. .. .. 115,203 £366,483 Coal. -v aavc . Raised. Imported. leals - Tons. Tons. 1878 .. .. .. 162,218 174,148 1881 .. .. .. 337,262 129,582 1887 .. .. .. 558,620 107,230 1893 .. .. .. 691,548 117,444 Total output, up to 31st December, 1893 : — 8,496,849 tons. Frozen-meat Exports. Years. - VVale--1881 .. .. .. .. .. Nil. 1882 .. .. .. .. .. 19,339 1883 .. ' .. .. 118,328 1884 .. .. .. .. .. 345,090 1885 .. .. .. .. .. 373,857 1886 .. .. .. .. .. 427,193 1887 .. .. .. .. .. 455,870 1888 .. .. .. .. .. 628,129 1894 '.. .. .. .. .. 1,194,545 Live-stock. Years. Horses. Cattle. 1843 .. .. .. 528 4,065 1858 .. .. .. 14,912 137,204 1867 .. .. .. 65,715 312,835 1878 .. .. .. 137,768 578,430 1886 .. .. .. 187,382 853,358 1891 .. .'. .. 211,040 831,831 1894 .. .. .. .. 885,305 Sheep. 1843 .. .. .. .. .. 10,255 1858 .. .. .. .. .. 1,523,324 1867 .. .. .. .. .. 8,418,579 1878 .. .. .. .. .. 13,069,338 1886 .. .. .. .. .. 16,564,595 1891 .. .. .. .. .. 18,200,000 1894 .. .. .. .. .. 20,230,829

W. B. Perceval, 13, Victoria Street, London, S.W., 26th April, 1895. Agent-General for New Zealand. Approximate Cost of Paper. —Preparation, not given ; printing (1,400 copies), £2 6s. 6d.

By Authority : Samuel Oostall, Government Printer, Wellington.—lB9s. Price 3d.]

1867. 1878. 1888. 1894. Average Yield per Acre, 1888. Land under — Crop and sown grasses .. Wheat Oats Barley Acres. 676,900 47,786 101,563 13,136 Acres. 3,523,277 264,861 327,345 ! 28,666 Acres. 7,284,752 357,359 336,474 27,912 Acres. 8,698,197 242,737 376,600 28,800 Bushels. 26-37 31-24 27-26