FINANCIAL STATEMENT (In Committee of Ways and Means, Tuesday, the 30th July, 1895) BY THE COLONIAL TREASURER, THE HONOURABLE MR. WARD.

Appendix to the Journals of the House of Representatives, 1895 Session I, B-06

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1895. NEW ZEALAND.

FINANCIAL STATEMENT (In Committee of Ways and Means, Tuesday, the 30th July, 1895) BY THE COLONIAL TREASURER, THE HONOURABLE MR. WARD.

Me. Guinness, — It gives me pleasure to be again able to congratulate the House and the country upon the satisfactory results of the year's finance. When we bear in mind the great reduction in the spending power of the people, owing to the low prices obtained for our staple products, it is cheering to find that financially the colony occupies a strong position. I have thought it prudent to make some changes in the form of the public accounts. I may say that the alterations are made with the object of placing our position still more clearly before the public, and to assist in removing any excuse for the causeless adverse criticism which has unfortunately been so common in this country for many years, and which has undoubtedly tended to injure and discredit our colony. I shall now proceed to place before you the position of the Eevenue Account. REVENUE ACCOUNT, 1894-95. It is extremely gratifying for me to be able to announce to honourable members that, notwithstanding the restriction of trade, owing to the abnormally low prices already referred to, the actual receipts for the year just closed have exceeded the estimate I had the honour to place before the House in my last Budget. The estimate of revenue for the year I placed at .£4,235,000, exclusive of £117,800 to be received to provide for the accretions of Sinking Funds payable during the year. The actual receipts came to £4,281,995, or £46,995 in excess of my estimate. It is almost unnecessary to remind honourable members that I was careful to warn them that, in preparing my estimates, we had to reckon with a falling revenue, owing to causes which were not only affecting New Zealand but were being felt over the larger portion of the commercial world. For this reason I reduced my estimate by £133,538 below the actual receipts of the preceding year, and it is therefore very pleasing to be able to inform you that the revenue as a whole exceeded my forecast to the extent of £86,563. Honourable members will, I feel sure, not be offended at the estimate being on the safe side. I have, however, noticed with amazement that I am actually blamed in some quarters for the falling-off of revenue not being so large as I had estimated. As previously stated, the actual receipts were nearly £47,000 more than my estimate, seven heads of revenue yielding an excess of £94,561, while three items were less than the estimate by £47,565. Two out of three items of decrease are —Customs duties, £30,215; and railways, £17,251. i—B. 6.

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I allowed for a deficiency in the Customs receipts of over £55,000. This has, however, been exceeded by the amount I have just mentioned. It became apparent, some few months before March last that importers were narrowing their orders to the smallest possible margin, and the caution and hesitation exhibited by them were quite natural in the face of an adjustment of the tariff in the near future, to say nothing of the very low and unremunerative prices for produce which regulate business transactions in most parts of the colony. Besides this, two of oiir largest importing drygoods firms closed up their businesses and. disposed of their duty-paid goods at auction, thus supplying by forced sales large parcels of goods, the market for which it is not unreasonable to suppose would otherwise have been replenished by importations duty-paid within the year. I find also a considerable shrinkage in the duties derived from tlie consumption of spirits and wines. The reduction in receipts under this head, however, is not a matter for regret, for it goes to prove that our people are progressively temperate in their habits. I also allowed for a falling-off in our railway receipts, but my estimate was not large enough, as I have already stated. The incidents of trade which affected our Customs duties also operated in the direction of diminished railway revenue. It is no new r s for me to tell you that the grain traffic fell off enormously. The exports were two million bushels less than the previous year: and this, coupled with damage done to the lines by floods, made more marked the falling-off in revenue which I am endeavouring to explain. It is much more pleasant to turn to the items of revenue which show an increase over the amounts I had estimated. The largest items are represented by revenue derived from sale of stamps, from the land- and income-tax, and from the territorial revenue. The increase of £39,225 over my estimate of stamp revenue contains some large sums for succession duties; hence we must deplore the loss of some very worthy colonists from our midst. At the same time the ordinary receipts derived from the usual business of the country show an increase, thus proving that the colony is not so commercially depressed as many pessimists would lead us to believe. Land- and income-tax combined show an increase of over .£20,000 —or £4,000 for the land-tax, and £16,000 for the income-tax. Although the territorial receipts show an increase of £26,166 over the estimate, they are only £3,107 over the previous year's actual revenue. As long as such low prices obtain for our staple products, we must not hope for any increase of revenue under this head; indeed, I shall be surprised if the receipts under this head are maintained during the current year. The other items of revenue require no special comment. I can now pass on to the results of the expenditure, of last year, and I find that, as compared with my estimates, the amount underspent was £83,487. Of this sum, £27,787 was not required for interest and Sinking Fund charges. On looking into this large sum I notice that of the £50,000 set down for interest on Treasury bills only £38,985 was required. The difference of nearly £11,000, I think, can be fairly claimed as a saving, arising out of the fact that, in consequence of the earlier collection of the land-tax, it became unnecessary to issue Treasury bills to the extent we had originally contemplated. Over £11,000 of interest on the 3J-per-cent. Consolidated Stock held by the Agent - General was repaid to credit of the interest account of that loan, and several other classes of security were not drawn upon to the extent originally contemplated, and therefore interest was not required to be paid. The satisfactory results of the interest account show that hostile critics who professed to know more than 1 did committed an error of judgment. On examining the annual appropriations, the largest items which call for explanation are under the respective heads of " Postmaster-General " and the " Department of Lands and Survey." Nearly £14,000 less than the estimate was spent under the former, and £15,000 under the latter heading. On referring to the particulars of the balance of the Consolidated Fund at the end of the year, it will be seen that the sum of £11,428 remained in the hands of the PostmasterGeneral. This money was advanced by the Treasury in order that the department might make the usual payments for the departmental services, but at the

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last moment it was found impossible to include a large sum for transit expenses of the San Francisco mails. The Lands and Survey Department were unable to carry out the contemplated surveys of Native and other lands as rapidly as was originally contemplated. In the Treasury class there is a saving of over £9,000 : the item provided for revision of assessments could not be used, and a large saving was effected in the item provided for the payment of discount in London on the drafts remitted to replenish the Public Account. There are two items amongst the permanent appropriations which call for remark. The first is in connection with £4,592 over-expended under " special Acts," owing to extra contributions to hospitals and charitable institutions. No fault can be found with this expenditure, as it resulted from the generosity and charity of our citizens, upon whose voluntary contributions the Government find a proportionate subsidy. The estimate of the amount to be paid over to local bodies out of territorial revenue was also exceeded ; but honourable members will recognise that it is very difficult to form an accurate estimate of the amounts payable by way of "thirds" and "fourths," which are purely dependent upon the receipts. It will be seen on reference to the tables which will accompany my Statement that the annual votes have only been exceeded by £1,115. A detail statement of expenditure for services not provided for will be found in the usual statement of the " unauthorised " expenditure. This has been already placed before you, and, when compared with expenditure under this head on former years, leaves little to explain and nothing to defend. RESULTS OP THE YEAR 1894-95. On the 31st March, 1894, we closed our books with a net surplus of £290,238, to which we add the receipts for the past year, amounting to £4,406,515, making a total of £4,696,753; and, deducting therefrom the ordinary expenditure, amounting to £4,266,729, there remains a balance of £430,024, out of which the amount of £250,000 was applied in aid of the Public Works Fund, leaving a net surplus of £180,024 at the close of the past financial year —a result which must be as gratifying to members as it is to myself, and must add materially to the general stability of the country. With regard to the issue of Treasury bills in anticipation of revenue, I am glad to inform members that I was able before the close of the year to pay off those that had been issued during the year, and to reduce the amount outstanding by £1,000. Honourable members will find that the revenue account for the year, showing the receipts and expenditure, now appears in detail in the body of the Budget. On reference to the table it will be observed that the transactions of the year relating to the ordinary revenue and expenditure are clearly shown, while the extraneous receipts and expenditure, which are simply entries on both sides of the account, are set out separately. These have been eliminated from the revenue proper, and the result is that the receipts and payments relating to the revenue alone can be seen at a glance and easily followed. The balance at the end of the year, as shown in the account, represents the surplus, which I have already stated to be £180,024. With a view to place the transactions of the year as clearly as possible before honourable members I have transferred the column representing the previous year's figures to the left-hand side of the table, thus preventing confusion, and at the same time affording facilities for comparison which honourable members may desire to make, and this will save them the trouble of referring to previous blue-books.

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STATEMENT of the RECEIPTS and EXPENDITURE of the REVENUE

1893-94. RECEIPTS. £ s. d. 283,779 11 0 £ s. d. £ s. d. 290,238 6 5 Balance at beginning op Year 1,655,502 17 1 674,647 8 8 285,326 10 5 75,237 10 2 1,412 1 8 61,807 18 4 1,175,547 17 5 49,290 6 6 20,183 4 8 56,522 8 9 Ordinary Revenue, — Customs .. .. . • • • • ■ Stamps, including Postal and Telegraph Cash Receipts Land-tax Income-tax Property-tax Beer Duty Railways Registration and other Pees Marine Miscellaneous 1,569,784 7 10 677,225 7 6 280,188 4 11 89,891 6 4 19 2 11 59,901 9 1 1,152,748 5 6 51,381 4 8 21,513 18 10 63,175 16 7 4,055,478 9 8 Territorial Revenue, — Cash Land Sales .. .. .. .. •• ■■ £75,362 14 8 Deferred-payment Land Sales .. .. •• •• 56,104 14 10 Pastoral Runs, Rents, and Miscellaneous .. .. .. 184,699 2 3 3,965,829 4 2 70,341 10 10 58,328 7 9 184,389 8 4 316,166 11 9 313,059 6 11 4,281,995 15 11 4,368,537 16 7 Receipts in Aid, — Debentures issued under " The Consolidated Stock Act, 1884 " — For Increases of Sinking Fund 117,800 0 0 284,500 0 0 250,000 0 0 Amount recovered from the Cheviot Estate Account, — In part repayment of the Purchase-money .. In respect of Interest paid on Debentures charged in previous year 2,220 0 0 4,500 0 0 6,720 0 0 250,000 0 0 Sinking Funds set free, — " The Lyttelton and Christchurch Railway Loan Ordinance, 1860 " Applicable to the Redemption of Debentures issued under " The Consolidated Stock Act, 1884," in respect of— " The New Zealand Loan Act, 1856 " " The New Zealand Loan Act, 1863 " " The Consolidated Loan Act, 1867 " 15,200 0 0 4,696,754 2 4 28,500 0 0 96,371 0 0 169,700 0 0 5,514 0 0 27,000 0 0 231,900 0 0 294,571 0 0 The Naval and Military Settlers' and Volunteers' Land Act, 1892, — Debentures issued in exchange for Remission Certificates 279,614 0 0 1,180 0 0 16,300 10 0 280,794 0 Totals £5,497,688 17 7 £4,977,548 2 TREASURY BILLS Treasury Bills outstanding at beginning of Year, — In anticipation of Revenue In redemption of Guaranteed Debentures .. 694,000 0 0 1,397,000 0 0 [ Treasury Bills issued during Year .. £335,000 0 0 .. 476,000 0 0 811,000 0 0 1,060,100 0 0 1,871,100 0 12,091,000 0 0 J2.091.000 0 0 I Totals £1,871,100 0

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ACCOUNT for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

1893-94. EXPENDITURE. £ s. d. 24,307 3 9 1,885,696 19 7 182,484 8 3 63,371 2 9 45,515 19 1 Permanent Appropriations,— Civil List Interest and Sinking Fund.. .. .. .. • • ■ v Under Special Acts of the Legislature Subsidies paid to Local Bodies Payments under the Land Acts Endowments — Ellesmere Lake Lands Act, 1893 New Plymouth Harbour Board Greymouth Harbour Board Westport Harbour Board £ s. d. 24,411 16 3 1,716,889 6 4 189,890 17 6 67,342 13 3 44,959 0 2 £ s. d. 3,371 19 6 6,367 11 3 11,310 8 2 16,334 19 0 2,238,760 11 4 6,993 1 10 10,577 9 0 15,937 14 10 2,077,001 19 15,860 8 3 83.S52 0 11 24,867 16 1 115,923 14 1 292,433 8 3 62,556 10 6 20,535 1 2 381,652 6 8 48,714 17 6 2,757 19 4 14,430 7 5 29,789 9 8728,623 15 5 51,858 3 10 56,570 4 10 93,904 0 10 119,996 6 5 921 11 8 2,350 7 0 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 — Education Department Lunacy and Charitable Aid Department Department of Labour IX.—Minister of Mines „ ■ X.—Minister of Agriculture „ XI. —Working Railways „ XII. —Minister for Public Works „ XIII. —Defence Department .. „ XIV. —Police Department „ XV.—Minister of Lands „ XVI. —Rates on Crown Lands Services not provided for .. 17,398 8 10 66,022 13 4 24,511 17 6 124,204 6 0 298,765 15 7 65,674 10 8 20,168 8 7 390,234 8 0 54,413 18 8 3,437 3 3 15,602 9 8 42,529 11 1 725,256 1 7 50.155 14 6 62.156 7 6 94,210 5 1 119,703 14 10 319 18 0 8,884 13 1 2,189,710 5 2,147,598 9 10 Amount transferred to the Public Works Fund, Part I., in terms of section 15 of " The Appropriation Act, 1894 " Released Sinking Funds not applied to redemption of debentures transferred to Public Works Fund Purchase of the Cheviot Estate under " The Land and Income Assessment Act Amendment Act, 1892 " .. 250,000 0 0 250,000 0 0 17 11 8 260,220 0 0 510,220 0 0 250,017 11 Balance at end op Yeae 4,516,729 16 180,024 5 290,238 6 5 4,696,754 2 Debentures redeemed, — Consolidated Stock Act, 1884 (Colonial Issue) Lyttelton and Christchurch Railway Loan Ordinance, 1860—matured 1st Julv, 1894 .. 264,414 0 0 266,071 0 0 28,500 0 0 15,200 0 0 294,571 0 0 The Naval and Military Settlers' and Volunteers' Land Act, 1892, — Remission Certificates exchanged for Debentures per contra 279,614 0 0 ... 1,180 0 0 16,300 10 0 280,794 0 Totals £5,497,688 17 7 £4,977,548 2 ACCOUNT. 1,280,000 0 0 Treasury Bills paid off during Year Treasury Bills outstanding at end of Year, — In anticipation of Revenue In redemption of Guaranteed Debentures 811,000 0 0 .. £334,000 0 0 .. 476,000 0 0 1,061,100 0 0 810,000 0 0 1,871,100 0 0 £2,091,000 0 0 Totals £1,871,100 0 0

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PUBLIC WORKS PUND. Pabt I. As the money for expenditure out of this fund is now contributed by the Consolidated Fund, and as the loan-money which formed this fund has been exhausted, I have under consideration the question whether Part I. of the Public Works Fund shall be retained as a separate account or not. Outside the £250,000 transferred from the Consolidated Fund during last year, the receipts amounted to £63,049. The expenditure under the annual votes amounted to £307,182, and £1,000 was charged to complete the purchase of the Kaihu Valley Eailway. Entries for £47,000 of the company's debentures taken over by the Government have also been passed through both sides of the account. Adding the receipts, £360,049, to the balance, £263,658, at the commencement of the year, and deducting £355,182 of expenditure, there remained a balance of £268,525 on the 31st March last, against which £229,076 of liabilities were outstanding. Part 11. The loan-money belonging to the North Island Main Trunk Eailway Line is steadily disappearing. The balance to commence the year with was £79,197, to which was added a small recovery of £12 belonging to the former year's expenditure. On the other side there has been charged the sum of £52,604, leaving a cash balance at the close of the year of £26,604, against which £14,097 of liabilities have been incurred. THE CONVERSION ACCOUNT. The conversion operations of last year resulted in a further issue of £787,258 of 3J-per-cent. inscribed stock, which towards the close of the year began to sell at over par. The inscription of tins stock enabled £398,900 of various debentures to be converted, and £283,300 of loans to be redeemed, leaving (after paying expenses) a balance of £40,193, which will be used to complete the operations. The redemption of the loan of 1856 on Ist July, 1894, by the sale of inscribed stock issued for that purpose, resulted in the release of Sinking Fund amounting to £59,935 ; of which amount £5,514 was used to redeem debentures issued under " The Consolidated Stock Act, 1884," and £54,421 was paid into the Public Works Fund, Part 1., in conformity with the provisions of the same Act. Two hundred thousand pounds of debentures, bearing 4j per cent, interest, issued as part purchase-money for the Cheviot Estate, were also paid off, and the amount is now carrying only a 3£-per-cent, rate. In accordance with our new method of dealing with the annual drawings of the consolidated loan of 1867, the sum of £33,300 of bonds drawn by the public was paid out of the proceeds of stock issued for the purpose. Offers for conversion of the high-interest-bearing loans are still before the public; but there is a natural reluctance to part with gilt-edged securities, and consequently the conversions are only slowly effected. The ordinary table, which I shall attach to my Statement, contains full particulars of the conversion operations of the year. THE LOANS TO LOCAL BODIES ACCOUNT. Up to 31st March last the amount raised for granting loans to local bodies was £648,082, and for grants under the provisions of section 2 of " The Grovernment Loans to Local Bodies Act Amendment Act, 1891," the amount of £116,918. These two amounts, together with the amount of £89,800 which was created in respect of the debt of £89,878 Bs. 9d. due to the Public Works Fund for debentures issued under " The Eoads and Bridges Construction Act, 1882," and now inscribed as debts of the local bodies under Part 11. of " The Government Loans to Local Bodies Act, 1886," amount to a total of £854,800 for debentures created and issued, and the proceeds of which have been carried into the Loans to Local Bodies Account,

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The disbursements to the same date have been £647,792 to local bodies, £116,918 to Land and Survey Department, and £89,800 transferred to Public Works Fund, leaving a cash balance of £290 at the close of the year. Details of receipts and expenditure will be found attached to the usual annual statement of accounts. As showing the continued increase of the aggregate amount of grants made to local bodies, the grants made during 1892-93 amounted to £74,445, in 1893-94 to £87,151, whilst during the last year, 1894-95, the amount of such grants was £102,842. Experience has shown that, owing to absentees, to the indifference of ratepayers, and to other causes, the existing law exhibits defects and difficulties which should be removed; and during the present session an attempt will be made to consolidate and amend the existing Acts. The principal feature of the proposal will be that the machinery to carry out all the steps required to obtain a loan will be found embodied in the Bill. In this way we shall do away with the different and at times conflicting processes which the various local authorities have to consider and carry out. NEW ZEALAND CONSOLS ACCOUNT. There have been twenty deposits inscribed, amounting to the sum of £158,025, of which £158,000 has been invested in securities yielding a 4-per-cent. rate of interest. - Of this sum, £150,000 was inscribed by the Bank of New Zealand as a special investment of a portion of the second guaranteed million. By arrangement with the bank, in the event of the public desiring to make deposits in excess of the limit fixed by law, the arrangement provided that the £150,000 referred to, or any portion thereof, should be transferred to the investing public. At the time the investment was made the Bank of New Zealand was desirous of finding suitable investments in New Zealand Government securities for the balance of the guaranteed million, in order that they might be held with coin as a reserve against liabilities in accordance with law. I feel sure that it only requires to be more thoroughly understood that we are offering a secure investment for fourteen years at what may be now called a full rate of interest, to secure a satisfactory flow of deposits properly representing the thrift of our colonists. In connection with the consols account exception has been taken to our having deposited with the Colonial Bank the sum of £150,000, at 4 per cent. The deposit made was strictly in accordance with law, was business-like, and advantageous to the colony. At the time the transaction took place the colony owed the bank £100,000, the payment of which did not fall due until June, 1895. On maturity, this was renewed for eighteen months at a rate of interest of 3J per cent. The bank thus pays the colony 4 per cent, on £150,000, and the colony pays the bank 3J per cent, on £100,000. THE PUBLIC DEBT. During the year there was advanced £152,000 for loans to local bodies, £234,000 for land improvement and the purchase of Native lands, and £25,100 for the purchase of land for settlements, making a total of £411,100. On the 31st March, 1894, the gross public debt stood at £39,826,415, and on the 31st March last had been increased by £560,549, making a total of £40,386,964. Of the increase of £560,549, the large sum of £411,100 was, as I have before stated, advanced to local bodies, to land improvement, purchase of Native land, and land for settlements. At first sight this increase appears a large sum, but, upon mature consideration, it will be found reasonable enough if we are to carry on successfully the advancement of the country in the direction contemplated under the Acts providing for placing the people on the land and relating to settlement. The interest which the Treasury has to pay upon these loans is considerably exceeded by the receipts derived from the transactions leading to the raising of the loans. In addition to this, £158,025

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has been added on account of the liability for deposits inscribed under the New Zealand Consols Act of last session; and the investment of this money produces a profit over the amount of interest payable. Debentures amounting to £1,180 were issued to satisfy old soldiers' claims, and £117,800 for the annual accretions of sinking funds, as provided by " The Consolidated Stock Act, 1884." The Government, having acquired the Kaihu Valley Eailway, has become responsible for the debentures, amounting to £47,000, which had been issued by the company. For the purposes of the conversion or redemption of existing bonds our Loan Agents issued further stock, amounting to £787,258. The total issue of bonds and of inscribed stock was £1,522,363. On the other side there were redeemed or converted debentures amounting in all to £961,814, leaving, as I have before stated, an increase to the gross public debt of £560,549. Of the debentures redeemed, the largest parcel belonged to those of " The Consolidated Stock Act, 1884," amounting to £264,414, paid off upon an equivalent amount of sinking funds being set free of the loans of 1856 and 1863, and of the Consols of 1867. From the same source £15,200 of debentures belonging to "The Lyttelton and Christchurch Eailway Loan Ordinance, 1860," were paid at maturity on the Ist July, 1894. Out of the proceeds of sale of inscribed stock, £200,000 Cheviot Estate purchase debentures, £50,000 bonds of the loan of 1856 (due on the Ist July, 1894), and £33,300 drawn bonds of the Consols of 1867, were paid off. Conversions were effected during the year in respect of the following debentures : namely, £78,700 loan of 1863 ; £297,100 Consols of 1867 ; £1,000 Auckland loan of 1863; £9,100 Otago Loan Ordinance of 1862; £1,000 Canterbury Loan Ordinance of 1862; and £12,000 District Eailways Purchasing Loan of 1885. The net public debt on 31st March, 1894, was £38,874,491, while on the 31st March last it became £39,635,032 ; showing an increase of £760,541. This is accounted for by the increase to the gross debt of £560,549, by £334,295 of released Sinking Fund appropriated according to law, less the natural accretions amounting to £134,303. To make our position in this matter perfectly plain, and so that all may at a glance understand it, I subjoin a table showing the particulars of the increase of the public debt since the 31st March, 1891. This increase amounts to £1,556,614, but of this sum no less than £1,335,591 earns a rate of interest considerably in excess of the rate which the Treasury has to pay. £1,177,566 is earning 5 per cent., and we are paying an average rate of £4 Bs. 2d. for the use of the money; and £158,025 is earning 4 per cent., while the deposits only carry 3J per cent, interest; £47,000 for the Kaihu Valley Eailway earns £2 9s. 6d. per cent. The £964,900, raised to meet the payments by which the the sinking fund annually accumulates, represents in reality a saving in taxation which would otherwise have required to be provided. The £27,226 of debentures issued as grants to naval and military settlers would, without doubt, have required to be provided by land-grants, but by the issue of the debentures even at 4J per cent, interest we have avoided parting with land which is yielding us at least 5 per cent, per annum. The final sum of £624,273, being an increase arising out of our conversions, is the result of the ordinary operations under the Act of 1884, and speaks for itself. It is an item the outcome of transactions which have very materially reduced our interestcharges, and to which it is unnecessary for me to allude in this place. With these few remarks, and with the assistance the table will afford, to honourable members, I feel sure that the accusations of " borrowing " —using such a term in its ordinary sense — must fall to the ground. Apart from the strictly remunerative character of these financial operations, it must be conceded that the primary object—the advancement and settlement of our colony— has been their sole object, and we should not be blamed for our endeavours to secure this result. In fact I have no hesitation in asserting that were a policy of inaction adopted in this country it would result in widespread damage, not merely to any one class, but to all.

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Particulars of the Public Debt from 31st March, 1891, to 31st March, 1895.

While it is satisfactory to know that the increase in the public debt is compensated for by the large earning-powers which are indicated in my previous remarks, it will be of considerable interest to honourable members to have before them the indebtedness per head of our population during the last seven years. The following table gives the amounts of debentures and stock in circulation, the gross indebtedness per head, amount of sinking fund accrued, the net indebtedness, the net indebtedness per head of the European population, and the annual charge for interest and sinking fund. These figures speak for themselves. In 1889 the annual charge for interest and sinking fund was £1,866,588, while in 1895 it was £1,656,970. The net indebtedness per head in 1889 was £60 12s. 2d., and in 1895 it was £57 9s. 9d., a reduction of £3 2s. sd. per head. Considering the enormous amount of public works that have been carried on throughout the colony during the past year, and the fact that our population has not so largely increased as could have been wished, such a marked reduction of indebtedness per head must give general satisfaction.

£ £ £ £ 38,830,351 Gross public debt on 31st March, 1831 .. .. .-. Increases of public debt— By issue of debentures under— The Government Loans to Local Bodies Act, 1886— At 5 per cent. .. . 41 . „ 4 90,000 327,800 112,000 The Native Land Purchases Act, 1892— At 5 per cent. .. „ ii „ 529,800 9,700 140,000 149,700 The Land for Settlements Acts, 1892 and 1894— At 4J per cent. „ 4 53,966 10,100 64,066 250,000 The Cheviot Estate Payment Act, 1893, at 4£ per cent. The Lands Improvement and Native Lands Acquisition Act, 1894, at 4 per cent. 184,000 The New Zealand Consols Act, 1894, at 31 per cent. .. 1,177,566 158,025 The District Railways Purchasing Acts, 1885-86 (Kaihu Valley Railway), at 5 per cent. The Consolidated Stock Act, 1884— For accretions of Sinking Fund, At 4J per cent. „ 4 847,100 117,800 47,000 964,900 ' The' Naval and Military Settlers' and Volunteers' Land Act, 1892, at 4J per cent. 27,226 By conversion operations — 4 per cent. Inscribed Stock 31 . . 328,347 295,926 624,273 Less — By redemption of debentures 2,998,990 1,442,376 Net increase of public debt 1,556,614 £40,386,964 Gross public debt on 31st March, 1895 ..

Years ended 31st March. Amount of Debentures and Stock in Circulation. Gross Indebtedness per Head of European Population. Amount of Sinking Fund accrued. Net Indebtedness. Net Indebtedness per Head of European Population. Annual Charge (Interest and Sinking Fund). .889 .890 .891 .892 .893 .894 .895 £ 38,375,050 38,667,950 38,830,350 38,713,068 39,257,840 39,826,415 40,386,964 £ s. d. 62 17 10 62 10 1 61 19 4 60 14 8 59 16 7 58 17 0 58 11 6 £ 1,395,389 1,383,432 1,486,427 1,037,862 1,113,770 951,924 751,932 £ 36,979,661 37,284,518 37,343,923 37,675,206 38,144,070 38,874,491 39,635,032 £ s. d. 60 12 2 60 5 4 59 11 11 59 2 0 58 2 7 57 8 10 57 9 9 £ 1,866,588 1,851,421 1,864,575 1,842,686 1,837,169 1,873,682 1,656,970 ""■'*"' """*'"'—•—T"' ii—B 6.

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INDUSTRIES AND COMMERCE. To assist the industries of the colony, the Government have been making inquiries as to markets for our surplus products. Great Britain imports £18,000,000 worth of timber. Of this amount some nine millions are sent from Eussia, Germany, and Scandinavia. Germany spends annually four millions on its forests, and employs 500,000 men in forestry. An expert was sent to London to push the timber trade, and by the reports received from the Agent-General there is no doubt that a considerable trade can be opened up in our New Zealand woods, for street-paving and for carriage-building, furniture-making, and other uses. Trial shipments have been sent to London from Auckland and the west coast of the South Island, and a shipment is now being despatched to the Cape of Good Hope. It is confidently expected that these may prove the forerunners of large orders. By the courtesy of the Victorian Government, copies of the report of the Commissioners sent by them to inquire into the prospects of trade with India, China, Japan, &c, were obtained, and there are good grounds for believing that many of our products will find a market in those countries. The result of the visit of the Victorian Commissioners has been that large orders have been received by that colony for various articles, including scoured wool, butter, cheese, lard, bacon and hams, jams and jellies, canned fruits, and preserved meats. All these can be exported in large quantities from New Zealand; and it only remains for negotiations to be opened up and transit at a reasonable rate provided. When it is mentioned that the imports to New Zealand from India in 1893 amounted to over £210,509, the question of obtaining return cargoes from that country does not seem a very difficult one to solve. , LAND- AND INCOME-TAX. The revenue collected during the year was £370,079, being £20,079 in excess of the estimate. The amount of land-tax outstanding on 31st March, 1895, was £472, all of which was made up of sums for various reasons not immediately recoverable. Considerable attention was given by the department during the year to the revision of the returns of income made since the tax came into force. Very many of these returns were found to be wrong, and their correction has resulted in the addition to the revenue of nearly the entire surplus over the estimate. The work of reviewing the land-values fixed in 1891 was undertaken soon after the Amendment Act of 1894 was passed. Some shrinkage in values was expected, but this has not been so great as was anticipated. The exact figures are not yet available, as some of the Boards have only just concluded their sittings ; but the reductions in values warrant me in estimating that the combined taxes will not produce more this yea.r than £350,000. It has been the opinion of the Government for some time that Native lands occupied by European tenants should, in respect of the interest of the Maori owners, be subject to some contribution by way of land-tax, seeing that these lands have benefited equally with the other lands of the colony by the general progress of the country, and the expenditure of money, both public and private, within it. The Government therefore determined, as the lands were not exempted by law, to collect, of the large sum owing, the ordinary land-tax for last year only from the tenants, leaving them to recover from the owners. A considerable sum has been collected, but several tenants have been advised—erroneously, as I believe—that their power of recovery is not clear. I propose to remedy any possible defect by an amendment of the Act, which I shall shortly submit to the House. Former Colonial Treasurers in past years collected taxes at dates to suit the requirements of the colony, and this without the adverse and extraordinary criticism to which my action last year was subjected. However, as unexpected animadversions, calculated to seriously affect the financial position of the country, were made against the alteration in the date of the collection of the land-tax last year, I deem it essential to take steps to prevent the possibility of such

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adverse criticisms again being possible from similar causes. Under these circumstances, I have deemed it advisable, in the best interests of the country, to prepare a measure to permanently fix the date for collecting this tax. The regulations issued in January last with regard to foreign traders and to shipping owned outside New Zealand have, I am informed, worked well except in one particular. As to this, I will consider whether the system of annual licenses adopted in many other colonies will not answer the purpose better than the present plan. DEPARTMENT OF AGRICULTDRE. This department still continues the good work commenced some three years ago. The past year has been most discouraging to those connected with agricultural and pastoral pursuits. The prices obtained for all products have been lower than anything experienced for many years. The dairy industry promised well at the beginning of the season, but towards the end prices fell. During last session a new Dairy Act was passed, and, in addition to increased powers of inspection, authority was taken whereby the Governor by Order in Council could declare that all produce had to be put in a cool-store, and there graded and cooled prior to shipment. It was decided to deal with the butter only, and arrangements were made with the local freezing companies for the necessary storage. The grading has resulted in a very marked improvement in the quality of the later shipments; and the wisdom of the appointment of competent and impartial men to inspect the produce prior to shipment is admitted by all who have the general welfare of the industry at heart. To encourage the industry, no charge was made for the first month's storage, cooling, or grading. A number of new factories and creameries have been started, and there are now at work 218, an increase of forty. The quantity of butter shipped was 60,656cwt., valued at £242,387. This shows a decrease for the year of 1844cwt. in weight, and of £23,572 in value. Of cheese, there was shipped 54,947cwt., valued at £109,157, or an increase of 17,584cwt., valued at £26,140. Acting on the recommendation of Professor Eobertson, of Canada, the services of Mr. MacEwan have been secured as Dairy Instructor, and he has, along with the other instructors, given valuable assistance to those connected with the industry. Mr. MacEwan has now been appointed to the position of Chief Dairy Expert. It is proposed during the off-season to start dairy schools, for the purpose of giving instruction in the management of milk and manufacture of butter and cheese* The fruit experts have been busily engaged, and their efforts to _ impart instruction have been highly appreciated. The other branches of agriculture have not been neglected, and numerous leaflets on different subjects have been issued from time to time. In addition to our exports of meat in a frozen state, the feasibility of shipping live-stock and chilled meat has now been successfully demonstrated, and this will to a great extent remove the objections formerly urged against our frozen meat. The stock throughout the colony are generally in healthy condition. POST-OEPICE SAVINGS-BANKS. The deposits during the year 1894 were £2,252,862 6s. lid., and the withdrawals £2,268,624 Bs. 4d. The withdrawals exceeded the deposits by £15,762 Is. sd. For the previous year the deposits were £2,386,089 10s. 7d., or £133,227 3s. Bd. more than in 1894; while the withdrawals amounted to £2,122,521 16s. Bd., or £146,102 lis. Bd. less than the amount withdrawn last year. During the first two quarters of 1894 the withdrawals were £88,935 17s. lOd. in excess of the deposits, but during the last two quarters of the year the deposits exceeded the withdrawals by £73,173 16s. sd. There was an abnor-

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mal increase of deposits during the first quarter of 1895, the total sum deposited amounting to £725,273 13s. The withdrawals were £568,448 3s. 6d., so that there was an excess of deposits of no less than £156,825 9s. 6d. for the quarter — a result believed to be largely due to the reduction of the rate of interest on fixed deposits by the banks and other financial institutions. GOVERNMENT LIFE INSURANCE DEPARTMENT. The condition of the Government Life Insurance Department continues to afford every satisfaction. The funds at the close of last year amounted to considerably over two and a quarter millions sterling, and at the present date exceed £2,300,000. The sums assured, with bonus additions, amounted at the end of the year to nearly nine and a quarter millions. The commercial depression of the past twelve months, due to the low prices ruling in the Home markets for the colony's chief staples, did not appreciably affect the volume of new business secured, the policies for the year having amounted to £729,013, as compared with £740,428 for 1893. As might have been anticipated, some slight increase is shown in the discontinuances by surrender and lapse, but in this respect the department's experience contrasts favourably with its Australasian compeers, whose published returns do not in any instance show such a large net gain as the department's, whilst in most cases a decrease in the business on the books is recorded. The Act which was passed last session extending the department's powers as regards investments on mortgage is proving an advantageous measure, and desirable securities at satisfactory rates are now being freely offered. PUBLIC TRUST OFFICE. The legislation by which the Public Trust Office was constituted and its administration regulated was consolidated and amended by the Public Trust Office Consolidation Act of last session. By that Act the functions of this important office are so clearly defined and the powers of the Public Trustee so enlarged as to render the office capable of affording services of a wider scope, and of being more attractive for the purpose for which it is mainly designed—of affording to the estates of deceased persons the guarantee of the colony for a faithful administration, and for the security of the invested funds. The business of the office continues to increase, and at the close of the financial year the total number of estates in the office of all classes was 2,086, of the total estimated capital value of £1,562,268. The best index to the public confidence in the office is in the increase in the number and value of the estates placed in the office by wills or instruments of trust, and these properties, at the close of the financial year, had increased in number from 371 to 392, and in value from £543,238 to £586,813. In this year's estimates I propose to ask the Committee for a sum of £1,272 to meet the deficiency which has resulted during the year from the realisation of bad and doubtful securities on which the capital funds of the office had been invested. This deficiency will bring the total amount up to £5,370 of all such deficiencies proved by realisation, and will be met, as formerly, out of the profits of the office. The administration by the Public Trustee of the reserves subject to " The West Coast Settlement Eeserves Act, 1892," is regarded generally with increasing satisfaction by the Native owners, and is promoting settlement with satisfaction to both races. There has been some little difficulty in matters of detail in respect to insurances of the buildings. The tenants claim that the said insurances should be effected in their names, and not in the name of the Public Trustee. This matter will rectify itself without hindrance or disadvantage to the lessees. An area of 33,389 acres of these reserves, formerly unoccupied, has, since the passing of the Act, been leased in sections of an average area of 172 acres. The income of the Native owners has already risen to £15,470, and will continue to increase ; for tenders are now invited for leases of an area of upwards of 16,000 acres more of the lands which the Natives cannot themselves occupy, and could not more profitably employ than by letting them to our settlers. Of the Native reserves vested, subject to other Acts, in the Public Trustee, the income from lessees amounts to £7,788.

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ADVANCES TO SETTLERS. The Government Advances to Settlers Office was established by the Act of last session for the purpose of relieving the settlers to whom the high rates of interest for loans on the mortgage of land, with the heavy incidental expenses, had become burdensome, and of thus removing an obstruction to the progress of the colony. And such has been the fall by which the passage of the Act has been followed in the rates of interest on private mortgages generally, that this result alone may be said to have more than justified the measure. A low rate of interest encourages improvements, fosters industries, and increases the avenues for employment. The total applications to the 30th June, dealt with by the Board, were 1,552, for £559,855 ; and, of these, 965 were granted for loans amounting to £354,907. I attach to the Budget a detailed statement, which will be of interest to honourable members. The advances have, it is believed, been authorised with prudence, and a due regard for the public safety. At the same time, it must be apparent that amongst the many hundred applicants for loans there will be found some who consider themselves aggrieved, when their applications are either declined or the amount offered by the Board is, in their opinion, not nearly commensurate with the value of the security offered. Such complaints as these are sure to arise in dealing with a large business of the character which the colony has now undertaken;'but lam convinced that time will prove the wisdom of the course pursued by the Board. In the early stages of the administration of this measure—the first _of its kind in this country—there were delays inseparable from that period of necessarily careful consideration as to the steps which should be taken in an untrodden course. But the difficulties have been overcome, and now, as soon as the applications are received with the required valuation-fees, and are found to be in order, every effort is made to have the valuations effected and the applications considered with the least possible delay. For the consideration of the applications for advances, the values of the relative securities are estimated by trustworthy men, and these estimates are reviewed by chief valuers specially appointed for the purpose. MINING INDUSTRY. The outlook on the goldfields of the colony is very promising indeed. A very large amount of foreign capital has been invested in the mines on the northern fields, and this is extending to the quartz-mines on the West Coast. The dredging operations in the rivers in Otago have proved very profitable. Generally the progress of the mining industry and the numerous inquiries now being made for auriferous areas throughout the colony, together with the large capital already invested in the industry, demand that greater facilities than at present exist should be afforded towards prospecting localities in some of which scarcely any mining work has yet been done, while others may be considered to have not been even explored. With the view, accordingly, of affording encouragement for the expenditure of capital on mining in outlying districts, it is proposed to introduce a Bill to provide for granting areas for a limited time to persons with sufficient capital to enable them to carry on prospecting operations on a large scale. It is also proposed to increase the subsidy payable to individual prospectors under the existing regulations, in order to encourage mining associations and local bodies to send out prospecting parties in their respective districts. Owing to the provision made last session for prospecting deep levels, negotiations are now almost complete for testing the ground at the Thames to a depth of 2,000 ft. The encouraging results which have been obtained at the deepest workings in the Eeefton and Coromandel districts tend to justify reasonable expectations that rich auriferous lodes will be found at greater depths than have hitherto been worked in this colony.

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The comparatively recent new departure in gold-mining by means of dredging is also being rapidly developed, and affords employment to a large number of persons; while the returns of gold hitherto obtained show satisfactory results, that have every prospect of being largely increased. LAND-SETTLEMENT. During the twelve months ending the 31st March last, land-settlement moved steadily forward. The number of selectors and purchasers of Crown lands during that period was 2,631 ; but as the conditions on which a portion of the lands were disposed of do not necessarily imply occupation—such as pastoral runs, town sections, and miscellaneous leases —we may deduct these and still get 1,984 selectors who may be said to have taken up lands for permanent settlement. The same figures for the previous year were 2,281. This shows a decrease of 297 selectors. Taking into consideration the fact that lands suitable for settlement are becoming more and more difficult of access each year, the result of the year's transactions must be looked on as satisfactory. The above figures relate to all classes of lands, including the Cheviot and other purchased estates. In addition to these, ten associations had selected blocks, but, as the ballots for individual sections had not taken place on the 31st March, they are not included. They number 491 members. For the same reason 86 selectors under the improved-farm system are not included, the preliminary arrangements only having been made. If all these figures are added we shall find that up to that date arrangements were practically complete for settling 2,561 settlers on the land. The greater number of these settlers hold their lands under the lease in perpetuity, by the conditions of which improvement and residence are compulsory. The number of selectors for cash has gradually been decreasing for some years. In cases where lands are thrown open for optional selection, however, it is found that there is a slight preponderance in favour of the lease with a purchasingclause over that of the lease in perpetuity. The total territorial revenue for the year on current and new transactions was £316,166 lis. 9d., an increase on that for the previous year of £3,107 4s. lOd. As against this there is an increase in the arrears due to the Crown of £3,788 ss. lid., which is due no doubt to the low prices for stock and produce which have prevailed during the past year, During the coming year the Government will offer for selection some very good lands in the Awarua Block, and others in other parts of the colony. For which many people are waiting. It is expected that some of the recent acquisitions in what is known as the King-country will be sufficiently advanced as to survey and roading to be thrown open. IMPROVED-FARM SETTLEMENTS. A new system of settlement was authorised by " The Lands Improvement and Native Lands Acquisition Act, 1894," which is intended to meet the difficulty of providing work for the unemployed, and at the same time make them useful and permanent settlers on the land. The system is termed " improved-farm settlements," and it is a modification of the " village-homestead system " introduced by the late Hon. J. Ballance in 1885. Under the provisions of this Act blocks are set aside in suitable localities, to be occupied by men selected by the Commissioners of Crown Lands, in areas varying from 10 to 200 acres, and assistance is given by the State by way of advances to cover the cost of clearing, house-building, and grass-seed, if required, the clearing, &c, being limited to 100 acres. The lands are burdened with the amounts advanced by the Government, on which the settlers pay 4 per cent, interest, in addition to the rental of the land. Up to the present date eighteen settlements have been formed, the area set aside being 21,202 acres, which will be allotted to 193 settlers, but up to the 31st March the actual allotment of 9,730 acres to 107 settlers only had been completed. The area already felled is 4,048 acres, and the area grassed is 1,469 acres. The amount advanced to settlers up to the 31st March was £5,698 4s. lid., and the value of the improvements on the land, including the Government advances, was £6,964 19s. 3d. It is intended to introduce the half-

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time system into all these settlements so soon as it can be arranged—several are already under it—and it is hoped by this means to find sufficient employment for the settlers to keep them going, whilst at the same time to allow them time to improve their farms. It is believed that the system just started will offer to those who are not in a position to secure lands otherwise a chance of obtaining a home, and at the same time relieve the labour-market from congestion. LAND FOR SETTLEMENTS ACT. Details under the operations of the above Act have already been furnished to Parliament (see C.-5, 1895), and the following summarises them : Up to the 31st March, 1895, there had been actually purchased 8 estates, containing 15,104 acres 1 rood 15 perches, at a cost for purchase, roading, and other expenses of £65,257 2s. 4d. Arrangements had also been completed at that date for the purchase of 5 other estates, containing 28,819 acres, at an estimated cost of £102,515, but no payments had. been made. Since the 31st March to date, arrangements have been completed for the purchase of 5 additional estates, containing 7,778 acres, at an estimated cost of £27,789. Summarising these figures to date, the estates purchased and arranged to be purchased number 18, with a total area of 53,701 acres, at an estimated cost of £195,561 2s. 4d., plus whatever additional cost there may be for surveys and a little roading. The great bulk of the land comprising these estates is of excellent quality, and will be readily taken up so soon as offered to the public. In the estates which had been offered to the public prior to the 31st March a large amount of successful settlement had taken place, and since that date two other estates have been offered for selection, the whole area of which was taken up at once, and for which there were many more applicants than the land would satisfy. On only one of the estates offered for selection up to date was there a resident at the time of purchase by the Crown, but there are now 120 lessees holding these lands, of whom—at 31st March —61 were resident. The rents of the lands leased up to 31st March showed a return of 4-14 per cent, on the capital invested. At the present time there are several desirable estates under offer, with which the Land Purchase Boards will very soon proceed to deal. RESUMPTION OF RAILWAY CONTROL BY THE GOVERNMENT. Pursuant to an Act of the General Assembly passed last session, the management of the railways reverted to the Government on the Ist January, 1895. Considerable reductions have already been made in rates and charges for colonial products, and in some cases there are already indications of an increased volume of traffic. This makes it imperative that steps should immediately be taken to make provision for a corresponding increase of rolling-stock. We have also endeavoured to further the cause of education and at the same time to popularise the railways by conveying school-children and their parents at nominal rates to both town and country. In this way a more extended knowledge of the country and its resources has been made known to those who otherwise would have had no such opportunity. Very general satisfaction has been expressed with the arrangements made for this purpose. Owing to the diminished yield of wheat the railway revenue has suffered to a considerable extent; but the recent rise in the price of grain has been an incentive to farmers to sow much larger areas this year than hitherto. The opening of the Eotorua line is an historic event long looked forward to, and likely to lead to a great development of our tourist business. Already much larger numbers than heretofore have visited the thermal wonderland, and the resources of the district have been taxed to the utmost. Large additions are being made for the accommodation of tourists and excursionists, who are certain to take advantage of the through railway communication during the coming season, My colleague the Minister for Eailways will place more fully before the House the intentions of the Government as to its policy for the future working of the New Zealand railways,

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OUR TELEGRAPH CABLES. A new cable across Cook Strait, from Oterangi Bay to White's Bay, thirtyone knots in length, was laid on the 7th May last by the " Terranora." This cable was ordered last year in anticipation of the breakdown of the old threecore, originally laid in 1866. On the 29th April, a few days before laying the new cable, this old one parted in several places. With the new single conductor, operated by the Wheatstone automatic instruments which have been introduced since my last Statement, it has been practicable to cope with the telegraph traffic between the North and South Islands, notwithstanding the loss of the three-core cable, which has been abandoned. Another single-core cable has been ordered from England, and is expected here in time to be laid in December. The Wanganui to Wakapuaka cable has been permanently duplexed, materially assisting in overtaking the telegraph work between the two Islands, as well as that between the North Island and Australia. It is deserving of note that the cost of the cable-steamer " Terranora," including the expenses of purchase of new cables and repairing of old cables, amounts at the present time to £8,253 ; but had the Government adopted during the last year the former system of employing a steamer from outside the colony to do the work which the "Terranora" has done the actual cost would have been £16,000, so that by utilising the "Terranora" the Government has not only saved the cost of the new cables that have been laid, but also the cost of the steamer itself. Then, in addition to this, there was £8,000 to the good over and above what the expenditure would have been. This is extremely satisfactory. It is not desirable, however, that the "Terranora" should be used longer than is absolutely necessary for the work connected with the maintenance of our cables. Though the "Terranora" has during the last three years done excellent work, the time has now arrived when she should be replaced by a new steamer. POST AND TELEGRAPH CONFERENCE. The Conference met at Hobart in February last, and was attended by Ministerial representatives from all the colonies. The meeting was to have taken place in Melbourne, but, at my instance, the other colonies agreed to meet at Hobart, and on a date earlier than that originally fixed, in order that I might, on my way to London, be able to attend —a consideration for my convenience of which I cannot sufficiently express my appreciation. As my arrangements necessitated my early departure from Hobart, I was unable to remain throughout the meeting ; but the colony's interests were well looked after by the Postmaster-General of Tasmania, who was good enough to consent to act for me in my absence. The principal business transacted at the Conference affecting New Zealand was that relating to ocean-mail and telegraph-cable services. The Conference, on a motion submitted by me, reaffirmed the desirableness of establishing a four-weekly mail-service between Australia, New Zealand, and Vancouver, alternating with the present San Francisco mail-steamers, so as to provide a fortnightly Pacific service. This question is treated of at greater length in another part of the Statement. The threatened withdrawal of Victoria, now one of the guarantors of any deficiency in the working of the Eastern and New Zealand-Sydney telegraph cables, brought the whole question of cable communication and cable guarantees very prominently before the Conference. Besides reaffirming the desirableness of the construction of the Pacific cable, it is gratifying to be able to state that the Conference adopted another motion of mine, under which the amounts hitherto guaranteed by the colonies in respect to the New Zealand-Sydney and Eastern cables were materially reduced, thereby effecting a considerable annual saving to this colony. Not only did the motion secure the continued adhesion of Victoria to the cable-guarantee agreements, but the reduction of the colonies' liabilities was obtained without increasing the Press rates over the New Zealand-Sydney cable, which at one time seemed inevitable.

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I feel sure there is a general consensus of opinion that it is of incalculable advantage to New Zealand to have low cable rates, both for the Press and public ; and I look forward with confidence to the time when the development of commerce and the growth of the colonies will enable a further reduction to be made, so as to place the use of the cables at the command of all classes. The later negotiations in connection with the construction of the Pacific cable I propose to deal with in another part of the Statement. The interests of the mercantile community were further considered in connection with the proposed obligatory use of the cable-code vocabulary recently issued by the International Office at Berne. Action was taken by the Conference to enable the matter to be watched and dealt with at the proper time. The question of the renewal of the Federal Mail-service was also debated, but the result, except that the Conference strongly expressed its disapproval of coloured labour on subsidised steamers, is of little interest to this colony. Uniform ocean penny postage was also discussed, but the time was regarded as inopportune for making any alteration in the existing rate. The report of the proceedings has already been laid before Parliament; but I may mention that a large number of subjects, principally of a departmental and technical nature, came before the Conference, and were fully considered and dealt with, to the common advantage of the colonies. CONCESSION ON COST OF MANAGEMENT OF OUR INSCRIBED STOCK. Upon assuming the position I have now the honour to hold, my attention was called to the charges made by the Bank of England in connection with the management of our inscribed stock. These charges were originally £600 per million, but after ten millions had been reached the Bank lowered the rate to £550 on the succeeding millions up to fifteen millions, and a further concession was made of £50 per million on the remainder of the amount inscribed in the Bank books. I am aware that this matter had not been lost sight of by my predecessors, and our present Agent-General had already made strong representations to the Bank authorities to have the charges reduced, but without success. Upon my arrival in London I determined that further efforts should be made to reduce the existing charge, then amounting to over £18,000 per annum. Our AgentGeneral, in conjunction with the Agents-General of New South Wales and Queensland, had a few weeks before waited upon the Governor of the Bank of England and strongly urged their claims for a reduction of charges, and they discussed the matter very fully with the Bank authorities. No hopes were, however, held out to them by the Governor that their application would be favourably considered. Subsequently, the Agent-General wrote a formal application to the Bank asking for a reduction of the charges : this application was declined. I determined to personally urge our claim upon the Governor, and, accompanied by the Agent-General, I was favoured with an interview with the Governor and the Deputy-Governor, who then promised to reconsider the whole question. At a subsequent meeting, the Governor informed me that the Bank had decided to make a reduction of £100 per million per annum. The rate will now stand at £500 per million for the first ten millions, £450 per million for the succeeding five millions, and £400 per million for the amount inscribed above fifteen millions. This reduction, dating from the Ist May, 1895, upon a total of upwards of thirty-six millions of inscribed stock, represents a saving of £3,600 per annum—a valuable concession, you will admit; but lam strongly of opinion that the rate is still too high. It is right also to mention that the Bank has waived its special charge in connection with the conversion of outstanding Government debentures into inscribed stock, and is prepared to make any further inscriptions of a similar nature free of charge, out-of-pocket expenses excepted. THE MILLION AND A HALF LOAN. As " The Government Advances to Settlers Act, 1894," authorised the raising of three millions, in sums not exceeding one and a half millions in each financial year, subject to a limitation of two years from the date of the passing of hi—B, 6, '

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the Act, the Loan Agents appointed under the Act proceeded to issue a prospectus calling for tenders for one and a half millions of 3-per-cent .inscribed stock, to be lodged at the Bank of England on or before Friday, 3rd May, 1895. The minimum price of issue was fixed at ,£9O per cent. Instalments were made payable by 5 per cent, deposit; 25 per cent, on the 13th May; 35 per cent, on the Ist July; and 35 per cent, on the Ist August, 1895. Instalments paid in full on or after the 13th May, 1895, were to be subject to a discount at the rate of £1 per cent, per annum. The stock will be inscribed in the books of the Bank of England on or after the Ist August next; but scrip paid up in full was to be forthwith inscribed. The nominal amount of stock was to carry six months' interest, payable on the Ist October, 1895. On opening the tenders at the Bank of England the result was found to be eminently satisfactory. In respect of one million and a half, applications for £5,960,400, at prices varying from £100 to £90, were sent in; and, of these, about 33 per cent, of the tenders at £94 Bs. were accepted, those above that price being allotted in full. The average price realised was £94 Bs. 9d., and the amount payable was £1,416,601 2s. The full accounts connected with this operation have not yet been received from the Loan Agents, so I am unable to state the exact amount of expenses incurred. I may, however, say that no portion of the loan was underwritten, or any expense incurred in this respect. An offer to underwrite was made and declined. Correspondence relating to this loan operation will be shortly placed before you. Now, honourable gentlemen may think that, as the raising of this loan was attended with so much success, the operation itself was of a simple character; but I can assure you that such was by no means the case. In the first place, the determination to fix a lower rate of interest for our new loan caused, as you may imagine, great anxiety, and was only decided upon after the most careful consideration ; and I shall not, I hope, be accused of divulging matter of a confidential nature, when I assure the House that some of the highest financial authorities in London were of opinion that a 3-per-cent. loan would not be likely to prove successful. It is my pleasurable duty to state that our Loan Agents were indefatigable and untiring in their exertions to insure the success of the loan, after we had decided upon the rate and the minimum price of issue, and in connection with the splendid result I am not desirous of taking to myself any credit which properly belongs to them. I have also to thank the Governor of the Bank of England for his valuable advice and assistance. To the general manager of the Bank of New Zealand, then in London, and to the local manager, I am also indebted for the courtesy and information they so willingly extended to me. The Queensland and Western Australian Governments came out with 3j-per-cent. loans immediately before our own 3-per-cent. loan was announced; and I have had some calculations made comparing the results of the average prices of their loans with our own. I may here mention that the Western Australian loan was issued with an alternative currency —namely, twenty or forty years; while the Queensland and our own carry a fifty years' currency. The average annual charge per £100 of stock on each of these loans (of course, leaving out of consideration the expenses of floating), is as follows :— Queensland Loan, which averaged £101 12s. 7d., gives an annual charge of £3 Bs. 7d. per cent. The Western Australian Loan, which averaged £103 Is. 4d., gives an annual charge of £3 7s. 2d. per cent, for a forty years' currency; £3 ss. 10d, for a twenty years' currency ; and £3 7s. 4d. for a fifty years' currencyNew Zealand 3-per-cents, which averaged £94 Bs. 9d., gives an annual charge of £3 4s. 6d. per cent. And now, applying these figures to the one million and a half loan, I find that, notwithstanding the prices over par obtained by the 3i-per-cent. loans of Queensland and Western Australia, the price our own loan realised, although under par, effects a saving to our taxpayers, as compared with Queensland, of £3,062 10s. per annum, or £153,125 for the full period of fifty years. And, com-

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pared with Western Australia, there is an annual saving of £2,000 on the forty years' currency, or £80,000 for the full term ; or a saving of £1,000 on the twenty years' currency, or £20,000 for the full term. But, supposing the Western Australian loan had had a fifty years' currency, then the comparison would show an annual saving of £2,125, or £106,250 for the full term. These figures speak for themselves; but I will take one more illustration of the advantage derived from a 3-per-cent. loan over a 3-J-per-cent. loan, both having a currency of fifty years. Taking the 3|-per-cent. loan at par and the 3-per-cent. loan at £94 Bs. 9d., the annual saving effected on a million and a half loan would be £4,125, which represents a saving of £206,250 for the full period of fifty years. Furthermore, I can assure you that in the annual charge I have taken into consideration the amount required to restore the full capital charge by the time the loan falls due. This saving of the taxpayers' money maybe stated in another and even more forcible way. Take, for instance, the £4,125 just referred to: now, this amount, if invested at 3 per cent, compound interest, would, by the time our loan expires, reach in round figures the large sum of £466,000 ; or if compounded at a 3j-per-cent. rate, it would produce over £500,000 during the same period. With these figures before you, I am justified in feeling a profound sense of satisfaction at having been, in my humble way, the associate in carrying to a successful result what, in my opinion, must be termed a splendid operation—-an operation which, in addition to the enormous advantages gained by bringing money down to a level that admits of its being profitably employed by those who- require it to develop the industries and commerce of the country, again enables New Zealand to lead the van of new and beneficial undertakings amongst her continental neighbours. THE COMMERCIAL POSITION OF THE COUNTRY. One has become so accustomed to hear pessimists decrying the commercial position of the country that it would seem almost a hopeless task to attempt to convince these detractors of New Zealand of their folly. This pessimism has, in truth, become with some an incurable disease. The great difficulty which has in recent years confronted all producing countries has been the steady decrease in the prices of the natural products of the soil. There are many causes assigned for the downward tendency which has taken place in values. Some attribute it to monometallism, others to overproduction; and_ again are to be found those who believe that the system of assured and rapid transit has so developed all over the world in our own times that the former position of values, which had been maintained for a continued period at a high level, has for ever disappeared. Whatever may be the causes, it is beyond question that a marvellous transformation has taken place, and that the duty is forced upon statesmen to assist in the solution of what is recognised to be a great and intricate problem. In this matter New Zealand has not lagged behind. The Government have endeavoured to apply common-sense to lengthen the reach of commercial activity ; and I take it that it will not be disputed that one of the first essentials for a producing country is not only to create an increased output of its products, but to have new markets to which to send those products. The more outside markets to which we can get access the greater will be the competition for the purchase of our goods. The Government, believing that the true policy for this country is to assist the settlers to find fresh markets, have, subject to ratification by Parliament, entered into reciprocal tariffs with South Australia and Canada, by which interchange can be effected with them of some of our products. BANK ASSETS COMPANY. I deem it my duty to state that in my opinion the present position of the Bank of New Zealand Estates Company is far from satisfactory. Honourable members are aware that this company owns large areas of land, which, whilst in many cases suitable for closer settlement, are not now worked to the best advantage. Attached as the company is to the Bank of New Zealand, lam convinced that it will be advisable at an early date to seriously consider in what manner this intimate relation can be modified. At the same time I may say that

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no hasty treatment of this important matter should be entertained. In my opinion the subject is sufficiently important to warrant the special consideration of a Select Committee of both Houses. RECIPROCITY WITH SOUTH AUSTRALIA. I will first deal with the tariff treaty between South Australia and New Zealand. Since this tariff treaty has been published some of the highlyprotective colonies of Australia have taken exception to it, and have gone out of their way to endeavour to prevent New Zealand from sharing in the benefits of intercolonial trade. It does not require much thought to see that the very strength of the position is to insure that there should be special concessions for New Zealand, because, if the treaty I have referred to had general application, there would be no advantage in having a treaty at all. But it must be borne in mind that the treaty with South Australia does not prevent us entering into similar arrangements with other colonies upon such articles as may be agreed upon. In other words, we can send to any other colony every article we are agreeing under this treaty to send to South Australia, and South Australia can do likewise. Our concessions apply to the articles we each receive. If Victoria has anything outside the four articles we have agreed to accept from South Australia in exchange for goods from this colony, we should be delighted to consider a proposal from them, and I have no doubt that South Australia would be equally pleased to treat with them. For South Australia or New Zealand to adopt the policy of standing by and letting the highly-protective colonies exclude them from the benefits of Australasian trade would, in my opinion, be suicidal. I shall presently read the memoranda of agreement between the respective colonies, from which it will be seen that South Australia agrees to accept, free of duty, barley, oats, horses, and hops, and New Zealand likewise agrees to accept free of duty the wine, olive-oil, dried and fresh fruits, and salt of South Australia. There is an understanding that the admission of wine to this country will cease should Prohibition at any time become the law of the land. In considering the reciprocity treaty with South Australia, I would ask honourable members to recognise that this is but the thin end of the wedge, and what is now being proposed to be done may lead the way to further desirable concessions between the other Australasian Colonies. It is to me difficult to understand the arguments that have been put forth by some Australian Governments that the proposed reciprocal tariff between South Australia and New Zealand is adverse to their desire for a federated Australia—a proposal which does not directly concern New Zealand. Viewing the position from all points, it would appear to me that one of the chief difficulties to be overcome in bringing about federation between the Australian Colonies is the adjusting of their Customs tariffs to enable them as a whole to maintain their revenue, which is now largely established through the independent Customs tariffs they have against each other; so that reciprocal treaties between themselves, gradually paving the way towards the establishment of one common tariff, should assist rather than retard the movement they are advocating. My opinion, however, is that a federated Australia is a far greater distance off than the ardent advocates of it believe. There are many and serious difficulties in their way; and, in the meantime, it is surely unwise to continue the policy of cutting each other's throats by maintaining the restrictive and, in some cases, prohibitive tariffs against the natural products of the several countries. Instead of regarding South Australia and New Zealand as bars to their movement, I should have thought that we should have been hailed as countries who were, in a not unimportant degree, assisting by our action in destroying a system that has proved so injurious to some colonies who have been the greatest sinners in this respect. It is not easy to calculate what trade will be created under the reciprocal tariff with South Australia. A year or two's experience will be necessary to enable a fair comparison to be made. On both sides the articles we now propose to make free have been, to a large extent, made prohibitory by the duty imposed on them ; and the development of trade which will follow the removal of the duty is not easy to estimate. There are those in this colony who will

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argue that the treaty is in favour of South Australia, whilst, on the other hand, there are those in South Australia who argue that the treaty is in favour of New Zealand. I say that those who are desirous of creating a reciprocal treaty, as we are, must be prepared to give and take ; and that, upon the broad principle of having a free market for our staple products on both sides, we should not be too fastidious in endeavouring to forecast whether the balance of gain will be for or against either country. The question should be, is it desirable to promote our trade with a great colony like South Australia ? To that the answer of a large majority of the people in this colony will be that it is to oar advantage. Then, if it is to our advantage, are we prepared to make any temporary sacrifice that may be necessary in order to create a friendly interchange of trade with the neighbouring colony ? To that the answer would undeniably be, we certainly should. I have had a careful estimate prepared of the probable loss of revenue to this colony during the first year's operations of the treaty, and I think I am within the mark when I state that it will not exceed £6,000, an amount I have provided for in the estimate for the year, and have left a considerable margin to spare in case my judgment should be at fault. Before leaving this subject I think it is right to draw attention to the advantages which may be reasonably anticipated from establishing a trade with South Australia. It will be interesting to honourable members to know that during 1893 South Australia imported from Victoria 23,040 bushels of barley, valued, at £5,332, and also 44,991 bushels of oats, valued at £4,949. South Australia imported from New Zealand last year 12,977 bushels of oats, valued at £1,209. In 1886 New Zealand exported to South Australia 33,641 bushels of barley, valued at £6,914, and 200,604 bushels of oats, valued at £20,663. The following year the South Australian Government raised the duty on barley from 9d. to Is. 6d. per bushel, and on oats from 3d. per bushel to 2s. per cental, and thereby practically shut out New Zealand from the South Australian market. There is also every possibility of a large timber trade being developed, for South Australia imports annually £174,000 worth of timber, a very large proportion of which could be supplied by New Zealand. I can only say that I trust that honourable members will view impartially the proposed trade arrangements with South Australia. That such arrangements are certain to become the forerunner of other treaties, which in the ordinary course must add materially to the wealth of this country, I am firmly persuaded. Agreement, made this 2nd day of February, 1895, between the Honourable Joseph George Ward, Treasurer, acting for the Government of New Zealand, of the one part, and the Honourable Charles Cameron Kingston, Attorney-General, acting for the Government of South Australia, of the other part, whereby it is agreed as follows : that is to say, —(1.) During the term of this agreement, South Australia shall admit duty-free the goods referred to in the First Schedule, the produce of New Zealand. (2.) During the term of this agreement New Zealand shall admit duty-free the goods referred to in the Second Schedule, the product of South Australia. (3.) During the term of this agreement, neither New Zealand or South Australia shall reduce the existing duties leviable on the goods referred to in the said Schedules, the produce of any other colony or country. (4.) This agreement to commence on the Ist day of May next ensuing, and to continue for seven years from such date, subject to determination by one year's notice on either side. (5.) Schedule I—Goods to be admitted duty-free by South Australia : Barley, oats, horses. Schedule 2—Goods to be admitted duty-free by New Zealand: Wine, olive-oil, salt. (6.) For the purpose of giving effect to this agreement until fully authorised by Act, each colony will refund any duty collected on goods herein agreed to be admitted duty-free. (7.) Either party to have the right to cancel this agreement by notice to the other any time on or before noon of Wednesday, 6th February instant. —J. G. Ward, C. C. Kingston. It is hereby further agreed, subject to confirmation as per original agreement, that the following commodities shall be included in the arrangement for free interchange between New Zealand and South Australia —namely, New Zealand to admit free of duty South-Australian-grown fresh atid dried fruits; South Australia to admit free of duty New-Zealand-grown hops. South Australian grapes to be guaranteed free of disease, and in event of disease to be prohibited until free of disease. For New Zealand, J. G. Waed ; for South Australia, J. H. Gordon, Chief Secretary. RECIPROCITY WITH CANADA. I feel sure that it will be gratifying to all in this country to know that a tariff treaty has been arranged (subject to the approval of the Legislatures of

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both countries) between Canada and New Zealand. The main features of the treaty are that some of our great staple products will be admitted into Canada free. Under the proposals a considerable expansion of trade may be looked for in the products brought forth by country settlers, as well as of trade generally, in the colony. As soon as the necessary preliminaries to confirm .the proposal have been completed, there will be a free market between Canada and New Zealand for wool and woollen manufactures, blankets, flannels, tweeds, rugs, live stock, frozen and fresh meat, bacon and hams, fish, hides, condensed or preserved milk, flax, barley, oats, wheat, wheat-flour, seeds, binder-twine, coal, kerosene oil, safes, organs and pianofortes, tallow, lumber, and timber. In addition to the articles on the free list named above, concessions in favour of the following articles are made: Should a duty be placed in New Zealand upon agricultural implements, they are to be admitted free from Canada, and a concession of 2£ per cent, below the general tariff rates, is also provided upon twine of all kinds, ropes, cordage. As Canada is a large manufacturer and exporter of binder-twine, ropes, and cordage, the competition which will ensue in this country in that industry will remove any friction that may have existed, and insure at least a fair value upon this article. There will also be a deduction equal to 10 per cent, off the Customs tariff upon leather, and 5 per cent, upon boots and shoes, harness and saddlery as between the two countries. This latter proposal will, I trust, meet with the approval of the people of this country, inasmuch as under ordinary conditions it should enable our own manufacturers to gain a portion of the trade in Canada, and to export a considerable quantity of these articles from New Zealand. They will at least fully hold their own with the Canadian article. There will also be a concession of 5 per cent, below the tariff rates allowed upon Canadian - manufactured furniture, and a similar concession is to be made upon New Zealand furniture introduced into Canada, Particulars generally will be obtained from the memorandum of agreement, which I shall presently read. Upon careful scrutiny it will be seen that the possibilities of trade with Canada under this tariff treaty are very great. The Canadian Dominion is within twenty days' steam of New Zealand. In considering the proposal as submitted by me, I would ask honourable members to recognise that the country with which we propose to enter into this tariff treaty has a population of some five millions; and as years go on the two countries must, as the result of this friendly interchange of trade, reap mutual and lasting benefits. I would ask honourable members to give to this important proposal, thus briefly sketched above, their most careful and impartial consideration, recognising that any expansion of markets for New Zealand products means increased national prosperity. With our land settlement, and with our increasing productive powers going on apace, it is absolutely essential, to enable our country to prosper, that fresh markets should be found in other countries for our products. We propose now to begin with two great British dependencies ; and I sincerely hope the movement will be supported with spirit and enterprise by our fellow colonists in all parts of the country. I have had some statistics prepared which I attach for the information of honourable members, so as to show the possibilities of trade with Canada. It is, as I have said in speaking of the South Australian proposals, very difficult to estimate the degree to which the possibilities of trade will extend under a treaty such as I have sketched to you. Unlike South Australia, which is closer to New Zealand, and the people of which are more familiar with our commercial conditions and requirements, I am of opinion that at first the growth of trade between New Zealand and Canada will be slow, from the fact that new connections will have to be opened up by commercial houses in both countries, which would probably entail visits to the respective countries by representatives of those houses, and necessarily there would be some delay at the inception of the proposed interchange of trade. I should not, however, expect to have to provide more than £5,000 during the first year as the result of concessions upon the articles named which will be imported from Canada. I may in this respect be mistaken, and in order to insure that sufficient is provided, I have, in estimating the finances, allowed for the amount being doubled, if necessary.

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Memorandum referred to in accompanying note respecting improved commercial relations and reciprocal tariff regulations, as agreed upon in conference, held informally m Ottawa, 10th June, 1895—between Sir Mackenzie Bowell, Premier, &c, and the Hon. George E. Foster, Finance Minister &c, as representing Canadian interests, and the Hon. J. G. Ward, Treasurer, PostmasterGeneral, &c, as representing New Zealand interests—subject to the approval of the Governments and Legislatures of Canada and New Zealand respectively. The following named articles, when the produce or manufacture of New Zealand and imported direct therefrom into Canada, and when the produce or manufacture of Canada_ and imported direct therefrom into New Zealand, to be admitted in both cases free of Customs duties, viz. :— 1. Animals (live), excepting hogs. 2. Frozen or fresh meats. 3. Bacon and hams. 4. Fish. 5. Hides. 6. Milk (condensed or preserved). 7. Wool, and manufactures composed wholly or in part thereof —viz., blankets, flannels, tweeds, and rugs. 8. Flax (Phormium). 9. Barley. 10. Oats. 11. Wheat and wheat-flour. 12. Seeds. 13. Coal. 14. Kerosene oil (petroleum). 15. Safes. 16. Organs and pianofortes. 17. Tallow. . 18. Lumber and timber, planks, boards and dimension stuffs, rough or manufactured, including doors, sashes, and blinds. 19. Binder-twine. The following articles, when imported under like conditions and in like manner, to receive in both countries preferential tariff treatment as follows, viz. : — 1. Agricultural implements, including also axes, hatchets, scythes, forks, rakes, hoes, shovels, and spades, if made dutiable under New Zealand general tariff, to be free. 2. Twines of all kinds, ropes, and cordage, a rate equal to 2$ per cent, ad valorem less than the general tariff rates current at date of importation. 3. Leather, a rate equal to 10 per cent, off the rate current at date of importation. 4. Boots and shoes, harness and saddlery, at 17$ per cent, ad valorem, or, in case the general tariff rate in both countries be 25 per cent., the preferential rate to be 20 per cent. 5. Furniture, at 20 per cent, ad valorem. Mackenzie Bowell. George E. Foster. J. G. Ward, Colonial Treasurer, New Zealand. CANADIAN PACIFIC MAIL-SERVICE. To enable the trade between Canada and New Zealand to be successfully carried on, it is advisable that regular steam communication between the two countries should be established. With this view an agreement between the Canadian Pacific Steamship Company and the Government will be submitted to the House for approval. The line of steamers at present running between Canada and Australia is subsidised for a period of about eight years by the Canadian Government, and also for a shorter period by the New South Wales Government. It is proposed that the line of steamers should run to either Auckland or Wellington, and, in return for a monthly service, to be conducted with a view to necessary expedition and accommodation, touching at Fiji and Honolulu, to give to the company a subsidy of £20,000 per annum for a period of years to be fixed. I believe that the advantage, direct and indirect, which will be gained by the colony if this proposal is given effect to, will more than warrant this outlay. The whole sum of £20,000 cannot in any case be a direct loss to the colony, inasmuch as the line of steamers so subsidised will carry mail matter, upon which, under ordinary circumstances, we would have to pay a poundage. The advantages of such a service in developing our tourist traffic cannot be over-estimated. With the establishment of this service it is not intended to abandon or weaken our support to the San Francisco line, which gives us an important connection with America. Our policy is to have a fortnightly connection from New Zealand by the two lines to America and Canada respectively.

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In order to prevent the concessions upon the duties between the two countries and the proposed subsidy to the line of steamers between Canada and New Zealand being provided for out of our present revenue, I propose to make up from £10,000 to £20,000 per annum by a readjustment of the death duties. So far as I can learn New Zealand is the only colony where property devolving upon a widow or widower is exempt from succession duty, and I believe there is no such exemption in England at the present day. As the law here now stands all property devolving upon a widow or widower is absolutely exempt, and where either take a life estate in property yielding a yearly income of less than £500 the duty is postponed until the death of the life tenant. In comparison with other countries this appears to me to be much too liberal, and I propose —(1) To exempt all estates under £300 ; (2) subject to such exemption, to abolish the exemption on all property devolving upon a wife or husband absolutely; (3) and, in order to determine the rate of duty, that all property disposed of by will, settlement, gift, or family arrangement be aggregated as in England. An amendment of "The Deceased Persons' Estates Act, 1881," will be introduced so as to give effect to the above proposals. Independent of the fact that it is desirable to provide for the loss of revenue by the admission of certain articles from Canada free, I see no reason why, where valuable legacies have been left, they should escape taxation, which they do not escape in other countries. PACIFIC CABLE. The important question of establishing a Pacific cable by an all-British route to Canada and England has engaged the attention of the Government during the recess. The matter proceeds somewhat slowly, owing to the fact that several countries are interested with New Zealand in the establishment of this link via the Pacific, and joint action is necessarily required. The Canadian Government are very much in earnest in their desire to have their country connected with the colonies by a cable touching the Pacific Islands en route. The matter is one of much importance to New Zealand. At the present time, as honourable members are aware, our cable-connection crosses a number of territories outside the British Empire ; and in the event of war the maintenance of communication through so many countries would be greatly imperilled. Owing to the isolated position we occupy, there probably is no country to which in this respect war would be of more serious consequence. This fact renders it all the more necessary that we should do all in our power to hasten the establishment of a Pacific cable, quite independent of the commercial advantages thereof. It is proposed to ask the House to assent to the necessary legislation to give the Government power to co-operate with Canada and other countries interested in pushing forward this project. A careful analysis of the cost, and of the commercial possibilities resulting from the establishment of such a cable, demonstrates that it would not involve any heavy contribution or responsibility on the part of New Zealand. I feel sure that honourable members on both sides of the House will recognise the importance of our endeavouring to remedy the unfortunate position of affairs, which might, should an emergency arise, result in seriously affecting the industries of New Zealand. CONVERSION OPERATIONS. While in London I took the opportunity of making full inquiries as to the prospects of converting our future stock into 3-per-cents. As the result of careful and extended inquiries, I am of opinion that this can be done with much advantage to the country, in the way of further large saving of our annual interest-charges. In the delicate and difficult operations that surround large financial transactions it is obvious that many matters of detail require to be provided for, and it becomes important to choose an opportune time to carry out a conversion scheme of magnitude. It has occurred to me, as a matter for careful consideration, whether a scheme could not be formulated whereby the addition to our debt, arising from further conversion operations, could not be so provided for as to pre--

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vent such increase becoming a permanent addition to the public debt. In my opinion a portion of the interest charge which would be saved to the country by a successful conversion operation could be fairly utilised as a sinking fund to provide for the extinguishment of the additional debt created by the conversion. I am convinced a very large saving of the annual interest-charge can be effected, and, if any extra debt can be provided for at maturity, it is easy to see that the country will be a great gainer by the ideas I am now placing before you if they are carried to a practical and successful issue. EXTINGUISHMENT OF OUR PUBLIC DEBT. The question of the extinction of our loans has given me much concern. The time is approaching when, in my opinion, it would add to the stability of the colony, and place it in the forefront of any country in the world, if we would resolve to make a moderate sacrifice in providing with our annual interest a small payment to enable the loan to be extinguished within a reasonable period upon a system somewhat similar to that which is now applied to our loans to local bodies. The question of how various Administrations use the sinking funds of the colony would, under such a proposal as I am now endeavouring to sketch, completely disappear; inasmuch as the sinking fund would be included in the annual payments of interest. If we realise to the full the advantages chat would follow a general conversion of our stock into 3-per-cents, and utilise the large annual saving in interest thus obtained to repay our indebtedness, the ability of the taxpayers to provide the redemption fund would not be taxed beyond present limits. I fully recognise the fact that financial authorities urge that a borrowing country should not provide a sinking fund until it has ceased to borrow. Circumstances alter cases, and I say that, with the novel prospects of obtaining money at such a low rate as would enable us to provide for the gradual reduction and extinction of our debt without adding to our annual burdens, the provision of a sinking fund is a course that has much to commend it. While posterity has doubtless to reap the reward of the efforts of ourselves and those who have preceded us, and should bear a full share of the burdens created to make the country, still, as prudent men we should, while recognising the necessities of the times in which we live, endeavour to make our legacy as light as possible for those who will follow us. I think there is much to be said for this proposal; and I am seriously of opinion that it would give greater stability to this country were we, when the right time arrives, to adopt an effective system for the extinction of our indebtedness. LOCAL BODIES' LOANS. The general lowering of the values of money has necessarily brought before me the question of the rates of interest which are being paid by local bodies for the moneys they require for carrying on their public works. It is, of course, difficult to make a change retrospective in its application where a commitment for a period at a particular rate of interest has been agreed to by a local body. But lam decidedly of opinion that the advantage to be gained by the cheapening of money should apply to local bodies throughout the country ; and it seems to me desirable that the rates which are now being paid to investors in securities of local bodies should be lowered, so as to be in keeping with those we are paying for our borrowed moneys. I propose, after due notice has been given, to readjust the lending rates of Government departments, and to take the necessary steps to relieve such local bodies as have funds provided from these institutions for carrying on their finances. In connection with this, I desire, however, to point out that, unless other financial institutions of the country are agreeable to conform to the system which has been initiated by the Government, we will not stand by and allow any undue advantage to be gained by them to the detriment of the Government institutions from the colony's action in lowering interest-rates. The more the question of cheap money is thought out by all classes in the country, the more it will be seen that it is of the first importance to the future prospects and development of New Zealand that we should be placed upon a footing at least equal, if not superior, to that of countries closer to the consuming markets of the world, iv—B. 6.

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This should not be a question that should rouse any party feeling. It is one with which the interests of the country are very closely bound up—so much so as to render it essential that we should combine to insure the best possible results for all classes of the community, so as to enable them to profitably carry on the operations vital to the well-being of the colony. I repeat my oftexpressed opinion that the rates for money both for public and private use in New Zealand, have been and are still too high, and still beyond the power of the general community to continue to pay. LOCAL GOVERNMENT. The Honourable the Premier will, at an early date, submit, for the consideration of the House, important proposals for the improvement of local government in this colony. It will be more convenient for the financial portion of the proposals for such a change as is contemplated to be brought before this House simultaneously with the whole local government scheme, and I shall therefore only direct the attention of honourable members to the change contemplated. The money provided in the estimates under the head of "Permanent Charges" amounts to the same as was there last year. This, however, is only approximate, and, in addition, under the Public Works Fund, other moneys will be available for main roads which up to the present time have been maintained by the local authorities. FINANCE OF 1895-96. . Having now recounted the past, I will turn to our proposals for the current year; and I may at once inform honourable members that I do not share in the gloomy forebodings of the prophets of evil who afflict our public life. In view of the recognised fact that our Customs and railway revenues had fallen somewhat during last year, it has become more than ever necessary to exercise the most rigid scrutiny over our proposed expenditure of the current year; and I can assure you that the figures lam about to quote have been most carefully considered, so as to bring them down to the lowest possible amount consistent with the efficient administration of our public services. The following table exhibits our financial position as estimated for the current year:— ESTIMATED EXPENDITURE. £ £ Civil List .. .. .. .. .. .. 25,700 Interest and Sinking Fund .. .. .. .. 1,694,605 Under Special Acts .. .. .. .. .. 331,590 Legislative Departments .. .. .. .. 17,385 Colonial Secretary's Department .. .. .. 70,110 Colonial Treasurer's Department .. .. .. 25,550 Justice Department .. .. .. .. 124,186 Postal and Telegraph Departments .. .. .. 335,017 Customs and Marine Departments .. .. .. 64,186 Stamps and Deeds Department .. .. .. 20,560 Minister of Education, — Education Department .. .. .. .. 416,814 Lunacy and Charitable Department .. .. .. 52,022 Department of Labour .. .. .. .. 6,260 Mines Department .. .. .. .. .. 18,289 Department of Agriculture .. .. .. .. 44,735 Working Railways Department .. .. .. 738,940 Public Buildings, Domains, and Machinery Department .. 50,500 Defence Department .. .. .. .. .. 64,419 Police Department .. .. .. .. .. 100,441 Lands and Survey Department .. .. .. 129,634 Kates on Crown Lands .. .. .. .. 900 £4,331,843 ESTIMATED REVENUE. £ £ Customs .. .. .. .. .. .. 1,560,000 Stamps (including Postal Cash Receipts) .. .. 644,300 Land and Income Tax .. .. .. .. 350,000 Beer Duty .. .. .. .. .. .. 60,000 Railways .. .. ..: .. .. .. 1,155,000 Registration and other Pees .. .. .. .. 50,000 Marine .. .. .. .. .. .. 21,500 Miscellaneous .. .. .. .. .. 65,000 Territorial Revenue .. .. .. .. .. 290,000 4,195,800 Debentures for Sinking Fund Increases .. ' .. .. 145,400 £4,341,200

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Proposed Expenditure. It must be remembered that there are several services the expenditure on which, as the colony advances in settlement and increases in population, requires to be augmented from year to year, notably the Post and Telegraph services and the expenditure on free education. These services show an increase of £36,251 and £20,580 severally. Then, again, as extra mileage on our railways is thrown open the expenditure on that service must necessarily increase, and this accounts for the extra £13,684 shown under this head. The other departmental increases are small, and do not call for any special comment. I have been able to make a material reduction over the amount paid last year for our interest charges, amounting in all to £22,284. The largest item of reduced interest charges arises from the final disappearance of the old system of providing interest on the drawn bonds of the Consolidated Loan of 1867. The interest on bonds issued to provide for the requirements of loans to local authorities, and for the purchase of European and Native lands, and for settlement purposes generally, has necessarily increased; but the interest we pay upon the moneys raised for these purposes is more than covered by the earnings which come back to us. The total estimated expenditure is set down at £4,331,843, which is £65,131 in excess of last year's actual payments, but £18,357 less than my last year's estimate. The Estimated Revenue. The consideration of our revenue for the year we have now entered upon has given me much concern. On the one hand I desire to exercise proper caution, on the other hand I do not wish to discount our resources. Excluding the aid to revenue from the proceeds of debentures issued as a set-off against the Sinking Fund accretions, I have estimated the revenue at £4,195,800, which is £86,196 less than the actual receipts of last year. The Customs revenue is set down at £9,784 less; the revenue from stamps at £32,925 less. The latter item is large; but the receipts from death duties are an. element the amount of which cannot be foreseen, and last year increased our revenue by upwards of £35,000. With regard to the land- and income-tax I shall have a word or two of explanation to offer, but I may say here that I have not considered it safe to estimate our receipts from this source at more than £350,000, the same sum which I placed in my last Budget. The railway revenue has fallen, owing to causes which I have already mentioned, and, although I desire my estimate to be on the safe side, I shall be disappointed if the actual results do not exceed my present figures. The receipts under the head of " Territorial Revenue " are retained at the same figures I submitted last year, and you will recognise that the extremely low price of our staple products, and the losses sustained by our flockowners in the South Island by the unprecedented fall of snow, do not warrant an increase of this item. The item of £145,400 in aid of revenue from debentures issued against Sinking Fund accretions is larger than last year by the amount of £27,600 : a large proportion of this excess has arisen in consequence of the inclusion of an amount previously omitted in respect of the accretions connected with the sinking fund created under " The Government Loans to Public Bodies Act Amendment Act, 1892." Results at 31st March, 1896. I am not able on this occasion to prognosticate such a favourable balance at the close of the year as I have been able to predict on former occasions; still, lam able to show that our revenue will be more than sufficient to meet our expenditure requirements for the year, thus : — Estimated revenue ... ... • • • ■ • ... £4,341, 200 Estimated expenditure ... ... ••• •■• 4,331,843 Excess of revenue over expenditure ... 9,357 Balance to begin the year with... ... ... 180,024 Total gross surplus at end of year ... ... £189,381

8.—6.

XXVIII

From this amount we intend to deduct £150,000 as a contribution to the Public Works Fund in aid of the settlement of the country by road-making and other public works, leaving a balance of £39,381, out of which the usual supplementary estimates will be provided for. THE CUSTOMS TAEIPF. The present tariff is influenced by several considerations : — Protection; Remissions in favour of manufacturers ; Remissions in favour of the working-classes ; Revenue; and Extra taxation of luxuries. It will be seen that there are here the elements of a complicated tariff, in which anomalies cannot be avoided; and I see no prospect of constructing a simple or comprehensive tariff so long as it is deemed expedient to allow the question to be influenced by these considerations. To give an instance, take " soft-goods," in connection with which many of our difficulties occur. For protection we impose 25 per cent, on apparel; tor remissions in favour of manufactures we remit duty on tailors' trimmings and other articles for making up apparel, also on the materials for shirtmaking; for remissions in favour of the working-classes we make cotton piece-goods subject to half the rate for more expensive materials; for revenue purposes we maintain the high rate of 20 per cent, on unenumerated drapery which cannot be made in the colony; and for the purpose of extra taxation of luxuries we pick out silks and furs for higher duty. Now, it would be a very easy matter to strike a medium rate over all the items embraced under " soft-goods," but the requirements of revenue only would be served, and local industries and the interests of the working-classes would be sacrificed. As to" anomalies," these must arise when some materials are made free for aiding manufacture. Importers are unable to see why one " lining" should be free and another not. But, from a departmental point of view, it is necessary to make free merely such textiles as are suited only for manufacture, and to exclude from the free list those which may be used now for manufacture, but which if made free would be speedily altered sufficiently to make them suitable for general purposes. Manufactures may be aided in two ways :— By imposing a heavy duty on the complete imported article; By imposing a moderate duty on the complete article, but remitting duty on the materials used in the local manufacture. The latter is the course followed in the proposed tariff, and it is the one most beneficial to the consumer; but it is the course in pursuance of which it is vain to expect a simple and comprehensive tariff. In support of these remarks, I would invite your attention to the tariffs of the United States, Canada, Victoria, and France, as examples of the extreme complications which arise from protection and from the attempt to adjust the relations between the manufacturer of the complete article and those of the producer of the raw material. The New Zealand tariff, however complicated it may appear, is much more simple than those named. It is principally the importers and traders who make so much of these complications. It is vexatious to them to be puzzled with so many distinctions of rates and so many exemptions in which they are not interested. No doubt the manufacturer, however, will value the attempt to discriminate. Other fruitful sources of anomalies are the following: — The exemption of articles used for some particular purpose—as machinery for dairying, mining, and agriculture, but not for paper-making, bootmaking, woollen-mills, rope-making, &c. This anomaly is intensified by the fact that the very classes of machinery which can be made in the colony are those which are admitted free. The exemption of certain descriptions of goods from a general heading— for instance, " artificers' tools." The exemption was worded in this way because

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XXIX

some definite meaning could be attached to it; but the consequence is that sheep-shears, butchers' saws, &c, are excluded. A great many tools of trade are dutiable because those who use them are not " artificers." A hand fret-saw is free, but a fret-saw driven by a treadle is dutiable. This forms another of the anomalies complained of. It would be an easy matter to get rid of all these difficulties by making all machines and machinery either free or dutiable, or else removing the exemption in favour of artificers' tools; but it is not an easy matter to resume a duty which has been in abeyance for several years. These are examples of the difficulties to be met with in any attempt to reconstruct the tariff on broad and simple lines. In submitting proposals for a readjustment of the Customs tariff, I desire to acknowledge the valuable assistance which has been rendered by the Tariff Commission, the members of which went exhaustively into this difficult and intricate subject during the recess. No alteration has been made in the tariff since 1888, and adjustment is now necessary. Some articles have since then come into existence that then were unknown. There are many anomalies to be removed. While I have not been able to see my way to adopt the whole of the recommendations of the Tariff Commission, yet their investigation has been of very considerable help to me in dealing with this important question. I need hardly say that it was my duty to very carefully read and weigh the important recommendations made by the Commission. I need, however, scarcely point out that there are connected with it many important considerations—outside the particular duties of the Commission—which I have had to keep in view. In the readjustment of the tariff my object has been to give reasonable assistance to local industries without increasing the burden of the industrial classes of the country. It cannot be expected that my proposals should meet with the approval of all, but I would ask those who may be inclined to view them with dissatisfaction to take into consideration the many difficulties which beset a Treasurer in undertaking such a task as readjusting the Customs duties. It is of the first importance that the revenue should be maintained, and were too high a duty to be placed upon a particular article it would in some cases have the effect of greatly diminishing the revenue. At any rate a sense of responsibility renders it imperative that undue liberties should not be taken. Take, for instance, two articles upon which the Tariff Commission have recommended increases—viz., jewellery and cards. They recommend that the duty upon jewellery should be increased to 30 per cent., and upon cards from 6d. to Is. per pack. While lam willing to go a reasonable length in the taxation of luxuries, I cannot help thinking that in respect to the two articles I have named the adoption of the recommendation of the Commission would have led to more active evasions of the Customs duties by those who are dishonestly inclined; and experience at present shows the great difficulty with such articles of preventing smuggling, though the greatest vigilance is exercised throughout the colony. An increase of duty must tend to aggravate the trouble. And there are many other articles which could be mentioned in respect to which evasions of the duty might be expected were too high a rate to be imposed. To those who are in favour of a reduction of the duty upon the necessaries of life the fact will be welcomed that I have been able to see my way to reduce the duty upon bulk tea Id. per pound. I should have been glad to have gone further, and adopted the recommendation of the Commission to reduce the duty by 2d. per pound, but was prevented from doing so by considerations for the condition of the revenue. A reduction has also been made of one-half the duty on fencing-wire and rice, and one-sixth of the duty on kerosene. The boot and shoe industry has received very careful consideration, and it is proposed to make the duty upon imported boots and shoes 25 per cent. In connection with soft-goods, changes have been effected which, it is hoped, will result in the prevention of that friction between importers and Customsofficers which has been the cause of much complaint. It will be observed that, with few exceptions, the 15 per cent, ad valorem rate has been increased to 20 per cent. This has been done with the view of obviating difficulties of v—B. 6.

8.—6

XXX

classification, and simplifying the working of the tariff. The increase of duty thus obtained has been available for the remission of duties in other directions. Alterations have been effected in the duty upon many other articles, which are too numerous to be mentioned in the Budget, but particulars of which honourable members will find in a schedule attached to my Statement. The exemptions have been added to with the view of the further aid of local industry and production and the removal of anomalies. Among other remissions it will be found that duty has been removed from woolpacks, butter-paper, tubular woven cloth used for meat-wraps, certain drugs used in manufactures, papers used for making stationery, and wooden handles for tools. I have now given honourable members an indication of the direction in which oar new tariff proposals tend, and I shall presently move a resolution to give effect to the proposed alterations ; in the meantime I may mention that by remissions and concessions we shall lose about £45,000 of revenue, while, ■on the other hand, increased rates and new impositions will bring us in some £55,000, leaving a net increase to the revenue of £10,000. At present the law allows licenses to be issued to persons authorising them to act as agents for the transaction of business at the Customhouse, and such agents are required to give bond for the faithful discharge of their duties both in respect of the persons employing them and of the interests of the revenue. It has been considered expedient to require the payment of an annual fee for these licenses, and provision will be made for this during the present session. CONCLUSION. I have endeavoured to place before members such matters as are of interest to the country, and I trust that the proposals of the Government, should they be adopted, will prove to be of advantage to New Zealand. There are, lam glad to say, evident signs of better prices for our chief products, and the future in this respect looks more hopeful for our settlers. While this is so, it is a matter for most sincere regret that in portions of the South Island the unprecedented fall of snow has wrought such havoc with the flocks of some of our farmers and runholders. In expressing my sympathy with them, I feel sure it finds a responsive chord of general regret throughout the country, and I can but express the hope that the results may prove less severe than was first feared. Surveying the general conditions of other countries, I am of opinion that New Zealand comes well out of the comparison. It is not to be expected in the difficult task of fighting the battle of life that all can be satisfied; but the evidences of thrift, enterprise, and energy which are observable in all parts of this country augur well for its future ; and though I foresee a somewhat difficult period ahead, I look forward with confidence and hope, relying upon the grit and pluck of our fellow-colonists to overcome any temporary difficulties that may arise. I thank the Committee for the patience with which it has been so good as to listen to me.

B-β

APPENDIX. TABLES TO ACCOMPANY THE FOREGOING STATEMENT. PAGE Table. N6. I.^—Abstbact of Eeceipts and Expenditure (exclusive of the Eevenub Account) of the Financial Year ended 31st March, 1895 .. .. .. .. .... 2 Table No. 2.—Comparative Statement of the Estimated and Actual Ebceipts and Expenditure of the Consolidated Fund for the Financial Year ended 31st March, 1895 .. 17 Table No. 3.—The Public Debt on.'3lst March, 1895 .. .. .. ... ..-..- .. 18 Table No. 4.—Statement of the Estimated Liabilities of the Consolidated Fund outstanding on 31st March, from 1886 to 1895, inclusive .. .. .. .. .. 20 Table No. s.—Statement of the Estimated Liabilities of the Public Works Fund outstanding on 31st March, from 1886 to 1895, inclusive .. .. .. .. .. 21 Table No. 6.—Statement showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to 31st March, 1895 .. .. .. .. 22 Table No. 7. —Estimated Expenditure of 1895-96 compared with the Actual Expenditure of 1894-95 23 Table No. B.—Estimated Eevenue of 1895-96 compared with the Actual Eevenue of 1894-95 .. 23 Table No. 9, —Statement showing the Amount charged to Unauthorised in each Financial Year from Ist July, 1875, to 31st March, 1895 .... .. .. .. 24 Table No. 10.—Advances to Settlers : Detail Particulars to 30th June, 1895, of Applications received and Loans granted .. .. .. .. .. .. 24 Table No. 11.—Table showing Possibilities of Trade between Canada and New Zealand under the proposed Eeciprocal Treaty .. .. .. .. .. • < 26 Table No. 12.—Table showing Possibilities of Trade between South Australia and New Zealand under the proposed Eeciprocal Treaty .. .. .. .. .. .. 27

I—B. 6.

2

8.—6

Table

STATEMENT of the RECEIPTS and EXPENDITURE of the STATE FORESTS

STATEMENT of the RECEIPTS and EXPENDITURE of the ACCOUNTS OF

STATEMENT of the RECEIPTS and EXPENDITURE of the DEPOSIT

1893-94. RECEIPTS. £ s. d. 2,241 2 6 Balance at beginning of Year & s. d. £ s. d. 4,157 4 4 1,483 8 0 448 3 6 Rents from Lands set apart Miscellaneous ! 634 2 4 437 5 11 1,071 8 3 1,931 6 6 Totals £5,228 12 7 £4,172 9 0

1,795 16 11 Balance at beginning of Year 3,482 5 10 2,417 19 8 11,465 19 5 13,947 5 4 5,242 11 10 Revenue received for Local Bodies, — Fees, Fines, &c. .. Endowments of Land, &c. .. .. ' .." .. •• ■• •• Goldfields Revenue Gold DutyCounties Separate Accounts, —■ Revenue of Counties in which " The Counties Act, 1886," is not in full operation 2,369 14 11 12,782 7 5 15,085 1 5 5,802 15 10 36,039 19 7 320 8 3 33,073 10 3 288 0 9 39,303 4 3 Advance Account, — Amount repaid by Local Bodies .. .. .. .. £52,101 2 2 Ditto on account of Unauthorised Expenditure of Previous Years .. .. .. ■ .. ' 1,860 10 9 53,961 12 11 90,322 0 9 72,665 1 3 £74,460 18 2 Totals £93,804 6 7

75,91: Balance at beginning of Year ... .. .. ..... .. ..... ov, 19,388 3 0 125 0 0 313 6 2 2,875 0 8 381 17 5 42,490 3 0 10,500 0 0 212 10 0 660 19 5 500 0 0 51 17 8 800 0 0 483 7 8 Lodgments,— Emigrants'Deposits .. .. .. .. .. .. .. 13,346 8 9 General Assembly Library Fund .. .. : .. "... Government of New South Wales .. ,. .. .. .. .. 10,039 16 1 Government of South Australia .. .. .. .. .. .. 1,208 10 3 Government of Victoria .. .. .. .. .. •■ ■• 27,353 5 1 Hospitals and Charitable Institutions Act, 1885 .. .. •. .. 252 5 9 Land Transfer Act, 1885 .. .. .. .. .. • ■ • ■ 375 0 0 Miscellaneous .. .. .. .. .. .. .. .. 45,557 13 7 Money-order Settlement .. .. .. .. .. .. .. 14,050 0 0 Native Land Act, 1878 (No. 2) .. .. .. .. .. .. 225 0 0 Native Land Purchases .. .. .. .. .. .. .. 520 9 8 Naval Depot, Auckland .. .. .. .. .. .. .. 45 0 9 Nelson Rifle Prize Fund Nelson Rifle Prize Fund Investment New Zealand University Endowment, Taranaki .. .. .. .. 398 12 8 New Zealand University Endowment, Westland .. .. .. .. 2 10 0 Ngatirahiri Compensation .. .. .. .. .. .. .. j 675 17 2 North Island Main Trunk Railway Loan Application Act 1886 Amendment Act, j 1889 .. .. .. .. .. .. .. .. .. 3,994 6 11 Permanent-way Material for Open Lines of Railway .. .. .. •• 23,608 14 9 Railways .. .. .. .. .. .. .. .. 4,365 0 0 Released Sinking Funds Supense Thermal-springs District Act, 1881 .. .. .. .. .. .. 697 8 0 Trustee Act, 1883 Westport-Ngakawau Railway Extension Act, 1890 .. .. .. .. 4,100 0 0 3,132 16 3 25,795 18 2 209 10 4 943 5 6 338 18 10 3,012 7 1 150,815 19 112,215 1 8 £188,128 1 10 j Totals .. .. .. .. .. .. I : . • . £231,562 13

8

8.—6

No. 1.

ACCOUNT for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

LOCAL BODIES for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

ACCOUNTS for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

1893-94. EXPENDITURE. 1894-95. £ s. d. 15 4 8 Annual Appropriations,— Class XVII. —State Forests Account £ a. d. £ s. d. 22 13 6 4,157 4 4 Balance at end of Year 5,205 19 1 Totals £4,172 9 0 £5,228 12 7

2,422 0 11 11,624 14 7 13,875 6 3 5,063 8 6 Revenue paid over to Local Bodies, — Fees, Fines, &e. .. .. .... Endowments of Ltod, &o I .. .. .. '.. •• Goldfields Revenue Gold Duty i 2,387 13 11 ■ 12,224 10 8 14,255 4 6 5,573 1 5 32,985 10 3 Counties Separate Accounts, — Amount distributed amongst Road Boards where " The Counties Act, 1886," is not in full operation 34,440 10 6 89 5 4' 350 4 7 37,903 16 9 Advance Accounts, — Payments on behalf of Local Bodies 51,883 6 1 70,978 12 4 86,674 1. 2 Balance at end of Year 7,130 5 5 3,482 5 10 Totals £93,804 6 7 174,460 18 2

18,888 3 0 125 0 0 265 12 9 703 7 4 . 402 11 0 404 6 9 1,146 0 0 42,808 6 10 10,500 0 0 189 15 10 523 3 2 423 5 7 61 0 0 800 0 0 Withdrawals, — Emigrants' Deposits General Assembly Library Fund Government of New South Wales Government of South Australia Government of Victoria Hospitals and Charitable Institutions Act, 1885 Kaihu Valley Railway Land Transfer Act, 1885 Miscellaneous Money-order Settlement Native Land Act, 1878 (No. 2) Native-Land Purchases Naval Depot, Auckland Nelson Rifle Prize Fund Nelson Rifle Prize Fund Investment .. .. Ngatirahiri Compensation Permanent-way Material for Open Lines of Railway .. Railways Released Sinking Fund Suspense Thermal-springs Districts Act, 1881.. Trustee Act, 1883 .. Westport-Ngakawau Railway Extension Act, 1890 [ 13,121 8 9 11,211 1 5 1,257 18 4 28,050 1 1 246 1 7 50,789 17 11 13,100 0 0 171 7 9 507 19 9 75 7 6 37 0 0 403 8 4 23,912 17 9 2,239 0 11 209 13 9 139 18 3 284 18 0 4,334 17 9 25,714 19 1. . f 1,101 6 9 3,204 10 1 150,092 14 3 107,381 8 2 80,746 13 8 Balance at end of Year i ! 81,469 18 10 Totals .. .. £231,562 13 1 ; S188.128 1 10

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4

Table STATEMENT of the RECEIPTS and EXPENDITURE of the PUBLIC WORKS FUND Part I.

1893-94. RECEIPTS. 1894-95. £ s. d. £ s. d. 177,600 0 6 £ s. d. £ s. d. 263,658 15 5 177,600 0 6 Balance at beginning of Year The District Railways Purchasing Act, 1885, — Kaihu Valley Railway Debentures 47,000 0 0 i Special Receipts in connection with the Ellesmere and Forsyth Reclamation and .3,757 1.11- Akaroa Railway Trust .. .. .. .. .. •• ■• ; Receipts under " The Railways Authorisation and Management Act, 1891," — 853 0 9 Kaihu Valley Railway Recoveries, — In respect of Expenditure charged to Class'" Roads " in previous years •— In respect of Debentures issued under "The Roads and Bridges Construction 780 2 0 Act, 1882 " .. .. .. .. .. .. .. „. J In respect of Expenditure charged to " Services not provided for" in previous 250 0 0 j years .. .. .. .. .. .. .. .. .. j .3,757 111853 0 9 1.317 13 3 6,364 0 0 086 2 3 780 2 0 250 0 0 5.640 4 8 8,367 15 6 5,640 4 8 O, OIU 1 o ' .. I 250,000 0 0 Amount transferred from the Consolidated Fund in terms of section 15 of " The 250,000 0 0 Appropriation Act, 1894 " .. 250,000 0 0 Sinking Funds released under " The Consolidated Stock Act, 1884," in respect of — " The New Zealand Loan Act, 1856 " .. .. .. .. 11 Oil! " The New Zealand Loan Act, 1860 " 163,702 2 5 " The New Zealand Loan Act, 1863 " ii 0 11 163,702 2 5 54,421 8 5 260 4 1 54,681 12 6 163.713 3 4: 163,713 3 4 j.00,110 o ± ; ; £596,959 8 6 Totals £623,708 3 5 Part II. I. 152,943 6 10 ! Balance at beginning of Year 79,197 8 6 I Recoveries in respect of Expenditure charged to "Purchase of Native Lands" in previous years Transfer from Part I. (Vote —Purchase of Native Lands) to make good Expendi2,428 6 0 : ture charged hereto 2,428 6 0 12 3 0 12 3 0 £155,37112 10 Totals .. ..'•" £155,371 12 10 £79,209 11 6 STATEMENT of the RECEIPTS and EXPENDITURE of the LAND Proceeds of Debentures created under "The Lands Improvement and Native Lands Acquisition Act, 1894 " 124,800 0 0 Totals £124,800 0 .0.

5

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No. 1—continued. for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

Part I. 1893-94. EXPENDITURE. 1894-95. £ s. d. 343 4 6 6,606 3 7 137,034 10 7 112,513 6 6 5,271 17 1 4,320 0 7 10,126 17 10 44,031 19 3 6,588 2 9 414 10 5 Annual Appropriations,— Class I.—Immigration II. —Public Works, Departmental .. .. III.—Railways .. .. .. IV.—Roads .. .. .. - .".:•: ... „ V.—Development of Goldfields VI.—Purchase of Native Lands, North Island VII. —Telegraph Extension .. „ VIIL—Public Buildings „ IX.—Lighthouses and Harbour-works „ X. —Rates on Native Lands £ s. d. 101 6 6 6,880 8 1 166,581 0 3 50,280 9 9 5,864 18 10 349 1 3 19,228 19 0 54,189 11 1 3,145 9 3 561 0 7 £ s. d. 307,182 4 7 333,250 13 1 Services not provided for 50 0 0 Purchase of the Kaihu Valley Railway Debentures of the Kaihu Valley Railway Company, taken over by the Government on the default of Company.. 1,000 0 0 48,000 0. 0 47,000 0 0 Balance at end of Year 263,658 15 5 268,525 18 10 Totals £596,959 8 6 £623,708 3 5 Part II. ■ Annual Appropriations,— 1,800 0 0 Class I.—Public Works, Departmental 39,219 11 7 „ II.—Railways 35,154 12 9 ,, III.—Roads 76,174 4 4 1,800 0 0 32,963 13 7 17,840 19 10 52,604 13 5 26,604 IS 1 79,197 8 6 Balance at end of Year £155,371 12 10 .55,371 12 10 Totals £79,209 11 6 IMPROVEMENT ACCOUNT for the Year ended 31st Mabch, 1895. Annual Appropriations,— Vote 113—Roads and Bridges 89,207 3 0 Balance at end of Year 85,89217 0 Totals £124,800 0 0

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6

Table STATEMENT of the RECEIPTS and EXPENDITURE of the NATIVE LANDS PURCHASE

STATEMENT of the RECEIPTS and EXPENDITURE of the CHEVIOT ESTATE ACCOUNT

£ s. d. 8,124 17 2 72,000 0 0 Balance at beginning of Year Proceeds of Debentures created under— " The Native Land Purchases Act, 1892 " .. " The Lands Improvement and Native Lands Acquisition Act, 1894 " .. £ s. d. £ s. d. 1,140 2 2 50,000 0 0 59,200 0 0 109,200 0 0 £110,340 2 2 72,000 0 0 £80,124 17 2 Totals STATEMENT of the RECEIPTS and EXPENDITURE of the L. .ND FOR SETTLEMENT Balance at beginning of Year 2,209 16 3 38,966 0 0 Proceeds of Debentures created under— " The Land for Settlements Act, 1892 " " The Land for Settlements Act, 1894 " 15,000 0 0 j 10,100 0 0 25,100 0 0 959 13 4 38,966 0 0 785 16 7 Receipts derived from Rents and Lease-fees Totals £39,751 16 7 £28,269 9 7

Balanoe at beginning of Year .. .. .. .. .. 170 9 2 4,695 5 8 11,873 0 8 241 7 2 301 18 1 1,400 0 0 250,000 0 0 Proceeds of Debentures created under " The Cheviot Estate Payment Act, 1893," due 18th October, 1900 .. .. .. .. .. .. Receipts under " The Cheviot Estate Disposition Act, 1898,"— Land Sales for Cash Sale of Mansion-house and Grounds .. .'. Rents from Lands Rent of Buildings .. .. .. .. .. .. Shipping and Port Charges Insurance on Buildings destroyed by fire Interest on unpaid Purchase-money Miscellaneous 1,681 7 9 25,000 0 0 9,775 14 3 121 19 3 1,050 12 8 802 18 1 108 0 2 250,0C0 0 0 I ii 5 10 88,040 12 2 18,522 17 5 Totals £288,217 1 4 £268,522 17 5

7

8.—6

No. 1—continued. ACCOUNT for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

1893-94. EXPENDITURE. 1894-95. \ Purchase of Native Lands,— £ s. d. Annual Appropriations,— 76,984 15 0 Vote 114—Native-Land Purchases 2,000 0 0 By debentures .. .. 78,984 15 0 1,140 2 2 Balance'at end of Year ,.. .... •■--: £80,124 17 2 ; Totals £ s. d. ; £ s. d. 101,008 18 0 -\ 101,008 18 0 ..: - .:; ::...::.:-. 9,331 4 2 i £110,340 2 2 .CCOUNT for the Year ended 31st Mabch, 1895, compared with the Financial Year ended 31st It :abch, 1894. Estate of C. Y. Fell, Blind River,— Purchase-money .. .. .. .. .. .. £14,678 10 5 Incidental expenses .. .. .. .. .. 509 7 5 15,187 17 10 ; Estate of W. Pringle, Rosebrook, — Purchase-money .. .. .. .. .. 5,945 13 9 Incidental expenses .. .. .. .. .. 3 19 10 Estate of A. Copland, Brookfield,— Purchase-money .. .. .. .. .. 4,143 11 3 Incidental expenses .. .. .. .. .. 9 13 1 5,949 13 7 18,656 17 10 566 5 8 Estate of John Douglas, Pomahaka, — Purchase-money Incidental expenses 4,153 4 i 1,932 17 0 4,594 5 0 17 6 9 Estate of the late Michael Studholme, Kapua Block, — Purchase-money Incidental expenses 130 16 1 1,291 5 6 11 11 9 Estate of the late Michael Studholme, Junction Estate, — Purchase-money Incidental expenses .. .: 24 13 0 1 7,198 14 10 7 6 6 Estate of the New Zealand and Australian Land Company, Pareora, — Purchase-money Incidental expenses .. .. .. ' i 14 9 5,044 0 0 154 6 0 Estate of W. Meek, Teanaraki, — Purchase-money Incidental expenses 334 5 5 27.71 1f> 9. 37,542 0 4 2,209 16 3 Balance at end of Year 554 7 7 £39,751 16 7 Totals £28,269 9 7 ;

Expenditure,— Interest on Debentures 18,346 8 3 Surveys, Roading, &c. .. .. .. .. .. .. .. j 18,346 8 3 Appropriations,— : ! Class XVIII., Vote 73 Redemption of Debentures due 18th April, 1894 10,723 12 7 21,939 7 1 32,662 19 8 5,554 1 8 250,000 0 0 Amount transferred to Consolidated Fund in part repayment of the money 250,000 0 0 ; expended in the acquirement of the estate .. 176 9 2 Balance at end of Year £268,522 17 5 Totals £288,217 1 4

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8

Table STATEMENT of the RECEIPTS and EXPENDITURE of the CONVERSION ACCOUNT

1893-94. RECEIPTS. 1894-95. £ s. a. 1,036,000 0 0 2,180 0 0 3J-per-cent. Inscribed Stock — Issued for redemption of Debentures Issued in exchange for Debentures £ s. d. 350,000 0 0 437,258 10 0 £ s. d. 787,258 10 0 1,038,180 0 0 In reduction of Conversion Expenses,— Premium on sale of 3A-per-cent. Inscribed Stock sold above par Interest on unsold 3J-per-cent. Stock 130 9 1 1,015 18 6 1,015 18 6 130 9 1 100,000 0 0 Temporary Advance from Bank of England 7,891 18 10 Balance at end of Year :'., 146,202 7 11 Totals £788,274 8 6

9

8.—6

No. 1—continued. for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

2—B. 6.

1893-94. EXPENDITURE. 1894-95. £ s. d. 4,117 12 0 Balance at beginning of Year Original Amount, "Ri I.R.t.A. re5- CO onverte £ s. a. £ s. d. 7,891 18 10 Original Amount, Bate. Pre- Converted rmiunn. Stock. Original Amount, it) Debentures converted into 3£-per-cent. £ £ Inscribed Stock, — Consolidated Loan, 1867 .. .. 271,000 1( 6,400 1( 7,600 1( a finn if £ 271,000 6,400 7,600 4,600 7,500 £ 1081 1071 107 106 102 cate. j £ .081 2 07i 07 06 £ 23,035 480 532 276 150 lit l,( i t t ur £ Oi 4f 5i 91 m. i 5 135 29' : 80 I i32 ! !7fi £ 294,035 6,880 8,132 4,876 7,650 Stock. £ 14,035 6,880 8,132 4.87fi 4,bUU 11 7,500 1( 297,100 New Zealand Loan, 1863 (1914) .. 76,000 11 2,700 11 297,100 U51 115 Ub 02 .151 1 15 11,780 405 1 i 2i \i 7! !< via '. 50 '80 8' 05 ! 4,87b 7,650 17,780 3,105 321,573 0 0 78,700 Otago Loan, 1862, due 1st July, 1898 8,100 11 1,000 1( 76,000 2,700 8,100 1,000 78,700 1101 105 101 05 8501 50 81 t I50J ! 50 : 87,780 3,105 8,9504 1,050" 8,950 1,050 90,885 0 0 — 9,100 9,100 10,000 10 0 2,180 0 0 Auckland Loan, 1863, due 1st June, 1896 .. .. .. .. | .. 1,000 1( 1,000 107 I 07 70 70 1,070 1,070 1,070 0 0 Canterbury Loan, 1862, due 2nd ; January, 1915 .. .. .. .. 1,000 15 i 1,000 125 25 250 2f so : 1,250 1,250 I District Railways Purchasing Act, 1885, due 1st April, 1905 .. .. 12,000 1C 398,900 04 3 38 4 80 1! 581 .2,480 1,250 0 0 12,000 104 480 12,480 398,900 12,480 0 0 38,358| 2,180 0 0 Debentures redeemed, — Consolidated Loan Act, 1867 New Zealand Loan Act, 1856, due 1st July, 1894 Cheviot Estate Payment Act, 1893, due 18th October, 1900 New Zealand Loan Act, 1863, duo 1st November, 1915 Public Revenues Act, 1887, No. 3, due 1st March, 1893 437,258 10 0 33,300 0 0 50,000 0 0 200,000 0 0 500,000 0 0 400,000 0 0 283,300 0 0 900,000 0 0 Temporary advance repaid to Bank of England 100,000 0 0 85,000 0 0 2,594 10 2 2,745 16 3 3,604 1 0 44,740 8 2 Expenses Account, — Premium Brokerage and Commission Stamp Duty .. .. .. .. . Management Interest (including overlap of interest) Discount Telegrams Advertising Office Expenses Miscellaneous 1,790 1 0 8,787 11 3 265 0 0 6,561 0 3 775 0 0 14 9 10 191 11 3 1,240 19 7 4 17 8 1,211 13 10 8 6 6 19,630 10 10 139,904 15 11 Balance at end of Year 40,193 8 10 £1,146,202 7 11 Totals £788,274 8 6

10

8.—6

Table STATEMENT of the RECEIPTS and EXPENDITURE of the LOANS TO LOCAL BODIES

1893-94. RECEIPTS, 4-- 1 £ s. d. 429 6 0 Balance at beginning of Year .. .. £ s. d. £ s. d. 219 0 2 116,500 0 0 The Government Loans to Local Bodies Act, 1886, — Debentures created Refunds under section 15 of " The Government Loans to Local Bodies Act, 1886,"— Geraldine County .. Masterton Road Board Wirikino Road Board 96 16 2 152,000 0 0 440 14 2 176 18 5 273 14 7 440 14 2 i i Carried forward 117,370 0 2 £152,492 14 9

11

8.—6

No. 1— continued. ACCOUNT for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894.

oyo-y^. £ s. d. 1,675 0 0 600 0 0 4,282 0 0 120 0 0 1,000 0 0 2,597 0 0 Payments to— Counties — Amuri Bruce Buller .. Clifton Clutha.. Collingwood Cook Geraldine Hawera Horowhenua Hutt .. Mackenzie Manawatu Pahiatua Patangata Patea Rangitikei Stratford Taranaki Wairnate Waimea. Waipawa Waiapu ■ Wairarapa North Wairoa Waitotara Wanganui .*. £ s. d. 2,140 0 0 950 0 0 60 0 0 100 0 0 £ .. s. d. 4,470 0 0 400 0 0 1,000 0 0 6,000 0 0 1,000 0 0 3,861 0 0 385 0 0 920 0 0 2,350 0 0 250 0 0 850 0 0 2,475 0 0 4,541 0 0 2,000 0 0 3,100 0 0 5,630 0 0 6,000 0 0 2,000 0 0 550 0 0 140 0 0 5,000 0 0 2,950 0 0 6,000 0 0 450 0 0 400 0 0 1,600 0 0 100 0 0 550 0 0 • 500 0 0 1,110 0 0 5,730 0 0 2,160 0 0 300 0 0 50 0 0 19,744 0 0 48,602 0 0 1,350 0 0 2,640 0 0 2,650 0 0 2,250 0 0 3,000 0 0 1,833 0 0 I 2,413 0 0 1,042 0 0 2,431 0 0 410 0 0 1,382 0 0 770 0 0 581 0 0 600 0 0 3,000 0 0 1,000 0 0 Road Boards— Alfredton Eketahuna Peatherston Fitzherbert Heretaunga Kiwitea Kumeroa Maharahara Makara Manawatu Manchester Manganui Masterton Mauriceville Moa Ngatapa Parihaka Patea West Pelorns.. Pohangina Porangahau Pouawa Poverty Bay Ruataniwha Taratahi-Carterton Upper Wangaehu Waimata Wairnate Waipipi Wairau Waiuku Weber Whataupoko Wirokino Woodvilla 3,000 0 0 1,190 0 0 1,810 0 0 2,970 0 0 770 0 0 483 0 0 1,495 0 0 1,804 0 0 2,730 0 0 3,000 0 0 700 0 0 1,140 0 0 1,050 0 0 100 0 0 3,000 0 0 2,500 0 0 3,000 0 0 800 0 0 2,680 0 0 3,000 0 0 2,300 0 0 800 0 0 300 0 0 1,532 0 0 300 0 0 2,100 0 0 440 0 0 2,953 0 0 88 0 0 933 0 0 100 0 0 2,100 0 0 10 0 0 2,490 0 0 495 0 0 3,000 0 0 100 0 0 3,000 0 0 12,432 0 0 45,183 0 0 40,183 0 O 800 0 0 800 0 0 775 0 0 Boroughs— Feilding Kumara Lyttelton Pahiatua Patea Petone Sumner Westport 600 0 0 1,500 0 0 800 0 0 300 0 0 2,000 0 0 1,500 0 0 6,700 0 0 2,000 0 0 4,375 0 0 Carried forward 100,485 0 0 16.551 0 0 • «

8.—6.

12

Table STATEMENT of the RECEIPTS and EXPENDITURE of the LOANS TO LOCAL BODIES ACCOUNT

-.:- 1893-94. RECEIPTS. 189 -95. £ s. d. 117,370 0 2 £ s. d. £ s. d. 152,492 14 9 Brought forward i ■■ £117,370 0 2 Carried forward £152,492 14 9

13

b.—a

No. 1—continued. for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894— continued.

1893-94. EXPENDITURE. 189 -95. £ s. d. 86,551 0 0 £ s. d. £ s. d. 100,485 0 0 Brought forward .. .. .. ., 300 0 0 300 0 0 Payments to— Town Boards— Clyde .. Havelock Stratford 300 0 0 457 0 0 157 0 0 600 0 0 Drainage Boards— Aorangi Land .. .. Sluggish River 500 0 0 1,400 0 0 1,900 0 0 87,151 0 0 99 0 0 29 0 0 1,261 0 0 506 0 0 1,113 0 0 347 0 0 2,046 0 0 455 0 0 225 0 0 263 0 0 503 0 0 3,206 0 0 48 0 0 18 0 0 43 0 0 298 0 0 2,379 0 0 Amount issued under section 2 of "The Government Loans to Local Bodies Act Amendment Act, 1891," in respect of the under-mentioned Blocks, — Ahuroa.. Akaaka Swamp Autawa Coonoor East Ptiketoi Glenomaru .. .... Hall Association Hautapu Hautapu-Ruahine Huiroa .. Kaimarama Knkangiwhenua Kakariki Lauder-Blackstone Lepperton Liberal.. Lillhurn, Monowai, and Alton Longwood Maioro Swamp .. Mangoira Coal Creek Mangaero Mangamingi Mangaehu Mangaokahu .. .. Maungataniwha.. Mecalickstone Mokoreta Milsom Motatau llotu .. Mount Baker Ngatimaru .. .. .. .. .. .. Nuhaka • .. Nuhaka No. 2 Block Nuhaka North Oinaliine Opaku-Kapara Opuawhanga-Whangarei .. Oroua Coal Creek .. .. .. , Otau Oteramika Oxford Association Pohui .. Puketoi East Puketoi North-east Pohoumotene Ruapekapeka Salisbury and Delaware .. Sommeiville Stirling.. Swinburne Tahaukupu Tararua Tanner Tauhoa.. Tauhoa and Komokoriki Tahaukupu Taupiri Tauharetoi Tuapeka West Umutaoroa Upper Waitara 324 0 0 197 0 0 74 0 0 131 0 0 3,608 0 0 25 0 0 482 0 0 1,151 0 0 2,381 0 0 1,497 0 0 263 0 0 1,375 0 0 329 0 0 400 0 0 535 0 0 53 0 0 5,164 0 0 525 0 0 1,628 0 0 1,424 0 0 27 0 0 221 0 0 30 0 0 377 0 0 292 0 0 1,719 0 0 256 0 0 71 0 0 1,453 0 0 80 0 0 58 0 0 417 0 0 114 0 0 155 0 0 476 0 0 594 0 0 333 0 0 2,017 0 0 32 0 0 485 0 0 316 0 0 10,952 0 0 259 0 0 72 0 0 600 0 0 380 0 0 184 0 0 1,834 0 0 1,102 0 0 100 0 0 29 0 0 998 0 0 782 0 0 80 0 0 128 0 0 524 0 0 134 0 0 197 0 0 102,842 0 0 1,139 0 0 259 0 0 16 0 0 62 0 0 Carried forward 36,574 0 0 27,245 0 0

8.—6

14

Table STATEMENT of the RECEIPTS and EXPENDITURE of the LOANS TO LOCAL BODIES ACCOUNT

1893-94. RECEIPTS. 189--95. £ ; s 3. 117,370 0. 2 £ s. d. £ s. d. 152,492 14 9 Brought forward 117,370 0 2 Totals £152,492 14 9 STATEMENT of the RECEIPTS and EXPEND!' URE of the N! iW ZEALAN Deposits inscribed 158,025 0 0 Total £158,025 0 0

15

8.—6

No. 1— continued, for the Year ended 31st March, 1895, compared with the Financial Year ended 31st March, 1894 — continued.

1893-94. 1894-95. EXPENDITURE. £ s. a. 27,245 0 0 Brought forward £ s. d. 36,574 0 0 £ s. d. 102,842 0 0 202 0 0 139 0 0 1,067 0 0 225 0 0 Amount issued under section 2 of " The Government Loans to Local Bodies Act Amendment Act, 1891," in respect of the under-mentioned Blocks— contd. Waiau Waikawa-Otara Waimarino Waipoua Waiwera Wanganui Waoku Wellington Fruit-growers' Association Woodville 300 0 0 1,409 0 0 4,342 0 0 3,741 0 0 1,235 0 0 146 0 0 49,085 0 0 1,122 0 0 1,313 0 0 25 0 0 30,000 0 0 Adjustment of Interest erroneously credited hereto in previous years,— Patangata County Inglowood Town Board Egmont Road Board Moa Road Board Whareama Road Board 150 7 0 8 15 7 1 15 1 90 8 3 24 0 10 275 6 9 Balance at end of Year 290 8 0 219 0 2 £117,370 0 2 Totals £152,492 14 9 ONSOLS A COUNT for the Year ended 31st March, 1895. Balance at end of Year 158,025 0 0 Totals £158,025 0 0 JAMES B. HEYWOOl Secretary to i ROBERT J. COLLINI Accountant ti j, lie Treasury. 3, 3 the Treasur

8.—6

16

Table No. 1—continued. SUMMARY OF BALANCES ON 31st MARCH, 1895.

Balances. Cash. Advances. Investments. Total. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Consolidated Fund :— Revenue Account Treasury Bills Account State Forests Account Accounts of Local Bodies Deposit Accounts 180,024 5 9 810,000 0 0 5,205 19 1 7,130 5 5 81,469 18 10 1,083,830 9 1 Consolidated Fund :— Revenue Account State Forests Account.. Accounts of Local Bodies Deposit Accounts 445,740 17 8 5,205 19 1 7,130 5 5 77,140 9 1 68,283 8 1 4,329 9 9 476,000 0 0 990,024 5 9 ! 5.205 19 1 7,130 5 5 81,469 18 10 1,083,830 9 1 535,217 11 3 72,612 17 10 | 476,000 0 0 Public! Works Fund :— Part I. „ II. 268,525 18 10 26,604 18 1 295,130 16 11 Public Works Fund :— Part I. „ II. 218,217 2 4 24,104 19 10 41,308 16 6 2,499 18 3 9,000 0 0 268,525 18 10 26,604 18' 1 242,322 2 2 43,808 14 9 9,000 0 0 295,130 16 11 Land fob Settlements Account.. Lands Improvement Account Native Lands Purchase Account Conversion Account Loans to Local Bodies Account Remittances to London Account New Zealand Consols Account .. 554 7 7 35,592 17 0 9,331 4 2 40,193 8 10 290 8 0 Dr.390,000 0 0 158,025 0 0 Land for Settlements Account.. Lands Improvement Account Native Lands Purchase Account Conversion Account Loans to Local Bodies Account Remittances to London Account New Zealand Consols Account.. 554 7 7 24,868 15 10 5,051 12 2 Or. 173 18 6 290 8 0 Cr.390,000 0 0 25 0 0 10,724 1 2 4,279 12 0 40,367 7 4 554 7 7 35,592 17 0 9,331 4 2 40,193 8 10 290 8 0 Cr.390,000 0 0 158,025 0 0 158,000 0 0 Totals £1,232,948 11 7 Totals .. £418,155 18 6 £171,792 13 1 j £643,000 0 0 ,£1,232,948 11 7 I

17

8.—6

Table No. 2. COMPARATIVE STATEMENT of the Estimated and Actual Receipts and Expenditure of the Consolidated Fund (Revenue Account) for the Financial Year ended 31st March, 1895.

Diffe: 1ENCES. Estimated. Actual. More than Estimate. Less than Estimate. RECEIPTS. Revenue Account:— £ s, d. Customs .. .. .. .. 1,600,000 0 0 Stamps .. .. .. .. 638,000 0 0 Land and Income-tax .. .. 350,000 0 0 Property-tax Beer Duty .. .. .. .. 60,000 0 0 Railways .. .. .. .. 1,170,000 0 0 Registration and other Fees .. .. 47,000 0 0 Marine .. .. .. .. 20,000 0 0 Miscellaneous .. .. .. 60,000 0 0 Territorial .. .. .. .. 290,000 0 0 £ s, d. 1,600,000 0 0 638,000 0 0 350,000 0 0 60,000 0 0 1,170,000 0 0 47,000 0 0 20,000 0 0 60,000 0 0 290,000 0 0 1,56 67 37 5 1,15 5 2 6 31 £ s. d. 1,569,784 7 10 677,225 7 6 370,079 11 3 19 2 11 59,901 9 1 1,152,748 5 6 51,381 4 8 21,513 18 10 63,175 16 7 316,166 11 9 £ 69,784 77,225 70,079 19 59,901 52,748 51,381 21,513 63,175 16,166 s 4 ' 5 ' 9 i: 9 .' 1 i 3 J 1 ( 3 II 5 1( 3 l: s. d. £ 7 10 7 6 39,225 tl 3 20,079 2 11 19 9 1 | 5 6 4 8 4,381 .8 10 1,513 .6 7 3,175 .1 9 26,166 £ s. d. 39,225 7 6 20,079 11 3 19 2 11 s. d. £ 30,21 7 6 11 3 2 11 9 17,25 4 8| 18 10 16 7 11 9 £ s. d. 30,215 12 2 98 10 11 17,251 14 6 4,381 4 8 1,513 18 10 3,175 16 7 26,166 11 9 4,235,000 0 0 .5 11 94,561 13 6 47.56 4,235,000 0 0 4,281,995 15 11 94,561 13 6 47,565 17 7 Sinking Fund Increases .. 117,800 0 0 117,800 0 0 ; 11 117,800 0 0 OX .VUO 17,800 .O XX ' V±,OUX 0 0 jlo u y.1 ,uu Totals .. .. .. 4,352,800 0 0 | 4,352,800 0 0 4,39 4,399,795 15 11 99,795 5 1; .5 11 94,561 47,565 94,561 13 6 47,565 17 7 13 6 47.56 17 7 47,565 17 7 EXPENDITURE. 46,995 46,995 15 11 15 11 j i Revenue Account :— £ s. d. Permanent Appropriations,— Civil List .. .. .. .. | 25,900 0 0 Interest and Sinking Fund .. ..il, 744,677 0 0 Under Special Acts .. . .1 185,298 0 0 Subsidies .. .. .. .. 67,000 0 0 Territorial Revenue paid over to Local Bodies, and Deposit Accounts .. . 40,000 0 0 Endowments .. .. .. 36,000 0 0 Annual Appropriations,— Legislative .. .. .. 17,459 0 0 ' Colonial Secretary .. .. .. 72,028 0 0 Colonial Treasurer .. .. .. 34,111 0 0 Minister of Justice .. .. .. 124,039 0 0 Postmaster-General .. .. 312,717 0 0 Commissioner of Trade and Customs 70,138 0 0 Commissioner of Stamps .. .. 20,285 0. 0 Minister of Education .. .. j 453,156 0 0 Minister of Mines .. .. .. 19,184 0 0 Minister of Agriculture .. .. 45,000 0 0 Working Railways .. .. .. ! 725,235 0 0 Public Buildings .. ... .. 55,250 0 0 Defence Department .. .. 68,165 0 0 Police Department .. .. 98,782 .0 0 Department of Lands and Survey .. 184,976 0 0 Rates on Crown Lands .. .. 800 0 0 Services not provided for .. 2 1,71 18' 6 4 8; 1 & 2 12 29! 6i 2( 45l! 4i 72i 5( 65 9' 11! i £ s. d. j 24,411 16 3 1,716,889 6 4 189,890 17 6 67,342 13 3 £ 24,411 16,889 39,890 37,342 14,959 33,508 17,398 36,022 24.511 24,204 18,765 35,674 20,168 54,085 15,602 12,529 25,256 i0,155 12,156 14,210 .9,763 319 8,884 s. 1 U 9 ( ) V, I 11 ) ( i t i c I It t 17 1 t > It L1C 1 8 i £ ! £ I 11 i 1 i 14 ; 7 I 5 I 14 I 18 : 13 3. d. £ .6 8 6 4! 7 6 j 4,592 3 3 I 342 : 0 2 j 4,959 5 8 ! 8 10 3 4 7 6! 6 0 165 5 7' 0 8 8 7! 9 11 : 929 9 8 j 1 1 17' 21 4 6. 7 6 5 1 4 10 8 0 3 1 8,884 3 i £ s. a. 4,592 17 6 342 13 3 j s. d. : £ 1,48! 27,78' 17 6 j 13 3 j 0 2 j 2,49: 6( 6,00.' 9,59! 6 0 13,95: 4,46! IK 9 11 3,58: 2,47< 17 5.096,00* 4,571 15,21! 48( 13 1 £ s. d. 1,488 8 9 27,787 13 8 44,959 0 2 33,508 5 8 4,959 0 2 2,491 14 4 17,398 8 10 66,022 13 4 24.511 17 6 124,204 6 0 298,765 15 7 05,674 10 8 20,168 8 7 454,085 9 11 15,602 9 8 42,529 11 1 725,256 1 7 50.155 14 6 62.156 7 6 94,210 5 1 119,763 14 10 319 18 0 8,884 13 1 165 6 0 929 9 11 21 1 7 8,884 13 1 60 11 2 6,005 6 8 9,599 2 6 13,951 4 5 4,463 9 4 116 11 5 3,581 10 4 2,470 8 11 5,094 5 6 0,003 12 0 4,571 14 11 15,212 5 2 480 2 0 Totals .. .. .. 4,350,200 0 0 , 4,26( 4,266,712 4 11 56,712 4 11 19,895 19,895 1 6 1 6 ! 103,38i in enr 103,382 16 7 19,895 1 6 1 19,89f QO A or ' I 83,487 i • ! 83,487 15 1 i & Surplus at 31st March, 1894 Actual receipts, 1894-95 .. .. ..4,399, Actual expenditure, 1894-95 .. .. 4,266, £ ,795 : ,712 £ s. d. ,795 15 11 ,712 4 11 s. d. 15 11 4 11 133,083 11 0 £ s. d. 290,238 6 5 £ s. d. 290,238 6 5 Repayment by Cheviot Estate Account .LOOjUOO XX U 6,720 0 0 133,083 11 0 6,720 0 0 i aa sns 11 r> 139,803 11 U 139,803 11 0 430,041 17 5 Less— Amount applied in aid of Public Works Fund Unapplied Released Sinking Funds transferred to Public Works Fund 250,000 0 0 17 11 8 250,017 11 8 Surplus at 31st March, 1895 £180,024 5 9 £180,024 5 9 3—B. 6.

18

8.—6

Table No. 3. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1895.

! !' 1 I Annual Charge. Remarks. Amount. When payable. Annual Charge. Amount on 'tstanding. Due Date. Sinking Funds ACCRUED. Indebtedness. Bate. i New Zealand Loan Act, 1863 Consolidated Loan Act, 1867 .. .. I I £ £ 300,100 15 July, 1914 725,800 Ann. drawing ! _| i £ 108,387 £ 191,713 725,800 Int. | S.F. /o /o 5 1 5 4 2-4 6 J £ 18,006 : 15 Jan. and 15 July. 36,290 Quarterly, 15 Jan.,&c; ' - Immigration and Public Works Loan Act, 1870 .. " 1,000,000 1 June, 1907 405,558 594,442 i ■ i. 64,000 1 June and 1 Dee. j Sinking Fund payable 13 Mar. and 13 Sept. 1,008 1 April „ 1 Oct. ! 1,668 j 30 June „ 31 Dec. , 18,600 due 1 Jan., 1896. 9,200 duel Jan., 1897. 1,120 I 30 June „ 31 Dec. £27,800 5,341 i 1 Jan. „ 1 July. - f£3,800due 2 Jan., 1915. • 12,200 due 2 Julv, 1916. 520 15 April and 15 Oct. £16,000 14.8S4 15 April „ 15 Oct. = 1,256 15 April „ 15 Oct. Auckland Loan Act, 1863 " 16,800 : 1 June, 1896 29,963 Or. 13,163 Lyttelton and Christchurch Railway Loan, 1860.. 27,800 Various* 16,000 i Various! 47,670 Or. 19,870 Canterbury Loan Ordinance, 1862 8,587 7,413 6 1 Otago Loan Ordinance, 1862 76,300 : 1 July, 1898 87,313 Or. 11,013 6 1 Ordinance of Legislative Council 311 , Presentation 311 •• •• i .. - 13,000 Consolidated Loan Act, 1867 13,000 j .1.5 April, 1913 4 ! .. Immigration and Public Works Loan Act, 1870 j 372,100 27,900 ) „™ aaa (15 April, 1913 1 400 ' 000 : 115 April! 1913 372,100 27,900 4 r.. 4J .. Defence and Other Purposes Loan Act, 1870 \ 25,000 75,000 1 inn ooo f 1Jul - v > 191 ° [ 100 > 000 >'t 15 April, 1913 25,000 75,000 i : ■■ 1,125 ! 30 June „ 31 Dec. 3,000 J 15 April „ 15 Oct. General Purposes Loan Act, 1873 .. j 18,500 12,300 54,700 ) : (15 Oct., 1913 I 85,500 i J15 May, 1914 j (28 Nov., 1914 18,500 12,300 54,700 4 4 5 740 15 April „ 15 Oct. 492 15 May „ 15 Nov. 2,735 15 May „ 15 Nov. Nelson Loan Act, 1874 .. .. " :..' :" 15,000 23 Mar., 1896 ) I 1 Oct., 1896 I 924 600 ' 1 July ' 1909 [ , 1 April) 190g ) ( 1 April, 1899 3,001,211 15,000 7 1,050 i 1 Mar. „ 1 Sept. 35,000 40,00.0 102,600 47,000 ... " District Railways Purchasing Acts, 1885-86 \ i \ 224,600 J?! :: li :: 2,187 ) 2,400 n . ., •, 0 . [ 1A P nl » 10ct ) ■ 1 ! 687,478 i I 2,313,733 | 164,276 Carried forward •- | ; J Further contributions of Sinking Fund not required.

8.-6

19

Table No. 3 — continued. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1895—continued.

Annual Charge. j Sinking j Net Funds I Indebtedaccrued. ; NESS. Due Date. ,te: Remarks. Amount outstani >ing. Hi Amount. When payable. Int.' I S.F. Brought forward Government Loans to Local Bodies Act, i 1886 1 £ £ 3,001,211 ! £ £ 687,478 2,313,733 64,454 j 841,346 % % £ 164,276 ??o'nno '■ 405,800 1 Mar., 1896 112,000 ) ' Mi U 31* l.J* 24,363 6,160 1 Mar. and 1 Sept. 1 *1J% per annum payable on 1 Mar. „ 1 Sept. j £854,800, being total amount borrowed under the Act to ; 31st March, 1895; J% is 1 May „ 1 Nov. j also contributed from the Land Assurance Fund in 1 Jan. „ 1 July the custody of the Public Trustee. ! 1,166,013 . Consolidated Stock Act, 1877 .. ■•! 29,150,302 1 Nov., 1929 3,482,888 ) 1,038,180 j- 5,308,326 1 Jan., 1940 787,258 ) : 29,150,302 5,308,326 4 3i 185,791 i I , Consolidated Stock Act, 1884 — Colonial Issue .. .. J 136,408 (28 Nov., 1895 288,000 | 28 May, 1897 40.000 )- 1 .838, 308 \ 22 May, 1898 1,306,100 j 28 May, 1898 117,800 I 1.28 Mav, 1898 1 - .. 1,770,508 79,673 i H 28 May „ 28 Nov. 117,800 4 4,712 28 May „ 28 Nov. I • : ! 27,226 1,225 30 April „ 31 Oct. ' Naval and Military Settlers' and Volunteers' Land Act, 1892 ' I __.. I .._..._ . 27,226 31 Oct., 1899 H Native Land Purchases Act,'1892 I 140,000 | . .,, m „ i (31 Oct., 1899 9,700 | 149 >' uu | (3i Oct., 1899 140,000 9,700 5 0,300 485 30 April „ 31 Oct. 30 April „ 31 Oct. I ■ I Land for Settlements Act, 1892 .. 8,690 ) -., ( . r ., : (31 Mar., 1897 45,276 j '"•'-": '(31 Oct., 1899 i - .. j 53,966 41 2,428 30 April „ 31 Oct. I ! Cheviot Estate Payment Act, 1893 50,000 ! 18 Oct., 1900 50,000 4J 2,250 18 April „ 18 Oct. i I | 10,100 4 404 Land for Settlements Act, 1894 10, 100 ! 31 Oct., 1899 30 April „ 31 Oct. I I 4 7,300 I Lands Improvement and Native Lands Acquisition Act, 1894 184,000 I 30 Sep., 1908 184,000 31 Mar., „ 80 Sept. I New Zealand Consols Act, 1894 ! ! 158,025 ; 1 Feb., 1910 ' | 158,025 3| 5,530 1 Feb., „ 1 Aug. Totals 751,932 I 39,035,032 1,656,970 I 40,386,964 \ I I • The whole of the Imperial-guaranteed lean of 1870 is included herein, although temporary advances from time to time. Treasury bills amounting to £810,000 are not in i only £200,000 has actually n eluded. leen raised; the unsold debentures are used for the purpose of obtaining

B.—fi

20

Table No. 4. STATEMENT of the Estimated Liabilities chargeable on the Consolidated Fund outstanding on the 31st March, 1886, 1887, 1888, 1889, 1890, 1891, 1892, 1893, 1894, and 1895.

31st March, 1886. 31st March, 1887. 31st March, 1888. 31st March, 1889. 31st March, 1890. 31st March, 1891. 31st March, 1892. 31st March, 1893. 31st March, 1894. 31st March, 1895. I Revenue Account. jg s _ <}. Permanent Appropriations, — Civil List .. .. .. 883 0 0 Interest and Sinking Fund Under Special Acts of the Legislature .. .. .. 612 8 1 Subsidies payable to Local j Authorities .. .. 25,868 0 0 Endowments .. .. 5,877 0 10 Under the Land Acts, payable to Local Authorities .. 13,44110 3 46,181 19 2 £ s. d. 430 0 0 2,719 12 11 9,069 13 6 £ s. a. 448 9 9 7,072 1 10 £ s. d. 491 18 8 4,220 3 0 £ s. d. £ s. d. 240 0 0 351 12 3 550 0 0 442 4 9 ! 167 1 4 £ s. d. 275 0 0 106 3 0 £ s. d. 150 0 0 82 0 0 1,042 0 0 £ s. d. 370 0 0 22 18 10 897 16 4 i £ s. d. 437 0 0 9 4 6 959 3 10 34,695 0 0 1,498 13 9 3,221 9 3 483 11 11 24,677 4 8 24,563 0 0 i 4,104 0 0 2,227 0 0 5,613 13 3 3,188 1 5 •• 10,527 16 5 16,620 4 2 8,243 18 3 3,014 10 2 2,693 6 1 2,553 2 1 2,553 2 1 46,181 19 2 58,940 16 7 27,845 16 11 37,633 4 7 31,408 18 0 7,810 15 0 5,622 13 2 3,967 6 1 t 3,843 17 3 3,958 10 5 Annual Appropriations,— Legislative Colonial Secretary .. .. 16,314 18 1 Colonial Treasurer .. .. 12,46110 6 Minister of Justice .. .. 2,686 6 6 Postmaster-General .. .. 10,134 8 2 Commissioner of Customs .. 3,925 17 4 Commissioner of Stamps .. 2,307 6 7 Minister of Education .. 2,251 0 0 Minister of Native Affairs .. 1,000 0 0 Minister of Mines .. .. 6,284 0 0 Minister of Agriculture Working Railways .. .. 87,797 10 5 Public Buildings Minister of Defence .. .. 13,013 5 10 Minister of Lands .. .. 11,937 8 3 Rates on Crown Lands .. 18,700 0 0 is» sis 11 a 16,314 18 1 12,461 10 6 2,686 6 6 10,134 8 2 3,925 17 4 2,367 6 7 2,251 0 0 1,000 0 0 6,284 0 0 112 15 8 9,160 16 0 971 13 8 3,172 12 5 5,352 10 1 '■ 4,043 3 4 540 6 7 5,780 0 0 657 0 0 5,977 5 10 . 106 15 6 6,158 6 5 467 19 2 2,440 1 11 6,546 14 4 2,215 6 3 1,218 4 8 3,646 0 0 729 3 4 3,081 18 0 59 4 1 7,160 0 11 1,573 11 3 3,836 13 1 22,574 18 6 5,474 12 7 402 13 3 2,500 0 0 800 0 0 4,528 0 0 37 10 0 09 1 11 6,759 9 2 3,650 12 6 50 0 0 340 0 0 5,178 12 11 4,940 6 2 14,829 0 0 12,013 2 2 2,637 0 0 2,624 3 3 300 17 3 349 8 7 3 0 0 3,912 9 11 920 0 0 1,260 0 0 5,821 18 9 3,604 18 5 66 8 5 1,234 17 0 3,305 0 0 3,018 1 3 7,787 7 1 7,726 13 7 223 1 1 2,888 0 0 576 0 0 2,498 19 6 16 6 6 1,456 18 7 136 2 6 2,477 16 4 10,426 2 5 2,954 0 0 618 4 8 3,267 12 5 150 0 0 3,357 2 0 ! 222 10 0 3,081 17 6 100 0 0 5,109 5 7 12,601 13 2 2,584 13 7 207 17 10 3,734 19 11 I 10 13 0 2,6S9 17 9 150 0 0 2,525 6 2 19,460 0 0 2,837 0 1 282 17 0 2,333 8 7 87,797 10 5 86,294 19 1 51,293 14 0 ! 21,107 4 1 | 12,066 3 8 3,634 0 0 2,400 0 0 47,831 18 8 10,452 8 6 2,948 2 9 3,082 15 2 1,350 0 0 57,800 12 9 59,590 11 5 5,007 14 9 7,700 1 7 481 10 7 ] 10,516 4 3 3,107 19 7 i 3,064 5 10 1,750 0 0 i 785 0 0 59,907 15 0 599 19 11 8,939 1 4 2,187 2 6 288 0 0 55,399 16 1 665 0 0 8,800 0 0 4,282 0 0 444 0 0 76 14 11 1,815 4 4 56,669 5 0 742 10 0 1,875 0 0 8,000 1 2 138 8 4 57 7 4 1.936 10 7 61,912 6 2 413 12 3 1,000 0 0 6,535 0 0 184 4 7 13,013 5 10 11,937 8 3 18,700 0 0 12,474 18 8 3,454 5 3 8,556 19 0 146,549 5 7 188,813 11 8 Services not provided for .. 5 7 10 188,813 11 8 5 7 10 117,111 11 4 114,574 18 9 104,685 5 9 114,480 6 0 101,246 0 8 94,451 1 6 96,960 1 4 102,328 3 6 1 Totals .. .. 235,000 18 8 235,000 18 8 •- 1 205,490 2 2 144,957 8 3 343 14 1 | 66 1 3 22 9 6 152,551 17 5 ,136,160 5 0 122,313 10 0 1 106,868 19 10 j I J 98,418 7 7 101,618 1 4 106,706 18 8 i 814 2 9 420 4 9 _J

21

8.—6

Table No. 5. STATEMENT of the Estimated Liabilities chargeable on the Public Works Fund outstanding on the 31st March, 1886, 1887, 1888, 1889, 1890, 1891, 1892, 1893, 1894, and 1895.

31st March, i 31st March, 1886. 31st March, 1887. 31st March, 1888. 31st March, 1889. 31st March, 1890. I 31st March, 1891. 31st March, 1892. 31st March, 1893. 31st March, 1894. 31st March, 1895. oiou j.ij.aiik>ij., 1 DOG 1886. IOOU. I . " PARTI. £ s . d . £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. a. 1 & s. d. £ s. d. £ s. d. Annual Appropriations — Immigration .. .. .. .. 7,000 0 0 Public Works, Departmental \ .. .'. 718 16 11 Railways .. .. .. .. I 386,345 8 9 Roads ! 254,350 0 11 Waterworks on Goldfields .. ..'' 14,963 0 0 Land-purchases .. .. .. j 238,600 0 0 I Telegraph Extension .. .. .. 3,700 0 0 Public Buildings .. .. .. 23,255 5 9 Lighthouses, Harbour Works, and Defences 164,410 10 3 Thermal Springs Rates on Native Lands Surveys of New Lines of Railway .. 1,246 12 9 Costs and Contingencies .. Services not provided for Totals .. .'. .. 1,094,589 15 4 PART II. "' -~ j Annual Appropriations — Railways .. .. Roads Land-purchases 5,000 0 0 56 8 2 327,655 3 11 173,680 12 6 1,485 10 1 120,144 0 0 ' 3,983 0 0 55,161 2 9 80,724 0 0 2,500 0 0 10,668 0 0 360 13 6 3,800 0 0 191,501 1 11 119,120 10 2 54 10 6 1,068 2 6 3,004 0 0 29,610 19 7 36,431 12 1 200 0 0 11,000 0 0 ' 1,200 0 0 180,187 7 1 120,857 10 3 3,911 8 4 3,591 0 0 23,453 18 10 6,466 2 3 I 2,200 0 0 189,834 1 2 93,859 3 5 240 12 8 236 6 10 5,107 0 0 10,086 9 8 1,850 4 7 30 0 0 1,000 0 ol 100,078 17 3 60,596 7 8 •• 3,005 14 5 27,082 3 11 3,710 9 0 10 10 101 ■ • .. 136,891 7 0 79,248 0 9 2,500 0 0 8,142 0 0 22,782 8 9! •■ 500 0 0 248 0 0 74,320 0 0 86,086 9 7 1,795 17 8 6,716 0 0 13,635 0 0 763 0 0 185 0 0 88,668 1 8 102,047 3 3 900 0 0 9,581 0 0 12,407 0 0 954 0 0 185 9 7 117,890 9 6 56,086 13 5 7,860 19 7 13.987 0 0 : 29,336 15 11 3,626 8 3 I 287 14 5 ■ • .. 1,794' 7 11 " I •• •• ■• 395,790 16 9 339,667 6 9 229,076 1 1 781,418 10 11 305,238 6 3 |195,484 3 1 250,063 16 6 183,749 7 3 214,742 14 6 I -158,360 5 9 70,075 12 6 27,296 4 1 9,028 4 5 26,103 1 10 1,549 11 87 14 0: 665 14 9 18,799 17 2 4,279 15 11 1,587 15 4 40,475 17 7 23,331 0 0 27,116 0 0 18,495 0 0 14,676 0 0 14,190 15 7 10,082 7 4 4,014 14 5 i 29,621 0 0 Totals .. .. ... 187,981 5 9 75,904 9 6 28,971 13 5 9 6; 28,971 13 5 9,693 19 2 44,902 19 0 63,806 17 7 9,693 19 2 44,902 19 0 45,611 0 0 28,866 15 7 14,097 1 9 1 ! J !_ ..J STATEMENT of the Estimated Liabimti: is chargeabli on the under-mentioned Accounts outstanding on the 31st March, 1894 and 18' '5. 31st March, 1S94. 31st March, 1895. 31st March, 1894. 31st March, 1895. Cheviot Estate Account Land for Settlements Account £ s. d. 3,000 0 0 400 0 0 £ s. d. 2,400 0 0 Lands Improvement Account .. 101, 121 0 0 Native Land Purchases Account £ s. d. £ s. d. 131,379 9 2 24,137 7 2

8.—6

22

Table No. 6. STATEMENT showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to the 31st March, 1895.

WAYS AND MEANS. NET EXPENDITURE. Loans :— Immigration and Public Works Loan, 1870 Immigration and Public Works Loan, 1873 Immigration and Public Works Loan, 1874 General Purposes Loan Act. 1873 New 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 North Island Main Trunk Railway Loan Act, 1882 .. New Zealand Loan Act, 1884 New Zealand Loan Act, 1886 District Railways Purchasing Acts, 1885-86 New Zealand Loan Act, 1888 £ s. d. £ s. d. £ s. d. £ s. d. 4,000,000 0 0 2,000,000 0 0 4,000,000 0 0 750, COO 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 1,000,000 0 0 1,500,000 0 0 1,325,000 0 0 479,487 7 11 1,000,000 0 0 Expenditure on — Immigration .. .. .. .. .. 2,140,653 13 4 Public Works, Departmental .. .. .. 384,842 1 6 Railways, including Surveys of New lines .. 14,902,571 9 2 Roads .. .. .. .. .. 3,916,526 8 11* Land Purchases .. .. .. .. 1,297,853 17 1 Development of Goldfields .. .. .. ; 578,305 10 0 Telegraph Extension .. .. .. .. 699,02117 9 Public Buildings .. .. .. .. 1,944,900 5 1 Lighthouses, Harbour Works, and Defences .. i 910,103 4 6 Contingent; Defence .. .. .. .. 429,718 19 3 Rates on Native Lands.. .. .. .. 61,633 8 7 Thermal Springs .. .. .. .. 14,599 13 2 Charges and Expenses of raising Loans .. .. 1,026,828 3 9 Coal-mines .. .. .. .. .. 10,835 8 0 Interest and Sinking Fund .. .. .. 218,500 0 0 ! i 17,254,487 7 11 28,542,894 0 1 1 _ ' Receipts in Aid :— Amount transferred from Consolidated Fund Contributions of Canterbury Province for Railways .. Stamp Duties to 31st December, 1876 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" Special Receipts under the Ellesmere Lake Lands Acts, 1888 and 1893 Special Receipts under " The Railways Authorisation and Management Act, 1891" .. Special Receipts under " The North Island Main Trunk Railway Loan Application Act, 1886 " Sinking Funds released 700,000 0 0 56,000 0 0 264,657 16 4 .19,963 1 3 4,963 7 4 60,016 3 0 17,945 19 5 ■ 2,257 1 9 Balance on 31st March, 1895, — Cash in the Public Account .. .. .. 242,322 2 2 Advances in the hands of officersof the Government 43,808 14 9 Investments .. .. .. .. .. 9,000 0 0 7,581 5 0 449,552 15 0 1,583,537 9 1 295,130 16 11 £28,838,024 17 0 £28,838,024 17 0 * Has been reduced by £89,000 received under section 31 of " The Government Loans to Local Bodies Act, 1886."

23

£.—6

Table No. 7. ESTIMATED Expenditure of the Consolidated Fund (Revenue Account) for 1895-96, compared with Actual Expenditure of 1894-95.

Table No. 8. STATEMENT of the Estimated Revenue of the Consolidated Fund (Revenue Account) for 1895-96, compared with the Actual Revenue of 1894-95.

Estimate for 1895-9G. Actual 'erences. 1894-95. Increase. Decrease. Revenue Account. £ £ Civil List .. .. .. .. ■• •• 25,700 24,412 Interest and Sinking Fund .. .. .. ..1,694,605 1,716,889 Under special Acts .. .. .. .. .. 331,590 335,701 £ 25,700 1,694,605 331,590 £ £ £ 24,412 1,288 1,716,889 .. 22,284 335,701 .. 4,111 2,077,002 I 1,288 ', 26,395 £ 1,288 2,051,895 2,077,002 2,051,895 1,288 ! . _| Annual Appropriations,— Legislative Departments .. .. .. ■■ 17,385 17,398 Colonial Secretary's Department ... .. .. 70,110 66,023 Colonial Treasurer's Department .. .. .. 25,550 24,512 Justice Department .. .. .. .. .. 124,186 124,204 Postal and Telegraph Department .. .. .. 335,017 298,706 Customs and Marine Departments .. .. .. 64,186 65,675Stamps and Deeds Department .. .. .. 20,560 20,168 i Minister of Education, — Education Department .. .. .. .. 416,814 396,234 j Lunacy and Charitable Department .. .. .. j 52,022 54,414 Department of Labour .. .. .. .. 6,260 3,437 Mines Department .. .. .. .. .. 18,289 15,603 Department of Agriculture .. .. .. .. 44,735 42,530 Working Railways Department .. .. .. 738,940 725,256 Public Buildings, Domains, and Machinery Department .. 50,500 50,150 Defence Department .. .. ..' .. .. 04,419 02,156 Police Department .. .. .. .. .. 100,441 j 94,210 Lands and Survey Department .. .. .. 129,634 ; 119,764 Rates on Crown lands .. .. .. .. .. 900 320 2,279,948 j 2,180,826 17,398 66,023 24,512 124,204 298,706 65,675 20,168 i 396,234 54,414 3,437 15,603 42,530 725,256 i 50,156 62,156 94,210 119,764 320 4,087 1,038 36,251 392 20,580 2,'823 2,686 2,205 13,684 344 2,263 6,231 9,870 680 103,034 I 4,087 1,038 30,251 392 20,580 ; 2,823 2,686 i 2,205 1 13,684 344 2,263 6,231 9,870 680 I 13 18 1,489 2,392 2,180,826 103,034 3,912 ! Services not provided for .. .. .. .. ■• 8,884 8,884 j 8,884 104,322 ' 39.191 39,191 104,322 39,191 Total .. .. .. .. 4,331,843 ' 4,266,712 65,131 -

Revenue Account. Customs Stamps Land- and Income-tax Property-tax Beer Duty .. .. .. Railways Registration and other Fees Marine Miscellaneous Territorial Revenue Estimate for 1895-90. "7 ~£ .. : 1,560,000 .. | 644,300 .. | 350,000 60 i 000 .. 1 1,155,000 .. j 50,000 .. i 21,500 .. ! 05,000 .. j 290,000 Actual Differences. of 1 Increase. Decrease. ! I " £ £ £ 1,569,784 , .. 9,784 677,225 ! .. 32,925 370.080 .. 20,080 < 19 ,, 19 59,902 98 1,152,748 2,252 51,381 .. 1,381 2.1,514 .. 14 63,176 1,824 | 316,167 .. 26,167 Debentures for Sinking Fund increases.. 4,195,800 145,400 4,281,996 4,174 ! 90.370 117,800 27,600 90,370 j 31,774 Total 4,341,200 ' ' 4,399,796 i 31,774 : 58,596

B-β

24

Table No. 9. STATEMENT showing the Amount charged to Unauthorised in each Financial Year from 1st July, 1875, to 31st March, 1895.

Table No. 10. Advances to Settlers. Detail Particulars to 30th June, 1895, of Applications received and. Loans granted. The applications received up to the 31st March, and to the 30th June last, were in number, respectively, 1,483 and 2,156 for advances amounting to £675,095 and £884,453. Of the applications up to the 31st March, 890 were for £526,978 in advances on freeholds, 575 applications were for £135,131 in advances on leaseholds, and 18 applications were for advances of £12,987 on combined freehold and leasehold securities; while of the applications up to the 30th June, 1,345 were for £713,159 in advances on freeholds, 779 applications were for £155,579 in advances on leaseholds, and 32 applications were for advances of £15,715 on combined freehold and leasehold securities. Again, up to the 31st March, the applications for advances not exceeding £500 were 583 for £157,035 on freehold, 535 for £96,037 on leasehold, and 11 for £3,287 on freehold and leasehold combined; while the applications for advances exceeding £500 were 307 for £369,943 on freehold, 40 for £39,094 on leasehold, and 7 for £9,700 on freehold and leasehold combined. Up to the 30th June the applications for advances not exceeding £500 were 954 for £249,294 on freeholds, 736 for £114,894 on leaseholds, and 2u for £5,115 on freeholds and leaseholds combined; while the applications for advances exceeding £500 were 391 for £463,865 on freehold, 43 for £40,685 on leaseholds, and 12 for £10,600 on freehold and leasehold combined. Total applications considered by General Board to the 31st March, 1895 :— 581 for advances amounting to £220,431. Of these, 351 applications for advances amounting to £120,449 were declined. Of the applications declined to the 31st March, 130 were for £80,464 on freeholds, 208 were for £29,695 on leaseholds, and 13 were for £10,290 on freeholds and leaseholds combined. Total applications considered by General Board to the 30th June, 1895 :— 1,552 for advances amounting to £559,855. Of these, 587 applications for advances amounting to £204,948 were declined.

CONSOLIDATED FUND.—EEVENUE ACCOUNT. Financial Yeah. ' Other , Public Woeks », Accounts. Fund. ioial. Ser^°ded n ior. Pr0 ' Excoss of Votes ' I TotaL 1875-76 .. 1876-77 .. 1877-78 .. 1878-79 .. 1879-80 .. 1880-81 .. 1881-82 .. 1882-83 .. 1883-84 .. 1884-85 .. 1885-86 .. 1886-87 .. 1887-88 .. 1888-89 .. 1889-90 .. 1890-91 .. 1891-92 .. 1892-93 .. 1893-94 .. 1894-95 .. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. .. 13,167 4 8 19,195 17 1 : 32,363 1 9 3,155 9 2 63,875 11 8 99,394 2 7 .. 18,397 17 1 13,398 7 0 31,796 4 1 3,490 6 1 2,197 4 5 37,483 14 7 .. 19,079 12 6 58,709 17 2 77,789 9 8 653 6 5 22,009 14 0 100,452 10 1 .. 11,413 16 1 47,406 4 5 58,880 0 6 3,938 14 8 32,179 1 1 94,997 16 3 5,818 9 9 18,466 2 1 24,284 11 10 1,005 3 10 17,096 9 9 42,386 5 5 6,151 13 9 37,825 6 6 43,977 0 3 13,443 11 3 34,133 17 3 91,554 8 9 3,899 16 3 38,474 18 9 42,374 15 0 13,590 6 10 2,217 9 8 58,182 11 6 .. 4,473 15 8 64,631 0 2 69,104 15 10 12,343 2 2 8,137 17 11 89,585 15 11 .. 7,293 9 9 45,284 2 6 52,577 12 3 9,003 18 7 31,74117 10 93,323 8 8 .. ; 5,981 17 8 39,039 17 11 45,021 15 7 | 7,163 15 3 872 0 11 53,057 11 9 .. 9,337 11 2 47,106 10 3 56,444 1 5 13,965 10 1 6,465 17 5 76,875 8 11! ..114,337 19 7 38,117 13 5 52,455 13 0 6,212 16 7 28,633 10 8 87,302 0 3 7,303 17 10 42,104 15 10 49,408 13 8 27,82116 11 30,407 2 3 107,637 12 10 ! 3,521 18 2 35,157 16 5 38,679 14 7 13,506 2 8 I 18,633 2 10 70,819 0 1 4,412 5 3 43,257 1 0 47,669 6 3 23,631 7 1 12,287 18 10 83,588 12 2 .. 10,610 1 0 76,778 5 11 87,388 0 11 5,459 18 11 7,097 19 9 | 99,946 5 7 .. , 2,288 3 2 21,026 16 4 23,314 19 6 9,183 10 6 ! 7,594 1 2 ! 40,092 11 2 .. ' 1,741 7 10 28,283 15 11 30,025 3 9 4,754 17 10 ' 11,149 14 2 1 45,929 15 9 .. 2,350 7 0 7,376 7 4 9,726 14 4 522 12 2 1,335 12 11 : 11,584 19 5 .. I 8,985 3 7 9,148 0 5 18,133 4 0 , 1,890 7 5 330 8 1 20,353 19 6

8.—6

Of the applications declined to the 30th June, 1895, 288 were for £148,715 on freeholds, 279 were for £44,188 on leaseholds, and 20 were for £12,045 on freeholds and leaseholds combined. The General Board had up to the 31st March, 1895, in eleven meetings held for the purpose of considering the applications for loans, authorised 230 advances, to the total amount of £99,982; and up to the 30th June had, in thirty-one meetings, authorised 965 advances, to the total amount of £354,907. Of the authorised advances to the 31st March, 189 were for £94,692 on freeholds, 40 for £4,890 on leaseholds, and 1 for £400 on freehold and leasehold combined ; while to the 30th June the authorised advances were 701 for £314,822 on freeholds, 256 for £35,840 on leaseholds, and 8 for £4,245 on freeholds and leaseholds combined. Up to the 31st March the applications granted on freeholds were 118 for £30,042 on applications for loans not exceeding £500, and 72 for £64,650 on applications for loans exceeding £500. The advances granted on leaseholds were 37 for £4,050 on applications for advances not exceeding £500, and 2 for £840 on applications for advances of more than £500. The advance granted on freehold and leasehold combined was 1 for £400. Up to the 30th June the applications granted on freeholds were 505 for £131,222 on applications for loans not exceeding £500, and 196 for £183,600 on applications for loans exceeding £500. The advances granted on leaseholds were 251 for £32,090 on applications for advances not exceeding £500, and 5 for £3,750 on applications for advances of more than £500. The advances granted on freeholds and leaseholds combined were 6 for £1,795 on applications for advances not exceeding £500, and 2 for £2,450 on applications for advances exceeding £500.

4—B. 6.

25

8.—6

26

Table No. 11. Table showing Possibilities of Trade between Canada and New Zealand under the proposed Reciprocal Treaty.

Statistics of Canada. Statistics oe New Zealand. Bate oe Duty. Preferential Bate mutually proposed as against other Countries. Articles'. Value. Value. Imports. Exports. Imports. Exports. In Canada. In New Zealand. Axes and hatchets Scythes Rakes and hoes Forks, shovels and spades Cordage Twine Twine, binder Leather, sole £ 2,260 3,080 226 2,600 15,208 10,620 25,000" 26,652 £ 18,486 £ 7,367 1,155 9,432 8,436 7,962 £ 1,409 35 per cent. 10s. per doz. 25 per cent, and 2Jd. each 4s. per doz. and 25 per cent. Jd. per lb. and 10 per cent. 30 per cent. 25 per cent. Jd. lb. and 15 per cent., tanned but undressed 10 per cent. 25 per cent. 35 per cent. 35 per cent. Free Free 20 per cent. Free 20 per cent. 20 per cent. 20 per cent. Id. per lb. If made dutiable in N.Z. to be free. If made dutiable in N.Z. to be free. 2J per cent. off. 2J per cent. off. Free. 10 per cent. off. 173,000 47,000 7,135 91,178 Boots and shoes Saddlery and harness Furniture Animals, viz.: Horned cattle Horses Sheep Frozen or fresh meat Bacon and hams 61,472 6,760 62,000 4,100 27,600 t26, 490 19,550 §154,000 18,300 5,450 35,000 1,550,000 292,000 250,000 226,000 394,103 128,391 22,159 22,000 686 1,145 767 2,439 2,000 33,159 1,194,000 6,376 30 per cent. 20 per cent. 30 per cent. l§d. per lb. if d. and |d. per lb. [Salt, Jd perlb. .. | Preserved, 30 per cent. Free 35 per cent. ljd. per lb. 20 per cent. 20 per cent. 25 per cent. Free Free Free Free 2d. per lb. J Salt, 10s. per cwt. {Preserved, 2d. per lb. Free 20 per cent. Free 17J per cent.* 17| per cent.* 20 per cent. Free. Fish 110,000 1,616,000 1,242 27,000 6,100 Free. Free. Free. Free. Free. Free. Free. Hides Milk, preserved Wool Wool, manufactures of— Blankets Cloths Tweeds Flannels Rugs Flax, j | Phormium 389,557 2,000 330,000 80,000 45',000 12,000 11,110 5,226 262 4,827,000 4,800 348,000 169,000 62,000 845 3,000 | 7,000 15,954 157,326 51 8,836 5d. per lb. and 20 per cent. 5d. per lb. and 20 per cent. 20 per cent. 20 per cent. Free. Free. Barley Oats Wheat Wheat flour.. Seeds 2,600 11684,000 36,000 85,000 200,000 510,000 **1,412,000 348,000 44,000 5,000 263 1,198 54,000 762 66,256 2,836 156,694 6,451 47,000 25 per cent. scutched, Jd. per lb. hackled, Id. per lb. 7Jd. per bushel .. 5d. per bushel .. 7Jd. per bushel 3s. 2d. per barrel In bulk, 10 per cent., in small parcels, 25 per cent. 2s. 6d. per ton. 3Jd. per gallon. .. 20 per cent. Free Free 2s per 1001b. 9d. 1001b. 9d. per 1001b. Is. 1001b. Free. Free. Free. Free. Free. Free, Free. Coaltt Kerosene Safes H Organs .. Pianofortes Tallow Lumber and timber .. 852,000 94,000 623,000 1,343 105,191 51,214 73,438 Free Free 6d. per gallon. Free. Free. Free. Free. Free. Free. Free. Free. 5,000 24,000 5,800 122,000 54,000 7,500 400 3,954,000 '5,578 35,705 204,499 111,024 42s. to 125s. and 15 per cent. 104s. to 208s. and 20 per cent. Jd. per lb. Sawn not shaped —free, other kinds 20 per cent. 20 per cent. 20 per cent. Free Sawn 2s. per 100ft., dressed 4s. per 100ft. 14,070 * In case the general tariff rates in both countries be 25 per cent, the preferential rate to be 20 per cent. t About half of this goes into British Columbia and Manitoba from the United States. I Includes salted meat; proportion cannot be ascertained. § The bulk of this comes into British Columbia and Manitoba from the United States. II Flax, other than Phormium, is imported in Canada to the extent of £25,000. IT The bulk of this goes into Quebec from United States. ** The bulk of this is exported from Quebec to United Kingdom. tt Average value in Canada: Imports, 8s. 4d. per ton ; exports, 13s. 8d. {} No information can be given, not being stated separately in Returns.

27

8.—6.

Table No. 12. Table showing Possibilities of Trade between South Australia and New Zealand under the proposed Reciprocal Treaty.

By Authority: Samuel Costall, Government Printer, Wellington.—lB9s.

South Australii Statistics, 1893. New Zealand Statistics, 1894. Bates of Duty. I Articles. Imp< irts. Exports. Imports. Expo: :ts. Quantity. In South Australia In New Zealand. Quantity. Value. Value. Quantity. Value. Quantity. Value. Barley Oats Hops Horses Salt Wine (exported to New Zealand) — Foreign Wine 23,125 bush. 18,492 centals 288,598 lb. 293 number £ 5,352 5,296 16,685 11,946* 246 bush. 419 centals 613 number 7,115 tons £ 37 129 917 centals 54,631 lb. 1,151 number 6,017 tons} £ 263 17,854 bush. 1,963,288 bush. 2,418 224,550 1b. 20,704f 204 number 15,610 £ 2,836 156,694 9,986 16,448* Is. 6d. per bush. 2s. per cental .. 6d. per lb. 40s. each 2s. per cental. 9d. per cental. 6d. per lb. Free. 10s. per ton. Wines — Other kinds, 6s, per gal. Australian, 5s, per gal. 20 per cent. 6d. per gal. 2d. per lb. 14,237* 9,341 6,139 gals. 2,667 50,977 gals. 18,228 i Australian Wine 36,745 gals.§ 11,748 Olives Olive oil .. Fruit, dried Fruit, fresh — Apples, &c. Oranges, bananas, &c. These are not stated separat ely in the re 195 gals. 27,589 lb. n turns 87 873 550,8'89 lb. '7,984 '.'. •■ •• } 21,164 I 31,124 62,926 Jd. per lb. Free. •• •• * Principally racehorses. came froni South Australia. t Principally from New South Walei— viz., 1,006 horses, value £15,163. I Of this 710 tons coarse salt, value £1,114, came from South Australia. § Of this 21,069 gallons, value £6,638,