FINANCIAL STATEMENT Laid on the table by leave of the House, Tuesday, 12th October, 1897) BY THE COLONIAL TREASURER, THE RIGHT HON. R.J. SEDDON.

Appendix to the Journals of the House of Representatives, 1897 Session II, B-06

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Sess. 11.—1897. NEW ZEALAND.

FINANCIAL STATEMENT Laid on the table by leave of the House, Tuesday, 12th October, 1897) BY THE COLONIAL TREASURER, THE RIGHT HON. R. J. SEDDON.

Mr. Speaker,— In laying before honourable members the Financial Statement of this Diamond Jubilee year of our Most Gracious Majesty's reign, it is a matter for sincere congratulation and rejoicing for me to announce that we still retain a buoyant revenue and healthy exchequer, and that the soundness of practising strict economy and maintaining a strong finance has been abundantly demonstrated. I have, however, a word of caution and warning to give, namely, that we must not, because we are now enjoying fairly prosperous times, rush into a lavish and increased expenditure, and suddenly become oblivious of past depression and financial difficulties. The lessons taught by past extravagance, followed by hard times, should not be forgotten; prudence and strict economy exercised in prosperity will surely obviate the necessity for drastic economies, should there be a recurrence of adversity. In the memorandum which I had the pleasure of laying on the table of the House during our last short session, I endeavoured to place before members as close and correct an estimate of the financial results of the year just closed as was possible with the time at my disposal. It is satisfactory to find that my estimates were very near to the actual figures.

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FINANCIAL RESULTS, 1896-97. I estimated the surplus at £340,000; the actual audited results show £354,286 :we are, therefore, some £14,000 better off than we anticipated. The figures producing the surplus are as follows : — £ £ Receipts during the year ... ... ... ... 4,798,708 Expenditure ... ... ... ... ... 4,659,980 Receipts in excess of expenditure ... ... 138,728 Balance brought forward from preceding year ... ... 215,558 Surplus at the end of 1896-97 ... ... ... £354,286 I have already remarked (in my Memorandum) that the surplus would have been still more substantial had it not been for the necessity to charge three half-yearly payments of interest during the past twelve months in respect of the million-and-a-half Advances to Settlers loan. These entries were necessary in order to make our books agree with the actual payments made in London during the financial year. Instead of wearying you with a mass of figures in an attempt to analyse the operations within the year's accounts, I shall confine myself to a few of the most important details. You will be placed in possession of all the figures by the aid of the public accounts of the colony, which will be at once laid before honourable members. RECEIPTS DURING 1896-97. The Customs duties were estimated at £1,670,000: the receipts amounted to £1,818,972, or £148,972 over the estimate. A considerable amount of this increase arises, no doubt, from the fact that stocks had previously been allowed to fall to the lowest possible margin. The revival of prosperity during the last two years has inspired confidence in importers, and has resulted in a very largely increased consumption of dutiable goods. From Stamps we have received £38,237 in excess of the estimate. The amount estimated to be received from the Land-tax and Income-tax jointly was £360,000 : the actual receipts amounted to £377,813, giving an increase of £17,813 over the estimate. Beer duty shows an excess of £6,787. Eegistration, Marine, and Miscellaneous show increases totalling to £10,133. The Eailways receipts have turned out wonderfully well; the estimate was £1,200,000, while the actual revenue amounted to £1,287,140, or £87,140 in excess of the estimate, arising from the large movements of our exports and imports, and an extraordinary increase in the passenger traffic, showing in a most marked manner the improved condition of the colony. The Territorial Revenue was very carefully considered, and I am glad to find that our estimate was not only reached but was exceeded by £2,954. Summarising these figures, we find that all the estimates of revenue have been exceeded, and that the total excess amounts to £312,098, including a small sum of £63 for arrears of property-tax. Compared with the actual receipts of the preceding year, the revenue of 1897 shows an increase of £327,047.

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BXPBNDITUEE DURING 1896-97. Turning now to the expenditure side of the account, it will be noticed that a net saving of £22,198 was effected in the estimated expenditure; this saving would have been increased by £26,000 had it not been necessary to assist the Advances to Settlers Office in the payment of interest upon the million-and-a-half loan borrowed for the purpose of making grants to settlers upon mortgage. £1,404 was overspent under special Acts, and £L,908 was paid over to local authorities in excess of the estimate of the amount payable in respect of their endowments. £11,208 was spent in excess of the votes (including £8,313 for Eailways), and £3,189 without appropriation. £26,000 was also temporarily paid over to the Advances to Settlers Office, as I have already stated. The amount underspent totals to £65,907. Only two items of the amount underspent, call for remark : £11,284, under the head of Interest and Sinking Fund, represents mainly recoveries in connection with the conversion operations under the cent. inscribed stock ; £14,693, under the Department of Lands and Survey, represents savings effected in Native and additional surveys, salaries, and equipments. The usual table of the Estimated and Actual Receipts and Expenditure will be found attached. Comparing the actual expenditure of 1896-97 with the preceding year's figures, it is found that an additional expenditure of £139,500 has taken place. Interest and sinking fund shows an increase of £25,694, of which £17,500 represents interest at 3J per cent, upon the half-million of inscribed stock issued for the purchase of a like amount of Bank of New Zealand preferred shares. Under the annual appropriations there is an increase of £114,246; but, eliminating the increased cost of education, which is fixed by Act, and the working expenses of our railways, the increase is only £73,195 ; and of this sum the services rendered to the public through the Post and Telegraph Department are responsible for £21,324. Extraordinary services—such as the census, £16,400 ; expenses of the general election, £13,700 ; cost of licensing polls, £5,500 ; preliminary expenses connected with the Government valuation of land, £2,000 ; balance of the cost of the new cable-steamer " Tatanekai," £29,600; expenses connected with the Brunner Mine disaster, £1,000 —represent a total of £68,200, which shows that the ordinary services of the departments have been carried on with the greatest economy, and even at less expenditure than in the preceding year. Statement of the receipts and expenditure of the Revenue Account for the financial year ended 31st March last is subjoined.

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STATEMENT of the RECEIPTS and EXPENDITURE of the REVENUE

1895-96. RECEIPTS. 189 i-97. £ s. d. 180,024 5 9 £ s. d. £ s. d. 215,558 16 0 Balance at Beginning op Year 1,649,310 7 2 707,187 12 0 271,394 8 2 92,778 3 11 54 18 8 62,657 11 6 1,182,279 16 6 48,434 12 8 20,560 6 10 72,419 16 8 Ordinary Bevenue, — Customs Stamps, including Postal and Telegraph Cash Beceipts Land-tax Income-tax Property-tax Beer Duty Bailways Begistration and other Pees Marine Miscellaneous 1,818,972 6 6 730,236 16 7 272,309 1 11 105,504 7 5 63 0 11 68,786 18 9 1,287,139 12 6 50,256 10 11 21,204 1 2 98,372 12 2 4,107,077 14 1 Territorial Bevenue, — Cash Land Sales .. .. .. .. .. .. £67,068 10 9 Deferred-payment Land Sales .. .. .. .. 42,452 8 11 Pastoral Buns, Bents, and Miscellaneous .. .. .. 163,432 14 1 4,452,845 3 10 73,521 10 11 53,049 14 3 165,102 4 8 272,953 13 9 4,398,751 3 11 Beceipts in Aid, —■ Debentures issued under " The Consolidated Stock Act, 1884 " — For Increases of Sinking Fund 4,725,798 17 1 145,400 0 0 70,800 0 0 11,864 1 7 8,000 0 0 3,864 1 7 Amount recovered from the Cheviot Estate Account, — Balance of the Purchase-money In respect of Expenditure charged in previous year to " Unauthorised " 2,609 3 9 2,609 3 9 4,736,039 11 3 Debentures issued under, — " The District Bailways Purchasing Act 1885 Amendment Act, 1886," in renewal of like amount matured 1st Oct., 1896 .. 5,014,266 17 4 35,000 0 0 18,600 0 0 Sinking Funds set free, — " The Lyttelton and Christchurch Bailway Loan Ordinance, 1860 " Applicable to the Bedemption of Debentures issued under " The Consolidated Stock Act, 1884," in respect of— " Auckland Loan Ordinance, 1863 " " The Lyttelton and Christchurch Bailway Loan Ordinance, 1860 " .. " The New Zealand Loan Act, 1863 " 4,700 0 0 19,571 0 0 18,000 0 0 11,101 1 3 3,396 10 8 47,701 1 3 Amount transferred from Beleased Sinking Fund Suspense Account 27,667 10 8 0 9 4 27,668 0 0 Totals £4,783,740 12 6 £5,076,934 17 4 TREASURY BILLS 334,000 0 0 476,000 0 0 Treasury Bills outstanding at beginning of Year, — In anticipation of Bevenue In redemption of Guaranteed Debentures .. 335,000 0 0 400,000 0 0 735,000 0 0 810,000 0 0 Treasury Bills issued during Year 1,525,000 0 0 1,255,100 0 0 Totals £2,260,000 0 0 £2,065,100 0 0

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ACCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896.

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1895-96. EXPENDITURE. 189 i-97. £ s. d. 23,044 15 11 1,683,775 0 8 200,558 0 3 63,879 9 7 44,066 7 3 Permanent Appropriations,— Civil List Interest and Sinking Fund.. Under Special Acts of the Legislature Subsidies paid to Local Bodies Amounts paid over to Local Bodies and to Deposit Accounts in respect of Payments under the Land Acts Endowments— New Plymouth Harbour Board Greymouth Harbour Board Westport Harbour Board £ s. d. 24,168 9 2 1,709,469 5 10 193,334 9 7 63,812 10 8 40,634 11 6 £ s. d. 2,072,427 11 8 8,987 11 10 11,348 10 2 17,013 10 9 6,302 4 11 11,066 14 1 23,639 5 11 2,052,673 6 5 18,537 17 11 72,380 14 10 24,784 0 6 122,728 4 11 331,062 11 11 62,741 10 9 22,565 17 1 420,155 14 11 53,129 4 6 8,088 6 1 15,806 14 7 43,347 16 4 743,670 5 2 46,939 2 3 68,647 12 2 98,272 1 9 121,533 15 1 493 1 3 22,422 16 10 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 for 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 20,328 8 4 101,921 13 0 29,835 4 2 123,294 5 0 352,386 7 6 91,050 0 7 22,380 14 2 428,129 12 0 54,513 10 1 7,206 4 6 18,106 14 7 50,033 9 2 776,747 17 6 45,370 17 7 68,551 9 10 101,330 6 1 116,668 19 10 508 9 11 3,188 17 7 2,297,307 8 10 2,411,553 1 5 150,000 0 0 Amount transferred to the Public Works Fund, Part I., in terms of section 17 of " The Appropriation Act, 1896 " Net amount advanced to Government Advances to Settlers Office Management Account in terms of section 49 of " The Government Advances to Settlers Act, 1894" .. 150,000 0 0 20,500 0 0 26,000 0 0 4,520,480 15 3 4,659,980 13 1 215,558 16 0 Balance at end of Yeab 354,286 4 3 4,736,039 11 3 5,014,266 17 4 Debentures redeemed, — Consolidated Stock Act, 1884 (Colonial Issue) Lyttelton and Christchurch Railway Loan Ordinance, 1860—due 1st Jan., 1896 District Railways Purchasing Act, 1885, due 1st Oct., 1896 Released Sinking Funds transferred to Deposit Suspense Account 29,100 0 0 18,600 0 0 22,968 0 0 4,700 0 0 35,000 0 0 "i i 3 62,668 0 0 47,701 1 3 Totals £4,783,740 12 6 £5,076,934 17 4 ACCOUNT. 1,330,100 0 0 Treasury Bills paid off during Year 1,530,000 0 0 335,000 0 0 400,000 0 0 Treasury Bills outstanding at end of Year, — In anticipation of Revenue In redemption of Guaranteed Debentures . * 254,000 0 0 476,000 0 0 730,000 0 0 735,000 0 0 Totals £2,065,100 0 0 £2,260,000 0 0

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THE MILLION LOAN UNDEE "THE AID TO PUBLIC WOEKS AND LAND SETTLEMENT ACT, 1896." Parliament having empowered the raising of one million to provide the means to assist the development of the country, in order to enable us to carry on certain great works, such as continuing and completing our railway system; constructing the main roads and bridges ; developing our goldfields, thermal springs, and our wondrous natural scenery; and for the acquisition and survey of Native lands,—short-dated debentures were issued for and were taken up by the Post-Office Savings-Bank in exchange for Treasury bills of equal value. This first issue matures in 1902, interest being at 3 \ per cent. The second issue (,£500,000) was made on the 21st December last, in the shape of debentures having an alternative currency (ten or twenty-five years), carrying 3 J per cent, interest. The advantages of raising money within the colony being generally admitted, tenders restricted to New Zealand were called for this issue at a minimum par rate. The amount was covered by the public and monetary institutions at a very small margin above par. This in itself was satisfactory, but the anticipation that a large amount of trust-moneys and savings of the people would be invested in this way was not realised. That the public did not to a larger extent avail themselves of the offer of this class of security may be taken as a proof that they can more usefully invest their spare funds; and if their capital is employed in assisting and promoting local industries, or in developing the resources of the country, exception cannot reasonably be taken thereto. It has been urged that there were circumstances occurring at the time which distracted attention, and that if another opportunity were given the results would be more satisfactory. I do not think it likely, however, that there would be any material alteration, for there are so many opportunities offering for obtaining a larger rate of interest; and, in my opinion, the general public will not largely invest in Government securities when the same rate of interest is obtainable from the banks. At the time the tenders were dealt with, it was claimed that the names of those tendering and the amount tendered for should be disclosed. This has not been the practice in the past, and, nothing having been decided upon this point prior to the calling of tenders, the Government made no change ; to have done so without warning might have been construed to be a breach of faith. In London it is the custom to give the amounts for the satisfaction of those tendering, and the committee appointed to deal with tenders of course know the names. In the neighbouring Colony of Victoria the names are given, but, as this is understood beforehand, the real investors are not known, because they get agents to tender for them. The assertion that the Government lending departments had invested in this loan is without foundation ; and it was probably with the view of ascertaining whether any such investment had been made that the names of the tenderers were asked for. In respect to investments by the Government departments, it is worth considering whether or not, with our lowest-interest loans above par, the departments should not invest; and in that way we should keep the interest in the colony, and the thrift of the people would at the same time have a secure and profitable outlet. The £750,000 raised by these two issues has been placed to the credit of the respective accounts, as indicated, and in the proportions authorised by, the Act. It will be necessary to raise the balance of the loan (£250,000) very shortly, and I am of opinion that the Post Office should take up a portion of the same, particularly seeing that before long the maximum rate on deposits will have to be reduced to 3 per cent., which is the rate ruling at the banks. There is an advantage in the thrift of the people being so invested as to prevent loss, and, should the Treasury be able to save through the Postal Department the brokerage and other charges, it would be well to do so. Of the balance which the department is unable to take up, in all probability we

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shall avail ourselves of the London market to float the amount in the shape of 8-per-cent. inscribed stock. Considerable opposition was shown, at the time the Loan Bill was in Committee, to the currency being allowed to extend to the dates of the existing inscribed stock, and it was pointed out, not without reason, that with a falling rate of interest we should endeavour to issue our loans with a much shorter currency than heretofore, and with this object the present loan was limited to a currency not exceeding twenty-five years. Our intention was good enough; but, when it came to practical working, our financial advisers in London pointed out the difficulties which would undoubtedly arise from having inscribed stock of different currencies bearing the same rate of interest, and that the financial market, only too eager and ready to find the slightest excuse, would seize upon this anomaly to demand enhanced terms should an issue be placed upon the London market. Upon making inquiries myself into this matter, while in London, I had to come to the conclusion that it will cost the colony an extra 2 per cent, if this defect is not remedied. I shall, therefore, ask Parliament to amend the Loan Act so as to allow any inscribed stock which may be issued under this Act to rank absolutely pari passu with the existing 3-per-cent. inscribed stock. THE PUBLIC WORKS FUND. Part I. was credited during the year with .£375,000, proportion of the proceeds of debentures issued under " The Aid to Public Works and Land Settlement Act, 1896." Released sinking funds amounting to £12,896 also came to credit. The sum of £150,000 was transferred from the Consolidated Fund, and some miscellaneous moneys, amounting to £2,379, were also credited. These amounts, with the balance brought forward from the 31st March, 1896, —namely, £31,150, —produced available funds to the amount of £.571,425. The expenditure on railways, roads, and other public works amounted to £414,007. A small sum of £55 was also paid to the Waipa County by way of subsidy. These sums, deducted from the funds available, left a balance at the close of the year of £157,363. Part 11. had a balance of £13,923 to commence the year with, and this amount was expended on works connected with the North Island Main Trunk Eailway. This account is now closed, the expenditure being incorporated with and provided for in Part I. THE LANDS IMPROVEMENT ACCOUNT. This account had a balance of £31,425 at the beginning of the year. Proceeds of debentures amounting to £208,700 were credited under the authority of " The Lands Improvement and Native Lands Acquisition Act, 1894," and " The Aid to Public Works and Land Settlement Act, 1896." Some miscellaneous items amounting to £3,378 were also credited. The expenditure amounted to £106,930 ; and the balance at the close of the year was £136,573. THE NATIVE LANDS PURCHASE ACCOUNT. This account opened with a balance of £5,920; and the proceeds of debentures amounting to £218,300, issued under the above-mentioned Acts, were duly credited during the year, together with £2 for premium. Purchases of Native lands, with the cost of surveys and other expenses, amounted to £129,000, leaving a balance of £95,222 at the end of the year. WAYS AND MEANS OP THE LOAN ACCOUNTS. At this point it may be convenient to place before honourable members a summary of the ways and means, both in hand and prospective, of the several Loan Accounts I have just referred to : — Ways and Means on the 31st Makgh, 1897. Public Works Fund — Balance ... ... ... ... ... ... £157,363 Proportion of £250,000, Aid to Public Works, &c, Loan, to be received ... ... ... ... ... 125,000 : —- £282,363

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Lands Improvement Account — Balance ... ... ... ... ... ... £136,573 Proportion of £250,000, Aid to Public Works, &c, Loan, to be received ... ... ... ... ... 62,500 £199,073 Native Lands Purchase Account — Balance ... ... ... ... ... ... 95,222 . Proportion of £250,000, Aid to Public Works, &c, Loan, to be received ... ... ... ... ... 62,500 £157,722 In addition to the above moneys there will be the sum or sums found to be available which Parliament may set aside in aid of these accounts during the current year. THE CHEVIOT ESTATE ACCOUNT. Eeceipts from rents and other sources amounted during the year to ,£15,333, out of which £11,980 was charged in recoupment of interest, and £2,973 for surveys, roading, &c, leaving a balance in the account at the close of the year amounting to £380. THE LAND FOE SETTLEMENTS ACCOUNT. A small balance of £1,357 was at the credit of the account at the commencement of the year. Debentures to the amount of £305,990, under " The Land for Settlements Act, 1894," have been issued, and rents and lease-fees amounting to £19,629 have been received and credited. The expenditure on the acquisition of lands during the year has been unusually large : £300,159 as purchase-money and £11,313 for expenses. £8,690 of debentures issued in July, 1893, fell due on the 31st March last, and were renewed. The balance at the close of the year amounted to £4,714. THE CONVERSION ACCOUNT. Conversion operations have been unimportant: £30,271 of 3j-per-cent. stock) and £26,620 of 3-per-cent. stock, have been inscribed in exchange for debentures; the former amount to redeem 5-per-cent. 1867 debentures, together with a small parcel of 1862 and 1863 debentures, and the latter to redeem 4-per-cent. Land for Settlements debentures, having a currency to 1926. Out of stock already inscribed, further parcels of debentures belonging to the 1867 loan and the Auckland loan of 1863 were redeemed, and expenses amounting to £3,129 paid. Detailed particulars will be found in the table appended. THE LOANS TO LOCAL BODIES ACCOUNT. During the year, £93,800 of debentures were created and issued under " The Government Loans to Local Bodies Act, 1886 "; and refunds under the provisions of section 8 of " The Government Loans to Local Bodies Act Amendment Act, 1896," amounting to £2,495, have been received. These amounts, together with the balance of £859 at the commencement of the year, provided sufficient funds to enable grants to be made during the year of £66,133 to the local bodies, and £31,017 towards opening up blocks of land for settlement, and left a balance in hand of £4 at the end of the year. Up to the 31st March last the total amounts raised were : (1) For granting loans to local bodies, £786,439 ; (2) for loans under the provisions of section 2of " The Government Loans to Local Bodies Act Amendment Act, 1891," £177,861; and (3) for payment of £89,800 to the Public Works Fund, on account of the debt of £89,878 Bs. 9d. due to the said fund for debentures issued under " The Eoads and Bridges Construction Act, 1882," and now converted and inscribed as debts under Part 11. of " The Government Loans to Local Bodies Act, 1886." The total sums thus raised by debentures amount to £1,054,100, and the proceeds have been carried into the Loans to Local Bodies Account. The total disbursements to the same date (31st March last) have been : (1) To local bodies, £786,435; (2) to Lands and Survey Department for roading

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new blocks of land, £177,861; and (3) transferred to the Public Works Fund, £89,b00 : leaving a cash balance of £4, as stated above, at the end of the financial year. A very complete table has been prepared, and will be placed before honourable members, showing the grants made to, and the repayments made by, the local authorities in respect of loans authorised under the Government Loans to Local Bodies Acts. This table will, I feel sure, be much appreciated, as it furnishes a complete history of the grants which have been made by the Treasury, and of the repayments by the local authorities on account of these grants. Local bodies find at times some difficulty in strictly carrying out the necessary steps required to obtain a loan, the procedure being somewhat different under the several Acts by which the local authorities are constituted. These difficulties and anomalies, together with several amendments of the parent Acts, render it necessary to have a consolidating Bill prepared, and I hope to be able to place it before members for their consideration during the present session. The accretions from the sinking funds of the loans to local authorities against which debentures may be issued are estimated at £23,000. Ido not intend after the 31st March next to issue further debentures in respect of these accretions. I am pleased to be able to state that the local authorities make their halfyearly payments of interest with great promptness and regularity, and that before the close of the past financial year all payments which had become due had been duly made. The severe disasters which have recently overtaken the thriving districts of Hawke's Bay, Eangitikei, and other districts, call upon the Government to make special effort to afford facilities in the way of assistance to the local authorities who will have to repair the damages caused by the late floods. With this object in view, I intend to ask for authority to so extend the provisions of the Government Loans to Local Bodies Acts as will enable the Government to grant loans for somewhat larger sums than are therein allowed, the usual safeguards of the Act being of course carefully retained. THE NEW ZEALAND CONSOLS ACCOUNT. The deposits received during the year amounted to £136,015, making a total of £297,405 inscribed since the initiation of the system. The moneys received have been satisfactorily invested in Government securities. THE PUBLIC DEBT. On the 31st March, 1896, the gross public debt was £43,050,780, and the net debt £42,271,889. On the 31st March last the figures were respectively £44,366,618 and £43,552,324, showing an increase of £1,315,838 in the gross debt, and of £1,280,435 in the net debt. Honourable members are aware that there is an increase in the public debt; they will remember that a million loan was authorised during the session of 1896, of which £750,000 was issued during the past financial year. The magnitude of our operations in land-acquisition for settlement purposes necessitated our issuing £297,300 under " The Land for Settlements Act, 1894." Grants to local authorities caused the raising of £93,800 under " The Government Loans to Local Bodies Act, 1886." £52,000 was raised under " The Lands Improvement and Native Lands Acquisition Act, 1894." £136,015 of New Zealand Consols were inscribed; and £70,300 of debentures in aid of revenue were issued under " The Consolidated Stock Act, 1884." The conversion operations for the year caused a small increase of £3,491 to the debt. On the other hand, debentures issued under the following Loan Acts have been paid off, namely : £4,700, Lyttelton and Christchurch Eailway Loan, 1860 ; £16,800, Auckland Loan, 1863 ; £42,600, Consolidated Loan, 1867 ; and £22,968 under " The Consolidated Stock Act, 1884."

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Some small parcels of debentures fell due during the year and were renewed by conversion or otherwise. Much comment has been made from time to time about the increase to our public debt. Of course, Ido not deny that the debt has increased, but what I particularly desire to impress upon honourable members is the fact that such increase has not imposed any appreciable amount of extra burden on the taxpayers. To substantiate my statement it will be advisable to place before you a short analysis of the building-up of our national debt; and the following table succinctly shows the remunerative character of the purposes of the loans obtained during the Ballance and Seddon administration as compared with those for which loans under former Governments were asked :—

Honourable members must understand that I do not pretend that the above figures represent the actual expenditure which was incurred in the stated services, but they are sufficiently accurate to enable an estimate to be formed of the pur-

Reproductive. Non-produc-tive. On the 30ih June, 1870, the public debt was £7,490,516, chiefly for the following services (approximately) : — Maori war, exclusive of provincial charges and losses sustained Land-purchases Immigration Railways ... Lighthouses Telegraphs Public works, including surveys Charges and expenses of raising loans ... Miscellaneous £ 306,000 350,000 & 2,357,000 314,000 47,000 139,000 1,487,000 583,000 1,907,516 Between the last date and the 31st March, 1891, the debt had been increased by £31,339,b34, for the following services (approximately) :— Defence Land-purchases Immigration Railways ... Lighthouses and harbours Telegraphs Roads and bridges ... Provincial liabilities Goldfields and coal-mines Public buildings Other public works ... Deficiencies in revenue Charges and expenses of raising loans Loans to local bodies Miscellaneous 795,000 6,695,516 1,240,000 1,638,000 14,230,000 2,145,000 630,000 437,000 3,619,000 786,000 571,000 1,800,000 374,000 1,982,000 1,054,000 325,000 508,834 16,425,000 14,914,834 Between the 31st March, 1891, and the 31st March, 1897, the debt had been further increased by £5,536,268, for the following services (approximately) :— Land-purchases Railways ... Lands improvement (roads and bridges) Loans to local bodies For advances to settlers New Zealand Consols deposits Bank of New Zealand preferred shares Goldfields... Miscellaneous ... ... ... ... 1,362,000 234,500 437,500 729,000 1,500,000 297,000 500,000 150,000 326,268 4,622,500 913,768

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poses for which the several loans were raised or have been voted. Many disturbing elements exist which prevent a true analysis being made within the time at my disposal; I need only mention the numerous conversions which have taken place as an illustration of the difficulties. Sufficient is shown to give you, with reasonable accuracy, a general idea of the character of the services upon which our borrowed money has been spent. To the year 1870, out of loans of the General Government amounting to over seven millions, nearly £6,700,000 was for non-productive expenditure ; during the succeeding twenty years this non-productive expenditure was increased by nearly fifteen millions ; while out of the five millions and a half raised during the administration of the present and preceding Liberal Governments less than one million has been applied to unproductive services; and it must not be forgotten that during their administration £200,000 of permanent debt has been paid off. Reckoning interest at 5 per cent., the annual charge upon the first series of non-productive debt was close upon £335,000, or, say, a charge of £1 7s. 7d. per head of population; upon the second series it was, say, £675,000, taking the interest at per cent., or £1 Is. 6d. per head; while during our own term, with interest at 3J per cent., the annual charge is, say, £32,000, or about lid. per head of population —and a large amount of this £32,000 is certainly diminished by the excess interest earned by some of the directly reproductive services. Differences of opinion will naturally arise with regard to the insertion of some of the heads of expenditure within the two columns: I do not desire to be dogmatic, but I venture to express the opinion that they have been correctly placed^ RAILWAYS. The remarkable increase in the traffic returns of our railways during the year is a very pleasing feature indeed, the increase in revenue on the previous year being £104.860. The expenditure increased to the extent of £33,077, the excess of revenue over expenditure for the year being £510,392, or £71,783 more than last year, notwithstanding the fact that the train-services were largely added to in Auckland, Taranaki, Southland, and elsewhere, besides additional workmen's trains between Christchurch and Islington. The cost of these additional train-services has been calculated at £11,405. Additions and improvements to the lines and structures, together with additions to rolling-stock, have cost £92,624 during the year. The increase in the traffic has been very general, and the receipts per train-mile have increased from 7s. lfd. last year to 7s. 6§d. this year. The returns show £3 3s. 10d. per cent, on the capital cost of £15,577,392, as against £2 16s. per cent, last year. The traffic expenditure for 1895-96 was 17 - 52 per cent, of the revenue, as against 16"63 per cent, this year. There has been a slight reduction in the cost of locomotives per trainmile, and an increase in the cost of maintaining the permanent-way and rollingstock. 101,992 more train-miles have been run this year. The increased cost on account of maintenance of cars and wagons is accounted for by the amount of new work done, and charged to working-expenses. Higher prices had to be paid for steel rails, and more money had to be spent on the lines and structures with a view to bringing about a greater state of efficiency. The locomotive charges have increased, owing to the additional tonnage hauled, additional miles run, and to replacement of light locomotives by engines of heavier type and increased capital value. The travelling public will appreciate the improved lighting of the passengercars on the Hurunui-Bluff Section, and I am pleased to inform members that arrangements have been made for introducing the Pintsch light system on all the other principal lines in the colony. The revenue for the current year is estimated at £1,275,000, and the expenditure at £810,000. Notwithstanding the disastrous floods which occurred in the Hawke's Bay District and in other parts of the colony, necessitating an increased expenditure for the current year, the Minister for Railways has seen his way, on further consideration, to reduce by the sum of £10,000 the estimate (£820,000) which he made in the Railway Statement lately laid on the table of the House.

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If the settlement of the country is to progress, industries to be assisted, and the demands of travellers and producers done justice to, a large sum must be provided for additional locomotives and rolling-stock, also for improvements and additions to the lines and structures, which in some of the larger centres are insufficient for requirements. To enable more locomotives and rollingstock to be built in the railway-workshops the shop machinery must be added to, and, in some cases, replaced by more modern appliances. In some districts provision is urgently required for interlocking signals and points, also for fitting continuous brake-gear on trains running over heavily-graded lines. Where the lines are of such a nature, and the volume of traffic sufficiently large, it will be economical and wise to make provision for strengthening the lines and structures to permit of the passage of engines having greater tractive-power, and of the most modern type. Taking into consideration the improved results shown by the railways, and to provide for increased safety and efficiency, it is deemed advisable in the best interests of the colony that £200,000 should be raised for these purposes. BAILWAY CONSTEUCTION. Satisfactory progress has been made in the matter of railway construction during the year. Forty-nine miles of railway have been completed since the 31st March, 1890. The Makarau Tunnel, on the Helensville Northwards line, which has been in hand for over seven years, has at length been completed and the railway through it opened for traffic; and the Makohine Viaduct, on the North Island Main Trunk Eailway, which was so long in contemplation, has now been commenced, the excavation of the foundations for the piers being well in hand, the bulk of the cement on the ground, and the iron and steel work now arriving from England. Other very important railway-works are in hand, and progressing as rapidly as the means at our disposal will allow. The line between Eketahuna and Woodville will be completed in a short time. This done, a vigorous policy in respect to completing the North Island Trunk, Otago Central, and other railways is worthy of consideration. LIGHT RAILWAYS. When visiting Tasmania during the recess, to take part in the conference of Australasian Premiers, I had an opportunity of obtaining the fullest information in respect to the light railway between Zeehan and Mount Dundas. This line, which passes over some exceedingly rough country, has been constructed at the phenomenally low rate of about £"2,000 per mile, including rails, sleepers, and rolling-stock. I was very favourably impressed with the possibilities of constructing light lines in our colony, but, in respect to present authorised lines, without breaking the gauge. At present the cost averages over £7,000 per mile. By using lighter rails, fewer sleepers, and reducing the cuttings, earthworks, and decreasing the number of station-buildings, there would be a considerable reduction, and the moneys available would be sufficient for double the distance, and the desired connections could be completed in half the time. Eailways of the character I have referred to can be constructed for very little more than it would cost -±o make a good metalled road in some parts of the colony; but in no part where railways are required does the nature of the country warrant the breaking of the gauge and the attendant disadvantages. As Treasurer, I am, however, only concerned from a financial standpoint, and it is not necessary for me to go further into the question here, as fuller particulars of our proposals will be given by my colleague in his Public Works Statement, and these will, in the due course of events, be submitted to the Railways Committee. MIDLAND BAILWAY. I regret to say that the position in respect to this most importaut public Work remains practically unaltered. The construction of the line is proceeding slowly, and the expenditure is kept within the appropriations. The company has met the claims made upon it. The actual amount of cash recovered on account of construction-works carried out by the Government is £24,263 10s. (3d. In addition to this there was a profit on the working of the opened portions of

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the line to the amount of £7,380 3s. 4d., which has also been used towards defraying the cost of construction-works, making the total amount received £31,643 13s. 10d. Proposals, similar to those which were submitted to the Public Accounts Committee in the session of 1896, have been received. They are of such a nature as to prevent them from being seriously entertained. Mr. A. Young, the receiver of the Midland Railway, had several interviews with me in London. In conversation with him I maintained the position taken up when the matter was before the Arbitrators —namely, that as the groundwork was the contract itself, the debenture-holders could not be placed in a better position than the principal—■ the company. 1, however, pointed out that, such being the case, one of two things must happen—namely, those interested must either submit proposals for the completion of the contract, or throw themselves by petition upon the generosity of the people of New Zealand. Mr. Young maintained that under the special Act passed in 1884 the railway and all the assets of the company remain legally charged to the debentureholders, and that, such being the case, their security could not be taken away, even by the Government of New Zealand, although default was made in repaying the moneys expended on the construction of the line. From what I could gather, he was referring to an old contention —namely, that as soon as a section was finished the debenture-holders could take it, and that default in completing the contract by the company would in no way affect the debenture-holders. As we have been advised, this argument cannot be maintained; and, in my opinion, it is simply absurd for the debenture-holders to imagine that they can obtain from the colony a repayment of the eight hundred thousand odd that they have invested in the construction and equipment of the railway. The contention of the debenture-holders that they could enter legal proceedings in Great Britain has proved fallacious, for their own solicitors have advised, that proceedings must be taken in the colony. A proposal was mooted to me at Home by one having a good knowledge of the position that if the colony was prepared to give a guarantee of 3 per cent, for a period of, say, ten years, there was a possibility of raising the million required to complete the line between Jackson's and Springfield, and to finish it to a point to be agreed upon at the Eeefton end, and also at the Nelson end. This meant that if the net amount received on the working of the line did not give 3 per cent., the difference between that obtained and 3 per cent, should be found by the colony. In the absence of any definite proposals from the company or the debenture-holders for the construction of the whole of the railway, or even that portion between Springfield and Jackson's, I think, for the present, there is nothing to be done but to proceed with the construction of the work, rendering periodical claims for the amount expended in construction. If, in the meantime, the debenture-holders like to take steps under section 124 of " The Eailways Construction and Land Act, 1881," that is their business; or if, on the other hand, they submit some reasonable proposal for the construction of those portions of the line on a guarantee such as hereinbefore mentioned, then in such case 1 should advise full and fair consideration being given thereto. Failing inability on the part of the debenture-holders to make any proposals, their obvious duty is to throw themselves on the generosity of the colony at an early date, otherwise another year will be lost and nothing done towards putting an end to the present unsatisfactory state of affairs, for it is almost certain that, at no distant date, default in meeting the claims upon construction account will undoubtedly take place. AID TO THE PUBLIC WOBKS FUND. Special provision to the extent of £250,000 was made last year under the above head for carrying on our railway construction works. The expenditure thereunder during the year amounted to £193,308, so that a balance of only £56,692 remained at the commencement of the current financial year, and the whole of this amount has since been expended; while our liabilities in respect of these works, including additions to open lines, amounted on the 31st March last to £106,312, and on the 31st July to £233,907.

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It is imperative that the works which at present are in a partially completed condition on such exceptionally important lines as the Thames -Paeroa, the Eketahuna-Woodville, the North Island Main Trunk, the Midland, and the Otago Central Eailways shall be brought to completion and made remunerative without further delay, and additional provision is also necessary for some other minor lines. The great increase in the traffic on our railways has necessitated a large increase in the rolling-stock, and the improvement and extension of the station-works and accommodation on our opened railways generally. So great has the demand become that special financial provision must be made to meet it. The House will therefore be asked to provide further means for urgent and necessary railway-works, including additions to open lines, permanent-way materials, and rolling-stock. A considerable number of other charges are borne by the Public Works Fund, in addition to those for which special provision was made in 1896. The following table shows the items, and the amount of expenditure on each, during last financial year : — £ Public Works, Departmental ... ... ... ... ... 14,892 Main Eoads, Miscellaneous Eoads and Bridges, and Local Bodies ... 15,636 Telegraph Extension ... ... ... ... ... ... 36,791 Public Buildings ... ... ... ... ... ... 70,579 Lighthouses, Harbour Works, and Harbour Defences ... ... 11,600 Contingent Defence ... ... ... ... ... ... 10,554 Eates on Native Lands ... ... ... ... ... ... 332 Total ... ... ... ... £160,384 The following table shows that the expenditure on ordinary public works, railways, roads, and buildings, &c, is very reasonable as compared with similar expenditure in the other colonies : —

Expenditure on Public Works, out of Revenue and Loan, in the several Australasian Colonies.

The requirements of the current year will probably be fully equal to the expenditure during last year, and suitable provision will be required to meet it. For this purpose it is proposed to transfer from revenue, in aid of the Public Works Fund, the sum of, say, £300,000. NATIVE LAND PUECHASES. During the past financial year the area acquired was 335,000 acres. The Native Land Court now sitting at Otorohanga will, during the next two months, define the interests of the Crown in about a hundred and fifty blocks in the King-country, the purchase of which has been in progress for the last two years. This will open up for immediate settlement an area of 150,000 to 200,000 acres of territory, over the greater portion of which the Queen's writ practically did not run prior to the Ballance Government assuming office. The same Court will decide the ownership of Bangitoto-Tuhua Block, of 600,000 acres, which is the only portion of the King-country not already adjudicated upon by the Native Land Court. The old Native customs and usages in respect to their holdings will then virtually be at an end all over the colony, as the lands will thereafter be held by the Native owners under European title. The prospect of the abolition of the Native Land Court at an early date will not cause much

Name of Colony. Population on 31st Dec, 1896. Year. Out of Revenue.! Out of Loan. Total. New South Wales Victoria South Australia Western Australia Tasmania New Zealand .. 1,297,640 1,174,888 355,286* 137,946 166,113 714,162 1896-97 1895-96 1895-96 1896-97 1896 1896-97 £ 763,000 77,560 805,479 £ 868,000 308,396 443,000 1,519,995 82,700 601,343 £ 1,631,000 308,396 520,560 2,325,474 82,700 646,713 45,370 * Not including Northern Territo T —population, 4,934

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regret; and, in regard to the work of partition and succession, that can be done by the Stipendiary Magistrates and such of the Native Land Court Judges as may be required for the purpose. LAND- AND INCOME-TAX. Notwithstanding the breaking-up of large estates upon the death of the owners, and the policy of acquisition of private lands by the Government, the land-tax has been well maintained. The revenue collected from the land- and income-tax during the past year was .£377,813, being £17,813 in excess of the estimate. This increase chiefly comes from the Income-tax, and is naturally the result of the improved commercial conditions of our colonists. It will interest members to tell them that the income-tax produced nearly £68,000 the first year of its collection, in 1892-93, while for the year ended 31st March last the tax received amounted to £105,000. These figures have not been reached without careful and energetic administration; at the same time they clearly indicate the progress in the welfare of the community. I propose during the present session to introduce a measure having for its object the consolidation of the Land and Income Assessment Acts of 1891, 1892, 1893, 1894, and 1895. The want of a Consolidating Act has been felt for some time, considerable inconvenience being experienced in following the provisions of the several statutes dealing with direct taxation. ADVANCES TO SETTLEES OFFICE. Up to the close of the financial year, no less than 4,501 applications for loans on mortgage, representing an aggregate sum of £1,404,065, had been granted in whole or in part by the General Board, while 1,112 applications, representing £360,268, were declined. Of the above 4,501 applications, 581 were not completed on the terms offered by the Board; consequently the actual number of completed loans was 3,920, and the amount was £1,112,775. Taking the past year by itself, the total number of applications received was 2,687, and the amount applied for was £862,179. On the 31st March, 1897, there was a sum of £333,319 temporarily invested in Government securities, such as could be readily realised from time to time as money is required by the Board for lending purposes. The department, under this arrangement, reaps the benefit of the interest from these investments during the period the money is waiting to be lent out on mortgage. Since the close of the year, I may mention, the greater portion of the securities held in London have been sold at a considerable advance on the price at which they were purchased. The profit arising from this transaction has been demoted to reducing the advances from the Consolidated Fund. For the future the expenses of management will be largely reduced, as the provisions of the Government Valuation of Land Act will enable the department to obtain its valuations at a much cheaper rate than hitherto. In " The Government Advances to Settlers Act Amendment Act, 1896," provision was made enabling the General Board to lend money on mortgage for a fixed term not exceeding ten years. The applications for loans under this new provision have not, however, been so numerous as those under the instalment conditions, thus proving that the instalment plan is more popular than the fixedterm system. It has been found desirable to frame regulations for the better control of funds placed in the hands of the office solicitor for payment to mortgagors. These funds are Government moneys until they reach the hands of the mortgagors, and it therefore was deemed advisable to place the solicitors upon a somewhat similar footing to Government officers having public funds in their hands for disbursement, who have to render proper accounts of the same. THE PUBLIC TEUST OFFICE. The business of the Public Trust Office continues to show a satisfactory and steady increase in all its branches. The number of all descriptions of estates in the office has increased from 1,678 at the close of the year 1890 to 2,334 on the

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31st March last, and the value from £1,240,097 to £1,898,163. During the same period the capital funds have increased from £493,861 to £858,638 ; the amount of investments on the mortgage of freehold lands in the colony from £215,909 to £482,206 ; the amount of the investments in Government securities of the colony from £199,208 to £354,108. The estates and funds which, subject to wills or trusts, were in the office at the close of the year, and for the administration of which the office is voluntarily selected by the persons interested, had increased in number from 447 to 466, and in value from £673,478 to £744,742. The reserves subject to " The West Coast Settlement Keserves Act, 1892," yielded during the year a sum of £21,318. The income had, at the close of the year, risen to the annual rate of £16,932 ; the number of lessees had increased to 579 ; and the aggregate area of the leaseholds had increased to 101,602 acres. With respect to the Native reserves vested in the Public Trustee by " The Native Eeserves Act, 1882," these were at the close of the year subject to 981 leases, of an aggregate area of 19,100 acres, and yielded during the year an income of £7,811 for the benefit of or for distribution among the Natives interested. Under an Act of the General Assembly of 1895, the Native beneficiaries of the Arahura Native Reserves secured the distribution of a capital sum of £1,593, being the balance received by way of compensation for damages, past and prospective, of the lands at Arahura, in consequence of the river of that name having been proclaimed a watercourse for the deposit of tailings. The office has disbursed the whole sum, under a satisfactory scheme of distribution. The administration of both the West Coast Settlement and the Native reserves continues to be carried on without it being found necessary to seek assistance from the Consolidated Fund. DEPAETMENT OF AGEICULTDEE. I am glad to be able to state that the returns from the soil during the past year have shown improvement. The yields of grain have not been so great as last year, but prices have been somewhat higher. The principal wheat-growing districts have suffered from an unusual drought, which has reduced the yield and consequently the average. Dairy produce has shown much better returns, and a larger output. This industry is likely to continue to increase. For the period ended 31st March last there were exported 75,287 cwt. of butter, valued at £297,518, and 71,663 cwt. of cheese, valued at £135,711; making a total of £433,229 in value : the increase over the previous period being 15,221 cwt. of butter and 189 cwt. of cheese. A marked improvement is observable in the quality of our dairy produce. There has been a falling-off in the total export of mutton and lamb. This is partly accounted for by the losses sustained during the unprecedented winter of 1895. The number of carcases of mutton exported was 1,428,430, valued at £772,588, and 781,539 carcases of lamb, valued at £369,724 : making a total value of £1,142,312. The number of sheep in the colony is estimated at 19,629,602, or an increase of 491,109 for the year. I regret to mention that the prices for our frozen mutton are still very low. There is also another matter that I wish to draw particular attention to —namely, the wholesale slaughter and export of ewe lambs, which must have a detrimental effect upon the flocks of the colony. It is well known that the best ewe lambs are selected, as they mature quicker than the wethers, consequently a better price is obtained; but, in view of the consequent deterioration and lessening of increase, it is manifest that a continuance of this policy must be suicidal. The fruit industry continues to expand, and since the import duty on certain fruits was imposed quite an impetus has been given to the culture of fruit. Considerable areas are being planted with vines. The several experts have been kept busy imparting information to settlers. Conferences in connection with agriculture and fruit-growing have been held in Queensland and Melbourne, at which this colony was represented, and with beneficial results. The reports and papers will be laid upon the table.

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RHEA, OE RAMIE PLANT. It is probable that New Zealand will be found especially suitable to the production of the valuable rhea, or ramie plant. Although its field of cultivation has been hitherto in warm countries, the most valuable variety grows best in a temperate climate. It is exceedingly hardy, and thrives in almost any description of soil; indeed, it was formerly looked on as a troublesome and ineradicable weed. Quite recently, the gum, which had hitherto defied the efforts of inventors to extract, has been mastered by a new process, and the plant now bids fair to become one of the most .useful textile materials ever brought into the service of mankind. It can supply the place of both hemp and flax, of cotton, and, to some degree, of silk. „In its coarser form it makes good rope, cordage, &c, while the finer material can be woven into damasks, flannelettes, velvets, &c, of beautiful appearance and brilliant hue. The lands of the North Island of New Zealand (especially of the parts having volcanic soil) are especially suitable for raising crops of this plant. It is propagated in several ways—by seed, by cuttings, and by division of roots —so that rapid extension of cultivation is possible. Boots were obtained last year, and a further supply a few months ago. These are being propagated at Momohaki experimental station, and a distribution will be made from there next year, in order that further tests may be applied. The price of the fibre is at present about £30 per ton. The average cost of production is about £4 per acre, to produce about 2,800 pounds of fibre. This is about five or six times the yield that cotton gives under the most favourable circumstances. Representatives of the company holding the patent rights for the cleansing process waited upon me when in England, and wished to know whether the New Zealand Government were prepared to encourage the introduction of this plant into the colony and set apart land for the company for the purpose. The company also gave me to understand that they were prepared to treat, with any one undertaking to cultivate the plant, for the purchase of the raw material. An interesting pamphlet on the subject, together with samples, will be laid on the table for the information and inspection of honourable members. ORDINARY LAND SETTLEMENT AND ROADING, ETC. Excluding pastoral leases, the increase of land occupied for settlement from 1891 to 1897 was 2,810,807 acres, being at the rate of 15-9 per cent, of the whole of the lands leased or sold up to the 81st March, 1897. There has been a considerable falling-off, as compared with last year, in the number of selectors, and also in the area of the land selected. The decline has been, on the whole, general throughout the several classes of settlement. This is due to the fact that little Crown land of really good quality could be placed before the public. There was also reluctance to accept applications from associations until the obligation to open roads to those lands already dealt with had been fulfilled. Excluding town land, and pastoral and miscellaneous leases, the number of new selectors for the year is 1,391 (in area 222,068 acres), all of whom are obliged by law to reside on or improve their holdings. The territorial revenue for the year was ,£272,954, being £2,954 in excess of the estimate, but £18,719 less than that received in 1895-96. The arrears of rent have been reduced from £15,708 in 1896 to £12,381 in 1897. The decrease of revenue is chiefly due to the smaller amount received from lands sold for cash, together with the decrease in pastoral rents. There is naturally an increase in the rents received under the lease-in-perpetuity and occupation-with-right-of-purchase systems. The rents from leases in perpetuity will increase yearly as new leases are granted. Timber sales also show an increase. Under " The Lands Improvement and Native Lands Acquisition Act, 1894," there have been 70,196 acres, mostly forest land, set apart for improvement, and of this area 58,000 acres have been allotted in forty-three blocks to 646 tenants, of whom 442 are resident, who have grassed 9,894 acres. The cost of the roads, the improvements, and the advances made to settlers is £49,690,

iii—B. 6,

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A block containing 2,817 acres was selected near Taihape, in the Awarua country, for improvement, prior to being offered for selection. The block is onw being felled, and part of it will be burned and grassed in the coming summer. Next year it will be seen whether the land so improved will be taken up at a price which will recoup the interest on the expenditure. A beginning has been made in the formation of nurseries for the propagation of trees to afforest the treeless interiors of Otago, Canterbury, and Auckland, and a small amount of planting has been done with trees grown in the Kailway Nursery at Sockburn, in Canterbury. This good work should be steadily carried on until planting and cutting balance each other. The expenditure on roads and other works in connection with the opening up of Crown lands and the maintenance of communication through the country has been £210,432. During the year, 509 miles of new roads and 442 miles of horse-roads have been constructed., while 1,122 miles of main road and 647 miles of horse-roads have been maintained fit for traffic. The comfort and convenience of travellers and tourists have been promoted by considerable improvements at Te Aroha, Eotorua, Hanmer, and Mount Cook. New baths and rooms for Te Aroha are arranged for, and a contract let. A tender for a system of drainage at Kotorua has been accepted, and other improvements have been made at the Sanatorium and at Whakarewarewa. A new road from Rotorua via Waiotapu and Wairakei will be opened as soon as the bridge over the Waikato is constructed. At Hanmer a new house close to the baths has been built for the accommodation of those invalids to whom the daily journey of two or three miles to the nearest hotel was inconvenient. The Hermitage at Mount Cook has been improved, and is now a very comfortable house for visitors; the roads have been maintained in good order, and a regular bi-weekly coach-service arranged for. LAND-FOB-SETTLEMENTS OPERATIONS. Since the Acts came into operation in 1894, 86,106 acres have been leased, and the annual rental is £22,292, paid by 770 farmers, of whom about one-half are already resident. This gives 4-99 per cent, as the interest obtained on the investment. These results do not include the transactions of the Cheviot Estate, the purchase of which was really the beginning of the successful operations of the land-for-settlements system, and which at present pays 5*2 per cent, on its cost. During 1896-97 thirteen estates, containing 39,151 acres, divided into 362 farms, were opened for selection, and only 637 acres now remain unselected. Since the 31st March last five other estates have been opened for selection, and, with trifling exceptions, were promptly applied for and disposed of. The only failure is the Wharenui Hamlet, near Christchurch, purchased at a high price, and intended for workmen's homes, but which failed to attract those for whose benefit it was designed. The Board constituted under the Land for Settlements Act dealt with 148 estates; and, of these, thirty-one were recommended for purchase, and seventeen owners accepted the offers made, representing 51,536 acres, of a value of £251,571. The'actual purchases completed during the year were fifteen estates containing 61,333 acres, and the cost thereof was £300,159. The total negotiations completed up to the 31st March, 1897, since the commencement of the system are represented by thirty-eight estates, containing 118,553 acres, the purchase-money being £520,541 ; and an agreement has been made to purchase a further area of 19,902 acres, in seven estates, at a cost of £103,584, so that the total purchase-money actually paid, and the liabilities incurred, amount to £624,125. Besides this, of course, there are the expenses of administration and survey, and construction of roads, some of which have yet to be paid. The compulsory powers of the Act have been exercised up to the present time only in one case, that of Ardgowan, but steps are now being taken to refer to the Compensation Court a proposal to purchase the Woburn Estate, containing 27,000 acres. The owner being resident in Great Britain, it is a very tedious process to put the law in motion.

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Under the powers given by the Acts of 1894 and 1896 the Board, in conjunction with Commissioners appointed under the Land Act, have arranged for an exchange of 29,880 acres of freehold land for 54,500 acres of Crown lands in the Marlborough District, in order to consolidate properties which had been acquired in freehold in scattered areas, and in this way 67,000 acres of land suitable for farms and small grazing-runs have been made available for disposal. Still further exchanges are necessary for consolidating the Crown lands and the freehold lands. Efforts have been made to secure land suitable for workmen's homes in the neighbourhood of Auckland, Wellington, Christchurch, and Dunedin, but so far with little result, the owners of suitable land either refusing to sell or asking prices which were, in the opinion of the Land Purchase Board, higher than tenants could pay a rental of 5 per cent. upon. The operation of the present statutes ceases on the 31st March, 1899; but, in view of the negotiations with the owners of large estates which are now under offer, it will be necessary either to amend the Act or to stop these negotiations. The Act of last session had the effect of reducing speculative applications for these valuable lands, and careful investigation by the Land Boards of the applicants' means and experience have secured settlers of a suitable class. DEPARTMENT OF LABOUE. The returns from this department show that there has been a steady advance made by the industrial classes during the year. The applications for assistance by the unemployed have been less by 1,100 than during the previous year ; while, compared with 1893, the number of applications show a falling-off of at least one-half. While this fact shows that there is more general employment throughout the colony for unskilled labour, the departmental returns dealing with the skilled trades are of a very encouraging nature. There is an increase of more than 4,500 persons working in factories this year as compared with last year, and an increase of 7,000 on the number registered in 1895. The Industrial Conciliation and Arbitration Act has met with general acceptance, and has been brought into continual use during the year, preventing many heartburnings and misunderstandings that might otherwise have led to strikes and industrial conflicts. I regret, however, to say that the decisions of the Conciliation Boards have not been accepted so generally as was expected, four cases out of five being carried to the Arbitration Court. Under these circumstances, it is worthy of consideration whether those invoking the aid of the Act should not be given the power of choice between the Board and. the Court. If such a concession be granted, it will be necessary to have the law amended so as to enable the Board (under certain conditions), as well as the Court, to make its decision final and binding upon the appellants. GOLD-MINING INDUSTBY. Although there was somewhat of a falling-off in the quantity of gold exported during the year 1896-97 as compared with the returns for the previous year, yet there is good reason for hoping that the anticipations expressed in last year's Statement will ultimately be realised. Generally throughout the goldfields of the colony extensive development works have been entered upon for the further opening-up of claims, on the completion of which, combined with the introduction of improved machinery for crushing the ore, and better appliances for saving the gold and silver, it is expected that the returns hitherto obtained will be considerably increased. The greater attention also which has been directed to dredging operations, and the improvements in the dredges and machinery, will, I believe, tend to a large increase in the amount of gold to be obtained from our rivers and streams. The contract for the erection of a pumping-plant at the Lower Thames, to which reference wa.s made in the Statement of last year, has resulted in extensive works being entered upon, which are being proceeded with in a satisfactory manner.

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The importance of the use of cyanide of potassium in saving gold being of paramount interest in this colony, where there are vast quantities of ores which, so far as at present known, can be most successfully treated by that process, the application of the holders of the patent rights for New Zealand for permission to amend the specification of the patent was opposed by the Government, but unsuccessfully. Subsequently an agreement, subject to ratification by Parliament, for the purchase of the patent has been arranged. The necessity of conserving water for mining purposes, and irrigation generally, has not been lost sight of, and reports upon this subject have been presented to the House by the Minister of Mines. The expansion of the areas taken up for mining purposes on rugged mountainous lands, generally covered with dense bush, which are known to be auriferous, necessitates the continuance of provision being made for the construction of roads, tracks, and bridges. Votes will accordingly be submitted on the estimates for these purposes. OLD-AGE PENSIONS. Under the Registration of People's Claims Act, which was passed in 1896 for the purpose of arriving at an estimate of the cost of establishing an old-age-pension fund, the colony was divided into seventy-three old-age-pension districts. In each district a Deputy-Eegistrar was appointed to receive and investigate applications, and, on corroboration of material points, to issue certificates to claimants. The extended time prescribed for delivery of claims expired on the 31st July last, and up to that date 8,010 claims were registered. Some of these .were rejected, the greater part on the ground that the claimants were not sixty-five years of age on the date of the coming into operation of the Act. Most of these claimants have now reached the prescribed age. The total number of persons in the colony aged sixty-five years and upwards, according to the 1896 census returns, was 20,756. It may be reasonably inferred, therefore, that a large number of aged persons had not resided twenty years in the colony, and that there were some who were eligible but did not send in claims. Assuming that the number of eligible and deserving persons is 10,000, and that each pensioner is to receive 10s. a week, the amount required would be £260,000 per annum —a burden, it will be contended, too large for the taxpayers of the colony at present to bear. As will be seen from a paper to be laid upon the table, there is a general consensus of opinion that the proposal to give a pension of 10s. a week to all persons, irrespective of position, would involve too great an expenditure. I have carefully considered the question of ways and means, and whether we could initiate a scheme which, though it be not all one could desire, yet might assist our aged colonists to spend their remaining years in greater comfort. As there is a possibility of Parliament this session passing an old-age-pension scheme, appropriations for the necessary pensions will have to be voted; but as the year is far advanced, and some time will elapse before the necessary machinery and safeguards can be provided, it is hoped that a sum of £120,000 will be more than sufficient to meet claims. POST-OFFICE SAVINGS-BANK. The growth of the business of the Post-office Savings-Bank during the year , 1896 showed a marked increase on that of the preceding year. The result of the year's business, so far as it relates to the amount standing to the credit of depositors, will be seen from the following statement:— £ s. a. Amount due to depositors on 31st December, 1895 ... ... 3,895,543 0 3 Deposits during 1896 ... ... £2,881,152 16 3 Withdrawals during 1896 .... ... 2,591,558 19 4 Excess of deposits over withdrawals ... ... ... 289,593 16 11 Add interest for 1896 credited to depositors ... ... 126,497 16 3 Amount due to depositors on 31st December, 1896... ... £4,311,634 13 5 Increase during year 1896 ... ... ... ... £416,09113 2

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The average balance to the credit of each open account at the end of 1896 was ,£29 3s. 7d., as compared with £28 ss. 10d. at the end of 1895. The expenses of management last year were estimated to have amounted to £7,000, representing an average cost of 4"lid. per transaction, which is considerably less than the cost in the United Kingdom. Arrangements have been made to admit of withdrawals by telegraph, and it is anticipated that this concession will be much appreciated by depositors. GOVERNMENT INSUEANCE DEPAETMENT. The annual Eeport of the Government Insurance Commissioner, which has been laid upon the table in accordance with statutory requirements, together with the valuation report upon the liabilities and surplus profits of the department, contains full information as to the continued progress of this institution. At the end of the year the freehold and mortgage securities were subjected to a close scrutiny, and a further amount of £10,500 was carried to the reserve constituted on account of these investments. The triennial valuation has again been carried out upon principles approved by the eminent consulting actuaries to the department, Messrs. Ralph P. Hardy and George King, and has resulted in a gross surplus of £225,000. Of this amount £81,000 was specially reserved in accordance with the advice of the actuaries, in order that the effective rate of interest in the valuation should be equivalent to £3 12s. 6d. per cent.; and the balance of £144,000 was divided among the participating policy-holders. The outcome of the course of action adopted in making the foregoing reserves has been to make the financial position of the department even stronger than heretofore, and to still further improve its prospects of future prosperity. The new business for the year under review amounted to £606,000, and the funds of the department increased during the year by £173,597, of which amount £10,500 was carried to reserve, as before stated. The total addition to the funds exceeded that of any previous year by over £7,000, which is an exceedingly satisfactory state of affairs, especially when it is considered, as pointed out by the Commissioner in his report, that the overdue interest on all accounts only amounted to £760, or a little over \ per cent, of the interest receipts. Further details will be found in great fulness in the report itself, and the accounts and statements appended thereto. VALUATION DEPAETMENT. It will be remembered that during the session of 1896 an Act was passed providing for the valuation of all the land in the colony. The valuation under this measure, " The Government Valuation of Land Act, 1896," is now proceeding, and every care is being taken to insure a thoroughly reliable and trustworthy assessment of the value of landed property. The Act provides that the general valuation-roll, when made, shall be the standard roll from which the valuation-rolls of all local authorities having rating-powers, and rating on the capital or on the unimproved value, shall be framed; and, further, if and in so far as the Governor in Council from time to time directs, the general valuation may be used for any of the following purposes: Land-tax, assessment of duties under the Stamp Act and Deceased Persons' Estates Duties Act, loans on mortgage of land by Government departments, and loans on security of special rates by the Treasury under " The Government Loans to Local Bodies Act, 1886." In addition to these purposes, the Valuation Department is authorised, on payment of a fee, to furnish any person with a certified copy of any valuation as it appears on the general roll. It is expected that this last provision will be extensively made use of by trustees and other persons lending money. on mortgage, and for other purposes. On reference to the estimates, honourable members will see there is an item set down of £39,440 for defraying the cost under the head of "Valuation Department." It is proposed that the expenditure shall be borne by— (a) the Land- and Incometax Department, (b) the principal local authorities, (c) the Government Valuation of Land Department. The apportionment of the same is proposed as follows : In

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any local district where there is a principal local authority, the cost shall beborne in equal one-third shares by such principal local authority, the Land- and Income-tax Department, and the Government Valuation of Land Department, the last being recoverable as fees from Government departments and others using the valuations. In any loc*al district or other portion of the colony where there is no principal local authority, the cost shall be borne in equal shares by the two departments before mentioned. It is also proposed that the payment of costs by the principal local authorities shall be made in three instalments, at the following periods:— One-half of the amount found to be owing shall be due and payable on receipt of the valuation-roll from the Valuer-General, one-quarter of such amount shall be due and payable within twelve months from the date of such receipt, and the remaining quarter of such amount within twenty-four months of the date of such receipt. .Each principal local authority shall pay its share of the annually-recurring expenditure on receipt of a demand, from the Valuer-General. All these proposals being approved, it is intended to pass regulations giving effect thereto. - The Valuers appointed under the Act have received full and specific instructions, and special attention has been drawn to the fact that the valuation will be used for lending purposes, as well as taxing and rating; and lam confident that the result achieved will be the best and most reliable valuation of the colony yet made. The heavy expense inseparably connected with a valuation of the colony will fall within this year, and it will not be possible to obtain any considerable sum by way of recoveries in reduction of this expenditure until following years, as the valuation-rolls will not be ready until after the Hist March, 1898. FORESTS AND FORESTRY. Every well-wisher of the colony must, with me, deeply deplore the irreparable loss the colony has suffered by the burning of valuable timber off vast areas of our timbered lands. Settlers in some districts now realise that the royalties obtainable for timber amount to more per acre than is obtainable from the land of a well-appointed farm. Again, those engaged in sawmilling and the timber trade generally complain that competition is so great that they are after years of work no better off than when they commenced. It will be contended that those using the timber for buildings and other purposes have reaped a benefit. The immediate gain of the few is, however, more than counterbalanced by the national loss. Moreover, owing to undue competition and other causes, our forests have not been either systematically or advantageously worked. Only the best trees have been taken, and the tops and branches of those cub down have, with the smaller trees, been left on the ground; and, in the past, the white-pines have in many cases been untouched, there being no market for that kind of wood; ultimately the whole of the timber has been destroyed by fire. Millions of pounds' worth of timber have vanished in smoke, and cannot be replaced. Although the wretched past cannot be recalled, the question naturally arises, Is this unfortunate, undesirable, and unprofitable condition of affairs to continue ? I distinctly say, it should not. To permit it would be wanton in the extreme, and nothing less than a national calamity. At the present rate at which our forests are being denuded New Zealand will in a few years require to import timber. It will not for a moment- be contended that settlement must be stopped until the sawmiller has removed the timber from the land, or that only such Crown lands as have been denuded of timber shall be open for occupation. There is, however, a reasonable possibility of matters being so adjusted that the waste of timber can be avoided, and, at the same time, settlement be allowed to proceed. In disposing of timber lands it should be made a condition that all valuable trees shall be logged, ready to be taken to the market or the saw-mills. The royalty payable to the settler would enable him to obtain a little money for necessaries, and he would at the same time be clearing his land. Moreover, the State would

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benefit by conserving a valuable asset, our forest lands would last mucb longer, and advantages as regards climate and shelter would result. Experience further proves that in districts where timber lands adapted for settlement exist it would be wise at different intervals to set apart suitable reserves. By taking strict precautions against fire and trespass great good would arise from such reserves, not only to the present but to future generations. An examination of the forest laws and regulations of different countries in Europe and America, and also of the Colony of Victoria, shows how lax the law of New Zealand is in respect to its forests. Again, for years little has been done in the matter of treeplanting. This is to be regretted, and it is a great pity that the legislation and proposals on this subject of that far-seeing statesman, Sir Julius Vogel, should have been allowed to become a dead-letter, for with slight modification such legislation would have proved a great boon to the settlers and colonists generally to-day, and a great source of wealth in the future. Detailed proposals dealing with this matter will be submitted by the Minister of Lands, and provision will be made on the estimates to meet the necessary expenditure. A very interesting report upon the conservation of New Zealand forests, by Mr. George S. Perrin, E.L.S., F.8.G.5., F.8.H.5., Conservator of State Forests, Victoria, will be laid on the table of both Houses of the General Assembly. The report is practically the outcome of the Timber Conference held in Wellington on the 17th July, 1896, and following days. BEET-BOOT SUGAE. The advantages that would result from the successful growing of beet-root, and the manufacture of sugar therefrom, cannot be too highly estimated. Some years ago Sir Julius Vogel interested himself in this matter ; but, although legislation followed, no practical good to the colony has resulted. Germany is making strenuous efforts by means of bonus, cheap railway-freights, &c, to foster the manufacture of beet-root sugar ; and the cheerful way in which the German consumers of the Fatherland submit to the high prices charged for sugar for home consumption, and at the same time find the money for the payment of bonuses, clearly indicates that they appreciate the advantages to the nation as a whole resulting from the growing of sugar-beet. In the Western States of America the beet-root sugar industry is assuming large proportions. When in San Francisco I had the pleasure of meeting Mr. Claus Spreckels and others interested in the industry. From them I obtained reliable information as to the benefits resulting to the Californian States from the growing of beet-root and the making of sugar from it. Localities which, prior to the starting of beet - growing, were in an impoverished condition and almost depopulated owing to the poor returns from the land are now in a most thriving condition. Land has gone up in value at least £1 per acre, the demand for laboiir is good, increased roading has been found necessary, and a railway specially for that part of the State is now in course of construction. Our neighbours in the Colony of Victoria have also passed legislation affecting the industry, and have offered inducements sufficient to warrant a company in erecting a factory at Maffra. For some years past experiments have been made in different parts of this colony with the view of testing the soil for sugar-beet growing, and the results have be,en very satisfactory. The lands in the Waikato, Hawke's Bay, Wairarapa, and Taranaki districts in the North Island, and Marlborough, Canterbury, and the northern parts of Otago, are found to be specially suitable. The percentage of saccharine matter obtained from sugarbeet grown in those parts equals, if it does not exceed, that obtained in Germany and France. That our settlers could undertake to supply, at a satisfactory price, the amount of beet required is assured. The main difficulty in the way is the finding of the working capital necessary for the purchase and erection of machinery and plant. This is estimated at not less than a quarter of a million pounds sterling. In selecting a site for the works, it has been pointed out to me that three things are essential —viz;., a plentiful supply of clean water, cheap motive-power, and a place into which the refuse from the works could be drained without risk of claims for damages from the holders of

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riparian rights. During last session a deputation from Auckland waited upon me in respect to this matter; and Count d'Abbans, Consul for France, has frequently called the attention of the Government to this important industry, and has supplied valuable information respecting it. When in Paris recently Mr. Ernest Bosker, the representative cf Messrs. E. Wauquier and Sons, of Lille, interviewed me in reference to the subject. To him, as to all others, I have given the reply that the Government could only give such concessions as the existing law provided. The present terms and conditions are not sufficiently favourable, however, to induce private enterprise to embark in the undertaking : we therefore deem it advisable to ask Parliament to review the position. I am not forgetful of the effect the successful introduction of the beet-root sugar industry will have upon the finances, and upon the Island sugar trade and the refinery at Auckland. As regards finance, the collateral advantages of large employment of labour, the increased value of land, retaining the money in the colony, and of reducing the price to our own consumers, will, I hold, compensate for the loss of revenue. As to our trade with the Islands, there is no feeling of reciprocity, and our exports there are decreasing year by year; and as to the refining-works, assimilation would possibly ensue. The many advantages that would probably accrue by adding another and profitable industry to the large number already established, the great help it would be to our settlers, and the opening for increased labour that would be afforded, embolden the Government to submit that the time has arrived for the colony to grant other concessions, such as extending and increasing the bonus, as would insure the satisfactory starting of this important industry. I intend at an early date to introduce a measure extending the present law by granting, with proper safeguards, to any person or corporation producing sugar from beet an annual bonus of £5,000 on not less than 1,000 tons produced yearly for four years, and also continuing for a further period, of ten years the provision for differential duty in favour of the manufacturers. The Bill will also provide for loans not exceeding £20,000 to any person or corporation, at the rate of £1 for £1 on the moneys expended on land, buildings, and plant for its manufacture. DAIRYING AND FROZEN-MEAT INDUSTEY. The grading and storage of frozen meat, dairy and other products have proved most beneficial, and further extension in this and other directions would be for the good of all concerned. In some parts of the colony settlers are unable, through lack of means, to erect creameries and cheese- and butter-factories. We therefore propose that power be given to make advances to them by way of loan for this purpose, sufficient security being taken to cover all ordinary risks. The amount to be advanced shall not exceed in any one year ,£IO,OOO, a statement showing the advances so made to be laid before Parliament within fourteen days of the opening of the session. Further, I have been informed that there is every reason to believe that the Thames Dock Company are prepared to expend a sum of £40,000 in the erection of cool-stores, on condition that the shipping companies, the distributors, and the Government find a sum sufficient to cover interest and other charges, estimated to amount to £8,000 a year. The colony's share would be £2,666, which the Government will ask authority to expend. It is unnecessary for me to point out the advantages that would accrue from placing produce, such as fruit, butter, cheese, and frozen meat, in coolstores immediately upon its arrival in London, and keeping it there until required for distribution. COMMERCE AND TRADE WITH THE ISLANDS. The action of the United States in proposing to annex the Hawaiian Islands should not pass unnoticed, and in calling attention thereto I do so in the most friendly spirit. An annexation treaty has been signed between the American Secretary of State and the Hawaiian Government. Not long ago it was announced in the Press that the United States wanted to withdraw from the triplicate control of Samoa, while previously it had been reported that they had expressed their indifference as to whether Hawaii should fall into the hands of any other

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Power or not. What has caused the complete change of front and departure from the Munroe doctrine on the part of the United States it is not f>r me to discuss. How the change will affect New Zealand is, however, worthy of consideration. The islands lie right on the ocean track between New Zealand and San Francisco; therefore the prospect of trade between Canada and Australasia, together with the recent developments in British Columbia, should not be overlooked. The harbour at Honolulu is one of the best in the Pacific, and is the only good coaling-station between Hongkong, San Francisco, and Vancouver. The securing of these islands by America would also have a detrimental effect in respect to the Pacific cable. Moreover, a great foreign Power would be brought much nearer New Zealand; and, should necessity arise, the islands could be used as a defensive or aggressive base, to the peril of intercolonial shipping and commerce. Should the proposed annexation actually take place, it goes without saying that the United States would strengthen her squadron in the Pacific, and the other nations interested in the Islands would probably have to do likewise. New Zealand has done a good deal to establish a trade in the Pacific. This trade is practically in its infancy. With annexation, the new American tariff will obtain in the Hawaiian Group, and o"ur trade there must inevitably suffer. As a matter of fact, it is well known that owing to the new American tariff practically abrogating the treaty between Hawaii and America the annexation movement arose. It cannot be claimed for a moment that American interests are paramount in the Islands; there has been no purchase, and no conquest; in fact, nothing has been done except that, when the Queen of Hawaii was deposed, America favoured the oligarchy then established, and that, later on, a Convention declared " That the Hawaiian Islands should be controlled by the United States, and that no foreign Power should be permitted to interfere with them." The population of the Islands, as far as I can gather, consists of 47,000 natives, 21,000 Japanese, 19,000 Chinese, 12,000 Portuguese, and some 5,000 Europeans and Americans of a cosmopolitan character, of whom not one-half are Americans. From the Press, it would seem that the Anglican bishop asserts that the people do not favour annexation. Japan has objected to the annexation, and has placed the position before other interested nations. If the Japanese w T ish that the Islands should remain as at present, her claim is a good one ; but if the object is Japanese control, -then American annexation is preferable. There is, however, nothing at present to warrant the course taken, and, under all the circumstances, the action of America at the present juncture is, if not unfriendly, at least very selfish. It would therefore be well if the Powers interested asked for reconsideration, and it would be in the interest of all concerned to make the Hawaiian Islands the Switzerland of the Pacific. FEBIGHTS. As there has been and is a diversity of opinion respecting freights, and as this is a question of vital interest to the colony, I will give to honourable members, as briefly as possible, my views upon the subject. After making allowance for the extra cost of coal and the necessity for vessels visiting different ports, we still pay higher rates than producers pay in Australia. Notwithstanding the high rates charged, it has been urged that the shipping companies have not paid large dividends. I would ask, How could they ? for it is a well-known fact that the vessels were originally entirely unsuited for the trade in which they were engaged. Owing, probably, to bad management and mistakes at the initiation, and the large expense of working owing to the unsuitability of the vessels, there was a time when almost the whole of the capital invested was lost. As will be seen by the value of the shares to-day, the dividends paid, and the reserves made, the position has been retrieved during the past few years; but this has been done at the expense of the producers of the colony. The direct shipping companies are now working on much better lines. The vessels have a much larger carrying capacity, with a much less consumption of coal; and though the passages may

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take a few days longer than formerly, these vessels are in a position to carry cargo at reduced rates, while still giving a larger profit. Further improvement is still being made, and I have been informed that two new steamers have been ordered to be built, having a large carrying capacity, with a minimum consumption of coal, and with speed sufficient to do the voyage in about four days less than at present obtains. What is wanted is concentration of cargoes, and the giving of the whole of the freights to certain lines. The companies being thus assured of full cargoes and quick despatch would be enabled to make further reductions, more especially if products were concentrated at the several points where cool-stores are erected. To give some idea of the excessive freights charged, a statement compiled by the Secretary of Customs will be laid upon the table of the House. From this it will be seen that last year New Zealand producers paid £459,913 more than they would have been called upon to pay if the rates here had been similar to those current in Victoria. The Australian Governments have made contracts with the shipping companies. Cargoes are concentrated and given to particular firms, and producers receive the advantage of reduced freights. When attending the Ministerial fruit conference in Melbourne recently, we found that the freights ruling in respect to the export of apples was about 4s. 6d. per case. On offers being invited, one was received stipulating for a given quantity per steamer, and the freight would then be reduced 50 per cent. With a view to concentration, the colonies of Tasmania, Victoria, New South Wales, and South Australia were invited to combine. There ought also to be combination here. Farmers, agriculturists, meat-freezing companies, pastoralists, and dairy producers should have kept together. By such a combination fair rates would have been assured. I hope it is not yet too late for this to be done ; and, if freights are not arranged by and through the Government, at all events they ought to be arranged by and through the representatives of the several lines of producers. In conclusion, I am of the opinion that whatever company gives us reasonable inward and outward freights, with regular despatch at short intervals, it would be to our advantage to stand by them. The destiny of the direct lines of shipping companies rests in their own hands. I do not forget that in the past they have rendered good service to the colony; but they have, during late years, been well paid therefor. To be in a position to fairly compete, our producers must have low freights; and it is our bounden duty to obtain this for them. OCEAN MAIL-SBEVICES. As honourable members are aware, the present San Francisco mail-contract will expire shortly. At the present time we are paying lls. per pound for letters, and the total amount paid by the colony to the contractors is about .£7,600 per annum. The American Government grants a subsidy equal to about £28,000 a year. This, however, is only of a temporary character, and will expire on the 30th June next. From Auckland to San Francisco is the shorter of the two Pacific routes, the distance being something like 5,897 miles. From Wellington to Vancouver, via Fiji, is 6,555 miles. Our present contract between San Francisco and Auckland is twenty days. This can be easily shortened, as recently two trips have been made in two days less than contract time. A 17-knot boat can do the distance in less than fifteen days. Take four days and a half to five for the overland route to New York, and five days and a half to six from New York to England, and our mails would be landed in London in twenty-five days. Recently a contract was entered into between the Canadian and British Governments for a 21-knot-boat service between Great Britain and Canada. To Vancouver from Halifax would be six days, or about eleven days and a half from London. The total annual subsidy payable is £154,500, of which the British Government is to pay £51,500, to be applied specifically to the establishing of a fast service between Canada and England. One condition on which the subsidy was promised was that it should be regarded as in aid of the accomplishment of the Pacific no less than the Atlantic section of the scheme. It was at the same time made clear that no additional subsidy was to be looked for from

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the Home Government towards the improvement of the Pacific service, the arrangement of which was to be left to the Governments of Canada and Australasia. The present Vancouver contract with New South Wales stipulates for a twenty-one-days service between Vancouver and Sydney. The contract with the Canadian Government was for ten years, and has about seven years to run ; while the agreement with New South Wales expires in May, 1899. The shortening oi the time, therefore, at the one end would be of no use unless an increased speed were obtained between Vancouver and Wellington. The recent developments in British Columbia, and the prospects of our doing trade with Canada, render the project worthy of consideration. I regret to say that our trade with Samoa and the Hawaiian Islands is decreasing, and if the latter islands are annexed by America our trade under the new American tariff which will then be in force there will be still further decreased. On the other hand, our trade with America in 1892 was £400,000, and. in 1896 only £200,000. America's trade with us in 1892 was £200,000, and last year it had doubled, being £400,000. New Zealand was the first to establish the San Francisco service, and I think it is a great pity that we should not have derived the full benefits from it by insisting on New Zealand being the terminal port. New South Wales contributes only £4,000 a year to the service, and had we been called upon to contribute double that amount and retained the service within ourselves, it would have, owing to collateral advantages, paid us to do it. lam further of opinion that in any future contract we should stipulate for a not less than 15-knot service, with steamers of not less than 4,500 tonnage, and the maximum rates both for goods and passengers should be fixed. New Zealand, from its geographical position, and owing to its rapidlyincreasing population and the extension of its products, should at no distant date be the terminus of one or other of the mail lines of steamers which now make Australia their terminus. The P. and O. Company is largely subsidised by the British and Australian Governments, as is also the Orient Company, but New Zealand derives little or no benefit from these services owing to the running of the intercolonial steamers not being timed to connect with either the outward or the inward mails. The Union Company has recently effected an improvement by the introduction of faster steamers, which will make the voyage between Wellington and Sydney in a little over four days. The establishing of a fast service to connect with the P. and O. and Orient steamers is not, however, contemplated by the Union Company unless an adequate subsidy is paid. Again, there is the Messageries Maritimes, which is heavily subsidised by the French Government. Noumea is the terminus of its lines. Eecently the French Government granted a subsidy to the Union Company for its service to Tahiti ; and it seems almost a waste of money to send the Messageries steamers to Noumea and then for them to return to Sydney. If a branch steamer were sent from Sydney to Noumea there would then be nothing to prevent the main boats making New Zealand the terminus. At the present time there are also the vessels belonging to the North German Lloyd's, heavily subsidised by the German Government. These boats stay in Sydney three weeks; and, seeing that the distance from Sydney to Wellington is only 1,239 miles, and that the steamers often have to return short-freighted, one is apt to wonder why the vessels of this company stop short at Sydney. I have drawn attention to this matter for the purpose of comparison, and to show the keen competition that exists in the other colonies, tending to keep down the rates of freight, and giving greater facilities for comimmication. In the report of the Victorian Government on the despatch of the Secretary of State for the Colonies, detailed information is given in respect to subsidies to steamship lines, and I find that the payment to the German line of steamers is £200,000 a year, and to the French line £120,000. The P. and O. and the Orient lines each receive £85,000 per annum for the weekly service to Australia; and £245,000 is also received by the P. and O. Company for the Indian service. I may also mention that the weekly mail-service between Australia and Great Britain performed by the P. and O. and Orient Steamship Companies has recently been renewed for a term of seven years from the Ist February next.

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The subsidy payable by the contracting colonies is £75,000 per annum, as at present; but the time between Adelaide and London has been reduced to between thirty and thirty-one days, an acceleration of from three and a half to four days on the present contract running. It is my intention, at an early date, to bring before the House, by a series of resolutions, proposals in connection with the ocean mail-services. SUGGESTED EASTERN SERVICE. In order to encourage and open up direct trade and passenger traffic with Queensland, the Netherland Indies, Straits Settlements, Burmah, and India, it would be worth while entering into negotiations with the New South Wales, Queensland, and Indian Governments, to see whether they would be prepared to join this colony in subsidising a good and fast monthly service, with Wellington and Calcutta as terminal ports. A through service between New Zealand and Queensland would be a matter of great importance, there being many interchangeable products between this colony and the tropical portion of Queensland; but, owing to the combinations between the shipping companies, all Queensland cargo for New Zealand has to be transhipped at Sydney, and necessarily the through rates for passage and freight are high, and obstruct trade. The route I would propose from Brisbane to India would be, in the first instance, up the Queensland coast, calling at intermediate ports as far as Thursday Island; thence to Batavia (Java), Singapore, Penang, Eangoon, and Calcutta. In order to profitably carry out this service it would be necessary to negotiate with the Dutch authorities at Batavia to allow the steamers to call and permit trade ; and from what I can learn I think this concession would be granted, as it is already in the case of the Queensland Royal Mail service. A monthly line of large up-to-date steamers, with a speed of not less than fourteen knots, fair passenger-accommodation, refrigerating machinery, and good cargocarrying capacity, would be required. A brief glance at the population along the proposed route may be of interest. The population of the islands of Java and Mildura (50,554 square miles) was estimated in 1894 at 25,067,471, or, adding that of adjacent islands, 32,800,000, of which about 60,200 were Europeans; the great commercial centre of Singapore has a population of about 184,554 ; Penang has a considerable trade, with a population of about 235,618; Rangoon (population 180,324), the capital of Burmah (population 7,605,560), and centre of a large trading country, has an immense trade; while the final port, Calcutta ('population 861,764), forms a good base to tap a small portion of the trade of British India, with its population of upwards of 220,000,000. As a passenger-service the proposed line would be very valuable, opening up direct communication with Queensland, tapping the endless stream of tourists daily passing east and west through Singapore, and affording facilities to residents in India and the tropics for an interesting and cheap trip south (mostly through smooth land-locked waters with fine shore scenery) to recruit their health, and send their families to take advantage of the educational establishments in a healthy colony like New Zealand, where living is cheap and the chances of success in life better than in older countries. As a mail-service it would establish rapid communication between these colonies and the East, and the British and Indian Governments might be induced to grant assistance for military and strategical reasons. At present a mail-service is run fortnightly between Singapore and Calcutta on the route suggested, and this would no doubt work in with the present proposal. Very few British steamers cross the region of the Dutch Indies, so that between Singapore and Australasia there is, so far as our people are concerned, a great gulf fixed, which the proposed line would help to bridge. There is a large intermediate trade all along the proposed route. Our fresh and tinned meats, dairy produce, horses, temperate fruits, grain, &c, would soon be appreciated in the tropics, and in return wool-packs, corn-sacks tea, coffee,

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rice, rubber, tobacco, indigo, spices, and other tropical products would be brought here at low freights and direct trade be induced. In support of this contention I would point out that at present it pays the Union Steamship Company, in conjunction with the British India Steam Navigation Company, to send a large cargo-steamer down to New Zealand at irregular intervals (about once every two months), with heavy cargoes, but they are of little service as regards passenger-traffic. The Indian tourist, as a rule, has plenty of money to spend, and would thoroughly appreciate our climate, which is not so rigorous as that of England. The suggested service would bring us into direct touch with a large portion of a densely-populated part of the globe, and be a valuable and progressive step on the part of the Indian and Australasian Governments. I have no hesitation in saying that New Zealand would be benefited, for there are great possibilities by going off the beaten track and entering commercial regions, which, properly exploited, may result in opening up fresh markets for our produce. I feel quite sure these suggestions are practicable, and every attempt should be made to carry them to a successful issue. BUSINESS AGENTS FOE THE COLONY. During my visit to the Mother-country and to Australia I was very much struck with the utter absence of information respecting New Zealand, its scenery, resources, and products, and the misapprehension in respect to its legislation, and the ignorance of its affairs generally. We are annually subscribing large sums of money for the printing of books, leaflets, and illustrations ; and from time to time attacks are made upon the finances and products of the colony, and misleading information is given, which prevents tourists from visiting this wonderland of the South. Mot only past Agents-General did their best for the colony, but the present Agent-General is doing good work in the direction of advertising New Zealand; yet it is impossible for him alone to grapple with the difficulties that surround the position. After careful inquiry, I have come to the conclusion that the time has arrived when this colony should have in the large cities agents who would work under and with the Agent-General in London, Their work would be to distribute papers, books, illustrations, and general information respecting New Zealand, and to further the introduction of the products of the colony into the districts assigned to them. They would also be able to give information to intending immigrants, particularly of the farming class, regarding the area of land open for settlement, the price of land, together with its suitability for horticulture, viticulture, stock-raising, and dairying. Such agencies would, in my opinion, be the means of inducing people to come here instead of going to Canada, the United States, and Australia. These agents would also be able to give reliable information to British capitalists regarding the colony. The emoluments for such positions would not amount to much. Leading business-men would be glad to have the agency, because it would be the means of giving them a status. I may say that, in connection with the Postal Service, the colony has such an agent in San Francisco, who is doing excellent work for a very limited salary. The course now suggested would, if adopted, bring us into close touch with such cities as Manchester, Glasgow, Liverpool, Birmingham, Edinburgh, Dublin, and Cardiff. Later on it might be found necessary to extend the agency system to Melbourne, Sydney, Brisbane, Adelaide, and Perth in connection with the interchange of products. EDUCATION. Under the present conditions of education there is a serious defect. Sufficient encouragement is not given in our existing institutions for the primary-school pupils who are desirous and capable of enjoying the advantages of secondary and university education. A Bill will be submitted to you to establish and endow a university college in the City of Wellington, and the proposals therein contained will afford a satisfactory solution of the difficulties existing in the districts which will be benefited by this central college. The scholarships pro-

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posed under the Bill will be sufficient in number and annual value to enable a reasonable proportion of deserving school-pupils to be advanced from the primary to the secondary schools, and from the secondary schools to the university. Provision will also be made on the estimates for erection of buildings, &o. The age at which our children leave the primary school, and the age at which they are qualified to enter a university, leaves an interval of at least three years, which should be bridged, and which our present secondary-school system as administered does not provide for. Owing to the spread of settlement in the North Island, and the necessity for increased school-accommodation in districts in the South Island where land has been acquired under the Land for Settlements Act, and the increased number of schools required in the Native districts, it has been found necessary to make provision for supplementing the amount hitherto granted for schoolbuildings. The grants have usually been about £50,000 per annum, but this year I am of opinion our requirements will reach at least £75,000. I therefore propose to ask for authority to raise a further sum of £25,000 for the purpose of grants in aid of school-buildings. In order that our people may maintain their position as manufacturers and agriculturists, and that the industrial classes may be specially benefited and fitted to undertake scientific, mechanical, and mining pursuits, it is of national importance that technical education should be placed upon a more satisfactory footing. From the experience of the last two years we are able to discover wherein the Act of 1895 requires amending and enlarging. The House will be asked to pass a Bill approving of greater encouragement being given to the technical schools throughout the colony, and providing for the establishment of new schools; continuation classes will be recognised as part of the system, and secondary schools will be encouraged to work under the same Act. Power will also be given for local authorities to assist in the establishment and maintenance of technical schools, as is being done at the present time in England. It would not be fair, however, if I did not recognise how much valuable work has been done, and is being done, under the present order of things. At Wellington, Auckland, Wanganui, and Dunedin the schools have trained a very large number of pupils, whose work has been tested by examinations held upon papers supplied by the Science and Art Department, South Kensington, and the City Guilds of the London Institute. In all, certificates showing 615 passes were obtained by candidates from these different schools in the year 1896. All the assistance in the power of the Science and Art Department of South- Kensington in this work is cheerfully afforded. Under the provisions of " The Manual and Technical Instruction Act, 1895," it is estimated that the average attendance at classes numbered 2,690; but the amount of technical instruction given in the colony is not confined to that given under the Act. Our schools of mines, the students of which numbered 229 in the year 1896, afford a most valuable technical education for specific objects. The Department of Agriculture is also assisting technical education by the instruction given at the agricultural experimental stations, fruit-farms, and dairy schools. The Canterbury Agricultural College had 43 students in 1896, and a school of engineering and technical science—a department of Canterbury College—had 87. I trust, however, that the further proposals to be submitted to the House this year will result in greater advances being made in this necessary branch, and that it will take a more important place in the whole of our education system. At all events, Government feel that the princfpal drawback in the past which has operated detrimentally to the establishment of technical schools in the colony has been the absence of funds sufficient to provide and equip the necessary buildings. The House will be invited to make provision for this purpose to the extent of £25,000. CONFERENCE OF PEEMIEES AT HOBAET. Honourable members will no doubt expect that reference will be. made in this Statement to the Conferences held at Hobart and London, and to the

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subjects brought before them. The first subject dealt with at the Hobart Conference was trade relations with the Mother-country; and it was resolved to favour closer commercial relations between the Mother-country and the Australasian Colonies on a basis of mutual advantage, and that full inquiry into the subject, whether by a commission of experts or otherwise, should be instituted. As it was impossible to form an accurate estimate of the extent of the trade between the colonies and foreign nations, it was deemed advisable to have further inquiry made, with the view of ascertaining the amount of such trade, and also what legislation, if any, is necessary. The next question dealt with was international reciprocity. Pending the result of the Federation movement, it was deemed advisable to postpone the consideration of this question. Australasian quarantine also came under review, and it was decided that a system of federal quarantine should be established, that stations should be maintained at Albany, Thursday Island, and Adelaide; and that if New Zealand and Tasmania concurred in the agreement drafted by Queensland, then stations should be established at Auckland and Hobart. In respect to the codification of commercial law of the United Kingdom and all colonies, it was decided to deal with each subject by a separate Bill, and thus enable the colonies to adopt the portions of the code as passed with such modifications as the circumstances of the different colonies may require. In respect to the treaty with Japan, it was decided, in accordance with the decision of the Sydney Conference of March, 1896, not to take advantage of its provisions. In respect to the conservation of British interests in the Pacific Islands, it was decided to earnestly urge the Imperial authorities to jealously guard and conserve British interests in the Pacific. In respect to restricted races, it was decided that the laws of the colonies should be assimilated, with a view to the recognition of the naturalisation certificates of each colony throughout Australasia. Regarding the export of Australasian produce, it was deemed desirable that uniform legislation should be adopted to prohibit the export of live-stock, meat, dairy produce, wine, and fruit not officially certified as of good quality and fit for export. The Premier of New South Wales dissented from this. In respect to the reservation of colonial Bills, it was decided that a Bill for securing to the local Parliaments increased powers of legislation, without reservation, be prepared by Victoria and South Australia, for consideration by the colonies and for recommendation to the Imperial Government. It was also resolved that the Premiers should urge upon their respective Parliaments that it was desirable to exhibit at the Paris Exhibition as one court, forming part of the court of the British Empire. It was also decided that judicial notice should be taken of laws of other colonies in legal proceedings. In respect to a lighthouse at the Snares, it was resolved that the erection of a lighthouse there should be made the subject of an agreement to be submitted by New Zealand to the Governments of New South Wales, Victoria, and Tasmania, for their consideration. In respect to uniformity of legislation on merchandise marks, it was resolved that the legislation of the various colonies should forthwith be assimilated, on the lines of the most recent Imperial legislation. In respect to summoning witnesses from other colonies, it was decided that the necessary alteration should be made in Act 44 and 45 Victoria, chapter 69, section 15, so as to provide for the punishment of witnesses disobeying a summons under such section, and that Victoria should take the necessary steps to obtain such alteration. It was further decided that a uniformity of practice should be adopted by the various colonies of Australasia in respect to the preparation of statistics of imports and exports. In respect to the federal company law of Australasia, it was decided that the assimilation of the company law of Australasia is desirable, and that New Zealand should prepare a Bill to give effect to this. In respect to the Conference of Premiers, it will be admitted at once that

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they have no legal status, nor can they commit the colonies to the several matters brought forward without the sanction of their respective Parliaments. At the same time, the periodical meetings of the heads of the several Governments in Australasia, the interchange of thought on matters of grave importance, must prove beneficial, uniformity in respect to many matters being of the greatest importance. A full report of the resolutions arrived at will be laid upon the table, and at the conclusion of the Conference the Right Honourable Sir Edward Braddon expressed the wish that the next Conference should take place in New Zealand. CONFEBENCE WITH THE SECEETAEY OP STATE FOE THE COLONIES. In respect to the advantages derivable from the holding of this Conference, the despatch from the Secretary of State for the Colonies, which His Excellency the Governor referred to in his Speech from the Throne, conveys the mind of the Imperial authorities upon this subject. The Secretary of State says :— " Her Majesty's Government desire to put on record their strong sense of the loyal and patriotic spirit which was shown by all the representatives of the colonies in the course of their discussions, and hope that their colonial colleagues are satisfied that their visit has been productive of great advantage to the Empire, and that the conferences which have been held have resulted in such a free interchange of views as will have a lasting and beneficial effect in securing a complete mutual understanding between the colonies and the Mothercountry." As to the commercial relations with the United Kingdom and the Australasian Colonies, the Premiers unanimously recommended the denunciation, at the earliest convenient time, of any treaties which now hamper the commercial relations between Great Britain and her colonies, and undertook to confer with their colleagues with the view of seeing whether such a result can be properly secured by a preference being given by the colonies to the products of the United. Kingdom. The treaties have been denounced. It will, however, be twelve months from the date of denunciation before the treaties cease to have effect. During the recess a careful analysis will be made of the existing tariff, and it may be found that the revenue from the Customs duties may permit of reduction, and, if an alteration can be made in favour of goods manufactured in the United Kingdom without prejudice to our own industries, it would be advisable to differentiate, and leave the tariff on foreign goods as at present. A Bill extending the Eeciprocity Act to the United Kingdom and foreign nations will be introduced. I may here state, in reference to the denunciation of the treaties, that self-governing colonies are placed at a disadvantage as compared with the Crown colonies. In more recent years proposed treaties have been referred to the colonies, as in the case of the treaty with Japan. In respect to political relations, it was resolved that the present political relations between the United Kingdom and the self-governing colonies were generally satisfactory under the existing condition of things. From this the Premier of Tasmania and I dissented, on the ground that we were of opinion that the opportunity had then been given to make an effort to more firmly secure the political ties between the United Kingdom and the colonies. The majority of the Premiers were not prepared to adopt this position, alleging that to take such a share in Imperial reciprocity would involve a contribution in aid of Imperial expenditure, for which the colonies generally were not prepared. I did not, however, admit for a moment that this contention was sound, or that such a responsibility would attach to it. In respect to the question of Imperial defence, it was resolved to continue the Australian squadron under the terms of the existing agreement. We were unanimous in our support of this resolution, with the exception of the Premier of South Australia, who favoured a scheme for the establishment of a branch of the Royal Naval Reserve in Australasia.

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In regard to the treaty with Japan, with the exception of Queensland, Newfoundland, and Natal, the Premiers decided to uphold the decision arrived at by the Conference held at Hobart. As to coloured immigration, upon which legislative measures have been passed by the various colonies, an exchange of opinion took place. No definite agreement was arrived at, as the other Premiers and myself desired to consult our colleagues and Parliaments. Suggestions in reference to this matter have been made by the Imperial authorities, and, if time permits, legislation upon this subject will be brought before you. In the meantime, the Asiatics Restriction Bill has not received the assent of Her Majesty. With regard to postal communications, the whole of the Premiers, with the exception of those of Cape Colony and Natal, considered the present financial circumstances of the colonies did not warrant the step in regard to the proposed Imperial penny-post, and that their respective Legislatures would not be prepared to give effect to such a proposal if carried. In respect to the Pacific cable, the majority of the Premiers desired that the subject should be deferred until they had had time to consider the report of the Committee appointed to consider the question. It was, however, pointed out by the Secretary of State that the matter was not one in which the United Kingdom was taking the initiative, although the Imperial Government were prepared to consider any proposal for working with and assisting the colonies. I am firmly of the opinion that New Zealand should join with the other Australasian Colonies and Canada and support the scheme; and if Canada was prepared to guarantee to the extent of one-third, the difficulties in the way of establishing this cable would in my opinion be removed. Respecting the investment of trust funds, those assembled were of the opinion that the time has arrived when all restriction which prevents investments of trust funds in colonial stock should be removed. Honourable members should bear in mind that the advantages derivable from this course will necessarily remove the slight which at the present time exists, for, while under certain conditions investments can take place in railway stocks and in stocks of the local authorities in the Mother-country, to say that stocks in colonies like New Zealand, the Australian Colonies, and the Dominion of Canada cannot be invested in by trustees casts a doubt upon the stability of our financial position. It is well known that trustees in the Mother-country, for obvious reasons, and in the interest of the beneficiaries, desire to invest in colonial stocks. The initial cost of erecting a building debarred me from taking any decided action in respect to the Paris Exhibition until after 1 had the opinion of my colleagues and the authority of this Legislature. The question of load-lines and recording shipping and commerce on the lines of those of the Mother-country was discussed, and the general opinion was that, as far as practicable, there should be uniformity. At the conclusion of our proceedings the following resolution was passed : — " The Premiers, before they separate, beg to put on record their appreciation of the many courtesies which they have received at the hands of Mr. Chamberlain personally, and of the kind treatment which has been extended to them by the Government and people of the United Kingdom." I feel assured you will unanimously agree with me that the colonies are deeply indebted to the Secretary of State for the Colonies, the Hon. Mr. Chamberlain, and that the success that has attended his efforts in respect to the Conference for improving the relationship with the colonies will result in real and lasting benefits to the Empire. FINANCE OP 1897-98. I shall now refer to the financial requirements of the current year, and to the resources out of which they have to be met. On this occasion I occupy a very unusual position, in having to present you with estimates concerning which, six months of the year having passed

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by, one-half of my figures may be said to have been already realised. But as I do not desire to be too sanguine with regard to our receipts, I have refrained from enlarging last year's figures unduly, although I might, if optimistic, do so, in consequence of the satisfactory results already arrived at. There are, however, risks which cannot be avoided; for instance, should our harvest be unfavourable, or, as the outlook portends, should the season be late, there would be a serious falling-off in the railway revenue of the year. Again, there is a lull in respect to mining investments, and it is hopeless to expect that the mining activity of last year will be maintained. We must therefore be prepared for a decrease in Postal and Customs revenue from this cause. I have dealc more fully with this in my remarks upon the estimated revenue. Estimated Bxpendituee, 1897-98. The total estimated expenditure is set down at £4,622,843, representing an increase of £90,664 over the appropriations of last year, and of £112,862 over the expenditure during that period. The permanent charges are estimated to exceed the actual expenditure of last year by the sum of £58,367, the annual appropriations by £83,684. Among the permanent charges, interest on the public debt is responsible for an additional sum of £59,653 ; but in the remarks I have already made when referring to the position of the public debt I think I have fully accounted for this extra charge, a very large proportion of which is returned to us, either in the way of territorial rents, or in actual interest and sinking fund on the moneys borrowed by local authorities and settlers. The increase to the annual appropriations looks large, but a careful examination of the classes and votes will prove that every possible economy has been effected; and it must be expected that while the commercial prosperity of the community increases, the wants and requirements of the colonists will also increase, and should be practically recognised as far as possible. It must be admitted on all sides that certain heads of our expenditure must year by year increase alongside the natural growth of our population, and in relation also to the general prosperity, which we gladly welcome. These heads of expenditure may be named as " Education," " Maintenance of Lunatic Asylums and Charitable Aid," "Postal and Telegraphic," and our "Working Eailways." The estimated expenditure for these services amounts to £1,669,842. Deducting this sum from the total of the annual appropriations for the current year, the balance of £822,207 which is left compares very favourably with the amount of the actual expenditure during last year upon similar services. The following table will show the position : —

I have not included the Valuation Department, the expenses of which are estimated at .£39,440. The valuation of our lands has been ordered by

Actual, 1896-97. Estimate, 1897-98. Increase. Decrease. £ 20,328 101,922 29,835 123,294 91,050 22,381 7,206 18,107 50,033 45,371 68,552 101;330 116,669 509 £ 19,538 73,597 24,727 122,996 74,432 21,770 6,425 16,476 56,405 46,400 79,627 108,158 131,316 900 £ £ 790 28,325 5,108 298 16,618 611 781 1,631 Jlass I. Legislative Departments II. Colonial Secretary's Department ... III. Colonial Treasurer's Department ... IV. Justice Department VI. Customs and Marine Department... VII. Stamp and Deeds Department VIII. Labour Department IX. Mines Department X. Agricultural Department XII. Public Buildings XIII. Defence Department XIV. Police Department XV. Lands and Surveys Department ... XVI. Bates on Crown Lands ... 6,372 1,029 11,075 6,828 14,647 391 796,587 782,767 40,342 54,162

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Parliament, and I cannot be held responsible for the extra expenditure which has to be incurred in carrying out the direction of the Legislature. All I can say is that the utmost economy has been exercised, and that the most careful consideration has been given to the vote which is included in our estimates. The above table shows a net decrease of expenditure amounting to £13,820 as estimated for the current services of the year for the various executive departments I have enumerated. On the other hand, the Departments of Education, Lunacy, Post and Telegraph, and Working Eailways are responsible for an increase of £58,064 for services which must necessarily increase year by year if they are to be efficiently and satisfactorily maintained; the Valuation Department is accountable for £39,440, making a total increase of £97,504. Deducting the decrease as previously stated of £13,820, we arrive at the net increase of £83,684 in the annual appropriations over the actual expenditiire of last financial year. It will be noticed that amongst the few departmental increases the Defence and Police Departments, and the Lands and Survey Departments, show the largest figures. For the Defence Department an increase of £11,075 is set down, an amount very much smaller than the proposals of our Commander of the Forces, if given effect to in their entirety, would necessitate. That our Police Force requires strengthening cannot be gainsaid. The demand for land - settlement necessarily causes increased Survey expenditure", and I am sure honourable members will find no fault with this. Estimated Eevenue of 1897-98. The revenue proper for the year is estimated at £4,723,400, or £2,399 less than the amount actually received last year. In addition, the ways and means will be aided by the proceeds of debentures, amounting to £69,600, drawn against the sinking funds. The estimated receipts for the year will, therefore, total to £4,793,000, or within £3,099 of last year's actual receipts. ■ These estimates are over £300,000 in excess of the amount estimated as the revenue of last year. In framing our figures for the current year I am met with the difficulty of opposing desires. The results of last year's receipts were so surprising that proper caution prevents me from accepting them without some discount; at the same time, I do not wish to be accused of pessimistic views by showing by reduced figures that I have doubts as to the continuance of such satisfactory receipts. For Customs revenue I have set down an increase of £61,000 over last year's receipts, and I hope I shall not prove too sanguine in adopting these figures, for importers may find themselves fully stocked and our importations may be proportionately reduced. The railway revenue of last year was extraordinarily large, but the flood-damages in the Hawke's Bay District, and the severe drought in southern Canterbury and northern Otago, have proved detrimental to the receipts of the respective lines, and it is not therefore wise to anticipate so large an amount of receipts : I have therefore discounted last year's figures to the extent of £12,000. My colleague the Minister of Lands informs me that we must look for a shrinkage in our territorial revenue. A very much smaller area of land is likely to be offered for cash sales ; the deferredpayment system is rapidly running out; and rents of pastoral runs are falling in. For these and other causes the territorial revenue has been estimated at nearly £23,000 less than the actual receipts of last year produced. The only other head of revenue calling for remark is that relating to the land- and income-tax, which shows a decrease of nearly £13,000. The cause of this is easily traceable, and is the result of the acquisition of large parcels of lands purchased by the Government under the Land for Settlements Act. Of course, directly they become the property of the Crown no land-tax is payable ; but this loss of direct tax is more than made good by the benefit derived from close settlement. The repeal of the tax on the agents of non-resident traders has also to be allowed for.

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ESTIMATED BESULTS AT THE CLOSE OF THE YEAE 1897-98. The results of the six months' revenue already received enable me to submit my figures with confidence, and I shall now place before you the position which I anticipate we shall achieve by the 31st March next: — Estimated revenue for 1897-98 ... £4,793,000 Estimated expenditure for 1897-98 ... ... ... .... 4,622,843 Excess revenue ... ... ... ... ■•• 170,157 Balance from last year ... ... ... ...£354,286 Less contribution in aid of the Public Works Fund ... 300,000 54,286 Surplus, 31st March, 1898 ... ... ... ... £224,443 As I have already stated, we shall require £120,000 towards our pension scheme. The necessity for a brick building for the parliamentary library has long been admitted. The risk from fire is very great, and the destruction of our magnificent library would be a national calamity. The buoyancy of the revenue permitting it, a portion of the surplus could not be put to a better use. Plans have been ordered to be prepared forthwith, and the work, if approved by Parliament, will be put in hand so as to be completed before next session, I propose to devote £7,000 for this purpose. These two items will absorb £127,000, leaving £97,443 to meet the votes to be asked for when the usual supplementary estimates are sent down. SEPAEATE ACCOUNTS. Honourable members are frequently complaining of what they call the complexity of the public accounts ; and I must myself confess that they are getting unwieldy. In 1878 the Public Eevenues Act provided for only two funds—namely, "The Consolidated Fund" and "The Public Works Fund"; but subsequent legislation has gradually piled up separate account upon separate account until at the present time, in addition to the Consolidated Fund (which contains five separate accounts) and the Public Works Fund, there are six outside accounts which have separate ways and means of their own. With the object of lessening the number of separate accounts and simplifying our statements, I have decided to ask authority to amalgamate the Lands Improvement Account and the Native Land Purchase Account with the Public Works Fund, so as to enable the balances on the 31st March last of these accounts to be transferred to the Public Works Fund as from that date. The expenditure in each case can be shown separately in the Public Works Fund, and this will, I feel sure, meet any objection honourable members might have to the proposed, amalgamation. WHAT THE CENSUS DISCLOSES. The cost of taking and compiling the census of 1896 was less by one halfpenny per head than that of the census of 1891, and the accuracy and expedition shown reflects the greatest credit upon the Registrar-General and the census staff. The census disclosed the fact that the population increased by 76,702 persons, or at the rate of 12 - 24 per cent., in five years, as against the increase for the quinquennium 1886-91, which was the lowest in the record of the colony, 48,176, or 8 - 33 per cent. The net increase of population between March, 1886, and April, 1891, was 48,176, but the natural increase by excess of births over deaths was 64,122, so that the loss to the colony by excess of departures over arrivals during the period amounted to 15,946. -But between April, 1891, and April, 1896, when the total increase was 76,702 persons, there was an excess of arrivals over departures of 18,029 persons. The population of the North Island increased by 59,176 souls in the quinquennium 1891-96, being a percentage of 21-03. The increase in the South Island was only 17,525, or soB per cent. The accommodation of the people has greatly improved, the increase

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since 1891 in the number of houses of brick, stone, or concrete being 793, and in wood, iron, lath-and-plaster 17,291. In houses having more than six rooms there was an increase since 1891 of 7,617. Of the chief cities, Wellington shows the greatest number of persons to a house. In 1891 there were in the colony 123,851 inhabited dwellings; in 1896 the number was 141,339, being an increase of 17,488. In 1891 there were 9,558 uninhabited dwellings; in 1896 there were only 8,006, being a decrease in the number of uninhabited houses of 1,552. Of the religions of the people, the Church of England has the most adherents, the percentage being 4027. The percentage of Presbyterians is shown to be 22-78, of Eoman Catholics 14-07, of Methodists 10 - 44. The percentage of Baptists and the Salvation Army is 2*28 and l - 50 respectively. Freethinkers decreased from 1,475 to 3,983, or nearly 11 percent., which is worthy of remark when contrasted with the increase of 14-01 per cent, between 1886 and 1891. As to the birthplaces of the people, 441,661 were born in New Zealand, or 6295 per cent., and 215,161 were born in the United Kingdom, or 30-62 per cent. In 1896 there were in the colony 20,756 persons over the age of sixty-five years. As to the education of the people, satisfactory progress has been made. Excluding Chinese, 8060 per cent, could read and write, 2-89 per cent, could read only, and 16-51 per cent, were unable to read. The proportion per cent, of those unable to read fell from '23-72 in 1878 to 21-19 in 1886, and further to 16-51 in 1896. The number of children shown by the census household schedules as attending schools of various kinds in 1896 was as follows : At Government primary schools, 133,364; at colleges, high, grammar, or private schools, 17,600; and being taught at home, 6,352. In 1891 the attendance at the Government schools was returned as 124,063, or 9,301 less than in 1896. At colleges, high, grammar, or private schools 17,047 attended in 1891, or 553 less than in 1896; whilst in 1891 8,178 children were receiving tuition at home, being 1,826 more than in 1896. THE PEOGEESS OP THE COLONY. The time has now arrived, after six years of the Liberal party's administration, when we can fairly ask whether " wide diffusion of wealth and industry among the people," accompanied by "a buoyant revenue and a healthy exchequer," has been realised. The buoyancy of the revenue and the healthiness of the exchequer have been abundantly demonstrated. Each year has shown a substantial surplus. But perhaps the most striking way of showing this is to compare the revenue for the year before we took office—lß9o-91 —with the year just closed : — 1890-91. 1896-97. Ordinary revenue ... ... ... ... £3,808,222 £4,452,845 It will be seen that between these years the revenue has increased by £644,623, a magnificent proof of the spending-power of the people, and the more general diffusion of wealth in the colony. It will be contended that this increase has been largely caused by the operation of the new tariff, but I am in a position to assert that this is not the case. The total increase on items affected by the new tariff amounted to £82,000, while the reductions and concessions reached £67,000, leaving a net increase of only £15,000, which was represented by the increase on spirits alone. There are, however, other means of testing the progress of the colony than that of increase of revenue. I have had prepared a series of tables, which will be found attached, showing the progress of the colony as regards its agricultural, mineral, and other products during the six years of the Ballance and Seddon Administrations. The figures show conclusively that the policy which the Government has pursued of assisting our industries and opening up the lands of the colony has proved beneficial, and been justified by events. Equally, they demonstrate that the labour legislation, although denounced as calculated to hamper our industries, has had no such effect. No clearer proof of this could be given than the gratifying increase which has to be recorded in the number of hands employed in

8.—6.

XXXVIII

the factories of the colony for the past year. The following are the number of operatives registered as employed in the factories of the colony : — Males. Females. Total. January, 1896 ... ... 23,807 8,580 32,387 1897 ... ... 27,429 9,489 36,918 Such a development speaks well for the present position and future progress of the colony from an industrial point of view. Referring to the progress made in agricultural and pastoral pursuits : I find that the wool exported has increased from 102,522,185 lb. in the year ended September, 1890, to 128,309,673 lb. in the year ended September, 1896 ; while the quantity purchased by local mills has also increased from 2,979,293 lb. in 1890 to 3,989,934 lb. in 1896 : the total increase in production aggregating 26,798,129 lb. Nor has this increase been on account of the abnormal growth of large flocks. In 1890 there were 11,309 flocks, in 1896 there were 17,703, representing an increase of 6,394, but of that number there was an increase of 4,366 in the flocks of under 500 sheep, proving that the progress which has been made is rather that of the small farmers, who form the base of the pyramid, than of the large farmers and runholders. The number of sheep increased from 16,116,113 in 1890 to 19,138,493 in 1896, representing a total increase of over three millions in six years. Turning now to our second great industry—frozen meat —the tables show that in 1890 the export was 100,934,7561b., while in 1896 it was 123,576,5441b., an increase of 22,641,7881b. Equally satisfactory has been the progress of the dairying industry. In 1890 the combined butter and cheese exports were valued at =£207,687; in 1896 they were valued at .£411,882. This proof of the development of the industry is most gratifying to the Government, and will doubtless prove so to the colony. The dairying industry is one especially adapted to the small farmer, as it provides employment for his family; and I attribute largely the progress of small settlement throughout the colony to the development of this industry. In 1890 there were 38,178 holdings over one acre in extent occupied and cultivated in the colony. In 1895 the number had increased to 46,676. Finally, the total area of land farmed, cultivated, surface-sown in grass, or in garden and orchard, was in 1890 8,039,765 acres ; in 1896 it was 10,735,980, showing an increase of 2,696,215. Such progress as I have sketched was bound to show itself on the valuations of the local bodies of the colony; and I may fitly close this part of my Statement by referring to the increase in the value of the rateable property in the colony during the last six years. In 1890, judging from information in. the returns furnished by the local bodies for that year, the total rating-value for the whole colony was £103,116,564, excluding Crown and unoccupied Native lands, also outlying lands in counties where the Act was not in force. In March, 1896, the value had risen to £114,385,605, and, if the figures quoted be only approximately true, there is still sufficient evidence of considerable progress. Inasmuch a.s the same returns showed that the value of the property in the municipalities remained stationary during the period referred to, the increase shown above must necessarily have been confined to the property belonging to rural districts. The mineral resources of the colony have shown equal development and expansion during the past six years. The value of the gold exported in 1890 was £751,360, and in 1896 £1,041,4.28, showing an increase of £290,068. Second in value amongst the minerals of the colony conies coal, which is inseparably connected with the development of all our industries. The quantity raised in 1890 was 637,397 tons ; in 1896 it was 792,851 tons, showing an increase of 155,454 tons. Side by side with this large increase of the coal raised in the colony must be placed the fact that the import of coal has decreased, being, in 1890, 110,939 tons, and in 1896 101,756 tons, a difference of 9,183 tons by wav of reduction.

8.—6

XXXIX

CONCLUSION. The facts I have stated need little comment: they speak for themselves. They show that, applying any and every test which is possible, the progress of the colony during the past six years has been decisive. Our revenue (exclusive of territorial) has increased by =£644,623 ; the area of our lands occupied and cultivated has been greatly enlarged ; the number of our farmers has multiplied ; the export of our wool and meat has increased in volume ; the output of our goldand coal-mines has substantially increased; and the capital invested and the number of hands employed in our factories and industries have largely expanded. Surely, in view of these incontrovertible facts, I am justified in claiming that the Ballance and Seddon Governments have succeeded in bringing about a marked improvement in the condition of the people, and of placing the colony on a permanent footing of prosperity beyond that previously obtained. The first and foremost cause of this satisfactory condition is the enterprise and energy of our colonists, which have contributed in a large degree to procure these splendid results; but I have no hesitation in pointing out that this satisfactory state of things has taken place under a Liberal Administration, whose advent to power was heralded by the most gloomy predictions on the part of those who differ from us. And, as to the future, T feel confident that, with strict economy, prudent expenditure on reproductive works, the continuance of the policy of settlement of our lands on wise and progressive lines, the development of our resources, assistance to and encouragement of our industries, aided by the judicious application of expert knowledge, the progress of the past six years will most certainly be continued and our most sanguine anticipations realised.

APPENDIX.

TABLES TO ACCOMPANY THE FOREGOING STATEMENT. I'AGK Table No. I.—Abstbact of Receipts and Expenditure (exclusive of the Revenue Account) of the Financial Year ended 31st March, 1897 .. .. .. .. .. .. 2 Table No. 2.—Comparative Statement of the Estimated and Actual Receipts and Expenditure of the Consolidated Fund for the Financial Year ended 31st Mabch, 1897 .. 17 Table No. 3.—The Public Debt on 31st March, 1897 .. .. .. .. .. .. 18 Table No. 4.—Statement of the Estimated Liabilities of the Consolidated Fund outstanding on 31st March, from 1888 to 1897, inclusive .. .. .. .. .. 20 Table No. s.—Statement of the Estimated Liabilities of the Public Wobks Fund outstanding on 31st March, from 1888 to 1897, 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, 1897 .. .. .. .. 22 Table No. 7.—Estimated Expenditure of 1897-98 compared with the Actual Expenditure of 1895-96 23 Table No. 8. —Estimated Revenue of 1897-98 compared with the Actual Revenue of 1895-96 .. 23 Table No. 9.—Statement showing the Amount charged to Unauthorised in each Financial Year from Ist July, 1875, to 31st March, 1897 .. .. .. .. .. 24 Table No. 10.—Factories and Workshops .. .. .. .. .. .. .. 25 Table No. 11. —Production of Wool, 1890 to 1896 .. .. .. ~ .. .. ..25 Table No, 12.—Exports op Produce, 1890 to 1896 .. .. .. .. .. .. 26 Table No. 13.—Goal raised in Colony, also Coal imported, 1890 to 1896 .. .. .. 27 Table No. 14.—Number of Holdings and Acreage under Cultivation and in bare Fallow, 1890 to 1896 .. .. .. .. .. .. .. .. .. ..27

I—B. 6.

B.—C

Table STATEMENT of the RECEIPTS and EXPENDITURE of the CONSOLIDATED STATE FORESTS

2

1895-96. RECEIPTS. 189i i-97. £ s. d. 5,205 19 1 Balance at beginning of Year, — Cash in the Public Account £ s. d. £ s. d. 7,192 8 6 1,815 15 10 652 10 8 Rents from Lands set apart Miscellaneous 1,032 11 2 5,471 13 8 6,504 4 10 2,468 6 6 Totals £7,674 5 7 £13,696 13 4 ACCOUNTS OF 7,130 5 5 Balance at beginning of Year, — Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony 5,910 18 4 1 19 10 5,912 18 2 7,130 5 5 2,343 5 9 10,475 7 7 27,397 6 5 11,702 18 9 Revenue received for Local Bodies, — Fees, Fines, &c. Endowments of Land, &c. .. Goldfields Revenue .. .. .. .. .. .. Gold Duty .. .. .. ... .. .. .. 2,329 12 11 9,370 3 5 59,809 14 4 9,387 12 10 51,918 18 6 80,897 3 6 Bounties Separate Accounts, — Revenue of Counties in which " The Counties Act, 1886," is not in full operation 301 14 5 382 17 2 40,376 6 2 67 0 6 Advance Account, — Amount repaid by Local Bodies .. .. .. .. .. .. j Ditto on account of Unauthorised Expenditure of previous years .. .. j ! 43,300 18 5 71 7 0 43,300 18 5 71 7 0 43,372 5 5 40,443 6 8 Totals £99,794 5 0 £130,565 4 3 DEPOSIT 77,140 9 1 530 0 0 3,799 9 9 Balance at beginning of Year, — Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony .. .. .. .. In London 62,439 14 4 150 0 0 33,559 16 8 96,149 11 0 81,469 18 30 10,750 0 0 25 0 0 4,594 13 8 1,206 11 6 10,367 7 7 15 5 1 135 4 0 5 12 0 67,775 14 6 1,150 0 0 26 8 1 461 17 4 100 0 0 16,268 3 1 129 11 0 264 13 1 42 0 0 Lodgments,— Emigrants' Deposits General Assembly Library Fund Government of New South Wales Government of South Australia Government of Victoria .. .. Hospitals and Charitable Institutions Act, 1885 Land Transfer Act, 1885 Mining Districts Land Occupation Act, 1894 Miscellaneous Money-order Settlement Native Land Act, 1878 (No. 2) Native Land Purchases Nelson Rifle Prize Fund Investment Nelson Eifle Prize Fund New Zealand Midland Railway New Zealand University Endowment, Canterbury New Zealand University Endowment, Taranaki New Zealand University Endowment, Westland Ngatirahiri Compensation North Island Main Trunk Railway Loan Application Act 1886 Amendment Act, 1889 .. .. .. .. .. .. Permanent-way Material for Open Lines of Railway .. Property Law Consolidation Act 1883 Amendment Act, 1895 Railways .. .. .. .. Released Sinking Funds Suspense Tauranga Educational Endowment Reserves Act Thermal-springs Districts Act, 1881 Trustee Act, 1883 .. .. .. .. .. .. .. Westport-Ngakawau Railway Extension Act, 1890 6,425 0 0 25 0 0 973 9 11 4 13 6 458 0 0 81 17 9 117,183 10 11 14,900 0 0 25 0 0 434 18 10 800 0 0 64 0 0 24,371 13 10 129 11 0 293 19 8 14 10 0 4,024 0 11 29,987 3 0 10,254 18 11 347 5 5 400 0 0 12,137 0 0 400 0 0 113 806 11 2 206 15 7 1,192 19 7 1,172 ]2 5 2,307 19 5 194,198 1 2 178,743 12 10 Totals £260,213 11 8 £290,347 12 2

3

8.—6

No. 1. FUND for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896 ACCOUNT.

1895-96. EXPENDITURE. 189' i-97. £ s. d. 481 17 1 7,192 8 6 Annual Appropriations,— Class XVII.—State Forests Account Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government — In the Colony £ s. d. 11,036 '4 9 183 0 9 £ s. d. 2,472 7 10 11,224 5 6 £7,674 5 7 Totals £13,696 13 4 LOCAL BODIES. )DIES. 2,369 12 3 16,909 19 2 22,459 4 3 11,548 1 6 Revenue paid over to Local Bodies, — Fees, Fines, &c. Endowments of Land, &c. Goldfields Revenue Gold Duty 2,246 15 0 7,084 19 7 58,179 13 9 9,461 4 11 76,972 13 3 53,286 17 2 443 6 8 Counties Separate Accounts, — Amount distributed amongst Road Boards where " The Counties Act, 1886," is not in full operation 363 4 2 40,151 3 0 Advance Accounts, — Payments on behalf of Local Bodies 43,075 0 7 93,881 6 10 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government — In the Colony 9,885 4 9 5,910 18 4 1 19 10 269 1 6 5,912 18 2 10,154 6 8 Totals £99,794 5 0 £130,565 4 3 ACCOUN s. 11,125 0 0 25 0 0 3,423 8 4 1,428 17 4 11.842 4 11 15 7 0 93,208 10 8 1,100 0 0 20 16 8 81 13 2 454 18 2 66 0 0 11,707 11 1 8 18 9 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 Land Transfer Act, 1885 .. .. .. .... Miscellaneous Money-order Settlement Native Contracts and Promises Act, 1888 Native Land Act, 1878 (No. 2) Native-Land Purchases Nelson Rifle Prize Fund New Zealand Midland Railway Ngatirahiri Compensation .. North Island Main Trunk Railway Loan Application Act 1886 Amendment Act, 1889 .. Permanent-way Material for Open Lines of Railway Railways Released Sinking Funds Suspense Thermal-springs Districts Act, 1881 Trustee Act, 1883 .. Westport-Ngakawau Railway Extension Act, 1890 6,375 0 0 25 0 0 753 9 7 8 13 9 968 4 0 120,447 19 0 3,650 0 0 38 15 1 434 1 0 66 0 0 27,895 3 0 90 6 1 12,625 10 7 14,070 18 8 2,471 17 4 347 5 5 12,114 16 8 0 9 4 10 0 2,020 0 0 4 6 0 206 15 7 176 6 5 164,064 0 8 175,286 2 11 62,439 14 4 Balances at end of Year, — Cash in the Public Account .. .. Advances in the hands of Officers of the Government — In the Colony .. .. .. .. .. In London 80,000 5 6 150 0 0 33,559 16 8 300 0 0 34,811 3 9 115,111 9 3 96,149 11 0 Totals £260,213 11 8 £290,347 12 2

8.—6

4

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

1895-96. RECEIPTS. 1896-97. £ s. d. 218,217 2 4 11,780 7 2 29,528 9 4 9,000 0 0 Balance at beginning of Year, — Cash in Public Account Advances in the hands of Officers of the Government--In the colony In London Investments £ s. d. 4,811 14 7 10,588 14 6 15,749 10 8 £ s. a. 31,149 19 4 268,525 18 10 Proportion of proceeds of Debentures created under " The Aid to Public Works and Land Settlement Act, 1896 " .. Premium received in respect of same 375,000 0 0 5 12 6 375,005 12 6 150,000 0 0 Amount transferred from the Consolidated Fund in terms of section 17 of " The Appropriation Act, 1896 " .. 150,000 0 0 Special Receipts in connection with the Ellesmere and Porsyth Reclamation and Akaroa Railway Trust .. 1,674 8 8 1,635 7 0 572 15 11 Recoveries, — In respect of Debentures issued under " The Roads and Bridges Construction Act, 1882" In respect of Expenditure charged in previous years 365 0 5 334 0 0 699 0 5 572 15 11 f>4 3 4 Sinking Funds released under "The Consolidated Stock Act, 1884," in respect of— " The New Zealand Loan Act, 1856 " " The Auckland Loan Ordinance, 1863 " 36 13 4 12,859 12 9 12,896 6 1 64 3 4 Totals £420,798 5 1 £571,425 2 0 Part II. 24,104 19 10 Balance at beginning of Year, — Cash in the Public Account Advances in the hands of Officers of the Government— In the Colony 12,960 15 7 2,499 18 3 962 5 2 26,604 18 1 13,923 0 9 10,000 0 0 Transfer from " The North Island Main Trunk Railway Loan Application Act 1886 Amendment Act, 1889," Deposit Account, in terms of section 4 of the Act .. £36,604 18 1 Totals £13,923 0 9

5

8.—6

No. 1 — continued. FUND for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896 Part I.

1895-96. EXPENDITURE. 1896-97. £ s. d. Annual Appropriations,— Cr. 9 110 Class I. —Immigration 12,499 10 0 „ II.—Public Works, Departmental .. 176,223 11 9 „ III.—Railways 66,715 3 1 „ IV.—Roads 9,345 0 5 j „ V.—Development of Goldfields VI. —Native Land Purchases 35,537 15 2 „ VII.—Telegraph Extension .. 76,239 1110 „ VIII.—Public Buildings 7,409 9 4 „ IX.—Lighthouses and Harbour-works 340 15 „ X. —Rates on Native Lands 5,000 0 0; XI.—Contingent Defence 389,300 12 0 j £ s. d. 301 6 3 14,891 16 6 193,307 13 1 64,236 12 3 10,508 2 11 Cr. 37 2 0 36,791 8 11 70,578 15 10 11,600 7 5 331 19 3 10,553 16 9 £ 8. d. 413,064 17 2 389,300 12 0 288 19 7 Services not provided for 942 9 3 288 19 7 Local Bodies' Finance and Powers Act 1885 Amendment Act, 1887, — 58 14 2 Moiety of subsidy to Waipa County 58 14 2 66 3 4 Balance at end of Year, — 4,811 14 7 Cash in the Public Account Advances in the hands of Officers of the Government— 10,588 14 6 In the Colony .. 15,749 10 3 In London Investment Account S1 1JQ 1Q A 4,811 14 7 63,642 13 10 157,362 12 3 10,588 14 0 15,749 10 3 18,198 2 0 5,521 16 5 70,000 0 0 31,149 19 4 £420,798 5 1 I Totals 31,149 19 4 £420,798 5 1 £571,425 2 0 Part II. 20,881 17 i 1,800 0 0 Annual Appropriations,— Glass I.—Bailways Public Works, Departmental 13,923 0 9 13,923 0 9 22,681 17 4 12,960 15 7 962 5 2 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government— In the Colony 13,923 0 9 £36,604 18 1 Totals

8.—6

6

Table STATEMENT of the RECEIPTS and EXPENDITURE of the LANDS IMPROVEMENT

1895-96. RECEIPTS. 189 i-97. £ s. d. Balance at beginning of Year, — 24,868 15 10 Cash in.the Public Account Advances in the bands of Officers of the Government— 10,724 1 2! In the Colony .. £ s. d. 19,523 5 1 £ s. d. 11,901 10 1 31,424 15 2 35,592 17 0 Proceeds of Debentures created under— 104,000 0 0 " The Lands Improvement and Native Lands Acquisition Act, 1894 " " The Aid to Public Works and Land Settlement Act, 1896" (proportion) Premium received in respect of ditto 21,200 0 0 187,500 0 0 2 16 3 208,702 16 3 3,375 4 6 Recoveries on account of expenditure of previous years £139,592 17 0 Totals £243,502 15 11 STATEMENT of the RECEIPTS and EXPENDITURE of the NATIVE LANDS PURCHASE 5,051 12 2 4,279 12 0 Balance at beginning of Year, — Cash in the Public Account .. .. .. .. Advances in the hands of Officers of the Government — In the Colony 4,354 19 10 j 1,564 18 11 j 5,919 18 9 160,000 0 0 9,331 4 2 Proceeds of Debentures created under— " The Lands Improvement and Native Lands Acquisition Act, 1894 " .. "The Aid to Public Works and Land Settlement Act, 1896" (proportion) Premium received in respect of ditto 30,800 0 0 187,500 0 0 2 16 3; j 218,302 16 3 160,000 0 0 Totals £169,331 4 2 £224,222 15 0 STATEMENT of the RECEIPTS and EXPENDITURE of the CHEVIOT ESTATE 1,098 1 6 12,530 6 6 14 5 2 731 0 10 Receipts under " The Cheviot Estate Disposition Act, 1893 " Land Sales for Cash Rents from Lands Rent of Buildings Shipping and Port Charges Interest on Advances Miscellaneous 480 16 10 13,833 8 2 4 6 9 869 4 10 45 0 0 100 11 6 139 0 3 15,888 8 1 14,512 14 3 Totals £14,512 14 3 £15,333 8 1

7

8.—6

No. 1 — continued. ACCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896.

1895-96. EXPENDITURE. 189 i-97. £ 8. d. Annual Appropriations,— 108,168 1 10 ! Vote 118—Roads and Bridges Balance at end of Year, — 19,523 5 1 Cash in the Public Account Advances in the hands of Officers of the Government, — 11,90110 1 In the Colony .. £ s. d. 130,130 5 11 £ s. d. 106,929 12 1 6,442 17 11 136,573 3 10 31,424 15 2 £139,592 17 0 Totals £243,502 15 11 £139,592 17 0 .CCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31: it Mabch, 1896. 163,411 5 5 Annual Appropriations,— Vote 120—Native-Land Purchases .. 128,999 19 10 4,354 19 10 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government— In the Colony 93,959 12 1 1,564 18 11 1,263 3 1 5,919 18 9 Totals 95,222 15 2 £224,222 15 0 £109,331 4 2 .CCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896. Expenditure,— 869 3 6 Interest on Debentures 5,499 6 7 I Surveys, Roading, &c. 6,368 10 1 Appropriations,— 8,144 4 2 Class XVIII., Vote 74 .. . 11,979 15 5 2,966 1 3 14,945 16 8 7 4 0 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government — In the Colony .. £14,512 14 3 | Totals .. I 55 16 8 824 10 9 380 7 5 £15,333 8 1

Table STATEMENT of the RECEIPTS and EXPENDITURE of the LAND FOR SETTLEMENTS

8

B.—6.

1895-96. RECEIPTS. 189 -97. £ s. d. 554 7 7 Balance at beginning of Year, — Cash in the Public Account £ s. d. £ s. d. 1,357 11 9 163,200 0 0 Proceeds of Debentures created under— " The Land for Settlements Aot, 1894 " 305,990 0 0 5,925 2 8 Receipts derived from Rents and Lease-fees 19,628 19 6 17 10 0 Proceeds of sale of saleyards, Merivale Estate 127 14 10 Refund in respect of exoess area charged to Blind River Estate .. 19,628 19 6 6,070 7 6 •v • Totals £326,976 11 3 £169,824 15 1

8.—6

9

No. 1 — continued. ACCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896.

2—B. 6.

1895-96. EXPENDITURE. £ s. d. £ s. d. £ s. d. s. d. £ s. a. £ s. d, 2,411 16 4 Annual Appropriations,— Vote 75—Land for Settlements Expenses 2,099 5 9 25 8 8 5,080 6 3 1,151 14 4 1,398 3 0 261 19 7 83 16 3 11 13 7 67 10 8 1,615 7 0 69,489 2 8 26,171 14 7 244 0 3 24,630 4 11 7,740 5 2 42 19 3 Acquirement of Estates, — Name of Estate. Purchase-money. Albury (Assets Realisation Board) .. .. i 65,174 11 Ardgowan (H. D. Cameron) .. .. .. 34,600 0 0 Arowhenua (Assets Realisation Board) .. 28,915 9 9 Ashley Gorge .. .. • • Blind River.. .. •■ •• •• Braoo .. .. • ■ • ■ ■ ■ Elsthorpe (Trustees of Buchanan's Estate) .. I 45,328 10 0 Epworth .. .. ■ • • • Hatuma .. .. • • • ■ Hawkesbury (C. Goulter) .. .. .. 10,865 13 6 Highbank (J. Browne) .. •• ■• 59,209 12 7 Horsley Down (Trustees of Mallock and Lance) , 20,022 5 8 Studholme Junction.. Kapua Kereta .. .. • ■ • ■ Maerewhenua .. .. • • Marawiti .. .. • • Merrivale Myrtle Bank Omihi Stock Reserve Opouriao .. .. .. .. Orakipaoa Otaio Otarakaro (W. Boag) .. .. .. 1,990 6 3 Paparangi Pareora Patoa Poerua Pomahaka Pouparae (A. Donner) .. .. .. 7,768 16 6 Puketapu .. .. • • • ■ • • Raureka Roimata .. .. .. • • Rosebrook Toka-rahi .. .. . • • • Tahawai Teanaraki Waimarie (G. Bruoe) .. .. •• 8,608 15 0 Waihemo Grange (A. B. Kitchener) .. .. 12,239 13 8 Wharenui (Assets Realisation Board) .. ..! 4,765 6 3 299,489 0 10 Expenses. 629 6 2 3,228 7 6 331 13 5 41 2 0 422 6 3 14 19 0 743 15 4 27 9 0 299 7 3 396 14 0 96 17 5 4 5 3 6 11 11 95 12 2 1,553 2 8 3 2 6 15 11 3 574 8 7 43 15 7 1 3 10 53 2 5 11 0 3 6 0 0 170 2 0 708 15 0 454 6 6 10 16 0 39 6 10 208 17 7 334 11 7 Expense 629 3,228 331 1 41 422 14 1 743 1 27 299 396 1 96 1 4 *6 1 95 I 1,553 3 15 1 574 43 1 1 53 11 6 170 708 1 454 10 1 39 208 ] 334 ] 122 1 70 121 ] 34 1 10,875 es. 6 2 7 6 13 5 2 0 6 3 19 0 15 4 9 0 7 3 14 0 17 5 5 3 11 11 12 2 2 8 2 6 11 3 8 7 15 7 3 10 2 5 0 3 0 0 2 0 15 0 6 6 16 0 6 10 17 7 11 7 14 4 1 3 12 11 11 11 9 8 Total. 65,803 17 10 37,828 7 6 29,247 3 2 41 2 0 422 6 3 14 19 0 46,072 5 4 27 9 0 11,165 0 9 59,606 6 7 20,119 3 1 4 5 3 6 11 11 95 12 2 1,553 2 8 3 2 6 15 11 3 574 8 7 43 15 7 1 3 10 2,043 8 8 11 0 3 6 0 0 170 2 0 708 15 0 454 6 6 7,779 12 6 39 6 10 208 17 7 334 11 7 29 9 7 6,692 13 9 3,722 5 6 681 8 6 3,484 15 2 10,248 17 2 2,428 14 1 108 2 2 122 14 4 122 14 4 633 0 8 8 5 3 8,678 16 3 12,361 6 7 4,799 18 2 '3 9 0 70 1 3 121 12 11 34 11 11 166,055 7 0 299,489 0 10 10,875 9 8 Unauthorised — Ardgowan Estate Albury 120 0 0 ; Elsthorpe 550 0 0 Opouriao „ 670 0 0; 342 1 95 I 438 12 10 10 5 3 3 310,364 10 6 342 12 10 120 0 0 550 0 0 95 10 5 670 0 0 438 3 3 1,108 3 3 Debentures matured 31st March, 1897, and reissued 311,472 13 9 8,690 0 0 1,357 11 9 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government — In the Colony 3,751 9 2 963 2 7 4,714 11 Totals £326,976 11 £169,824 15 1

8.—6

10

Table STATEMENT of the RECEIPTS and EXPENDITURE of the CONVERSION

1895-96. RECEIPTS. 1896-97. £ s. a. 350 4 2 : 3,839 5 6 j £ s. d. Balance at beginning of Year, — In the hands of Stock Agents— Cash .. .. .. .. .. .. .. £1,054 10 5 Inscribed Stock £ s. a. J £ s. d. 350 4 2 3,839 5 6 1,054 10 5 4,189 9 8 j 36,177 17 8 4,189 9 8 36,177 17 8 In the hands of the Agent-General— 3J per cent. Inscribed Stock 61,017 3 2 40,367 7 4 173 18 6 1(1 1Q3 S Ifl 40,367 7 4 173 18 6 Less cash overdrawn .. 62,071 13 7 1,595 5 3 118,000 0 0 704,570 0 0 822.570 0 0 40,193 8 10 3J-per-cent. Inscribed Stock, — Issued for redemption of Debentures Issued in exchange for Debentures 60,476 8 4 118,000 0 0 704,570 0 0 822,570 0 0 30,271 0 0 30,271 0 0 0^2,07U U U 3-per-cent. Inscribed Stock, — Issued in exchange for debentures .. 26,620 0 0 478,300 0 0 3J-per-cent. Stock (Colonial issue), — Issued under "The Consolidated Stock Act, 1884," for conversion of debentures 478,300 0 0 464 0 6 J 464 0 6 In reduction of Conversion Expenses,— Premium on sale of 3J-per-eent. Inscribed Stock sold above par 3,012 1 9 53,400 0 0 53,400 0 0 Suspense Account, — " The Consolidated Stock Act, 1884,"— Debentures outstanding now written off i ■ ' 1,394,927 9 4 Total ,, .. .. .. ...■;' £120,379 10 1

8.—6

No. 1 — continued. ACCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896.

11

1895-96. EXPENDITURE. 189 i-97. £ s. d. £ s. d. £ s. d. ; Original Amount Bate. Premium. Converted I Stock. I" j" Debentures converted into 3§-percent. £ £ £ £ £ Inscribed Stock, — Consolidated Loan Act, 1867 .. . .j 15,9001 104 636 j 16,536 1,900 103 57 1,957 8.400 102 168 8.568 £ £ £ £ I £ 63,195 0 0 i 15,900 1,900 8,400! 104 103 102 636 57 168 ! 16,536 1,957 8,568 28,417 0 0 s,4UUi 1U2 io« a,oos 26,200 — New Zealand Loan Act, 1863 (1914) .. 1,400 111 154 1,554 26,200 1,400 111 154 1,554 27,061 0 0 Otago Loan Ordinance, 1862, due 1st July, 1898 .. .. .. .. 1,600 103J 56 1,656 1,554 0 0 2,650 0 0 1,600 103J 56 1,656 1,656 0 0 1,000 0 0 District Railways Purchasing Act, 1885, due 1st April, 1905 109,308 0 0 Consolidated Stock Act, 1884 (Colonial issue), due 28th November, 1895.. 500,000 0 0 Bank of New Zealand and Banking Act, 1895, due 31st December, 1896 99 200 1.071 / 29,200 1,071 704,570 0 0 2y,nuu l.u/i Debentures converted into 3-per-cent. Stock at £110, — Land for Settlements Act, 1894, at 4 per cent., due 30th April, 1926 Premium on same 30,271 0 0 24,200 0 0 2,420 0 0 26,620 0 0 44,656 0 0 50,000 0 0 Debentures redeemed, — Auckland Loan Act, 1863, at 6 per cent., due 1st June, 1896 Consolidated Loan Act, 1867, at 5 per cent. Cheviot Estate Payment Act, 1893, at 4J per cent., due 18th October, 1900 16,200 0 0 42,586 0 0 58,786 0 0 94,656 0 0 Debentures converted into 3J-per-eent. Stock under the Consolidated Stock Act, 1884 (Colonial issue), — Government Loans to Local Bodies Act, 1886, due 1st March, 1896 Nelson Loan Act, 1874, due 23rd March, 1896 463,300 0 0 15,000 0 0 478,300 0 0 Debentures converted into 4-per-cent. Stock, — Balance of £4,214,100 5 per cent, converted 15th April, 1892 (debentures not handed in at the time) 53,400 0 0 214 5 0 953 13 9 1,729 7 3 307 15 0 Expenses Account, — Brokerage and Commission Stamp Duty Interest (including overlap of interest) Office Expenses Printing and Advertising Miscellaneous 54 10 0 1,337 11 3 1,044 9 2 329 8 9 363 10 6 3,129 9 8 320 0 0 3,525 1 0 Dr. 1,595 5 3 1,054 10 5 Balance at end of Year, — Cash in the Public Account In the hands of Stock Agents : Cash .. . • • • • • • • • • • • In the hands of the Agent-General : 3J-per-cent. Inscribed Stock 1,103 10 6 469 9 11 61,017 3 2 1,573 0 5 60,476 8 i Totals 11,394,927 9 4 £120,379 10 1

B.—o

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

12

1895-96. RECEIPTS. 1896-97. £ s. a. 290 8 0 Balance at beginning of Year, — Gash in the Public Account £ a. d. £ s. d. 858 13 7 The Government Loans to Local Bodies Act, 1886, — Debentures created 93,800 0 0 105,500 0 0 135 11 7 Repayments under section 8 of " The Government Loans to Local Bodies Act Amendment Act, 1896," — Horowhenua County Patea County Stratford County Wairarapa North County .. Parihaka Road Board Manawatu Road Board Manganui Road Board 78 1 11 1,711 13 1 500 0 0 150 0 0 55 0 0 107 14 0 243 5 7 2,494 15 0 Refund of amount paid under section 2 of " The Government Loans to Local Bodies Act Amendment Act, 1891," — Coonoor Block 131 0 0 • • Totals £106,164 13 7 £97,153 8 7

8.—6

13

No. 1 — continued. ACCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896

1895-96. EXPENDITURE. 1896-97. £ s. d. 15 0 0 340 0 0 200 0 0 3,373 0 0 2,400 0 0 800 0 0 497 0 0 6,000 0 0 1,923 0 0 2,988 0 0 1,000 0 0 6,000 0 0 2,531 0 0 5,867 0 0 1,750 0 0 1,559 0 0 2,340 0 0 1,600 0 0 600 0 0 Grants to — Counties— Bruce Clifton Collingwood Cook Hawera Horowhenua Hutt .. Kiwitea Manawatu Pahiatua Patea Pohangina Rangitikei Stratford Waipawa Wairarapa North Wairoa Waitotara Waitaki & s. a. 1,225 0 0 3,046 0 0 3,190 0 0 1,550 0 0 730 0 0 6,000 0 0 1,150 0 0 5,733 0 0 1,760 0 0 4,701 0 0 2,412 0 0 3,868 0 0 175 0 0 1,360 0 0 50 0 0 700 0 0 1,000 0 0 £ s. d. 41,783 0 0 Road Boards— Arai Arch Hill Carrington Eketahuna Featherston Fitzherbert Frankley Kaiti Makara Manawatu Manchester Manganui Masterton Mauku Mauriceville Moa Otaki Parihaka Taratahi-Carterton Tβ Horo Turanga Upper Taueru Upper Wangaehu Waimate Whataupoko Wirokino 38,050 0 0 1,400 0 0 100 0 0 1,800 0 0 1,650 0 0 3,000 0 0 56 0 0 2,558 0 0 300 0 0 2,500 0 0 610 0 0 800 0 0 200 0 0 350 0 0 365 0 0 1,401 0 0 1,662 0 0 350 0 0 1,000 0 0 2,670 0 0 165 0 0 1,970 0 0 1,778 0 0 600 0 0 180 0 0 987 0 0 500 0 0 550 0 0 1,332 0 0 3,000 0 0 210 0 0 800 0 0 100 0 0 1,030 0 0 2,890 0 0 290 0 0 1,055 0 0 670 0 0 50 0 0 388 0 0 20,026 0 0 .1. ,772 0 0 23,063 0 0 800 0 0 200 0 0 Boroughs— Feilding Kumara Pahiatua Patea Petone 395 0 0 160 0 0 300 0 0 2,000 0 0 2,855 0 0 2,000 0 0 3,000 0 0 200 0 0 8 0 0 Town Boards — Clyde Stratford 100 0 0 300 0 0 400 0 0 5,195 0 0 208 0 0 Drainage Boards — Aorangi Land Manawatu Land Otakia Sluggish River 570 0 0 3,000 0 0 200 0 0 280 0 0 4,05(J 0 0 1,400 0 0 6,595 0 0 600 0 0 River Board— Taradale Unauthorised— Pohangina County 152 0 0 75,249 0 0 Appropriations,— Vote 119.—Roads to open up Crown lands 66,133 0 0 30,057 0 0 31,016 18 6 858 13 7 Balance at end of year,— Cash in the Public Account 3 10 1 £106,164 13 7 Totals £97,153 8 7

Table STATEMENT of the RECEIPTS and EXPENDITURE of the NEW ZEALAND CONSOLS

14

B.—6.

1895-96. RECEIPTS. 189 i-97. £ s. d. 25 0 0 158,000 0 0 Balance at beginning of Year, — Cash in Deposit Account .. Investment Account £ s. d. 90 0 0 161,300 0 0 £ s. d. 161,390 0 0 158,025 0 0 3,365 0 0 Deposits inscribed 136,015 0 0 Total £297,405 0 0 i £161,390 0 0

No. 1 — continued. ACCOUNT for the Year ended 31st March, 1897, compared with the Financial Year ended 31st March, 1896.

JAMES B. HEYWOOD, Secretary to the Treasury. ROBERT J. COLLINS, Accountant to the Treasury.

15

B.—6.

EXPENDITURE. 1896-97. 1895-96. £ s. d. 90 0 0 161,300 0 0 Balance at end of Year, — Cash in Deposit Account.. Investment Account Totals £ s. d. ! £ s. d. 5 0 0 297,400 0 0 297,405 0 0 £297,405 0 0 £161,390 0 0

8.—6

16

SUMMARY OF BALANCES ON 31st MARCH, 1897.

Balances. i Cash. Advances. Investments. Total. I I 11 II £ s. d. \ £ s. d. £ s. d. Consolidated Fund :— Consolidated Fond :— Ordinary Revenue Account .. 1,084,286 4 3 Ordinary Revenue Account .. 632,305 17 0 State Forests Account .. 11,224 5 6 State Forests Account.. .. 11,036 4 9 Accounts of Local Bodies .. I 10,154 6 3 ; Accounts of Local Bodies .. 9,885 4 9 Deposit Accounts .. .. 115,111 9 3 : Deposit Accounts .. .. 80,000 5 6 1,220,776 5 3 733,227 12 0 Public Wokks Fund: — Public Works Fund: — Parti. .. .. .. .. 157,362 12 3 Part I. .. .. .. 63,642 13 10 Cheviot Estate Account .. .. 380 7 5 Cheviot Estate Account .. 55 16 8 Land foe Settlements Account.. .. 4,714 11 9 Land for Settlements Account.. 3,751 9 2 Lands Improvement Account .. .. 136,573 3 10 Lands Improvement Account .. 130,130 5 11 Native Lands Purchase Account .. 95,222 15 2 Native Lands Purchase Account 93,959 12 1 Conversion Account .. .. .. 1,573 0 5 Conversion Account .. .. 1,103 10 6 Loans to Local Bodies Account i .. 3 10 1 Loans to Local Bodies Account 3 10 1 New Zealand Consols Account., i .. 297,405 0 0 New Zealand Consols Account.. 5 0 0 Remittances to London Account j .. Dr. 1,005,000 0 0 Remittances to London Account 0.1,005,000 0 0 Totals.. .. .. .. , £909,011 6 2 Totals.. .. .. £20,879 10 3 733,227 12 0 £ s. d. 47,280 7 3 188 0 9 269 1 6 35,111 3 9 82,848 13 3 23,719 18 5 £ s. d. 404,700 0 0 404,700 0 0 70,000 0 0 £ s. d. 1,084,286 4 3* 11,224 5 6 10,154 6 3 115,111 9 3 1,220,776 5 3 157,362 12 3 324 10 9 963 2 7 6,442 17 11 1,263 3 1 469 9 11 380 7 5 4,714 11 9 136,573 3 10 95,222 15 2 1,573 0 5 3 10 1 297,405 0 0 1,005,000 0 0 297,400 0 0 Cr. £116,031 15 11 £772,100 0 0 £909,011 6 2 * Against this. Treasury bills amounting to £730,000 are outstanding.

8.—6

17

Table No. 2. COMPAEATIVE STATEMENT of the Estimated and Actual Receipts and Expenditure of the Consolidated Fund (Eevenue Account) for the Financial Year ended 31st March, 1897.

a—b. c.

IIFPBBBNCBS. Estimated. Actual. More than Estimate. Less than Estimate. RECEIPTS. Avenue Account :— Customs .. .. Stamps Land- and Income-tax Property-tax Beer Duty Railways Registration and other Fees .. Marine Miscellaneous Territorial £ s, d. 1,670,000 0 0 : 692,000 0 0 360,000 0 0 62,000 0 0 jl, 200,000 0 0 49,000 0 0 20,700 0 0 90,000 0 0 270,000 0 0 £ s. d. 1,818,972 6 6 730,236 16 7 I 377,813 9 4 63 0 11 68,786 13 9 1,287,139 12 6 50,256 10 11 21,204 1 2 98,372 12 2 i 272,953 13 9 £ s. d. 148,972 6 6 38,236 16 7 17,813 9 4 63 0 11 6,786 13 9 87,139 12 6 1,256 10 11 504 1 2 8,372 12 2 2,953 13 9 £ s. d. Sinking Fund Increases |4,413,700 0 0 4,725,798 17 7 312,098 17 7 70,300 0 0 70,300 0 0 Totals 14,484,000 0 0 ■i, 796,098 17 7 312,098 17 7 EXPENDITURE. IBVBNUB Account: — £ s. d. £ Permanent Appropriations,— Civil List.. .. .. .. 25,700 0 U 24, 1 68 Interest and Sinking Fund .. .. 1,720,753 0 0 11,709,469 Under Special Acts .. ..j 191,930 0 0 193,334 Subsidies .. .. .. .. 69,000 0 0 ] 63,812 Territorial Revenue paid over to Local Bodies, and Deposit Accounts .. 47,000 0 0 40,634. Endowments .. .. .. i 39,100 0 0 41,008 Annual Appropriations,— Legislative .. .. .. 20,782 0 0 ' 20,328 Colonial Secretary .. .. .. 102,529 0 0 101,921. Colonial Treasurer .. .. .. 28,657 0 0 29,835 Minister of Justice .. .. .. 125,207 0 0 123,294 Postmaster-General .. .. ! 355,134 0 0 352,386 Commissioner of Trade and Customs 92,342 0 0 91,050 Commissioner of Stamps .. .. 20,665 0 0 22,380 . Minister of Education .. ..' 490,041 0 0 489,849 Minister of Mines .. .. .. ■ 19,851 0 0 18,106: Minister of Agriculture .. .. 52,748 0 0 50,033 Working Railways.. .. .. 768,434 0 0 776,747: Public Buildings .. .. .. 47,630 0 0 45,370: Defence Department .. .. 75,664 0 0 68,551 Police Department .. .. 106,750 0 0 101,330 Department of Lands and Survey .. 131,362 0 0 116,668] Rates on Crown Lands .. ... 900 0 0 508 Services not provided for .. .. .. 3,188 ] 4,532,179 0 0 4,483,980 3 Advanced to Government Advances to Settlers Office .. .. .. .. 26,000 £ s. d. ■24 .108 9 2 '1,709,469 5 10 193,334 9 7 63,812 10 8 40,634 11 6 41,008 4 11 20,328 8 4 101,921 13 0 29,835 4 2 123,294 5 0 352,386 7 6 91,050 0 7 22,380 14 2 489,849 6 7 18,106 14 7 50,033 9 2 776,747 17 6 45,370 17 7 68,551 9 10 101,330 6 1 116,668 19 10 508 9 11 3,188 17 7 s. d. £ 'J 2 5 10 9 7 1,404 10 8 11 6 4 11 1,908 8 4 13 0 4 2 1,178 5 0 7 6 0 7 14 2 1,715 : 6 7 14 7 9 2 17 6 8,313 ] 17 7 9 10 6 1" 19 10 9 11 17 7 3,188 ] 13 1 J 17,709 0 0 26,000 £ s. d. 1,404 9 7 1,908 4 11 1,178 4 2 1,715 14 2 a. d. £ 1,53 11,28; 9 7i 5,18' 6,36! 4 11 46; 4 2 1,912 2,74' 1,291 14 2 19] 1,744 2,714 17 6 2,25£ 7,11k 5,41£ 14,69c 391 17 7 7 11 65,907 0 0 £ s. d. 1,531 10 10 11,283 14 2 5,187 9 4 6,365 8 6 453 11 8 607 7 0 1,912 15 0 2,747 12 6 1,291 19 5 191 13 5 1,744 5 5 2,714 10 10 8,313 17 6 2,259 2 5 7,112 10 2 5,419 13 11 14,693 0 2 391 10 1 8,188 17 7 4,483,980 13 1 17,709 7 11 65,907 14 10 26,000 0 0 26,000 0 0 43,709 43,709 7 11 7 11 65,907 65,907 14 10 43,709 7 11 ao,(Ub Totals .. .. .. 14,532,179 0 0 4,509,980 3 L 4,509,980 13 1 13 1 22,196 22,198 6 11 £ s. d. Surplus at 31st March, 1896 Actual receipts, 1896-97 .. .. .. 4,796,098 17 7 Repayment by Cheviot Estate Account .. 2,609 3 9 Actual expenditure, 1896-97.. 4,798,708 1 4 4,509,980 13 1 £ s. d. 215,558 16 0 l"\ (> 1 i rr • -\ r* i~\ *~ft s. d. 158 16 0 288.727 8 3 504,286 4 3 Less— Amount applied in aid of Public Works Fund 150,000 0 0 Surplus at 31st March, 1897.. £354,286 4 3

8.—6

18

Table No, 3. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1897.

Amount outstanding. Due Date. Sinking Net Funds Indbbtbdaccbued. ness. I Bate. Int. : S.F. Annual i Amount. Annual Charge. Chai When payable. Remarks. £ £ 273,800 15 July, 1914 552, 500 !Ann. drawing 1,000,000*1 Uune, 1907 4,500t' 1 Jan. 1897 £ 107,977 £ 165,823 % 5 % 1 £ 16,428 I 15 Jan. and 15 July. New Zealand Loan Act, 1863 .. .. Consolidated Loan Act, 1867 552,500 5 27,625 Quarterly, 15 Jan., &c. Immigration and Public Works Loan Act, 1870 .. 481,573 518,427 * 2-4 64,000 , 1 June and 1 Dec. Sinking Fund payable 13 Mar. and 13 Sept. t Balance of debentures not sent in for payment as at 31 March, 1897. Lyttelton and Christchurch Railway Loan, 1860.. 9,091 ; Cr. 4,591 I ' • i I . i Canterbury Loan Ordinance, 1862 3,800 12,200 ) .„ AAn I 2 Jan., 1915 lb ' 000 j 2 July, 1916 t 9,750 6,250 6 i i 1,120 | 30 June and 31 Dec. Otago Loan Ordinance, 1862 72,200 1 July, 1898 97,046 Cr. 24,846 6 4 4 + 4,332 1 Jan. „ 1 July. Consolidated Loan Act, 1867 13,000 15 April, 1913 13,000 520 ; 15 April „ 15 Oct. Immigration and Public Works Loan Act, 1870 j 372,100 27,900 1 1 aton mm (15 April, 1913 400,000 | 15A J ril5l91g 372,100 27,900 14,884 15 April „ 15 Oct. 1,256 15 April „ 15 Oct. Defence and Other Purposes Loan Act, 1870 j 25,000 75,000 1 I ioo ooo - f 1Jul y- 1910 100, UUO (15Aprilil g 13 25,000 75,000 4 j 1,125 ' 30 June „ 31 Dec. 3,000 15 April , 15 Oct. General Purposes Loan Act, 1873 18,500 12,300 54,700 1 1 (15 Oct., 1913 85,500 J15 May, 1914 [ 28 Nov., 1914 18,500 12,300 54,700 4 4 5 I _.. ; 740 j 15 April „ 15 Oct. 492 : 15 May . 15 Nov. 2,735 15 May „ 15 Nov. District Railways Purchasing Acts, 1885-86 35,000 40,000 101,600 47,000 |- 223,600 1 ) (28 May, 1898 99 o mn I 1 July. 1909 223,600 1 1April)190 5 [ 1 April, 1899 j- 223,600 J? IS 1,225 \ 2,400 , . ., , „ , 4|064 1 1 A P nl " 1 0ot - 2,'350 ) .. Carried forward ! 2,741,100 I i I 148,296 j 2,741,100 i 705,437 ! 2,035,663 ■ * Only £200.000 has actually been issued to the public; the unsold debentures are available for the purpose of obtaini ing temporary advances from time to time. ; Further contributions of Sinking Fond not required.

8.—6

19

Table No. 3 — continued. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1897— continued.

Amount outstanding. Due Date. Sinking Funds accrued. Net — Indebted- -c + NESS. Eate ' Int. I S.F. Annual Charge. Amount. When payable. Remarks. £ £ £ 2,741,100 .. 705,437 £ % 2,035,663 % £ 148,296 Brought forward Government Loans to Local Bodies Act, 1886 Consolidated Stock Act, 1877 141,800 : 31 Dec, 1900 j 23,598 29,150,302 1 Nov., 1929 6,161,167 1 Jan., 1940 1,526,620 1 April, 1945! 118,202 : 3J I 29,150,302 ; 4 6,161,167 i 3J 1,526,620 3 14 20,774* 1,166,013 215,640 45,798f 1 Mar. and 1 Sept. 1 May „ 1 Nov. 1 Jan. „ 1 July. 1 April „ 1 Oct. *The Sinking Fund is payable on £1,054,100; the Land Assurance Fund is also charged with i per cent, as a contribution towards Sinking Fund. f£45,000 of this amount will j be recouped by the Government Advances to Settlers : Office. Consolidated Stock Act, 1884 — Colonial Issue 263,032 40,000 1,306,100 253,200 558,600 \ (28 May, 1897 ) : 22 May, 1898 { !- 2.420, 932 7 28 May, 1898 | J 28 May, 1898 : J ' 1.28 May, 1898 85,259+ 1,609,132 4i 253,200 : 4 473,341 : 3tj 72,411 I 28 May „ 28 Nov. 10,128 19,551 28 May „ 28 Nov. 28 May „ 28 Nov. JRepresentsthe accrued Sinking Fund upon £912,300, the amount borrowed under " The Government Loans to Local Bodies Act, 1886," which has been converted into Consolidated Stock debentures. I I Naval and Military Settlers' and Volunteers' Larid Act, 1892 27,226 31 Oct., 1899 | 27,226 ii 1,225 30 April „ 31 Oct. Native Land Purchases Act, 1892 ' Land for Settlements Act, 1892 .. .. i 140,000 9,700 ) !,,,, ™ '31 0c '-i 1899 | | U9 '™° {31 Oct.! 1899! 45,276 31 Oct., 1899 | t acc nor, 131 Oct., 1899! } 455 .°90 131 Oct., 1899 140,000 4 J 9,700 5 45,276 ii 134,100 4 320,990 3i 6,300 485 2,037 30 April „ 31 Oct. 30 April „ 31 Oct. 30 April „ 31 Oct. 1 Land for Settlements Act, 1894 .. j 134,100 320,990 5,364 11,235 30 April „ 31 Oct. 30 April „ 31 Oct. Lands Improvement and Native Lands Ac- J quisition Act, 1894 1 383,000 117,000 1 '- 500,000 : 30 Sep., 1908 I r 297,405 1 Feb., 1910 I • 750 000 I 1 1902 I - ,50,000 { 15Au g. )1921§ \ 44,366,618 .. 814,294 ( 383,000 ; 4 "( 117,000 3J 297,405 3J 750,000 3§ 43,552,324 15,320 4,095 31 Mar. „ 30 Sept. 31 Mar. „ 30 Sept. ■ ' New Zealand Consols Act, 1894 10,409 1 Feb. „ 1 Aug. Aid to Public Works and Land Settlement I Act,, 1896 250,000 500,000 26,250 1 Feb. „ 1 Aug. §Loan may be paid off at any time after 15th February, 1907, on six months' notice being given. Totals .. 1,781,331 Treasury bills amounting to £730,000 are not included.

3.-6

20

Table No. 4. STATEMENT of the Estimated Liabilities chargeable on the Consolidated Fund (Revenue Account) outstanding on the 31st March, 1888, 1889, 1890, 1891, 1892, 1893, 1894, 1895, 1896, and 1897.

31st March, 1888. 31st March, 1889. 31st March, 1890. 31st March, 1891. 31st March, 1892. 31st March, 1893. 31st March, 1894. 31st March, 1895. 31st March, 1896. 31st March, 1897. Revenue Account. Permanent Appropriations, — Civil List Interest and Sinking Fund Under Special Acts of the Legislature Subsidies payable to Local Authorities Endowments Under the Land Acts, payable to Local Authorities £ s. d. 448 9 9 " 7,072 1 10 £ s. d. £ s. d. £ s. d. 491 18 8 I 240 0 0 351 12 3 550 0 0 4,220 3 0 442 4 9 167 1 4 £ s. d. 275 0 0 106 3 0 £ s. d. £ s. d. 150 0 0 370 0 0 82 0 0 22 18 10 £ s. d. 437 0 0 9 4 6 £ a. A. 350 0 0 155 2 0 £ s. d. 894 11 8 163 4 6 3,221 9 3 483 11 11 24,677 4 8 24,563 0 0 4,104 0 0 2,227 0 0 1,042 0 0 897 16 4 2,693 6 1 2,553 2 1 959 3 10 1,170 3 0 j j 651 15 0 16,620 4 2 8,243 18 3 I 5,613 13 3 3,188 1 5 3,014 10 2 2,553 2 1 2,553 2 1 2,553 2 1 Annual Appropriations,— Legislative Colonial Secretary Colonial Treasurer Minister of Justice Postmaster-General Commissioner of Customs Commissioner of Stamps Minister of Education Minister of Native Affairs Minister of Mines Minister of Agriculture Working Railways Public Buildings .. Minister of Defence Minister of Lands Rates on Crown Lands 27,845 16 11 37,633 4 7 31,408 18 0 : 7,810 15 0 5,622 13 2 3,967 6 1 J 3,843 17 3 3,958 10 5 4,228 7 1 4,262 13 3 j I 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 37 10 0 7,160 0 11 I 6,759 9 2 1,573 11 3 50 0 0 3,836 13 1 : 5,178 12 11 22,574 18 6 14,829 0 0 5,474 12 7 ' 2,637 0 0 402 13 3 j 300 17 3 2,500 0 0' 300 800 0 0 920 0 0 4,528 0 0 5,821 18 9 47,831 18 8 I 57,800 12 9 10,452 8 6 ; 5,007 14 9 2,948 2 9 481 10 7 3,082 15 2 : 3,107 19 7 1,350 0 0 1,750 0 0 69 1 11 3,650 12 6 340 0 0 4,940 6 2 12,013 2 2 2,624 3 3 349 8 7 3,912 9 11 1,260 0 0 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 10 13 0 2,689 17 9 150 0 0 2,525 6 2 19,460 0 0 2,837 0 1 282 17 0 2,333 8 7 15 17 7 3,876 19 10 23 9 0 3,974 13 2 15,912 0 0 3,936 1 8 219 2 7 1,268 8 9 6,430 5 9 2,550 0 0 3,590 0 0 17,452 0 0 3,469 1 2 451 2 0 1,361 4 7 51,293 14 0 21,107 4 1 12,066 3 8 3,634 0 0 2,400 0 0 59,590 11 5 7,760 1 7 10,516 4 3 3,064 5 10 785 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 I 76 14 11 1,815 4 4 56,669 5 0 742 10 0 1,875 0 0 8,000 1 2 I 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 7 815 10 5 2,037 4 3 52,542 7 4 108 14 4 4,000 0 0 6,659 0 0 100 0 0 213 10 10 2,266 17 3 65,971 3 1 181 14 9 3,463 0 0 4,142 10 9 60 0 0 117,111 11 4 114,574 18 9 104,685 5 9 114,480 6 0 jlOl ,246 6 8 94,451 1 6 96,960 1 4 102,328 3 6 814 2 9 I 420 4 9 95,489 8 11 I 111,602 10 2 Services not provided for 22 9 6 522 8 0 343 14 1 ! 66 1 3 Totals 152,551 17 5 ! 136,160 5 0 122,313 10 6 j 1106,868 19 10 98,418 7 7 99,717 16 0 116,387 11 5 144,957 8 3 101,618 1 4 106,706 18 8 I

21

8.—6

Table No. 5. STATEMENT of the Estimated Liabilities chargeable on the Public Works Fund outstanding on the 31st March, 1888, 1889, 1890, 1891, 1892, 1893, 1894, 1895, 1896, and 1897.

31st March, 1888. 31st March, 1889. 31st March, 1890. 31st March, 1 i 1891. 31st March, 31st March, 1892. 1893. 31st March, 1894. 31st March, 1895. 31st March, 1896. 31st March, 1897. . I PART I. Annual Appropriations — Immigration Railways Roads Waterworks on Goldfielda Land-purchases Telegraph Extension Public Buildings Lighthouses and Harbour-works Thermal Springs Rates on Native Lands Contingent Defence Services not provided for Totals ■ £ s. d. £ s. a. .. ; 3,800 0 0 1,200 0 0 .. 191,501 1 11180,187 7 1 .. 119,120 10 2120,857 10 3 54 10 6 1,068 2 6 3,911 8 4: .. ! 3,004 0 0 3,591 0 0 .. 29,610 19 7 23,453 18 10 .. 36,431 12 1 6,466 2 3 200 0 0 .. J 11,000 0 0 .. 395,790 16 9 339,667 6 9 £ s. d. ! £ s. d. £ s. d.i £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 2,200 0 0! 189,834 1 2| 93,859 3 5 240 12 8 236 6 10 I 5,107 0 0 10,086 9 8 1,850 4 7 30 0 0 1,000 0 0 100,078 17 3 1 60,596 7 8 248 0 0 136,891 7 0 74,320 0 0 79,248 0 9i 86,086 9 7 2,500 0 0! 1,795 17 8 88,668 1 8 102,047 3 3 900 0 0 117,890 9 6 80,606 17 0 56,086 13 5 34,886 17 0 7,860 19 7 15,265 10 10 106,312 8 4 85,552 6 0 29,910 16 10 3,005 14 5 27,082 3 11 3,710 9 0 10 10 10 8,142 0 0 6,716 0 0 22,782 8 9 13,635 0 0 763 0 0 500 0 0 185 0 0 9,581 0 0 12,407 0 0 954 0 0 13.987 0 0 4,000 0 0 29 \ 336 15 11 33,044 18 3 3,626 8 3 6,573 19 2 16,283 0 0 24,180 7 10 J 1,884 2 2 •• 185 9 7 287 14 5 110 0 0 110 0 0 J 11,550 0 0 1,794 7 11! 305,238 6 3I 214,742 14 6 229,076 1 1 j 174,488 2 3 275,783 1 2 339,667 6 9! [195,484 3 1 250,063 16 6 183,749 7 3 229,076 1 1 174,488 2 3 PART II. Annual Appropriations — Railways Roads .. .'. Land-purchases Totals s .. 70,075 12 6 27,296 4 1 1,549 11 87 14 0 .. 4,279 15 11 1,587 15 4 .. 75,904 9 6 28,971 13 5 27,296 4 1 87 14 0 1,587 15 4 9,028 4 5 26,103 1 10 665 14 9; 18,799 17 2 40,475 17 7: 27,116 0 0 23,331 0 0 18,495 0 0 14,676 0 0 14,190 15 7 10,082 7 4 4,014 14 5 16,391 5 11 16,391 5 11 28,971 13 5 9,693 19 2 44,902 19 0 63,806 17 7: 45,611 0 0 j 28,866 15 7 14,097 1 9 STATEMENT of the Estimated Liaj 11LITIES chargeable on the under-mentioned Accounts outstanding on the 31st March, 1894, 1895, 1896, and 1897. 31st March, 1894. 31st March, 1895. 31st March, 31st March, 1890. 1897. 31st March, 1894. 31st March, 1895. 31st March, 31st March, 1896. 1897. £ s. d. £ s. d. £ s. d. £ s. d. ! £ s. d. £ s. d. £ s. a.i £ s. d. State Forests Account Cheviot Estate Account .. Land for Settlements Account 3,000 0 0 400 0 0 2,400 0 0 101,121 0 0 130 0 0 160,171 19 9 574 9 7 3,492 16 0 104,951 15 11 Lands Improvement Account Native Lands Purchase Account .. Loans to Local Bodies Account 131,379 9 2 24,137 7 2 1 113,988 2 6128,304 5 1 25,768 13 3 31,549 11 4 ! 21,058 9 8 • •

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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, 1897.

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 Aid to Public Works and Land Settlement Act, 1896 £ s. d. £ s. d. £ s. d. J £ 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 0 375,000 0 0 Expenditure on — Immigration Public Works, Departmental Railways, including Surveys of New Lines Roads Land Purchases Development of Goldfields Telegraph Extension Public Buildings Lighthouses, Harbour- works, and Defences Contingent Defence Rates on Native Lands.. Thermal Springs Charges and Expenses of raising Loans Coal-mines Interest and Sinking Fund , 2,146,945 8 7 414,033 8 0 15,306,573 12 1 4,046,654 5 5* 1,297,816 15 1 598,158 13 4 771,351 1 10 2,092,007 12 4 929,113 1 3 445,272 16 0 62,305 9 3 14,599 13 2 1,027,765 0 6 10,835 8 0 218,500 0 0 ; 17,629,487 7 11 i 29,381,932 4 10 k 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 .. 1,000,000 0 0 56,000 0 0 264,657 16 4 19,963 1 3 4,963 7 4 60,616 3 0 21,255 10 1 Balance on 31st March, 1897, — Cash in the Public Account Advances in the hands of officers of the Government Investment Account 63,642 13 10 23,719 18 5 70,000 0 0 2,257 1 9 17,581 5 0 462,513 4 5 63,642 13 10 23,719 18 5 70,000 0 0 1,909,807 9 2 157,362 12 3 £29,539,294 17 1 £29,539,294 17 1 * Has been reduced by £89,800 received under section 31 of " The Government Loans to Local Bodies Act, 1886."

23

8.—6

Table No. 7. ESTIMATED Expenditure of the Consolidated Fund Revenue Account) for 1897-98 compared with Actual Expenditure of 1896-97.

Table No. 8. STATEMENT of the Estimated Revenue of the Consolidated Fund Revenue Account) for 1897-98, compared with the Actual Revenue of 1896-97.

lex■ences. Estimate lor 1897-98. Actual of 1896-97. Increase. Decrease. Revenue Account. Civil List Interest and Sinking Fund Under special Acts 25,700 24,168 1,769,122 , 1,709,469 335,972 338,790 25,700 I ,769,122 24,168 1,709,469 OOO 17 n A £ 1,532 59,653 £ 2,818 338,790 Annual Appropriations, — Legislative Departments Colonial Secretary's Department Colonial Treasurer's Department Justice Department Postal and Telegraph Department Customs and Marine Department Stamps and Deeds Department Minister of Education, — Education Department Lunacy and Charitable Department Department of Labour Mines Department Department of Agriculture Working Railways Department Public Buildings, Domains, and Machinery Department .. Defence Department Police Department Lands and Survey Department Valuation Department Rates on Crown lands 19,538 i 20,328 73,597 101,922 24,727 29,835 122,996 123,294 362,827 352,386 74,432 91,050 21,770 22,381 438,960 : 428,130 58,055 54,514 6,425 7,206 16,476 18,107 56,405 50,033 810,000 776,748 46,400 45,371 79,627 68,552 108,158 101,330 131,316 116,669 39,440 900 ! 509 2,130,794 2,072,427 61,185 10,441 10,830 3,541 790 28,325 5,108 298 '• 16J618 611 "781 1,631 2,818 6,372 33,252 1,029 11,075 6,828 14,647 39,440 391 2,492,049 2,408,365 Services not provided for Advanced to Government Advances to Settlers Office 137,846 54,162 3,189 26,000 3,189 26,000 199,031 86,169 86,169 Total .. .. 4,622,843 4,509,981 112,862

Estimate for 1897-98. Actual Differences. of 1896-97. Increase. Decrease. Revenue Account. £ 1,880,000 721,000 365,000 £ 1,818,972 730,237 377,813 63 68,787 1,287,140 50,256 21,204 98,373 272,954 £ 61,028 244 I £ 9,237 12,813 63 2,787 12,140 "304 3,373 22,954 Customs Stamps Land- and Income-tax Property-tax Beer Duty Railways Eegistration and other Pees Marine Miscellaneous Territorial Revenue 66,000 1,275,000 50,500 20,900 95,000 250,000 Debentures for Sinking Fund increases.. 4,723,400 69,600 4,725,799 70,300 61,272 ! 63,671 700 64,371 61,272 Total 3,099 4,793,000 4,796,099

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24

Table No. 9. STATEMENT showing the Amount charged to Unauthorised in each Financial Year from 1st July, 1875, to 31st March, 1897.

Consolidated Fund.—Revenue Account. Financial Year. SerV^d e ea n t 0 or Pr0 " Bxcess of Votes ' Tota1 ' Othek Accounts. PUBL Fu™ 0EKS 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 .. 1895-96 .. 1896-97 .. £ s. a. 13,167 4 8 18,397 17 1 19,079 12 6 11,413 16 1 5,818 9 9 6,151 13 9 3,899 16 3 4,473 15 8 7,293 9 9 5,981 17 8 9,337 11 2 14,337 19 7 7,303 17 10 3,521 18 2 4,412 5 3 10,610 1 0 2,288 3 2 1,741 7 10 2,350 7 0 8,985 3 7 22,422 16 10 3,188 17 7 £ s. d. 19,195 17 1 13,398 7 0 58,709 17 2 47,466 4 5 18,466 2 1 37,825 6 6 38,474 18 9 64,631 0 2 45,284 2 6 39,039 17 11 47,106 10 3 38,117 13 5 42,104 15 10 35,157 16 5 43,257 1 0 76,778 5 11 21,026 16 4 28,283 15 11 7,376 7 4 9,148 0 5 16,229 5 9 24,195 2 9 £ s. d. 32,363 1 9 31,796 4 1 77,789 9 8 58,880 0 6 24,284 11 10 43,977 0 3 42,374 15 0 69,104 15 10 52,577 12 3 45,021 15 7 56,444 1 5 52,455 13 0 49,408 13 8 38,679 14 7 47,669 6 3 87,388 6 11 23,314 19 6 30,025 3 9 9,726 14 4 18,133 4 0 38,652 2 7 27,384 0 i £ s. d. 3,155 9 2 3,490 6 1 653 6 5 3,938 14 8 1,005 3 10 13,443 11 3 13,590 6 10 12,343 2 2 9,003 18 7 7,163 15 3 13,965 10 1 6,212 16 7 27,821 16 11 13,506 2 8 23,631 7 1 5,459 18 11 9,183 10 6 4,754 17 10 522 12 2 1,890 7 5 16,995 9 9 24,726 3 6 £ s. d. £ s. d. 63,875 11 8 99,394 2 7 2,197 4 5 37,483 14 7 22,009 14 0 100,452 10 1 32,179 1 1 94,997 16 3 17,090 9 9 42,386 5 5 34,133 17 3 91,554 8 9 2,217 9 8 58,182 11 6 8,137 17 11 89,585 15 11 31,741 17 10 93,323 8 8 872 0 11 '' 53,057 11 9 6,465 17 5 ' 76,875 8 11 28,633 10 8 : 87,302 0 3 30,407 2 3 107,637 12 10 18,633 2 10 70,819 0 1 12,287 18 10 83,588 12 2 7,097 19 9 99,946 5 7 7,594 1 2 40,092 11 2 11,149 14 2 45,929 15 9 1,335 12 11 11,584 19 5 330 8 1 20,353 19 6 33,245 2 4 88,892 14 8 7,051 0 8 59,161 4 6

25

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Table No. 10. FACTORIES AND WORKSHOPS.

Table No. 11. PRODUCTION OF WOOL, 1890 TO 1896.

4—B. 6.

Number of Hands employed.! Year. Number of Factories. Males. Females. Total. 1892*... 1893 ... 1894 ... 1895 ... 1896 .. 1897 ... 1,857 2,192 2,324 4,096 4,647 5,177 14,464 17,702 18,490 22,324 23,807 27,429 5,992 7,320 7,361 7,555 8,580 9,489 20,456 25,022 25,851 29,879 32,387 36,918 * " The Factorie: Railway Workshops. Act, 1891," came into force on 1st January, 1892. t Exclusive if hands in Government I" Year 1890. Year 1895. Increase. 1890-95. Horse-power H.-p. 21,696 H.- P . 28,096 H.-p. 6,400 Total approximate value of manufactures or produce* ... £ 8,773,837 £ 9,549,360 £ 775,523 Total approximate value of— Land ... Buildings Machinery and plant 1,286,735 1,483,902 2,491,189 1,063,989 1,743,073 2,988,955 -222,746t 259,171 497,766 Totals* 5,261,826 5,796,017 534,191 * Omitting Government Railway Workshops and Government Printing O: ice. f Decrease.

Year ending 30th September Quantity exported. Quantity purchased by Local Mills. Total Annual Produce. 1890 ... 1891 ... 1892 ... 1893 ... 1894 ... 1895 ... 1896 ... Lb. 102,522,185 108,619,473 110,860,050 119,643,874 128,480,457 129,333,769 128,309,673 Lb. 2,979,293 2,918,073 3,388,954 2,629,855 2,476,155 3,299,132 3,989,934 Lb. 105,501,478 111,537,546 114,249,004 122,273,729 130,956,612 132,632,901 132,299,607 (a.) Number op Sheep. 1890 ... ... ... ... ... 16,116,113 1891 ... ... ... ... ... 16,753,752 1892 ... ... ... ... ... 18,570,752 1893 ... ... ... ... ... 19,380,369 1894 ...• ... ... ... ... 20,230,829 1895 ... ... ... ... ... 19,826,604 1896 ... ... ... ... ... 19,138,493* * It was computed that over 500,000 sheep were destroyed by a snowstorm : this accounts for reduction. (b.) Number op Flocks. Size of Flocks. 1890. 1891. 1892. . 1893. j 1894. 1895. 1896. Under 500 500 and under 1,000 ... 1,000 and under 2,000 2,000 and under 5,000 5,000 and under 10,000 10,000 and under 20,000 20,000 and upwards ... 7,662 1,528 854 586 283 236 160 8,272 1,691 969 666 287 239 169 8,822 2,033 1,193 761 314 231 176 9,629 2,239 1,315 836 341 241 178 10,314 2,427 1,409 933 345 230 179 11,336 2,497 1,405 904 341 232 183 12,028 2,605 1,460 892 340 231 147 Totals ... 11,309 12,293 13,530 14,779 15,837 16,898 17,703

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Table No. 12. EXPORT OF PRODUCE, 1890 TO 1896.

26

Mutton and Lamb (only) Frozen. Weight. Value. Mutton. Lamb. j l Total. Mutton. Lamb. Total. 1890 1891 1892 1893 1894 1895 1896 Cwt. 710,194 781,404 708,468 731,946 852,012 839,533 810,016 Cwt. 88,431 107,608 97,836 156,509 149,330 239,107 255,276 Cwt. 798,625 889,012 806,304 888,455 1,001,342 1,078,640 1,065,292 £ 843,034 919,306 818,625 833,687 944,167 863,849 854,808 £ 133,653 157,407 145,228 233,510 217,605 336,347 358,167 £ 976,687 1,076,713 963,853 1,067,197 1,161,772 1,200,196 1,212,975 Total all kinds of Frozen Meat. 1890. 1891. 1892. 1893. 1894. 1895. 1896. Weight. :eats (frozen), j %m cwt. 1,000,307 869,600 903,836 1,025,243 1,134,097 1,103,362: Value. Meats (frozen) £ 1,087,617 £ £ £ 1,194,724 1,033,377 1,085,167 £ £ £ 1,194,545 1,262,711 1,251,993 Butter and Cheese exported. 1890. 1891. 1892. 1893. 1894. 1895. 1896. Weight. Butter, cwt. ... Cheese, cwt. ... 34,816 40,451 39,430 39,770 53,930 41,493 58,149 46,201 60,771 55,655 57,964 76,743 71,353 71,372 Totals 75,267 79,200 95,423 104,350 116,426 134,707 142,725 Value Butter Cheese £ 122,701 84,986 £ 150,258 86,675 £ 227,162 91,042 £ 254,645 99,626 £ 251,280 115,203 £ 227,601 150,909 £ 281,716 130,166 Totals 207,687 236,933 318,204 354,271 366,483 378,510 411,882 Value op Gold exported. 1890. 1891. 1892. 1893. 1894. 1895. 1896. Gold £ 751,360 £ 1,007,172 £ 951,963 £ 915,921 £ 887,865 £ 1,162,181 £ 1,041,428

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27

Table No. 13. COAL RAISED IN COLONY, ALSO COAL IMPORTED, 1890 TO 1896.

Table No. 14. NUMBER OF HOLDINGS AND ACREAGE UNDER CULTIVATION AND IN BARE FALLOW, 1890 TO 1896.

Authority: John Mackay, Government Printer, Wellington.—lB97.

Year. Raised in t. ie Colony. Yearly Increase. Imported. Total raised in the Colony and imported per Annum. Exported | Total (excluding Consumption Coal for Fuel j of Coal by Ocean within the Steamers). Colony. Yearly Increase in Consumption within the Colony Total. 890 891 .392 893 .894 895 896 Tons. 637,397 668,794 673,315 691,548 719,546 726,654 792,851 Tons. 50,952 31,397 4,521 18,233 27,998 7,108 66,197 Tons. 110,939 125,318 125,453 117,444 112,961 108,198 101,756 Tons. 748,336 794,112 798,768 808,992 832,507 834,852 894,607 Tons. 33,404 29,093 28,169 24,288 25,449 26,151 27,974 Tons. 714,932 764,019 770,599 784,704 807,058 808,701 866,633 Tons. 39,714 49,087 6,580 14,105 22,354 1,643 57,932

Year. oo 'CD a O u s ■4a if Si M i« m § OT ID at i—I C . ■- J3 co <b o fl 123 .Sum o 3 S .2 Cj CD & "3 © U pq d CO M O g 'd v ja "o ■a q 3 a % O u Cβ u o a i—I o o Bβ go's ago ill "S Cβ .1 i a j> t—i a I—I .890 .891 .892 893 .894 .895 .896 38,178 38,083 41,224 42,768 45,290 46,676 3,027,912 3,250,543 3,327,755 3,611,393 3,865,348 3,908,581 4,254,983 3,497,137 3,715,675 4,076,126 4,650,652 4,833,549 4,921,136 5,030,247 45,889 44,045 46,652 61,811 60,740 56,614J 96,818! 149,979 210,509 140,454 154,254 142.342 !l40,494 58,039 826,505 703,329 769,778 753,091 669,850 560,179 674,850 513,893 582,439 579,112 544,355 551,962 597,686 680,750 8,568 9,810 9,608 9,763 9,951 10,263 17,749 15,771 17,047 19,627 20,085 21,109 21,401 19,362 8,039,765 8,489,352 8,922,460 9,743,593 10,094,111 10,159,740 10,735,980 28,928 35,310 38,723 40,401 39,826 55,386 43,246 * Not colle< :ted in P. ibruary, 1896.