FINANCIAL STATEMENT (In Committee of Supply, 16th August, 1901.) BY THE COLONIAL TREASURER, THE RIGHT HON. R.J. SEDDON.

Appendix to the Journals of the House of Representatives, 1901 Session I, B-06

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1901. NEW ZEALAND.

FINANCIAL STATEMENT (In Committee of Supply, 16th August, 1901.) BY THE COLONIAL TREASURER, THE RIGHT HON. R.J. SEDDON.

Me. Guinness, — The people, and especially honourable members, are naturally anxious at any time to have the Financial Statement, and this, my sixth Budget, is, owing to various causes, awaited with more than passing interest. In this, as in other preceding Statements, I will without reservation endeavour to place the finances of the colony before members in such a way that all may understand the National Account. The revenue received last year exceeded my most sanguine expectations. Notwithstanding the remissions granted in Customs duties, railway freights, passenger-fares, and the reduction in postal rates by giving the penny postage, there was a pleasant surprise in store, for, after meeting all current obligations, there was a balance on the credit side amounting to £532,564. The pessimistic criticism of our finance during the last few weeks has almost verged upon the ludicrous, and thereby a feeling has been raised in the public mind that additional taxation was imperative. The financial hotch-potch created by some of the critics in mixing the ordinary revenue with the loan account proves gross ignorance, and the necessity for a better education in respect to public finance; whilst the great ingenuity and industry displayed in endeavouring to prove that this year the balance must be on the wrong side of the ledger may be appreciated by the few who desired such a contingency. lam glad to say that the few must be disappointed and the many pleased, for it is certain that the revenue this year more than meets the expenditure, and that there will be no deficit. It has been stated in several newspapers that it is proposed to meet the estimated deficiency in part by an additional land-tax, and also by some slight rearrangement of the Customs. It was further alleged that some stringency has occurred in the finances through the claims for old-age pensions beingmuch more numerous than was anticipated, and our detractors have even gone the length of cabling this nonsense to the London journals. The credence given to the imagination of the penny-a-liner should not be found fault with by me, for, with a patriotism that does them infinite credit —which as Colonial Treasurer I very much appreciate—merchants have risen to the occasion, cleared kerosene, sugar, and tea, with the result that the Customs revenue this month is buoyant in the extreme, and contrasts very favourably with the same month of last year. i— B. 6.

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The only possible foundation that could give rise to what appeared in certain papers was a statement made by me warning a deputation of members and other gentlemen against pressing for an excessive public-works expenditure, thereby entailing borrowing and squandering. Incidentally I stated that the revenue returns, as furnished by the departments, did not warrant the suggested expenditure, and that this caused me some anxiety. Again, in respect to the increase of the graduated land-tax, I stated in the House some weeks ago that if the Government was to keep the pledge given last year in granting the reduction of Jd. in the pound on the mortgage-tax, the graduated tax on land would require to be increased so as to yield an amount equal to that conceded by way of reduced mortgage-tax; and, after carefully reviewing the position, I now find that the views expressed have been verified, for a reduction in revenue to the extent of £25,000 could not prudently- be granted unless otherwise recouped. The announcement that revenue cannot be given away without a necessary recoupment will very naturally and properly lead to the conclusion that revenue and expenditure are fairly evenly balanced. This conclusion is correct; but it is owing to the inclusion of nearly £120,000 of abnormal and non-recurring expenditure this year, and to the increase in the Education and Technical Education Votes, which are in excess of those of last year by no less than £67,000; also, to an increase in the vote for the Colonial Secretary's Department, which exceeds the vote of last year by £69,300, caused by extraordinary services. The vote for Defence, including the capitation payable to our Volunteers, is also largely increased owing to the number of Volunteer corps being more than doubled. Even with these exceptional demands upon our resources there will be sufficient to meet every requirement, and at the risk of disappointing the pessimistic alarmists I am able to announce that there will be no deficit, but a reasonable surplus. It is well, however, that I should, in respect to the expenditure, urge the absolute necessity for prudence and economy, for, although the revenue is buoyant and increasing, yet, owing to reductions in the Customs tariff, the concession of penny postage, remissions in "railway charges, and other concessions, there is this year, as compared with last year, a decrease of only £9,500; correspondingly there should be a jealously guarded expenditure, for a restricted population can only bear a limited and reasonable impost of taxation. Luckily for this colony all our eggs are not in one basket, and the curtailed spending-power owing to the low price of wool is counterbalanced to some extent by the prices ranging for other of our staple products. With a surplus of over half a million last year, and the continued favourable revenue coming in this year, there seemed every prospect that the desire of Ministers to grant concession of taxation and reduced rates on products carried on our railways would be consummated ; but in the face of the necessarily increased expenditure this year the more prudent course is to defer any further reduction in revenue to a more favourable opportunity, and the national expenditure should be cut down to the lowest limit consistent with efficiency after providing for the necessary requirements. The eager and pressing desire for the rapid construction of public works and conveniences has forced borrowing up to a limit beyond which it would not be safe to go. There need be no curtailment of expenditure in respect to obtaining lands for settlement or for roading back blocks and Crown land, which so materially assists in furthering the settlement of the people on the land, or in respect to advancing moneys to settlers, or in pushing on the North Island Main Trunk and other important railways, and in otherwise developing, within reasonable limits, the resources of our colony, for this means increasing the output of products and exports, and tends to promote an increased population, which the colony badly needs. In respect to the expenditure on several classes of public works, district railways, and especially buildings and works which are more a matter of convenience than of necessity, prudence demands that there should* be a reduction in the

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"expenditure thereon, especially seeing that our population is so slowly increasing, for it should be borne in mind that the increased ratio of population is much below that of the increased ordinary expenditure. For every million borrowed and expended on non-revenue-producing works and objects, an annual charge of about lOd. a head is entailed upon every European man, woman, and child in the colony. Coming to the demands upon the consolidated revenue, the several services of the colony have necessarily increased, and the strictest economy is necessary ; for if ever the time arrives when increased taxation is required to meet the ordinary expenditure, so surely will reductions in salaries eventuate. To avoid the contingency, and the injustice which arose in the past, it is well for those having responsibility to do their utmost to keep down expenditure. In the Budget last year I stated that thereafter the aid to Public Works Fund from the surplus in the Consolidated Fund would have to be partially, if not wholly, abandoned. The Public Works requirements of this year are, however, so large that I am compelled to use £500,000 of the surplus, and that amount will be transferred accordingly. I regret again to have to state that, from various causes well known to members, the money-market in London continues to be unfavourable to floating loans, and we have had recourse to raising £500,000 locally on short-dated debentures bearing 4 per cent, interest. Full particulars of the floating of this local loan will be given. Eecently a paragraph appeared in the Press something to this effect: " The needs of the Treasury were so urgent that £100,000 was borrowed from a leading life-assurance society at 4 per cent., with a condition that the interest would be paid at head office in Sydney." The facts are that the prospectus of the £500,000 local loan raised in April last provided for interest being made payable in New Zealand, Australia, and London. Some time after this loan had been closed the society in question asked the Government if it would accept an investment of £100,000; and, seeing that at the time we were selling debentures openly over the counter on terms as to interest similar to those above referred to, we naturally obliged the society and accepted their money. Other institutions and private individuals have also been glad to avail themselves of this further opportunity to invest their money in short-currency security carrying a fair rate of interest. The war in South Africa still continues, and the large Imperial loans and other demands upon the London money-market lead me to the conclusion that it will be some little time ere any loan could with advantage be floated in the Mother-country. It becomes necessary, therefore, that a large proportion of the amount required and authorised should be raised locally ; and, this being the case, there should be a careful public-works expenditure until a favourable opportunity for raising the money in London arrives. In accordance with the provisions of the Public Eevenues Act, statements have already been published in the Neio Zealand Gazette showing the receipts and expenditure in the Consolidated Eevenue and Public Works and other Accounts. As upon former occasions, tables will be attached to my Budget giving a variety of information concerning the transactions of the last financial year. Having given a general summary of the situation, which, viewed in the light of the elasticity of our resources, is, if anything, on the side of caution, I will now proceed to give the details of the receipts and expenditure of last year. FINANCES OE 1900-1901. Eevenue. The actual revenue for the past financial year reached £5,852,705, to which has to be added £52,800 derived from the proceeds of sale of debentures for Sinking Fund accretions, and a small sum of £1,411 recovered in connection with expenditure of the previous year. These amounts reach the large total of £5,906,916, or not very far short of six millions of money, and represent the largest volume of receipts into the colonial Exchequer since its foundation.

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Compared with the revenue proper of the previous year (1899-1900), which amounted to £5,580,385, there is an excess of £272,320, of which £73,295 was derived from Customs, £43,036 from Stamps, £45,936 from the Land- and Income-tax, £99,028 from Eailways. Other items of revenue produced a net increase of £11,025. These figures conclusively prove the wonderful progress the colony has made without any undue pressure upon the taxpayer to contribute to its revenue. Turning now to a comparison of results between the estimated and the actual revenue for the year ended 31st March last, I find that my estimate has been exceeded by the sum of £429,516. Under all the heads of revenue except one the estimates have been exceeded. The following are the figures: Under Customs, £157,861; Stamps, £48,935; Land- and Income-tax, £43,393; Beer Duty, £2,170; Eailways, £146,241; Marine, £3,353; Miscellaneous, £2,411; Territorial, £30,203 ; and Eecoveries, £1,411. Under the head of Eegistration and other Fees the revenue was £6,462 less than was expected. A word or two of explanation of these increases may be necessary. First, as to the Customs revenue- —wdiich I have mentioned as being £73,295 more than the previous year, and £157,861 in excess of my estimate—l may remark that in my estimate for the year I took off nearly £85,000 from the actual receipts of the previous year so as to provide against the anticipated loss arising out of concessions which I had stated in my Budget would probably reach £157,000. In spite, how 7 ever, of the reduction of duty made on leading lines of goods, there has been an extraordinary clearing of other lines untouched by tariff alterations, which have resulted in large increases of revenue. Take, for instance, duty on "Spirits," increased by £22,800; " Tobacco," £15,800; "Cigars" and " Cigarettes," £9,100 ; " Sugar," £3,500 ; " Ad Valorem Goods " and other items, £98,000. These items, wbicb are mainly luxuries, may be taken as clearly demonstrating the increased earning-power of our colonists, and the prosperity which arises therefrom. It is quite likely that the visit of their Eoyal Highnesses the Duke and Duchess of Cornwall and York to some extent inflated the figures connected with the ad valorem duties. At all the gatherings to welcome our future King, I was impressed with the appearance of thorough content and prosperity which was exhibited by the vast crowds assembled to do honour to the Duke and his amiable wife the Duchess. Last year the stamp-revenue increase of nearly £49,000 over the estimate was caused by anticipating a reduction of £20,000 from the penny-postage concession which in reality did not take place, the sales of the new stamps making good any loss arising from the reduced rate, while the "dredging" boom is, I think, responsible for a large increase in the sale of adhesive stamps. Impressed-stamps sales, and the bank composition, were considerably increased over the estimates. The concession made by my worthy colleague the Postmaster-General has given universal satisfaction; and I feel sure the loss to the revenue by the adoption of an universal penny postage will be rapidly made good by increased correspondence. Concerning the increase over the estimate of £43,000 in the Land- and Income-tax, I may mention that the land-tax was within £500 of my expectations, and the income-tax exceeded them by nearly £43,000. The Eailways revenue has produced a very handsome surplus over my colleague's estimate, which was the exceedingly high one of £1,574,400. The passenger traffic and the goods carried continue to be maintained, and afford a sure barometer of the substantial prosperity of our colonists and of the development of our industries. The increase over the estimate of £30,000 in Territorial Eevenue arises from land sales for cash, £18,000; and from rents of pastoral runs and miscellaneous items altogether amounting to £12,000. With regard to the item of £6,400 overestimated under Eegistration and other Fees, I find that I was over-sanguine as to the fees to be received under " The Government Valuation of Land Act, 1896 " : these fell short of my estimate by about £6,000.

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Expenditure. Tbe actual expenditure during 1900-1901 was £5,479,703. Similar expenditure during the preceding year totalled £5,140,127, showing an increased cost of £339,576 during last year. The permanent appropriations are answerable for nearly £50,000, of which the Old-age Pensions contributed an extra cost of £39,500, and Subsidies to Local Bodies £7,500. With increased revenue increased expenditure may be expected, and it is therefore not surprising to find that the departmental expenditure was in excess of that of the previous year by £289,670 under the annual appropriations. The increased expenditure on Eailways amounted to £105,500; on Defence, £64,400. The Post and Telegraph services cost an extra £27,700, and the Miscellaneous vote of the Colonial Secretary's Department is mainly answerable for the increased expenditure of £18,500, in Class 11., Colonial Secretary. It may, I think, be broadly stated that in the other departments of the State the expenditure has been increased so as to keep in line with the increased requirements of our colonists, and to provide for the expenditure which our liberal legislation sanctions for the good of the people, be they rich or poor. Comparing the actual expenditure of the year with the estimates, members will find from the table appended to my Budget that the expenditure was less than estimated in some directions to the extent of £206,940, while in others it exceeded the estimate by £113,350. Of the latter amount the Eailways were answerable for £75,500, and Services not provided for, £25,500. The net saving in the expenditure, as compared with the estimate, was £93,590. Eesult. The revenue for the year was £5,906,916, arid the ordinary expenditure £5,479,703, leaving a balance of £427,213. Out of the balance brought forward from the previous year (1899-1900) of £605,351, a transfer of £500,000 was made to the Public Works Fund, leaving £105,351 to be added to the results of the year's transactions, producing at the close of the year a balance amounting to £532,564, which I indicated in my introductory remarks. I feel sure honourable members will join with me in congratulating the colony upon such a successful result. THE PUBLIC WOEKS FUND. The transactions on both sides of the account of the Public Works Fund were largely increased last year. The ordinary expenditure exceeded that of the previous year by £315,000, and necessarily extra funds had to be found. To provide for the expenditure the balance of the loan of 1899, amounting to £700,000, was raised, also £200,000 under the Act of last session. The total figures, as shown in the accounts which are appended, are, receipts, £1,901,787, and expenditure £1,809,021. The balance brought forward was £139,749, and the balance at the end of the past year amounted to £232,515. LOANS TO LOCAL BODIES ACCOUNT. The balance at credit of the Loans to Local Bodies Account on 31st March, 1900, was £20,593. Debentures for £176,000 were created and issued during the past year, and refunds of unspent balances of grants, together with a payment made in reduction of the inscribed debt, were received, amounting in all to £7,726. Payments on account of loans w 7 ere made during the year—to local bodies, £138,956, and towards opening up blocks of land for settlement, £37,390 : leaving at the end of last year a balance of £27,973 to the credit of the account. Up to the 31st March last the total amount of debentures created and issued and carried into this account was £1,530,900, and the total disbursements have been —to local bodies, £1,138,497 ; to Lands and Survey Department, towards opening up blocks of land for settlement, £282,356; and to Public Works Fund, £89,800, in exchange for debentures under " The Eoads and Bridges Construction Act, 1882." The business connected with the granting of loans to local bodies still continues to considerably increase, the payments during last year being more

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than double those of the preceding year, and the largest amount that has been advanced since the commencement of the Act. This is no doubt attributable to the fact that late legislation has granted greater facilities whereby local bodies can obtain assistance. " The Government Loans to Local Bodies Act Amendment Act, 1898," which w r as specially framed for the purposes of providing for irrigation, water-supply, &c, has been largely availed of, and in consequence there has been corresponding increase in the amount of loans made. The Public Health Act and the Slaughtering and Inspection Act of last session permit of loans being granted for sanitary works, and for the erection of abattoirs. Applications under these Acts are now being received. By " The Government Loans to Local Bodies Act Amendment Act, 1900," the rate of interest on loans was reduced from sto per cent, per annum; local bodies also being able to readjust their loans to even lower rates —namely, 4 and per cent, per annum —upon correspondingly extending the currency of their loans. Of the total inscribed debt of local bodies, amounting to £1,222,234, the following figures will show what a great advantage the Amendment Acts of 1899 and 1900 have proved to local bodies, and to what extent they have availed themselves of the opportunity of reducing their rate of interest:— Amount of loans reduced to 4f per cent. ... ... ... £874,443 4 „ 12,634 3* „ 335,157 £1,222,234 I am pleased to be enabled to report that the payments of the half-yearly instalments of interest on the inscribed debts continue to be fully and punctually paid. LAND-TAX AND INCOME-TAX. The proceeds of the land-tax only exceeded those of the preceding year by about £1,000, the department having been unable from a defect in the Valuation Act to place the increased valuations upon the rolls for last year. The incometax receipts, however, brought up the revenue from direct taxation to an amount which it has never before reached, affording evidence of unexampled prosperity in the colony generally, as well as careful departmental administration. When I inform honourable members that during the nine years the income-tax has been in force the number of taxpayers has more than doubled, and the revenue has increased by £106,000 a year, the result must be considered satisfactory. A careful revision of the land-values of the colony is now in progress, but it will take some time yet to complete this work. The result so far is a net increase of the capital value of £8,390,000, and of the unimproved value of £6,375,000. The gain to the land-tax revenue this year I estimate at £10,000, and I see no reason, notwithstanding the unfortunately low price of wool, why the land-tax should not increase year by year in sympathy with other heads of revenue until at all events the whole revision of the valuations has been completed. THE LAND FOE SETTLEMENTS ACCOUNT. The balance brought forward amounted to £53,389, and by the sale of debentures under " The Land for Settlements Consolidation Act, 1900," funds were obtained to the amount of £219,000. Eents and other moneys came into the account to the extent of £72,796. On the other side the purchase-money for the acquirement of estates totalled £186,621, interest on debentures amounted to £50,910, and expenses to £14,305. The balance of the account at the close of the year was £93,349. The purchase of land for close settlement is being vigorously pushed forward, and it is pleasing to know that the estates which have been hitherto purchased have been satisfactorily settled. During the last year approximately 177 farms were provided and about 170 workmen's homes. The following table gives the

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names of the provincial districts in which the land during the year has been purchased, the acreage, and the prices paid therefor: — Acres. Price. Hawke's Bay,— £ Hatuma ... ... ... ... 26,350 ... 141,618 Mangatoro ... ... ... ... 19,550 ... 87,975 Wellington, — Langdale ... ... ... ... 9,406 ... 30,669 Mangawhata ... ... ... ... 1,226 ... 16,129 Maungaraki ... ... ... ... 423 ... 3,000 Epuni ... ... ... ... 103 ... 9,146 Marlborough,— Waipapa 3,600 ... 8,250 Canterbury,— Lyndon ... ... ... ... 4,243 ... 15,750 Kohika ... ... ... ... 3,864 ... 28,093 Eaincliff ... ... ... ... 745 ... 2,424 Taranaki ... ... ... ... 32 ... 2,858 Pukaka ... ... ... ... 39 ... 981 Mrs. Delargy ... ... ... ... 100 ... 300 Otago, — Earnscleugh ... ... ... ... 1,152 ... 3,000 Total ... ... ... 70,833 ... £350,193 THE PUBLIC DEBT. The gross public debt on the 31st March, 1900, was £47,874,452 ; on the 31st March, 1901, it was £49,591,245, or an increase of £1,716,793 for the year. The net public debt on the 31st March last was £48,557,751, showing £1,627,675 of net increase for the debt during the year. Analysing the above-stated increase, I find that, as I have before mentioned, £900,000 of new loan-money has been raised for the Public Works Fund, consisting of £700,000 under " The Aid to Public Works and Land Settlement Act, 1899," and £200,000 under the similar loan Act of last session. The requirements of the Advances to Settlers Office necessitated our raising £380,000 ; and for the purchase of estates for close settlement we obtained £219,000. To enable grants to be made to local authorities £176,000 had to be borrowed, and further sums of £1,781 and £2,000 for dairy industries and the Government Accident Insurance respectively. £17,902 was deposited in New Zealand Consols, and £52,800, representing debentures for accretions of sinking funds, were disposed of, as also £18,000 of 3-per-cent. inscribed stock. On the other hand £50,400 5-per-cent. debentures were paid off under " The Consolidated Loan Act, 1867," and £290 under "The Naval and Military Settlers' and Volunteers' Land Act, 1892." With respect to the interest upon nearly £800,000 of the moneys raised last year, it is right to mention that no burden will be imposed upon the taxpayers, such interest being recouped according to the conditions under which the loans have been applied, so that these loans are virtually self-supporting. With regard to the balance, it is impossible to assist our settlers in developing our country without providing them with roads and bridges, and to provide for such expenditure it is essential that moneys shall be found out of loan. By the same means only can our railways system be extended, and effect be given to the wishes of honourable members and the people with regard to a vigorous prosecution towards the completion of our main lines. During the year £509,500 of debentures under " The Government Loans to Local Bodies Act, 1886," fell due, and were renewed under the provisions of " The Consolidated Stock Act, 1884." The Bank of New Zealand having paid £500,000, the value of its preferred shares, that amount was handed over to the Public Trustee, and by him invested

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in a like amount of debentures under " The Aid to Public Works and Land Settlement Act, 1899," held at the time by the Bank of New Zealand as security for advances made under the said loan. I observe that only two parcels of debentures will have to be provided for during the current year—namely, £250,000 under " The Aid to Public Works and Land Settlement Act, 1896," and £300,000 under the Land for Settlements Acts, 1894 and 1897. The former parcel is beld by the Post Office, and can be renewed, and the latter was a London issue convertible into 3-per-cent. inscribed stock. OUR EECENT £500,000-LOAN FLOTATION. Our financial advisers in London having reported unfavourably of the state of the money-market, and that a very low figure would be obtained for a 3-per-cent, loan, it was determined to tap our own resources. lam pleased to say the result more than justified this action, as the recent flotation proved a complete success. The amount to be subscribed was £500,000, authorised by " The Aid to Public Works and Land Settlement Act, 1900." It was decided to make the issue at 4 per cent., with the price fixed at par. The loan was freely advertised throughout the colony, and also in Melbourne and Sydney. Tenders were opened on the 23rd April last, and it was found that the amount applied for was £861,300, represented by 126 tenders. The average price offered was £100 Is. 6d., the highest tender over par being at £102, and the lowest £100 os. 6d. 112 tenders received allotment —62 over par, and 50 at par. The average price over par yielded £100 6s. 7d. The allotment was made so as to embrace the largest number of small tenders and to encourage bond fide investors. No less than 98 tenders have been accepted for sums of £5,000 and under—namely, 19 tenders for £200 and under, 9 from £200 to £400, 25 from £400 to £600, 5 from £600 to £800, 15 from £800 to £1,000, and 25 from £1,000 to £5,000. The remaining 14 tenders were in sums from £8,000 to £100,000. Australia received 29 allotments, in sums ranging from £200 to £50,000, and, with the exception of one tender, at premiums of from Is. to 16s. over par. The offer to make interest and principal payable either in* Sydney, Melbourne, or London certainly induced offers for investment of moneys which we should otherwise not have received, and the action has been favourably commented on in leading financial journals. No • fees for brokerage were paid; the expenses have been very light, rather less than f per cent., consisting only of advertising, and commission to the bank for transmission of money from Australia to Wellington. An allowance at the rate of l£ per cent, per annum was made to tenderers who chose to pay their final instalment before the due date. £43,312 was forwarded as a deposit by would-be investors, and of this sum £18,035 was returned to tenderers who were unsuccessful. Sixty-nine investors availed themselves of the discount allowed on payments made in full prior to due date of last instalment, and £345,459 was received under this condition, and £223 was allowed for discount. On the 7th May last, the date of the first instalment, £61,605 was received; and on the date of the last instalment (4th June), £67,949 was paid in to complete the half-million subscribed. To complete the security required by the investors, 1,658 debentures have been printed. The local emission has proved a very great success, and, although the rate is high in comparison with late issues, the expenses have been so small that I think w r e may consider we have got our money nearly, if not quite, as cheaply as, under present conditions, a 3-per-cent. loan could have been obtained. The currency is short, running only until Ist April, 1904. COMPARATIVE STATEMENT, 1890-91 TO 1900-1901. There has been considerable adverse criticism, and assertions have been made to the effect that there has been undue increase in the expenditure during the last ten years. It is quite true that there has been a largely increased expenditure, and that necessarily so, for we have a largely increased population,

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and also a greatly increased revenue. We have now also in existence departments of State which were in 1891 unknown, and many of them unthought-of at the time. Total Expenditure and Revenue. 1890-91. 1900-01. 1900-01. Total Expenditure. Total Expenditure. Total Increased Expenditure. £4,291,215 £5,479,703 £1,188,488 1890-91. 1900-01. 1900-01. , 1 , , > , , > s Total Eevenue. Total Eevenue. Total Increased Eevenue. £4,158,774 £5,852,706 £1,693,932 Turning to the revenue-earning departments of State, it will be seen from the following table (compiled from returns furnished by the several departments concerned) that, whilst there has been an increased expenditure, there have also been increased earnings and increased profits : — EEVENUE AND EXPENDITUEE, 1891-1901. Government Railway Department. 1890-91. 1900-01. 1900-01. t » , r A , f J Increased Expenditure. Earnings. Expenditure. Earnings. Expenditure Increased Eevenue. £700,703 ... £1,121,701 £1,127,847 ... £1,727,236 £427,144 ... £605,535 Percentage on cost, 1890-91, £2 18s. lid. Percentage on cost, 1900-01, £3 9s. Bd., opened lines. £2 14s. lOd. „ „ £3 ss. 9d., opened and unopened. Government Railways when taken over from Commissioners. 1895. 1900-01. 1900-01. , ' —s , ' , , ' ■ Expenditure. Earnings. Expenditure. Earnings. Exnenditure Increased Eevenue. £732,160 ... £1,150,851 £1,127,847 ... £1,727,236 £395,687 ' ... £576,385 Percentage on cost, 1895, £2 14s. 6d. Percentage on cost, 1900-01, £3 9s. Bd., opened lines. „ „ £2 lis. lOd. „ „ £3 ss. 9d., opened and unopened. Postal and Telegraph Department. 1890-91. 1900-01. 1900-01. I I . < , TnpfpAiflpri Expenditure. Eevenue. Expenditure. Eevenue. Expenditure Increased Eevenue. £261,285 ... £334,669 £416,364 ... £503,181 £155,079' ... £168,512 Stamp Department. 1890-91. 1900-01. 1900-01. r _ : , , — , —* . / ' —^ Expenditure. Eevenue. Expenditure. Eevenue. Expenditure Increased Eevenue. £4,659 ... £565,784 £8,925 ... £792,943 £4,266 .. £227,159 Customs Department. 1890-91. 1900-01. 1900-01. 1 s ._» , , , —* s Expenditure. Eevenue. Expenditure. Eevenue. Expenditure. Increased Eevenue. £33,998 ... £1,527,207 £33,366 ... £2,180,862 ' £632 ' ... £653,655 Lands Department. 1890-91. 1900-01. 1900-01. Expenditure. Eevenue. Expenditure. Eevenue. Expenditure. I norease< 3 Eevenue. £92,614 ... £350,551 £137,565 ... £431,338 £44,951 ' ... £80,787 Land sold for cash, 1890-91, £111,157. Land sold for cash, 1900-01, £78,794.' Taxing Department. 1890-91. 1900-01. 1900-01. r i , , .-« — , , ' , Expenditure. Eevenue. Expenditure. Eevenue. Expenditure. Inorea sed Eevenue. £7,081 ... £357,348 £19,031 ~, £468,392 £11,950 ... £111,044 ii—B. 6,

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REVENQES RECEIVED 1891 TO 1900-01. It will be interesting and remove misgiving if in simple form the revenues received through the principal revenue-producing departments of the State during the year 1891 and the year 1901 are placed before members. The following table gives the actual receipts for each year respectively : — 1890-1891. 1900-01. Increase. Decrease. Customs ... ... 1,527,207 2,180,862 653,655 Stamps ... ... 631,191 903,935 272,744 Property-tax ... ... 357,348 ... ) m Q .g Land- and Income-tax ... ... 468,393J Beer duty ... ... 58,072 85,171 27,099 Railways ... ... 1,123,322 1,720,641 597,319 Registration and other fees 41,495 67,537 26,042 Marine ... ... 20,583 29,553 8,970 Miscellaneous ... 49,004 126,411 77,407 Territorial ... ... 350,552 270,203 ... 80,349 1,774,281 80,349 80,349 Totals ... ... 4,158,774 5,852,706 1,693,932 POPULATION. Arrivals, Departures, Births, Deaths. In my introductory remarks I expressed the opinion that the colony was in need of an increased population. The latest census of the people proved that during the last five years our population had been, relatively to the previous five years —that is, from 1891 to 1896 —actually decreased in number by 7,366 persons. The opinion of the late Hon. John Ballance, as expressed in his Budget in 1891, may not be out of place, showing as it does the bearing an increased or decreased population has upon the prosperity of the colony. Mr. Ballance said, — " I consider it my duty to direct the attention of the Committee to the " lesson conveyed by the census returns of the population recently issued. " Briefly, the rough results of the census, as shown by enumerators, give a " population, subject to revision, of 623,352 persons, not including Maoris, " against 578,482 persons in March, 1886, making an increase for the five years "of 44,870. But the natural increase for this period, being the excess of births " over deaths, is 64,168 persons; so that the loss by excess of departures over " arrivals is 19,298. " The arrivals recorded in the five years were 73,386, and the departures " 83,948, giving a loss of 10,562 persons. It would thus appear that the " unrecorded departures amounted to 8,736 persons. " The full outgo of population from the colony has evidently not been " returned to the Eegistrar-General in the monthly statements; and it is well " known that in the years 1888, 1890, and of late, the steamers for Australia " were greatly crowded, owing to a disposition on the part of the floating popu- " lation to leave —mainly for New South Wales. " Now, here is a loss of wealth and wealth-producing power, in the depar- " ture of so many people from our shores to seek employment in other colonies, " which demands the serious consideration of Parliament." The following table gives the arrivals and departures of persons in and from the colony, also births and deaths, and the four census returns for 1886, 1891, 1896, and 1901:—

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1891. 1900. , 1 , , . , Arrivals. Departures. Arrivals. Departures. 14,431 ... 17,629 18,074 ... 16,243 1900. Births ... ... ... ... ... ... ... 19,546 Deaths ... ... ... ... ... ... ... 7,200 Excess of births over deaths ... ... ... 12,346 Arrivals from United Kingdom. 1891 ... ... ... 2,435 1896 ... ... ... 1,956 1892 ... ... ... 2,555 1897 ... ... ... 2,724 1893 ... ... ... 2,929 1898 ... ... ... 2,598 1894 ... ... ... 2,846 1899 ... ... ... 1,918 1895 ... ... ... 2,365 1900 ... ... ... 2,314 Census Returns of Population of the North, South, and Stewart Islands, 1886, 1891, 1896, 1901 (excluding Maoris). 1886 1891 Increase. Numerical. Percentage. North Island and adjacent islets ... 250,482 281,455 30,973 12-36 South Island and adjacent islets ... 327,592 344,711 17,119 5-22 Stewart Island ... ... ... 209 202 Dec. 7 1891. 1896. North Island and adjacent islets ... 281,455 340,631 59,176 21-03 South Island and adjacent islets ... 344,711 362,236 17,525 soB Stewart Island ... ... ... 202 252 50 76,751 1896. 1901. North Island and adjacent islets ... 340,631 390,571 49,940 14-66 South Island and adjacent islets ... 362,236 381,661 19,425 5-36 Stewart Island ... ... ... 252 272 20 3-97 69,385 Decrease in five years .. "... ... 7,366 That is, between 1891 and 1896 there was an increase of 76,751, and between 1896 and 1901 an increase only of 69,385 (the Chatham and Kermadec Islands not included). OUR WORKING RAILWAYS. The rapid and continued growth of the business of our railways—the principal highways and means of communication between the various parts of the colony—is one of the best indications of the continued healthy and prosperous condition of the colony. The lines were taken over by the Government in January, 1895, and on the 31st March of that year the number of miles of line open for traffic was 1,993, and train-miles run 3,221,620. At the close of the last financial year, 31st March, 1901, the mileage open was 2,212, and the trainmiles run 4,620,971. During the year ending 31st March, 1895, the railways carried 3,905,578 passengers, 28,623 season-ticket holders, 444,981 parcels, 750 carriages, 705 drays, 40,890 cattle, 1,519,921 sheep, 43,292 pigs, 36,972 tons of lime, chaff, &c, 85,102 tons firewood, 198,578 tons timber, 388,556 tons grain, 377,938 tons merchandise, 857,917 tons minerals ; earned a gross revenue of £1,150,851; and gave employment to 4,957 men. For the year ending 31st March, 1901, they carried 6,243,593 passengers, 82,921 season-ticket holders, 633,770 parcels, 1,336 carriages, 1,566 drays, 72,868 cattle, 2,412,191 sheep, 51,059 pigs, 78,844 tons chaff, lime, &c, 92,830 tons firewood, 380,803 tons timber, 772,571 tons grain, 551,879 tons merchandise, 1,366,241 tons minerals; earned a gross revenue of .£1,727,236 ; and gave employment to 7,793 men. Thus the traffic for year ending 31st March, 1901, shows an increase over that for year ending 31st March, 1895, of 1,399,351 train-miles, 2,338,015 passengers, 54,298 season tickets, 188,789 parcels, 586 carriages, 86.1 drays,

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31,978 cattle, 892,270 sheep, 7,767 pigs, 1,291,296 tons of goods traffic of various classes, £576,385 in revenue, and 2,836 in the number of men employed. The actual profit, year ending 31st March, 1901: £599,389, as against £571,533 for previous year. Capital cost of railways open for traffic, £17,207,328. Profit on working gives £3 9s. Bd., as compared with £3 Bs. sd. for last year. Taking into consideration the large reductions in passenger and other rates, the increased cost of materials, coal, iron, &c, and the increased wages, this result is eminently satisfactory, and the figures are, I venture to think, an eloquent testimony of the success of State administration of our railways. Notwithstanding the fact that the increased traffic during the past six years has been of such a phenomenal character, there is every indication that the business for the present financial year will be fully equal to that of the preceding year. RAILWAY CONCESSIONS. In connection with results of working the railways for last financial year the large concessions in rates granted by the Government since resuming control of the lines should not be lost sight of, as they have a very material effect on the results for the year. The total reductions made since the Government took over the railways amounted, up to last year, to no less than £369,439, and to 31st March, 1901, to £420,239. The following are principal concessions granted and the estimated value of the reductions for one year: — Reduction — £ Live-stock rates... ... ... ... ... ... 25,000 Firewood, chaff, and lime... ... ... ... ... 8,000 Free carriage of lime, butter, eggs, and fish empties ... ... 1,500 Abolition of extra charge of One penny per ton on branch lines... ... ... ... 3,000 Agricultural produce ... ... ... ... ... 45,000 Butter and cheese ... ... ... ... ... 5,000 Artificial manures ... ... ... ... ... 1,000 Bricks, clay, coal, &c. ... ... ... ... ... 3,000 General reduction of ordinary passenger and season-ticket rates ... 68,000 Cheap tickets for workers on Auckland, Wellington, Christchurch, and Dunedin suburban lines ... ... ... ... 1,600 Concessions to race-horses, polo-ponies, hunters and hounds, returning from races, polo meetings, and hunts ... ... ... 2,800 Carriage of goods from centres to ports for shipment, dead-weight instead of measurement ... ... ... ... ... 1,100 Total of ... ... ... ... ... £165,000 In addition to the items enumerated, reductions have from time to time been made on a very large number of articles of every day use carried over the railways. The regulations have been made of a more liberal character than heretofore, train services improved, speeds increased, and additional trains involving an expenditure of many tens of thousands per annum have been provided; and to further meet the convenience of the public, goods and passenger traffic have been separated wherever the volume of business has warranted such a step. NORTH ISLAND MAIN TRUNK RAILWAY. The central route having been finally determined upon for the North Island Main Trunk Eailway, immediate steps were taken to put further work in hand. The formation is now well advanced between Kawakawa and Taumaranui, while bushfelling, &c, is in hand south of the Wanganui Biver. From the south end the works extend nearly to Turangarere, all the important works on this section being fully manned. The erection of the Makohine Viaduct is progressing satisfactorily, notwithstanding that the work has been retarded by continued bad weather. The viaduct will be completed during the coming summer, and simultaneously the railway will be opened to Mangaweka. The amount voted last session was sufficient to cover the requirements for the year, but an increased amount will be necessary for the coming year.

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MIDLAND RAILWAY. In accordance with the resolution passed by the Public Accounts Committee last session, a Royal Commission was appointed, and, after a very exhaustive inquiry, has reported, practically, that the company and debenture-holders have been very well treated. They find that the total expenditure by the company on the railway was £1,108,628, of which only £654,411 was expended on the actual construction and equipment of the railway, and the balance —£454,217 —0n supervision, commission, salaries, cost of raising capital, interest charged to capital account, and incidentals. The Commission states that the financial charges in connection with the undertaking were enormous in comparison with the work done, and that the sums paid for the debenture interest, shareholders' interest, cost of raising money on debentures, administration, engineering, and law-costs were out of all proportion to the amount expended on construction and equipment. They further report that the selling-value of the whole railway, based on the revenue earned, and allowing for prospective increase for ten years, is £192,833, and that the amount realised by the company from the Government land-grant was £313,060, or £50,195 in excess of the value at which the grant was debited to the company. They also find that the Government provided money towards the construction of the railway to the amount of £38,439. The Commission were asked to ascertain the selling-value, and, on an assumption as to relative losses, to apportion under the following conditions : " The said lines of railway having been constructed by means of moneys provided partly by the shareholders in the said company, partly by moneys raised upon debentures, and partly by moneys provided by us by our said grants of land and out of our Colonial Treasury, in w 7 hat proportion should the money value of the said lines of railway, estimated by you as aforesaid, be apportioned among the three said several contributors to the cost of construction? " The Commissioners on the hypothecial basis that the several contributing parties towards the creation of this asset should share in its distribution rateably, apportioned the selling-value of £192,833 as follows : To the debentureholders, £126,788; to the company, nil; to the Crown, £66,045. It will be seen, however, that £654,411 only was expended on the construction and equipment of the line, and of this sum the amounts realised by the company from the Government land-grant formed nearly one-half, whilst taking the selling-value of the line at £192,833, and the amount realised from landgrant at £313,000, it will be found that £120,237 has been provided by the colony in excess of the selling-value of the line. The petitions of the debenture-holders and of the company, presented last session, should be dealt with this session. POST AND TELEGRAPHS. The Post and Telegraph is one of the most important departments of State, and is inseparably interwoven with the public finance, and is one of the barometers that never fails to disclose the progress of the colony and the condition of the people. In character it is more for the convenience of the people than for revenue-producing purposes, yet notwithstanding the many unpaid services performed it has proved more than self-supporting. Last year the expenditure was £416,363, and. the receipts £503,181; this year the expenditure is estimated at £441,214, and the revenue is anticipated to reach £485,800. To show the increased business in connection with the telegraph and telephone services since the year 1890 the following table is submitted for the information of honourable members:—

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Telegraph— 1890. 1900. Increase per Cent. Number ordinary telegrams ... 1,465,992 2,792,871 90-51 Value „ ... £71,307 15 4 £93,474 14 2 31-09 Number urgent telegrams ... ... 35,667 154,406 332-91 Value „ ... ... £4,749 17 4 £10,251 8 9 115-86 Number Press telegrams ... ... 192,882 267,919 38-9 Value „ ... ... £8,785 710 £11,866 19 8 35-08 Number bureau communications ... 39,840 239,432 500-98 Value „ ... £1,111 4 0 £6,830 10 7 514-85 Total number paid messages ... 1,734,381 3,454,628 99-19 Total value „ ... £85,954 4 6 £122,423 13 2 42-43 Number Government messages ... 226,780 365,079 6098 Value „ ... £26,070 12 7 £37,680 1 2 44-53 Total number messages, all codes ... 1,961,161 3,819,707 94-77 Total value „ „ ...£112,024 17 1 £160,103 14 4 4292 Number of offices ... ... 540 977 80-93 Telephone-exchange connections ... 2,592 8,190 21597 Postal — Number of letters and letter-cards posted ... ... ... 21,501,937 37,421,228 74-03 Number of post-cards posted ... 991,065 1,858,064 87-5 newspapers „ ... 8,691,522 12,347,374 42-1 parcels „ ... 121,292 199,220 64-2 „ post-offices open ... 1,185 1,686 42-36 Total revenue ... ... ... £222,881 £316,202 41-87 POST-OFFICE SAVINGS-BANKS. The Post-Office Savings-Banks show a marked increase both in the volume of business and in the total amount at credit of depositors. Last year the excess of deposits (£4,170,428) over withdrawals (£3,827,416) amounted to £343,012 over the previous year, and the interest credited to depositors to £146,169, while the total accumulated savings stood on the 31st December at £5,809,552, an average of £29 Bs. 7d. to credit of each of the 197,408 depositors. Compared with the year ended 31st December, 1890, the increase is almost phenomenal, the total at credit having increased from £2,441,876 to £5,809,552, or at the rate of 137 - 91 per cent., representing an increase in the average amount at credit of each account of £4 6s. 3d. The interest paid in 1900 was £146,169, as against £92,319 in 1890, an increase equal to 58 - 33 per cent. Classifying the accounts, it will be found that those with balances up to £100 increased from 90,115 to 178,405, or 97-97 per cent.; from £1.00 to £200, from 4,750 to 11,173, or 135-22 per cent.; from £200 to £300, from 1,502 to 5,151, or 242-.04 per cent.; and above £300, from 841 to 2,679, or 218-54 per cent. The total number of accounts open increased from 97,208 to 197,408, or 103 - 08 per cent. Attached is a comparative statement for the years 1890-1900.

Number of Accounts with Balances.

£ s. d. Balance at credit of the 97,208 depositors on 31st December, 1890 ... ... ... ... 2,441,876 8 7 Balance at credit of the 197,408 depositors on 31st December, 1900 ... ... ... ... 5,809,552 5 3 Increase per cent, in amount at credit of depositors ... 137-91 Interest paid depositors, 1890 ... ... ... 92,319 0 6 1900 ... ... ... 146,169 2 5 Percentage on increase... ... ... ... 58-33

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Year. Up to £100. £100 to £200. £200 to £300. Above £300. Total all Classes .890 ... .900 ... ... ... ! increase per cent, of 1900 over 1890 90,115 178,405 97-97 4,750 11,173 135-22 1,502 5,151 242-94 841 2,679 218-54 97,208 197,408 103-08

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XV

NATIONAL EDUCATION CAPITATION, AND TEACHERS' SALARIES. Out of the statutory capitation of £3 15s. per annum on the average attendance, which is paid to the Boards of Education, these Boards have to pay teacbers' salaries and allowances, the incidental expenses of School Committees, and their own office expenses, together with the cost of the inspection of schools; receiving, however, an additional grant of £4,000 per annum towards this last item. The circumstances of the various Boards are very different, and it is practically impossible for the Boards of the smaller districts, and even for the larger Boards (such as Auckland) in whose districts small schools are numerous, to pay salaries equal to those paid in districts in which there is a greater number of large schools. The consequent anomalies and irregularities in the salaries of teachers occupying similar positions in different parts of the colony are such as certainly exist in connection with no other department of the public service, and probably in no other class of workers in the colony; yet it cannot be said that the highest salaries are by any means too high. So many issues were involved that it seemed best to appoint a Boyal Commission to inquire into the whole question. The report of the Commissioners contains two scales of staffs and salaries for public schools : the first, which involves an expenditure of £4 per head on the average attendance in all the public schools of the colony, is a vast improvement on the existing conditions. The second, which the Commission strongly recommends, is on the basis of £4 2s. 6d. per head: it has the same general features as to staffing and salaries as the first, but the salaries are higher by about £5 all round, except in the smallest schools, where the first scale is already sufficiently liberal; the salaries under the second scale, in fact, would mean, with very few exceptions, a general levelling-up. As to the exceptions, the Commission suggests that for two years no salaries should be lowered, and, as the cost of the concession would be trifling, this suggestion may readily be adopted without interfering with the general scheme. Since January of the present year, with the £3 15s. statutory capitation and the special vote of ss. per head, the total payments have been at a rate practically equivalent to a capitation of £4 on the total average attendance. Last year the appropriation for capitation was £398,000; this year £416,200 is required to be voted, which is £18,200 in excess of the amount voted last year. Next year —the finances of the colony permitting, as I believe they will—we hope to be able to provide for the payment of teachers on the second scale recommended. MANUAL AND TECHNICAL INSTRUCTION. The administration of the Manual and Technical Instruction Act of last session has engaged the attention of the Government during the recess. Organizing Inspectors have been appointed, and the regulations required to give effect to tbe Act have been issued. The terms of these regulations, I believe, are such as to offer a degree of encouragement to manual and technical education as liberal as is offered by the State in any part of the world. The Inspectors have already visited nearly every part of the colony, have met teachers and others interested, giving model lessons and such information and advice as will enable local controlling authorities to begin work on the best lines, or to extend their work where it has been already begun. The Inspectors have also in hand a series of small manuals suggesting suitable programmes of work in manual and technical classes. One of the most satisfactory features of the movement is the degree of interest that is being manifested in regard to the introduction of hand-and-eye training into the schools of the colony. Inasmuch as trained teachers are essential for effective work, special grants have been given to all the Boards of Education to enable them to establish classes for giving manual instruction to teachers. The extension of technical education proper will be sufficiently indicated when I say that since the passing of the Act there have been some forty or fifty applications for grants in aid of buildings, apparatus, and material. The expenditure under the head of technical instruction, exclusive of grants for building, for the year ending 31st March, 1901, was £2,690 ; the expenditure

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this year may be estimated at £14,000 or £15,000 exclusive of building grants, which last year amounted to £2,178. This year we anticipate an expenditure of £10,000 or £12,000 upon buildings and apparatus. After a few years the grants in aid of buildings and apparatus may be expected to decrease as the need is generally satisfied; while, on the other hand, the grants for capitation and other current items will increase year by year for some time. GOLD-MINING. Gold-mining generally is steadily progressing, and, although many companies which were floated more for the purpose of collecting calls from shareholders than for the purpose of winning the precious metal have been and are being wiped out of existence, the yield of gold is increasing. The quantity and value exported for the half-year ended 30th June last was 217,478 oz., valued at £844,888, being an increase of 38,175 oz., valued at £150,029, over the first half of the year 1900, and, as compared with the first half of the year 189,9, when the quantity of gold exported for the year was 389,558 oz., valued at £1,513,173, being the highest for twenty-six years previously, the export shows an increase of 24,347 oz., value £94,389. It is not unreasonable, therefore, to expect that the yield for the present year will equal, if not exceed, that for the year 1899. RIPARIAN RIGHTS. The scope of the Commission referred to in last year's Statement as having been set up to inquire and report as to claims for compensation in respect to riparian rights and land affected by dredging in Otago and Southland was extended so as to include all rivers in the Middle Island; and the Commission has now concluded its investigations, resulting in reports having been made on forty-six rivers, of which number six have been proclaimed, and compensation amounting to £5,799 13s. 4d. paid. Notices of application to proclaim twentyfour rivers have been issued, but, as the period of ninety days within which claims for compensation can be received has not expired, the total sum that may be claimed is not yet known. On some of the more important rivers on which agricultural lands will be affected by mining, it is feared the individual claims will be large ; but, as in many cases the farmers have disposed of the portions of their holdings fronting rivers and streams for dredging purposes, the compensa-tion-claims will have to be considerably reduced, before such rivers or streams are proclaimed. The question of a fair and equitable settlement between the riparian-right holders and the mining community is beset with many difficulties. If, however, a conciliatory spirit is exhibited on both sides, and with the information before the Government resulting from the inquiries of the Commission, it is expected that in most cases the conflicting interests will be adjusted. STATE COAL-MINES. The time has arrived when the colony should supply itself with coal. The output at present does not adequately meet the requirements. Private enterprise is not meeting the general and increased demand. The annual consumption of coal for the several branches of the public services amounts to about 115,000 tons. The railways alone require 100,000 tons per year ; of this 65,000 tons are hard or bituminous coal. It is estimated that the bituminous coal should be obtained at from ss. to 7s. 6d. per ton less than we are paying at the present time. For coal delivered for one of the Government steamers at Greymouth we are asked 17s. 6d. a ton, and it is well known that the same coal can be actually, and with profit, put on board at 10s. The inadequate supply and the increasing demand have brought about an undesirable situation. There is a combination of the coaldealers, and the mine-owners are working in unison with them, the result being that abnormally high prices are charged to the consumers. The effect of opening a State coal-mine will ameliorate, if it does not remove, this evil. In the course of time, and should the necessity therefor arise, we could, in addition to supplying our own State demands, extend the output so as to enable coal to be supplied to householders at reasonable rates.

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Another valid reason for the State stepping in is the necessity that exists for having a reserve of coal, at least at the four centres, to meet contingencies that might arise. At the present time the arrival of extra steamers and vessels requiring coal interferes with the ordinary demand, and a coal-famine ensues. We have had several in the last year or two ; and that there should be a coalfamine in a country like New Zealand, which is teeming with coal, points to a serious defect, the remedy for which is the opening of a State coal-mine. The House will, this session, be asked to pass the necessary legislation, grant the authority, and provide the means for working a State coal-mine. REDUCTION OF MORTGAGE-TAX. In my last Budget I stated that "for some considerable time the interest on mortgages has steadily decreased. During the past ten years interest on mortgages has fallen about one-fourth; this makes the penny in the pound on capital value a very heavy tax." I have not altered my opinion, and still consider that the mortgage-tax is too high, and that some relief should be given, provided the finances of the colony permit. Whilst desiring to keep good faith with Parliament, to do so this session would be imprudent, unless the loss of revenue occasioned thereby is recouped. FINANCE OF 1901-1902. Expenditure. As I have already mentioned, the suggestions for departmental expenditure caused me no little anxiety, for I was confronted with estimates involving what appeared to be at first sight extraordinarily large expenditure. After careful examination and pruning, I am able to submit estimates of expenditure which, although undoubtedly large in the aggregate, have been kept down to the lowest limit after taking into consideration the abnormal and non-recurrent expenditure they contain. The estimates for 1901-1902 are set down at £5,763,814. The actual expenditure of last year amounted to" £5,479,703. There is therefore a proposed increase over last year's expenditure of £284,111, and I will, as concisely as possible, run over the various heads of expenditure which cause this large excess. Loans recently raised cause an addition of some £70,000 for interest, while the old-age pensions is answerable for £18,000, which is most of the excess in expenditure under permanent Acts. In the Colonial Secretary's Department the visit of their Boyal Highnesses has necessitated provision for' £50,000, and £18,000 is required for the census. Exception will not, I feel sure, be taken to the expenditure incurred upon the Boyal visit. It was the general desire of the people that the reception and entertaining should be creditable to our colony, befitting the great occasion, and pleasing to our future King and his gracious lady. The increased volume of the business of the Postal and Telegraph Departments has necessitated additional clerical assistance, and with the ordinary increases arising from the classification has added some £15,000 to the postal and telegraph estimates, in addition to a loss of some £7,000 as contributions to the San Francisco service. I have already mentioned the increase in the proposed expenditure for educational services, and shall refer more at length to this subject hereafter. The Department of Agriculture is rapidly growing, and the officers are undoubtedly of great service to the farming community. To meet the extra calls upon the department a good many more skilled officers have been engaged, consequently extra expense incurred; but it must be borne in mind that the department obtains payment for the services rendered in the shape of fees, which are paid into the Consolidated Fund. The increases in other departments are small, and scarcely call for comment. I may again mention that out of the £284,000 of proposed increased expenditure this year (of which £210,000 belongs to the annual appropriations) fully £120,000 arises from exceptional items, which are not likely to be of a recurring character, to which we must add the increased cost of postal and telegraph and educational services, which amount to quite £90,000, and are consequent upon the iii—B. 6.

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progress of our commercial and social surroundings and of our higher civilisation. Thus the excessive expenditure disappears, and I feel sure that members will not complain when the various votes comes to be considered by them.

ESTIMATED Expenditure of the Consolidated Fund (Revenue Account) for 1901-2, compared with Actual Expenditure of 1900-1.

Revenue. It is now necessary to review' the estimates of revenue, which I have set down at £5,839,000, together with £57,000 receipts to be derived from sale of debentures for Sinking Fund accretions. These two sums total to £5,896,000. Last year the actual receipts amounted to £5,905,506, showing that there is an estimated falling-off of revenue to the amount of £9,506 during this current year. I have no desire to be pessimistic, but one cannot be too cautious while framing the estimates for the year. It is only necessary to look around to see the solid evidence of prosperity which meets the eye ; at the same time I have to bear in mind that extraordinary events took place during the last financial year — events which undoubtedly had their effect in augmenting our revenue —events which are not likely to occur again, neither will others of a kindred character take their place : I allude to the visit of the Duke and Duchess of Cornwall and York. The visit of their Boyal Highnesses must have caused a vast outlay, spread over the whole community, and much of the expenditure has found its way to the Treasury coffers in the way of duties. On the other hand, we must not lose sight of the effect of the remissions which were made in the tariff in August last. Had it not been for the increased consumption of dutiable goods which has been noticeable for some years past, and for the extraordinary expenditure I have just referred to connected with the Boyal visit, there would have been a loss of revenue to the extent of £130,000, and I must still reckon for a loss of Customs revenue in connection with the reduction of duty to the extent of at least £100,000 for the current year. Some portion of this loss will, however, be made good by the increased consumption of articles not affected by the tariff alterations ; so I have set down

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Estimate for 1901-2. Actual of 1900-1. Increase. Differences. Decrease. Revenue Account. Civil List Interest and Sinking Fund .. ... Under special Acts £ I £ 33,100 29,173 1,819,225 j 1,745,610 582,155 ; 560,434 2,434,480 ' 2,335,223 £ 3,927 73,609 21,721 £ 99,257 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 Education Department Lunacy and Charitable Department Department of Labour Mines Department Department of Agriculture Working Railways Department Public and School Buildings and Domains Defence Department Police Department Lands and Survey Department Valuation Department Rates on Crown lands 19,887 25,205 185,438 116,138 44,424 ' 39,148 129,961 i 126,436 441,214 : 416,364 89,071 87,038 26,879 ' 26,256 512,519 ' 445,294 69,170 : 63,242 7,790 | 7,978 23,321 I 17,488 91,881 74,876 1,152,000 : 1,144,832 46,750 + 46,851 213,250 : 206,565 122,258 : 117,522 127,130 i 133,557 25,591 23,580 800 531 J 09,300 5,276 3,525 24,850 2,033 623 67,225 5,928 5,378 "l88 5,833 17,005 7,168 101 0,685 4,736 6,427 209 , 3,329,334 ; 3,118,961 222,467 12,094 Services not provided for I 25,519 25,519 321,724 37,613 37,613 Total 5,763,814 f 5,479,703 284,111

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the estimated Customs revenue at £2,110,000, or £70,862 less than last year's receipts. It may be that this curtailment of revenue will not take place, but it is best to err, if at all, on the safe side. As to the Railways, the returns so far show that the splendid revenue of last year is being not only maintained but is even exceeded. I feel lam therefore justified in anticipating the receipts will reach £1,760,000, or £39,359 in excess of last year. The Stamp revenue remains substantially the same; I estimate this year's receipts at £903,500: last year they reached £903,935. In last year's Budget I estimated there would be a loss of revenue arising from the adoption of the penny postage to the amount of £80,000 per annum; but, owing to the great activity of trade generally, I do not anticipate a greater loss than £24,000 from this source. Recent legislation has done away with the imposition of stamp duty upon Native lands : this will entail a loss of some £4,000. On the other hand there has been a large accession of business in the telegraph branch, and this, with increasing revenue from other sources, will quite counterbalance any loss which may be sustained by the introduction of the penny postage. Compared with last year's results there is an estimated increase of some £10,400 to the land-tax and £1,200 to the income-tax. The increases and decreases in the estimates of the other items of revenue are so small as not to call for remark.

STATEMENT of the Estimated Revenue of the Consolidated Fund (Revenue Account) for 1901-2, compared with the Actual Revenue of 1900-1.

ESTIMATED RESULTS AT CLOSE OF 1901-1902. The revenue being estimated at £5,896,000 and the expenditure at £5,763,814, there remains a balance of £132,186, to which may be added the balance (£32,564) of the surplus brought forward from last year after allowing for £500,000 to be transferred to the Public Works Fund. These figures produce a balance of £164,750, out of which provision for the supplementary estimates has to be made. CROWN TENANTS' REBATE OF RENTS. Last session the Bebate of Crown Tenants Act was passed. Its working has not been satisfactory, or equitable in its incidence. An amendment of the Act is necessary, and at this juncture it is well to speak plainly, for from facts which have come within my own knowledge it is quite clear that a person taking up bush land, and having little or no capital, cannot pay rent until the land yields a return. There are practically no returns for two years. By that time two years' rent are in arrear, and the yield is not sufficient to maintain the settler and his family. Another two years pass over, and still find him behind in payment of bis rent, or, if he has paid the rent, he has probably had to borrow the money for that purpose. Under these circumstances it is much better that the State should insist upon the improvement conditions being strictly complied

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Estimate for 1901-2. Actual of 1900-1. ferences. Increase. Decrease. £ £ £ £ Revenue Account. 2,110,000 1,760,000 903,500 305,000 175,000 86,000 76,000 .26,200 127,300 270,000 2,180,862 1,720,641 903,935 294,584 173,809 85,171 67,537 29,553 126,411 270,203 70,862 jiistoms Railways Stamps Land-tax ncome-tax .. 3eer Duty Registration and other Fees Marine Miscellaneous .. .. Perritorial Revenue .. .. '.. 39|359 10,416 1,191 829 8,463 435 3,353 889 203 Debentures for Sinking Fund increases.. 5,839,000 57,000 5,852,706 52,800 01,147 4,200 74,853 65,347 65,347 9,506 Total 5,896,000 5,905,506

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with, and allow the tenant to sit rent-free for the first four or five years. After that time the tenant would be in a position to pay the rent, and the anxiety and worry caused under the conditions now existing would be avoided. There is also another point worthy of being taken into consideration — namely, that, although there is a large area of Crown land available for settlement, most of it is inaccessible, and situated a long way from the centres of population, and is not of extra good quality; therefore some inducement is necessary, which, if given, will tend to promote settlement of the people on our Crown lands, and relieve the existing congestion among those who prefer to go upon the lands acquired under the Land for Settlements Act, thus avoiding the hardships which fall to the lot of the pioneer or back-blocks settler. OLD-AGE PENSIONS. Seeing that the cost of the old-age pensions is alleged to have been a factor in creating the recent unnecessary alarm as to the financial position of the colony, it is well to set the matter at rest, in order to remove the erroneous impressions which have been formed. Last year the amount paid for old-age pensions was £197,292, and this year it is estimated that £215,000 will be sufficient to meet all claims. The increase is therefore £17,708, but with a surplus of over half-a-milhon last year, and, so far, a buoyant revenue this year, that amount is not likely to materially affect the finances of the colony. The increased expenditure in old-age pensions must, however, not be treated lightly, and a careful supervision is necessary, for there are reasons for believing that imposition is practised and that evasion of the law to-some extent prevails. It is well known that it has now become quite a profession for some people to go round hunting up applicants amongst the Native race for the old-age pension, and should such applicants prove successful, these people charge them a high fee for services performed. In view of the large amount now paid, it will not be prudent to press for old-age pensions being made universal, or for any increase in the scale. HELP TO FARMERS AND PRODUCERS.—COOL STORAGE. The importance and desirability of helping those located on and living directly from the products of the soil is admitted by all. How and in what manner this can best be accomplished is worthy of our best efforts. The establishing of new and increased markets will assist in this direction, and it is essential that, the produce for export should be carried at the minimum rates on our railways, and that the cost of transit by sea should be reduced to the lowest limit. With this, however, storage and supervision is required at the distributing end, thus avoiding the forcing of products upon an already glutted market. In respect to exploiting or extending our markets, the trade expert that has been appointed proceeds to South Africa next week. He is fully acquainted with what produce is available, and the prices at which it can be placed f.o.b. for shipment. From the information we have to hand it will be necessary to have cool stores for New Zealand produce established in South Africa. It has also been urged that there is not sufficient storage in the Mother Country for our produce. This opens up a very wide question, and its success or otherwise depends to a great extent as to how far the New Zealand Government proposes to go in for taking control of the frozen meat industry, and as to what amount of support is obtainable within the colony. The erection of cool stores in the Mother Country alone would be of little advantage. If, however, the producers and freezing-com-panies, in conjunction with the Government, could divert the principal trade to the colony's store and regulate the output in Great Britain, the results would be beneficial. The cold stores should, in any case, be close to point of discharge. Provision will be made this year for erection of cold stores, and, subject to confirmation by our trade expert, the experiment should first be tried in South Africa.

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TRADE WITH SOUTH AFRICA. It will be within the recollection of honourable members that during the recess Government called for tenders from steamship-owners for a service between the colony and South Africa. The results were not very encouraging, the amount of subsidy demanded being too high for the service offered; and the scale of freights was also unsatisfactory. This being the case, and seeing that the Shaw-Saville, New Zealand Shipping, and Tyser Line Companies had decided to establish a six-weekly service as an experiment, it was decided at the time to take no further action, but to await results. I regret to state there has been little or no improvement, and the condition of affairs is not to any extent improved. Small producers and traders have no chance whatever. Freights, as compared with those from Australia, are very high, and there is no regularity. We have therefore come to the conclusion that to be a success it is essential that a line of steamers trading with South Africa should not go beyond South African ports, but should return to New Zealand; and the authority of the House will be asked to provide the necessary subsidy to authorise a contract being entered into for a period of not less than three years, and to invite public offers therefor. As illustrating the present situation and its drawbacks, I may state that offers were invited for a large order of oats from the Imperial authorities, with the result that offers came in from three large traders only : owing to the conditions farmers or small traders could not tender, and the Government were unable to obtain the oats within the price limited, and the order was probably lost to the colony. Such a condition of affairs is not in the best interests of the farmers. It is impossible for the Government itself to take small parcels of grain from the producers, but an opportunity of obtaining suitable freights should be given them to conduct their business as they think best. OUR BOYS AT THE FRONT : RETURNED TROOPERS. It will be seen on reference to the Defence estimates that there is a large reduction this year as compared with the amount voted last year under the head of " Contingents." The cost of the First, Second, and Third Contingents was borne by the New Zealand Government, with the exception of the amount paid to them at Imperial rates whilst serving in South Africa. The Fourth and Fifth Contingents were on different terms, and were wholly paid by the Imperial Government. The First, Second, Third, Fourth, and Fifth Contingents have returned home. At the present time we have tw r o contingents in South Africa—the Sixth and Seventh. They have taken the place of the Fourth and Fifth. It would be superfluous .for me to say more than that our brave sons have worthily represented this colony, and have earned the commendation of each and every one of those commanding in South Africa. An attempt has been made, without just ground, to show tbat prompt payment has not been made to the returned troopers. There is no real foundation for this statement whatever. The Fourth and Fifth Contingents were practically Imperial soldiers. On leaving South Africa certain moneys were given to paymasters, and, on the arrival of the " Tagus " in Otago, we sent dowm our paymasters with about £800 for the officer commanding the Otago District, Colonel Webb, and since then other moneys have been forwarded, with instructions to pay the men on the officer commanding certifying that the amounts were due. At the present time Colonel Davies and his staff are making out accounts, and as fast as certificates are obtainable the moneys are paid. We have already advanced over £3,000. What has caused some confusion has been the fact that some of the men were not paid by the Imperial authorities before leaving South Africa. We are only trustees acting on behalf of the Imperial authorities ; we cannot pay away moneys unless the certificates are forthcoming that the amounts are due. I have it on the authority of Captain Jackson, who was in charge of the D Squadron of the Fifth Contingent, that he brought money wdth him from South Africa, and that he has paid all his men. To show how unjust the allegations made are, I wdll give a case in point. A trooper got one of the members of the House to interest himself on his (the trooper's) behalf, and the trooper telegraphed to know when his pay would be

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forthcoming. I had the matter immediately attended to, and found there were a couple of pounds coming to him, and had it not been for the extension of the £5 gratuity the man would have been overpaid about £3. The Under-Secretary for Defence has never refused any advance where it is shown that the money is due, and a special staff are kept busy at the present time doing nothing else but paying advances ; and we have advanced about £3,000 in excess of the moneys in our hands belonging to the Imperial Government. To show how ludicrous and foolish is the statement which has appeared to the effect that it was owing to the tightness of the New Zealand finances that our boys were not paid, it will be well for me to state that the total amount involved is about £20,000. Already we have advanced £3,000, and an application has been made to the Imperial authorities for the amount due by them. In the meantime we have advanced about £3,000, as already stated, and as fast as certificates are given payments are made ; and this course will be followed without, I am happy to say, embarrassing our finances. FEDERATION WITH AUSTRALIA. As honourable members are aware, a short time ago a Boyal Commission was appointed to take evidence in New Zealand and Australia in regard to the federation of this colony with Australia, and this was reported to be undesirable and not at present in accordance with the wishes of the people of this colony. The tariff of the Commonwealth has not as yet been submitted ; but, inasmuch as some eight million pounds is required to meet revenue requirements, it may be taken for granted that there will not be any serious alterations in the Australian tariffs, nor is it likely that the Federal tariff will materially affect the trade relationship as between New Zealand and the Commonwealth. A cordial and friendly feeling exists between this colony and the Commonwealth, and there is no foundation for the fears of many that, because New Zealand has not deemed it prudent to federate, the farmers of this colony will in sending their products to Australia be penalised. BRITISH MAIL-SERVICES. In accordance wdth what was approved last session, nothing further has been done respecting the San Francisco service, and we are, as arranged, paying for actual weight of mail-matter carried, the amount paid last year being about £17,000. The Oceanic Company are anxious that a contract should be entered into for a specified period, and the matter is receiving consideration. The subsidy asked, how T ever, is much higher than w r ould be reasonable for the colony to pay. Whilst it would be inadvisable to discontinue the San Francisco service if it can be got on fair terms, it would also be a good thing to have direct communication wdth Canada via Vancouver if it could be brought about by the payment of a reasonable subsidy. Suggestions have been made that a transhipping service to Fiji to connect with the Vancouver steamers should be established. This would not be acceptable, or meet the requirements of the colony. It has also been suggested that there should be an improved service as between New Zealand and Australia, and, seeing the number of magnificent steamers belonging to various companies trading from Great Britain to Australia, an effort to bring these lines of steamers to our colony is worthy of consideration. It is quite feasible, and could be done at a reasonable cost. With regard to the San Francisco and Vancouver mail-services, proposals will be submitted to the House later on dealing with these mail-services. PACIFIC CABLE. I feel sure that it was with pleasure that honourable members noted that the Pacific cable contract had been entered into ; and preparations for the laying of the cable are now being proceeded with. An officer representing the Pacific Cable Board has visited New Zealand, and, in conjunction with the Superintendent of Telegraphs, has selected a site for the cable-station at Doubtless Bay. The completion of this cable is a matter of great importance to our colony, and it wall enable New Zealand and Australia to have an independent cable between

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those countries. I regret to say that some friction has arisen owing to the Government of New South Wales, one of the contracting parties, having granted concessions to the Eastern Extension Telegraph Company inimical to the Pacific cable. Canada strongly resented the transaction, and at one time it looked as though the error committed w r ould imperil the cable. I am pleased to say that the trouble has passed over, and progress is being made with the work. It is not likely that any claims for payment on account of interest will come to charge this year. The Pacific cable will serve as an additional cable route for England, and doubtless the Board will see the propriety of allowing a local service being established between Australia and New Zealand. The rates for the existing lines between Australia and New Zealand are not satisfactory, and it would be in the interests of the Australian Commonwealth, as well as of New Zealand, to have the whole of the cables between these two countries Stateowned. ADDITIONAL FUNDS. The minds of honourable members having been relieved in respect to the Consolidated Fund Account, the next —and to many members the most important — matter demanding attention and consideration is the publicworks expenditure, the amount of money to be expended, and the amount of money proposed to be raised. It would be out of place for me to trespass on the domain of my colleague the Minister for Public Works by going into details. I may say, however, that we estimate there will be an expenditure of about £1,950,000, the expenditure on railways and roads being approximately about the same as last year. The balance on the 31st March last was £232,515. To this may be added £800,000, the balance of the million loan of last session, and we propose to transfer to the Public Works Fund £500,000 of the surplus of the past year, making the total assets £1,532,515. Seeing the estimated expenditure is £1,950,000, it will therefore be necessary to ask authority for a further loan. In endeavouring to bring our borrowing within reasonable limits, considerable difficulty has been encountered owing to the heavy expenditure and liabilities which have been incurred during the last four months, and I have some misgiving as to the amount to be asked for which will be sufficient to carry us on until next session; certainly the greatest care and economy will require to be exercised by myself and colleagues to keep the public-works expenditure within the ways and means. We shall be aided in this endeavour if honourable members will restrict their demands in respect to the requirements of their districts. The time is most inopportune for extensive borrowing. The prolonged disturbed conditions in the Mother Country, caused by circumstances well within the knowledge of honourable members, has had an effect on the financial world of an abnormal character, and to such an extent as to render it unwise to ask for more than one million, for a larger sum might prove, at this juncture, injurious to the credit of the colony. PUBLIC WORKS FUND WAYS AND MEANS. £ Balance brought forward ... ... ... ... ... 232,515 Balance of loan of last session ... ... ... ... 800,000 Transfer from Consolidated Fund ... ... ... ... 500,000 New 10an... ... ... ... ... ... ... 1,000,000 2,532,515 Estimated expenditure ... ... ... ... ... 1,950,000 Balance ... ... ... ... ... £582,515 GREATER NEW ZEALAND. The action of the Imperial Government in agreeing to the extension of the boundary of the colony so as to include the Cook and other islands, has given general satisfaction, and such enlargement taking place on the day of the arrival of their Royal Highnesses the Duke and Duchess of Cornwall and York, was pleasing in the extreme. The fact that the inauguration of Greater New Zealand

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occurred on the occasion of the visit of our future King will ever be a pleasant recollection. Colonel Gudgeon, C.M.G., has been appointed Resident Agent for New Zealand, and the well-being of the inhabitants of the Islands will be our first care, and nothing will be done which will tend to disturb the harmony now existing. In respect to revenues —Customs, Postal, &c. —there is no present intention of materially altering the existing conditions. The present revenues enable the Islands to be self-supporting. Seeing that goods from New Zealand will ultimately be admitted into the Islands free of duty, there will of course be a loss of revenue, but this will be more than compensated for by collateral advantages. Mr. Percy Smith has very generously undertaken to go to the Island of Niue for a period of three months, and whilst there he will introduce the new order of things, which we hope will be to the benefit alike of the Natives and of the people of this colony. On several of the Islands, particularly Penrhyn, a Resident Agent will require to be located to see to the interests of the Natives, and also to protect the interests of this colony. The cost entailed by the appointment of such Resident Agents will be more than recouped by revenues directly received, so that each of the Islands will be self-supporting, and that without imposing any direct taxation upon the Natives. As previously intimated, Parliament will be asked to extend the operations of the ordinances now in force in the Islands pending other provision being made; it would not do for the whole of our laws to be enforced in the Islands, for the operation thereof under existing conditions would only result in friction and confusion. SUMMARY AND CONCLUSION. In dealing with the many questions necessarily involved in placing the Public Accounts before honourable members, I have endeavoured to be clear and explicit, not withholding or unduly extending the information which is necessary in order to afford a lucid explanation of the finances of the colony. The Budget proves that the financial position of the colony is sound and prosperous, that the operations of last year w T ere satisfactory, and that at the close there was a credit balance of £532,000, that this year there will be a surplus, and that additional taxation is not required, provided the present laws remain unaltered. I trust that I have clearly demonstrated that, with regard to the current year's finances, there was nothing to warrant the alarm and pessimistic view which some persons have taken respecting them, and that with care and economy, notwithstanding the very heavy and exceptional expenses already incurred, it is reasonable to expect there will be a fair surplus on the 31st March next. Presuming, as we do, that the public-w 7 orks expenditure will be fairly up to the estimate, the balance left in the Public Works Fund is likely to be less on the 31st March next than it has been for some years past. It is better that this should be so, and that there should be a tapering-off rather than an increased borrowing as compared with last year. The difficulty in raising money in London has not been without its advantages, for it has taught us that we may with success float loans locally. Under normal conditions a 4-per-cent. rate is too high ; and, although money could be raised at 3 per cent, at Home, the expenses there are so heavy that it would be an advantage to us to some extent to raise our money locally at per cent., and to issue debentures over the Treasury counter, or even over the counters of the colony's banker, so that a person could as easily obtain a Government short-dated debenture for £100 as he can put his money in the bank and obtain his receipt therefor. From what I can gather after making careful inquiries, it is my opinion that next year financial matters will have reached a normal condition in the Mothercountry, and that there will be a plethora of money easily obtainable at 3 per cent. It must be pleasing to honourable members to know that the elasticity of finance, for which our colony is noted, still continues, and that, notwithstanding

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the concessions granted last year, our Customs revenue is buoyant, and more than realises expectations. The Customs revenue is the barometer of the spending-power of the people, and also of our prosperity, and the indicator points between "Fair " and " Set fair," whilst the financial meteorologist announces a blue and cloudless sky. In regard to the railways, since the Government took charge of them in 1895 concessions have been given to the value and extent of £420,000. Eliminating the abnormal traffic created in the month of June last, the ordinary traffic shows that there will be increased earnings as compared with last year, and, unless unforeseen circumstances arise, the estimated receipts from railways will be fully realised. The settlement of the people on the land is of paramount importance. What we have done, are doing, and must do is to extend our operations and increase the number of our settlers ; and to those going on to the back blocks and the bush lands easy terms must be given by way of relieving the tenants from payment of rent for the first few years, and also by way of insisting on improvement conditions being complied with; at the same time affording relief from rent until the tenant is enabled to get his head above water and to pay his w r ay from the produce of the land itself. In respect to gold-mining, steady progress is being made. Science has come to the rescue in regard to quartz-mining, whilst alluvial mining by dredging has assumed large proportions. I understand that the yield of gold this year will show a considerable increase over last year. The proclamation of certain rivers is indispensable, and although the first cost may appear heavy, yet this is unavoidable if ground sluicing and dredging are to be maintained. For years past it has been contended and urged that the State should open its coal-mines and be self-supplying. The existing dearth of coal and excessive charges practically forced the position, and with a good selection and careful administration there is every reason to believe that the result of a State-owned coal-mine will, as in many other ventures of a progressive character, prove successful. In respect to industries, however, the horizon is somewhat clouded, but in a short time this cloud wdll pass away. The employers and employed should shake hands, and both work together for mutual benefit. What will help our industries more than anything else will be to have complete technical and manual instruction for the young of our colony. This education is being afforded, and the country will be recouped for this expenditure a thousandfold. The increased expenditure to meet the charge necessary to give effect to the scheme for a national and uniform scale of pay for teachers is fully warranted, for in a great measure the future of our colony depends upon the teachers. They have been underpaid in the past, and the remuneration and scale now submitted is fair and reasonable. During the last few years the increase in our public debt may appear out of proportion to the increase in our population and trade; but when it is borne in mind that a very large proportion of this indebtedness is created for the purpose of advancing money to settlers, for the purchase of land for settlements, for loans to local bodies, for land improvement, and for other purposes of a directly reproductive character, there can be no question that splendid security has been given. There is direct local payment of interest, and many collateral advantages fully warrant the credit of the colony being pledged for such purposes. Contrast the w r ealth of the colony per head of the population with the increased indebtedness, and the most pessimistic individual must admit that the policy pursued has been in the best interests of New Zealand. The construction of roads to the back blocks, the roading of lands prior to settlement, and the endeavour to improve the means of communication so as to permit the settlers to bring their produce to the main roads and realise is of paramount importance. The completion at an early date of the North Island Main Trunk Railway,. and the coupling together of Auckland and Wellington by a band of steel, is essential and of great importance. It will remove existing fears, and give 6.

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potential advantages by increasing the tourist traffic, by the settlement of the people on the land, and by bringing the settlers in the far north and those in the south closer together for mutual profit and good. This work is national in character, and necessarily in respect to railway-construction should take first place. Railways in a young country should be run for the common good and to give encouragement to producers, small as well as large. The true principle to be observed is to carry your produce at the lowest possible rates, so as to give the producers an opportunity of competing with the markets of the world ; and to provide cheap fares and freights to convenient markets, so as to obtain revenue from widely distributed areas of settlement. This year, from the circumstances narrated, material reductions in railway freights could not be granted. Next year, and with abnormal expenditure eliminated, we hope to grant such concessions as will bring down the net earnings on our railways to 3 per cent. Some honourable members may have misgivings respecting the large amount asked for defence, but the money spent with this object is only the payment of a premium on an insurance. To preserve peace it is wise to be ever prepared for war; and it is also a duty we owe to the Mother-country and the Empire, as well as to the people of New Zealand, that our able-bodied men should be trained to arms, that our sons should be drilled at school, so as to become efficient members of cadet corps, and ultimately Volunteers, and, when required, as in the case of our sons in South Africa, to prove themselves valiant soldiers of the King. I have now detained honourable members a considerable time, and let me say, in conclusion, that I am sensible of their great and continued confidence. I hope that, although there may be differences of opinion respecting the Budget now submitted, at all events, they will do me the credit of believing that the conclusions have not been arrived at hastily, that the position has been accurately gauged, and that time will prove the finances of this colony to be sound and secure. I advise, and that in good faith, that at the present time the good steamer " Finance " should be steadied, and that " Slow" and not " Full speed ahead" should be the order on the dial. Reasonable care will insure the good ship riding buoyantly and safely in calm and placid waters. The information upon which the present position has been gauged will be placed at the command of honourable members, and I trust that they, with myself, will conscientiously and honestly arrive at the conclusion that our fair colony is prosperous, that there is a bright future before its people, that progress is assured, 'and that, as at present, so in the future, this colony will hold a foremost position as a British dependency.

APPENDIX.

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Table STATEMENT of the RECEIPTS and EXPENDITURE of the CONSOLIDATED REVENUE

1899-1900. RECEIPTS. 1900-1901. £ s. d. 495,861 9 0 £ s. d. £ s. d. 605,351 14 6 Balance at beginning of Year 2,107,566 18 6 860,898 1 9 293,627 3 9 128,721 4 0 107 13 11 80,291 11 10 1,621,612 13 0 74,373 8 10 27,820 4 10 123,138 0 3 Ordinary Bevenue, — Customs Stamps, including Postal and Telegraph Cash Beceipts Land-tax Income-tax Property-tax Beer Duty Railways Registration and other Fees Marine Miscellaneous 2,180,861 11 4 903,934 17 11 294,583 15 6 173,808 18 10 85,170 10 0 1,720,640 19 5 67,537 7 10 29,553 6 10 126,410 18 7 5,318,157 0 8 Territorial Revenue, — Cash Land Sales .. .. .. .. .. .. £78,793 18 5 Deferred-payment Land Sales .. .. .. .. 10,575 1 1 Pastoral Buns, Bents, and Miscellaneous .. .. .. 180,834 6 8 5,582,502 6 3 73,591 17 0 17,239 1 3 171,397 15 5 270,203 5 9 262,228 13 8 5,852,705 12 0 5,580,385 14 4 Beceipts in Aid, — Debentures issued under " The Consolidated Stock Act, 1884," — For Increases of Sinking Fund 52,800 0 0 50,400 0 0 Becoveries in respect of " Unauthorised " of previous years (trade with South Africa) 1,410 11 9 7,000 0 0 Temporary advances repaid,— Net amount recovered from the Government Advances to Settlers Office Management Account 61,832 5 3 Recoupment of Interest in respect of Debentures issued under the Land for Settlements Acts, 1892 and 1894 j 6,512,267 18 3 6,195,479 8 7 " The Dairy Industry Act, 1898 "~r Proceeds of debentures issued under the above Act 1,781 0 0 £6,195,479 8 7 Totals !£6,514,048 18 3 TREASURY BILLS 234,000 0 0 476,000 0 0 Treasury Bills outstanding at beginning of Year, — In anticipation of Bevenue In redemption of Guaranteed Debentures .. 224,000 0 0 476,000 0 0 710,000 0 0 Treasury Bills issued during Year, — In anticipation of Revenue In renewal of Bills matured 700,000 0 0 200,000 0 0 780,000 0 0 370,000 0 0 700,000 0 0 1,070,000 0 0 930,000 0 0 Totals £1,640,000 0 0 £1,770,000 0 0

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8.—6

No. 1. FUND for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900. ACCOUNT.

1899-1900. EXPENDITURE. 1900-1901. £ s. a. £ s. d. £ s. d. 24,640 17 5 1,749,393 12 4 198,204 9 4 68,763 14 1 34,309 5 11 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 Old-age pensions 29,172 19 1 1,745,615 12 6 200,908 4 5 76,218 4 7 34,233 1 4 6,193 14 10 16,417 19 7 30,299 13 9 157,094 13 4 6,507 16 9 19,092 15 1 26,867 18 6 196,606 17 4 2,285,318 0 7 2,335,223 9 7 19,441 2 8 92,042 11 8 46,875 14 10 122,270 10 3 388,580 10 3 78,960 2 1 26,889 17 7 436,304 0 8 57,920 15 8 7,807 9 6 16,235 0 8 6S,162 13 6 1,039,266 16 9 41,482 4 5 142,160 7 2 116,207 2 8 121,916 3 3 20,578 11 5 520 4 10 11,187 13 8 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 .. _ .. IX. —Department of Labour X. —Minister of Mines XI.—Minister for Agriculture „ XII.—Working Bailways XIII.—Minister for Public Works XIV.—Defence Department XV.—Police Department XVI.—Minister of Lands „ XVII.—Valuation Department „ XVIII.—Bates on Crown Lands Services not provided for .. .. .. .. 25,265 0 0 110,555 14 8 39,147 19 3 126,741 2 2 416,363 15 4 87,037 16 4 26,255 15 11 445,293 15 9 64,511 16 4 7,977 13 9 17,487 16 8 74,876 5 0 1,144,831 13 3 46,851 10 4 206,565 1 10 117,522 5 0 137,565 3 5 23,579 12 5 530 16 10 25,519 5 6 3,144,479 19 9 2,854,809 13 6 450,000 0 0 Amount transferred to the Public Works Fund in terms of section 17 of " The Appropriation Act, 1900 " .. 500,000 0 0 532,564 8 11 605,351 14 6 Balance at end of Year .. .. ..... 6,195,479 8 7 6,512,267 18 3 ." The Dairy Industry Act, 1898,"— Amount advanced to Dairy Companies 1,781 0 0 Totals • • £6,195,479 8 7 l£6,514,048 18 3 ACCOUN 210,000 0 0 730,000 0 0 Treasury Bills paid off during Year Treasury Bills renewed during Year .. 370,000 0 0 700,000 0 0 940,000 0 0 Treasury Bills outstanding at end of Year, — In anticipation of Bevenue In redemption of Guaranteed Debentures 1,070,000 0 0 224,000 0 0 476,000 0 0 224,000 0 0 476,000 0 0 700,000 0 0 700,000 0 0 Totals ;i,640,000 0 0 j£l,770,000 0 0

8.—6

4

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

1899-1900. RECEIPTS. 190C 1900-1901. £ s. d. £ s. d. £ s. d. 18,921 16 11 Balance at beginning of Year, — Cash in the Public Account Advances in hands of the Officers of the Government, — In the Colony 23,558 16 2 206 10 0 23,765 6 2 2,305 1 2 6,540 17 8 Bents from Lands set apart Miscellaneous 4,170 9 3 10,744 16 0 14,915 5 3 8,845 18 10 £27,767 15 9 Totals £38,680 11 5 ACCOUNTS OF 8,020 14 5 155 11 4 Balance at beginning of Year, — Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony 4,479 16 6 8,176 5 9 Bevenue received for Local Bodies, — Fees, Fines, &c. Endowments of Land, &c. Goldfields Bevenue Gold Duty .. .. .. .. .. .. - 4,479 16 6 3,187 1 8 13,553 1 8 28,423 4 10 16,883 16 4 3,703 7 6 14,285 1 0 30,725 14 11 16,401 19 9 65,116 3 2 62,047 4 6 Counties Separate Accounts, — Bevenue of Counties in which " The Counties Act, 1886," is not in full operation 563 3 3 502 6 4 43,052 2 0 749 15 7 1,964 2 8 Advance Account, — Amount repaid by Local Bodies Ditto on account of Unauthorised Expenditure of previous years Ditto on account of " Unauthorised " of current year.. 55,882 7 6 128 8 5 56,010 15 11 45,766 0 3 £116,491 16 10 Totals £126,169 18 10 DEPOSIT 95,170 15 9 39,891 13 5 Balance at beginning of Year, — Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony In London 153,780 19 0 1,500 0 0 29,367 11 2 184,648 10 2 135,062 9 2 1,479 18 5 5,011 10 0 75 0 0 7 3 9 72,000 0 0 103 10 0 283 17 1 48,896 7 5 46,550 0 0 4,350 0 0 366 17 5 97 1 6 Lodgments,— Cyanide Process Gold-extraction Act, 1897 Emigrants' Deposits General Assembly Library Fund Hospitals and Charitable Institutions Act, 1885 Imperial Government (South Africa Contingents) Imperial Government (Purchase of Oats) Land Transfer Act, 1885 Mining Districts Land Occupation Act, 1894 Miscellaneous Money-order Settlement More Men Fund .. Native Land Purchases .. ... Native Township of Parata ,, Pipiriki „ Potaka Te Araroa Te Puia ,, Tokaanu Tuatine Nelson Bifle Prize Fund Nelson Rifle Prize Fund Investment New Zealand Midland Railway New Zealand University Endowment, Canterbury New Zealand University Endowment, Taranaki New Zealand University Endowment, Westland North Island Experimental Dairy School North Island Main Trunk Railway Loan Application Act 1886 Amendment Act, Public Trust Office Remittance Account Bailways Tauranga Educational Endowment Beserves Act, 1896 ifhermal-springs Districts Act, 1881 Trustee Act, 1883 998 4 10 10,632 7 3 75 0 0 4 17 1 211,663 8 7 117,773 8- 0 770 5 0 267 10 5 59,011 4 5 48,931 13 5 333 18 1 42 11 9 124 9 0 58 3 9 31 17 9 24 16 3 208 19 7 15 11 0 42 5 0 214 14 3 46 1 7 400 0 0 24,711 19 1 129 11 0 323 0 4 5 0 0 41 10 8 8,467 7 10 129 11 0 261 7 6 7 10 0 41 10 9 8,572 13 3 13,465 11 8 46 3 10 1,990 6 11 9,449 7 8 12,886 5 5 720 0 0 49 6 9 2,682 11 9 473 2 5 486,187 12 3 229,167 18 2 Totals £364,230 7 4 £670,836 2 5

8.—6

5

No. 1— continued. FUND for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900. ACCOUNT.

1899-1900. 1900-1901. EXPENDITURE. £ s. d. 4,002 9 7 Annual Appropriations,— Vote 117—State Forests Branch £ s. d. £ s. d. 6,857 9 2 23,558 16 2 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government,In the Colony 31,823 2 3 31,823 2 3 206 10 0 23,765 6 2 Totals £27,767 15 9 £38,680 11 5 LOCAL B DIES. 3,116 6 0 18,113 3 2 28,231 16 4 16,855 12 10 Bevenue paid over to Local Bodies, — Fees, Fines, &c. Endowments of Land, &c. Goldfields Revenue Gold Duty 3,742 10 0 6,674 13 7 31,690 0 7 16,158 12 5 06,316 18 4 Counties Separate Accounts, — Amount distributed amongst Road Boards where "The Counties Act, 1886," is not in full operation 58,265 16 7 527 14 0 520 14 7 Advance Accounts, — Payments on behalf of Local Bodies Payments on behalf of Local Bodies charged to " Unauthorised " 55,756 5 11 55,756 5 11 43,203 5 4 1,964 2 8 45,167 8 0 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government,In the Colony .. .. .. .. .. .. . • .. I 4,479 16 6 11,611 19 5 11,627 1 9 15 2 4 " 4,479 16 6 Total £126,169 18 10 £116,491 16 10 ACCOUNTS. 18 16 6 5,441 10 0 75 0 0 17 10 10 5,552 3 9 506 4 10 256 7 2 60,686 17 7 56,400 0 0 4,350 0 0 55 16 2 346 6 10 74 5 6 Withdrawals,— Auckland Museum Endowment Emigrants' Deposits General Assembly Library Fund Hospitals and Charitable Institutions Act, 1885 Imperial Government (South Africa Contingents) Imperial Government (Purchase of Oats) Land Transfer Act, 1883 Mining Districts Land Occupation Act, 1894.. Miscellaneous Money-order Settlement .. .. .. .. .. ... More Men Fund Native Land Act, 1872 (No. 2) Native Land Purchases Native Township, Pipiriki Native Township, Tokaanu.. Nelson Bifle Prize Fund Nelson Bifle Prize Fund Investment New Zealand Midland Bailway Ngatirahiri Compensation North Island Main Trunk Railway Loan Application Act 1886 Amendment Act, 1889 .. Public Trust Office Remittance Account Bailways Thermal-springs Districts Act, 1881 10,552 7 3 75 0 0 4 17 1 179,204 14 9 117,773 8 0 676 10 0 110 0 8 55,905 11 3 43,724 16 5 331 14 4 190 16 0 0 17 4 47 0 0 12 13 0 500 0 0 21,586 11 6 7 13 11 12,524 2 10 2 14 9 10,503 6 11 11,439 18 2 839 13 4 911 1 2 7,486 2 11 12,049 2 4 2 0 10 1,203 15 2 179,581 17 2 Balances at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government,In the Colony In London 441,865 11 11 153,780 19 0 157,129 12 6 228,970 10 6 1,500 0 0 29,367 11 2 18,841 11 9 52,999 6 3 184,648 10 2 Totals 6364,280 7 4 £670,836 2 5

8.—6

6

Table STATEMENT of the RECEIPTS and EXPENDITURE of the PUBLIC WORKS

STATEMENT of the RECEIPTS and EXPENDITURE of the CHEVIOT ESTATE

1899-1900. RECEIPTS. 1900-1901. £ s. d. £ s. ja. £ s. d. 31,794 6 9 16,509 13 0 22,552 0 7 Balance at beginning of Year, — Cash in Public Account Advances in the hands of Officers of the Government, — In the Colony In London 90,782 17 3 25,710 0 3 23,250 2 0 139,749 6 0 i 70,856 0 4 The Aid to Public Works and Land Settlement Acts, 1890-1900,— Proceeds of short-dated Debentures issued under the Act of 1899 Amount of 3-per-cent. Inscribed Stock created Temporary advances on security of short-dated debentures, issued under the Act of 1899 and 19C0 Balance of Loan of £500,000, issued under the Act of 1898 Interest on overdue instalments 250,000 0 0 ; 500,000 0 0 35,000 0 0 .. 300,000 0 0 i 395,000 0 0 ; 0 13 8 805,000 0 0 945,000 13 3 1,400,000 0 0 450,000 0 0 Amount transferred from the Consolidated Fund in terms of section 17 of " The Appropriation Act, 1900" .. 500,000 0 0 1,693 18 5 ! Special Receipts in connection with the Ellesmere and Forsyth Reclamation and Akaroa Railway Trust 1,787 13 9 125,000 0 0 Debentures issued under " The Native Land Purchases Act, 1892," renewed under section 15 of " The Aid to Public Works and Land Settlement Act, 1899 " 847 0 5 Recoveries, — In respect of Debentures issued under "The Roads and Bridges Construction Act, 1882" 74 9 8 Sinking Funds released under " The Consolidated Stock Act, 1884," in respect of — " The Otago Loan Ordinance, 1802 " Totals £1,592,972 8 1 £2,041,530 19 9 >

£ s. d. £ s. d. £ s. d. 540 11 1 Balance at beginning of Year, — Cash in Public Account 6,452 1 0 14,411 0 3 22 10 0 374 4 2 15 1 0 Receipts under " The Cheviot Estate Disposition Act, 1893," — Rents from Lands Interest on Advances Cash Land Sales Miscellaneous 14,121 7 4 45 0 0 14,166 7 4 14,822 15 5 Totals £15,369 6 6 £20,618 8 4

8.—6

7

No. 1—continued. FUND for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900.

ACCOUNT for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900.

1899-1900. EXPENDITURE. 1900-1901. £ s. d. £ s. d. £ s. d. 384 14 9 12,571 14 3 417,937 8 8 285,389 19 5 21,815 8 8 31,882 7 7 26,771 7 9 115,426 12 6 9,025 13 3 743 17 8 42,809 15 8 Annual Appropriations,— Class I. —Immigration II.—Public Works, Departmental III. —Railways IV.—Roads V.—Development of Goldflelds VI.—Purchase of Native Lands VII.—Telegraph Extension .. „ VIII.—Public Buildings IX.—Lighthouses, Harbour-works, and Harbour Defences X.—Rates on Native Lands XI.—Contingent Defence 214 0 9 12,932 18 9 717,722 11 7 315,741 9 2 15,907 8 1 28,087 11 0 50,100 19 7 121,303 19 2 6,516 15 8 672 15 8 37,650 11 9 • 904,759 0 2 1,307,511 1 8 1 142 0 7 Unauthorised, — Services not provided for .. 50 0 0 250,000 0 0 85,000 0 0 The Aid to Public Works and Land Settlement Acts, 1896-99 — Temporary advances repaid by sale of Debentures Debentures redeemed 500,000 0 0 500,000 0 0 335,000 0 0 28,321 15 4 Charges and expenses of raising loans 1,460 0 0 125,000 0 0 " The Native Land Purchase Act, 1892," — Debentures due 31st October, 1899, renewed 90,782 17 3 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government,--In the Colony In London 7,991 6 5 25,710 6 3 23,256 2 6 42,845 4 5 181,679 7 3 139,749 0 0 232,515 18 1 Totals £2,041,536 19 9 (£1,592,972 8 1

£ s. d. 8,866 2 6 51 3 0 £ s. d. 8,866 2 6 71 9 4 £ s. d. Interest Surveys, Roading, &c. 8,937 11 10 8,917 5 6 6,452 1 0 Balance at end of Year, — Cash in the Public Account 11,680 16 6 Totals £15,309 0 0 £20,018 8 4

8.—6

8

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

1899-1900. RECEIPTS. 1900-1901. £ s. d. 27,532 5 8 Balance at beginning of Year, — Cash in the Public Account Advances in hands of Officers of the Government, — In the Colony £ s. d. 53,381 8 4 £ s. d. 009 2 2 28,141 7 10 8 2 0 53,389 10 4 448,000 0 0 784,766 0 0 Proceeds of Scrip and Debentures created under, — The Land for Settlements Consolidation Act, 1900— For purchase of Estates In renewal of Debentures falling due 31st October, 1899 219,000 0 0 219,000 0 0 1,232,766 0 0 Receipts derived from Estates, — Rents and Lease-fees 72,781 8 2 46,354 14 4 142 14 6 80 15 0 Recoveries, — Fencourt and Whitehall, on account of purchase-money Tokarahi, in reduction of expenses Waikakahi, on account of purchase-money Richmond Brook, on account of purchase-money 5 17 2 10 0 0 15 17 2 223 9 6 Totals 51,307,435 11 8 £345,186 15 8

9

8.—6

No. 1— continued. ACCOUNT for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900.

2—B. 6.

1899-1900. EXPENDITURE. 1900-1901. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 2,611 5 10 Annual Appropriations,— Vote 118—Land for Settlements Expenses 4,234 18 1 Acquirement of Estates, — Name of Estate. Purchase-money. Expenses. Purchase-money. Expenses. 185 1 3 524 6 0 3 19 3 459 1 1 7 13 36 7 9 25 15 0 821 2 5 262 12 0 Total. 185 1 3 524 6 0 3 19 3 459 1 1 7 13 36 7 9 3,125 15 0 821 2 5 262 12 0 726 2 3 25,662 7 11 13 14 8 26,489 13 8 2 12 0 2 12 6 80,634 8 4 32,393 1 2 21 8 9 153 7 6 3 2 0 4,996 19 5 35 2 9 136 19 5 1 14 8 6,572 5 4 9 12 17,600 4 1 88 4 2 248 5 4 154 15 6 2 13 6 18,012 12 9 108 13 6 71,039 11 9 82 15 9 36 10 10 19 16 2 31,677 17 7 110 '63 11 6 1 10 10 2,563 3 10 2,519 7 0 3 10 0 293 13 0 240 0 11 507 3 7 349 8 7 5,394 9 2 23,179 0 6 98 7 5 u* ud.uuu. X IIILUDiOD-IUVIIC,. l'.A|fDUBDO. Albury .. .. .. .. .. .. 185 1 3 Aorangi .. .. .. .. .. .. 524 6 0 Ardgowan .. .. .. .. .. .. 3 19 3 Barnego .. .. .. .. .. ,. 459 1 1 Beaumont .. .. .. .. .. .. 713 Blind River .. .. .. .. .. 36 7 9 Earnscleugh (W. S. Laidlaw) .. .. 3,100 0 0 25 15 0 Elderslie .. .. .. .. .. .. 821 2 5 Fencourt .. .. .. .. .. .. 262 12 0 (Hatuma (Sainsbury and Bridge) .. .. 25,000 0 0 1 .._ 1Q n 1 . (T.P.Russell) .. .. .. 116,618 0 0F 408 13 9 Hekeao Highbank .. .. .. .. .. .. 1 10 0 Janefield .. .... .. .. .. 52 10 8 Karapiro (Assets Realisation Board) .. .. 253 0 0 19 0 8 Kohika .. .. .. .. .. .. 95 2 0 Langdale .. .. .. .. .. .. 248 0 5 Lyndon (A. and D. Macfarlane) .. .. 15,750 0 0 99 4 11 Mahora .. .. .. .. .. .. 468 17 3 Maerewhenua .. .. .. .. .. 0 19 3 Makareao (Waihemo Grange) .. .. .. 2,35115 10 Mangawhata .. .. .. .. .. 160 2 10 Maungaraki Settlement (W. Chapman) .. 2,797 0 0 21 2 6 Merrivale North Bank (J. Bell) .. .. .. 6,750 0 0 5 5 4 Ohakea (J. Bull) .. .. .. .. 5,245 10 0 11 4 0 Okauia .... .. .. .. .. 2 12 0 Omaka .. .. .. .. .. .. 950 Opouriao .. .... .. .. .. 13 11 0 Otahu .. .. .. .. .. 40 3 0 Otaio .. .. .. .. .. .. 8 7 11 Papaka (Levels Valley) .. .. .. .. 138 0 8 Paparangi .. .. .. .. .. .. 100 3 6 Pareora (Pareora No. 2) .. .. .. .. 463 13 0 Pawaho .. .. .. .. .. .. 27 9 2 Poerua Pomahaka .. .. .. .. .. • .. 354 Punaroa Settlement (Three Springs) .. .. .. 226 16 5 Rakitairi (Arowhenua) .. .. .. .. 1 19 0 Rangiatea Raureka .. .. .. .. .. .. 340 Rautawiri (Rural Section 3106) .. .. .. 59 7 4 Richmond Brook .. .. .. .. .. 257 8 5 Roimata .. .. .. .. .. .. 0 10 0 Rural Sections 36056-57 Rural Section 36228.. Rural Section 36469 (Carrington) Rural Section 26231 Starborough .. .. .. .. .. 979 0 7 Takitu (Clarksfield) .. .. .. .. .. 221 1 9 Tamai .. .. .. .. .. .. 573 8 1 Tarawahi (J. Freeman) .. .. .. 2,857 10 0 Te Matua .. .. .. .. .. .. 26 11 11 Tokarahi .. .. .. .. .. .. 559 Tomoana Teanaraki Waipapa (J. Bell) .. .. .. .. 8,250 0 0 87 12 7 Waikakahi .. .. .. .. .. .. 72 8 1 Waimarie .. .. .. .. .. .. 7 11 9 Wharenui .. .. .. .. .. .. 34 12 7 Whitehall .. .. .. .. .. .. 46 14 8 Willows .. .. .. .. .. .. 3 11 0 186,621 0 0 9,682 9 11 3,lo6" 0 0 25,OOo' 0 0 116,618 0 0 253 0 0 15,750 0 0 2,797 0 0 6,750' 0 0 5,245 10 0 } 408 13 9 1 10 0 52 10 8 19 0 8 95 2 0 248 0 5 99 4 11 468 17 3 0 19 3 2,351 15 10 160 2 10 21 2 6 5 5 4 11 4 0 2 12 0 9 5 0 13 11 0 40 3 0 8 7 11 138 0 8 100 3 6 463 13 0 27 9 2 142,026 13 9 1 10 0 52 10 8 272 0 8 95 2 0 248 0 5 15,849 4 11 468 17 3 0 19 3 2,351 15 10 160 2 10 2,818 2 6 6,755 5 4 5,256 14 0 2 12 0 9 5 0 13 11 0 40 3 0 8 7 11 138 0 8 100 3 6 463 13 0 27 9 2 3 5 4 226 16 5 1 19 0 3 5 4 226 16 5 1 19 0 3 4 0 59 7 4 257 8 5 0 10 0 3 4 0 59 7 4 257 8 5 0 10 0 2,857 10 0 979 0 7 221 1 9 573 8 1 979 0 7 221 1 9 573 8 1 2,857 10 0 26 11 11 5 5 9 10,783 10 3 14 8 9 1 13 9 2 1 11 26 11 11 5 5 9 1,411 19 1 86 1 3 1 5 10 6,982 18 6 51 19 10 8,250 0 0 87 12 7 72 8 1 7 11 9 34 12 7 46 14 8 3 11 0 8,337 12 7 72 8 1 7 11 9 34 12 7 46 14 8 3 11 0 371,537 0 11 186,621 0 0 9,682 9 11 196,303 9 11 Interest recouped to Consolidated Fund in respect of Debentures issued under the Land for Settlements Acts, 1892 and 1894, — On account of Interest paid during Current Year On acoouut of Interest from 13th July, 1893, to 31st March, 1899 50,910 2 6 33,349 9 4 61,832 5 3 50,910 2 6 95,181 14 7 Charges and Expenses on issue of Debentures under the Aot 388 13 0 784,706 0 0 Debentures matured 31st October, 1899, and renewed 53,381 8 4 Balance at end of Year, — Cash in the Public Account Advances in the hands of Officers of the Government, — In the Colony 92,021 8 7 93,349 12 2 8 2 0 1,328 3 7 53,389 10 4 Total 1,307,485 11 8 £345,186 15 8

8.—6

10

Table STATEMENT of the RECEIPTS and EXPENDITURE of the CONVERSION

STATEMENT of the RECEIPTS and EXPENDITURE of the NEW ZEALAND CONSOLS

1899-1900. RECEIPTS, 1900-1901. £ s. d. Dr. 2,537 6 6 Balance at beginning of Year, — Cash in the Public Acoount In the hands of Stock Agents— Cash £ s. d. 39,538 9 1 £ s. d. 325 13 9 363 2 10 39,901 11 11 Dr. 2,211 12 9 3-per-cent. Inscribed Stock, — Issued for redemption of Debentures Issued for payment of conversion expenses Issued in exchange for Debentures .. 167,000 0 0 13,000 0 0 5,000 0 0 18,000 0 0 26,690 0 0 193,690 0 0 % 3£-per-cent. Consolidated Stock Debentures (Colonial Issue), — Issued in exchange for Debentures per contra 509,500 0 0 Total Total £191,478 7 3 £567,401 11 11

1899-1900. RECEIPTS. 190< H901. £ s. d. 25 0 0 385,900 0 0 Balance at beginning of Year, — Cash in Deposit Account .. Investment Account £ s. d. £ s. d. 87 6 11 441,400 0 0 441,487 6 11 385,925 0 0 55,562 6 11 Deposits inscribed 17,902 0 2 £441,487 6 11 Totals £459,389 7 1

8.—6

No. 1 — continued. ACCOUNT for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900.

ACCOUNT for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900.

11

1899-1900. EXPENDITURE. 1900-1901. £ s. d. £ s. d. £ s. d. 39,100 0 0 26,906 0 0 25,000 0 0 24,700 0 0 600 0 0 Debentures redeemed, — Consolidated Loan Act, 1867, 5 per cent. Naval and Military Settlers and Volunteers Land Act, 1892, due 31st Ootober, 1899 District Railways Purchasing Act, 1885, due 1st April, 1899 .. Native Land Purchase Act, 1892, due 31st October, 1899 Land for Settlements Act, 1894, due 31st Ootober, 1899 50,400 0 0 290 0 0 50,690 0 0 116,306 0 0 509,500 0 0 "Government Loans to Local Bodies Aot, 1886," debentures, due 31st Deoember, 1900 • 200 0 0 500 0 0 2,600 0 0 22,000 0 0 100 0 0 1,290 0 0 Debentures converted into 3-per-cent. Inscribed Stock, — Consolidated Loan Act, 1867, 5 per cent. New Zealand Loan Act, 1863, 5 per cent., due 15th July, 1914 General Purposes Loan, 1873, 4 per cent. District Railways Purchasing Act 1885 Amendment Act, 1886 Immigration and Public Works Loan Act, 1870, due 15th April, 1913 Premium in respect of same 20,690 0 0 414 15 0 5,908 2 0 1,807 13 9 4 13 11 180 8 0 67 10 0 166 16 0 21 18 8 8 17 6 Expenses Account, — Brokerage and Commission Discount Stamp Duty Interest (including overlap of interest) Office Expenses Rents Law charges Telegrams Printing and Advertising .. .. .. 45 0 0 450 0 0 1,550 2 0 946 7 10 220 7 6 112 10 0 3,324 7 4 8,580 15 4 39,538 9 1 Balance at end of Year, — Cash in the Public Account In the hands of Stock Agents— Cash 3,706 19 3 363 2 10 180 5 4 39,901 11 11 3,887 4 7 Totals £191,478 7 3 £567,401 11 11

1899-1900. EXPENDITURE. 1900-1901. £ s. d. Balance at end of Year, — Cash in Deposit Account.. Investment Account £ s. d. £ s. d. 87 6 11 441,400 0 0 2,989 7 1 456,400 0 0 459,389 7 1 Totals . £441,487 6 11 £459,389 7 1

8.—6

12

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

9-1 RECEIPTS. £ s. d. £ s. d. £ s. d. 2,808 7 1 1,541 10 1 Balance at beginning of Year, — Cash in the Public Account Advances in hands of Officers of the Government— In the colony 6,982 2 4 13,611 2 11 20,593 5 3 4,349 17 2 The Government Loans to Local Bodies Act, 1886, — Debentures oreated 176,000 0 0 115,500 0 0 198 2 3 495 6 10 Repayments under section 8 of*" The Government Loans to Local Bodies Act Amendment Act, 1896," — Counties, — Manawatu Rangitikei Stratford Wanganui Pohangina Wairarapa Road Boards, — Taratahi Carterton Manawatu Porangahau Boroughs— Stratford 76 1 1 325 18 1 68 8 4 838 9 0 119 12 6 63 14 10 619 10 1 5,797 5 0 7,725 11 7 876 16 5 . Carried forward £120,726 13 7 £204,318 16 10

8.—6,

No. 1—continued. ACCOUNT for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900.

13

iOO- £ s. d. 1,455 0 0 1,084 0 0 400 0 0 1,200 0 0 350 0 0 5,336 0 0 1,300 0 0 420 0 0 6,000 0 0 4,350 0 0 4,295 0 0 Grants under " The Government Loans to Local Bodies Aot, 1886 " — Counties— Ashburton Bruce Clifton Clutha Cook Eketahuna Hawera Horowhenua Kiwitea Lake Manawatu Pahiatua Pohangina Rangitikei Stratford Waiapu Waipawa Wairarapa North Wairarapa South Waitemata Waitotara Wanganui £ s. d. 800 0 0 855 0 0 3,000 0 0 1,000 0 0 650 0 0 1,650 0 0 550 0 0 3,710 0 0 2,000 0 0 6,000 0 0 330 0 0 5,626 0 0 3,050 0 0 5,990 0 0 2,000 0 0 1,600 0 0 £ 8. d 248 0 0 18 0 0 2,000 0 0 624 0 0 300 0 0 3,000 0 0 2,500 0 0 41,611 0 32,080 0 0 2,420 0 0 100 0 0 700 0 0 700 0 0 800 0 0 1,080 0 0 435 0 0 3,000 0 0 750 0 0 600 0 0 2,025 0 0 1,000 0 0 1,584 0 0 70 0 0 242 0 0 300 0 0 3,000 0 0 500 0 0 200 0 0 100 0 0 1,900 0 0 Road Boards— Arai Avon Castlepoint Featherston Fitzherbert Frankley Hunua Kaiti Manchester Manganui Masterton Moa Ngatapa .. .. .. Oakura Parihaka Spring Creek Taratahi-Carterton Upper Hurford Upper Taueru Upper Wangaehu Waimate .. Waipipi Waitara West Waiwakaiho Wirokino 1,172 0 0 1,000 0 0 300 0 0 1,000 0 0 250 0 0 70 0 0 2,994 0 0 990 0 0 690 0 0 1,250 0 0 2,807 0 0 970 0 0 3,000 0 0 750 0 0 1,252 0 0 21,506 0 0 Boroughs— Foxton Greytown Hawera Masterton Palmerston Petone Te Aroha Thames Timaru 18,495 0 0 800 0 0 1,600 0 0 200 0 0 2,000 0 0 500 0 0 700 0 0 2,000 0 0 1,500 0 0 190 0 0 300 0 0 10,000 0 0 1,784 0 0 7,384 0 0 Town Boards— Waipawa 14,190 0 0 300 0 0 360 0 0 500 0 0 Drainage Boards— Aorangi Mangahoe Ngaroto 2,000 0 0 200 0 0 2,200 0 0 5,000 0 0 500 0 0 River Boards— Clive Hutt Lower Wairau 5,000 0 0 5,000 0 0 10,000 0 0 1,000 0 0 6,000 0 0 Water-supply Boards Waimakariri-Ashley .. • 1,000 0 0 £68,770 0 0 Carried forward £86,856 0 0

8.—6

14

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

STATEMENT of the RECEIPTS and EXPENDITURE of the GOVERNMENT ADVANCES TO SETTLERS

STATEMENT of the RECEIPTS and EXPENDITURE of the GOVERNMENT ACCIDENT

1899-1900. RECEIPTS. 1900-1901. £ s. d. 120,726 13 7 £ s. d. £ s. d. 204,318 16 10 Brought forward Totals £120,726 13 7 £204,318 10 10

1899-1900. RECEIPTS. 1900-1901, £ s. d. The Government Advances to Settlers Act, 1894, — 3-per-cent. Stock oreated Temporary Advances on Security of Short-dated Debentures .. Prooeeds of loan raised under above Act £ s. d. 240,000 0 0 140,000 0 0 £ s. d. 500,000- 0 0 380,000 0 0 150,000 0 0 To repay advance made by Bank of England on security of stock 0 13 3 Interest received on overdue instalments of loan Totals £650,000 13 3 380,000 0 0

RECEIPTS. 1900-1901, " The Government Acoident Insurance Act, 1899," — Debentures created under the above Act £ s. d. £ s. d. 2,000 0 0 STATEMENT of the RECEIPTS and EXPENDITURE of " THE BANK OF NEW ZEALAN RECEIPTS. 1900-1901. Repurchase by the Bank of New Zealand of the Preferred-share Certificates £ s. d. £ s. d. 500,000 0 0

15

8.—6

No. 1 — continued. ACCOUNT for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900— continued.

OFFICE LOAN ACCOUNT for the Year ended 31st March, 1901, compared with the Financial Year ended 31st March, 1900.

INSURANCE LOAN ACCOUNT for the Year ended 31st March, 1901.

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

1899-1900. EXPENDITURE. 1900-1901. £ s. d. 68,770 0 0 £ s. d. £ s. d. 86,856 0 0 Brought forward .. .. Grants under "The Government Loans to Local Bodies Act Amendment Act, 1898" — Counties — Wairarapa South 3,000 0 0 Boroughs— Akaroa Hawera Masterton Palmerston 200 0 0 26,400 0 0 19,500 0 0 2,000 0 0 48,100 0 0 Water-supply Boards— Manakau 1,000 0 0 Appropriations,— Vote 119. —Roads to open up Crown lands 37,390 5 4 31,363 8 4 6,982 2 4 Balance at end of year,— Cash in the Public Account Advances in hands of Officers of the Government, — In the Colony 20,881 9 0 13,611 2 11 7,091 2 6 27,972 11 6 20,593 5 8 Totals £120,720 13 7 £204,318 16 10

1899-1900. EXPENDITURE. 1900-1901. £ s. d. 471,859 10 0 Amount paid over to Government Advances to Settlers Office Account £ s. d. £ s. d. 380,000 0 0 150,000 0 0 Repayment of advance made by Bank of England 28,141 3 3 Charges and expenses of raising loan Total £650,000 13 3 £380,000 0 0

EXPENDITURE. 1900-1901. Debentures handed to Commissioner Government Insurance Department £ s. d. £ s. d. 2,000 0 0 .ND BANKING ACT, 1895," ACCOUNT for the Year ended 31st March, 1901. EXPENDITURE. 1900-1901. Amount paid over to the Public Trustee in terms of the Act v £ s. I a. £ s. d. 500,000 0 0

8.—6

16

SUMMARY of BALANCES on 31st MARCH, 1901.

Balances. Cash. Advances. Investments. Total. £ s. d. £ s. d. Consolidated Fund :— Ordinary Revenue Account State Forests Account Accounts of Local Bodies Deposit Accounts £ s. d. £ s. d. £ s. d. £ s. d. Consolidated Fund :— Ordinary Revenue Account State Forests Account Accounts of Local Bodies Deposit Accounts 1,232,564 8 11* 31,823 2 3 11,627 1 9 228,970 10 6 1,504,985 3 5 522,938 0 2 31,823 2 3 11,611 19 5 157,129 12 6 109,626 8 9 15 2 4 71,840 18 0 000,000 0 0 1,232,564 8 11 31,823 2 3 11,627 1 9 228,970 10 6 723,502 14 4 181,482 9 1 600,000 0 0 1,504,985 3 Public Works Fund 232,515 18 1 Public Works Fund 7,991 6 5 224,524 11 8 I 232,515 18 Cheviot Estate Account Land for Settlements Account Conversion Account Loans to Local Bodies Account New Zealand Consols Account Remittances to London Account 11,680 16 0 93,349 12 2 3,887 4 7 27,972 11 6 459,389 7 1 Dr.500,000 0 0 £1,833,780 13 4 Cheviot Estate Account Land for Settlements Account Conversion Account .. '.. Loans to Local Bodies Account New Zealand Consols Account Remittances to London Account 11,680 16 6 92,021 8 7 3,706 19 3 20,881 9 0 2,989 7 1 Cr. 500,000 0 0 1,328 3 7 180 5 4 7,091 2 6 456,400 0 0 11,680 16 93,349 12 3,887 4 27,972 11 459,389 7 0.500,000 0 Totals Totals £362,774 1 2 £414,606 12 2 l£l,056,400 0 0 £1,833,780 13 * Against this Treasury Bills amounting to £700,000 are outstanding.

8.—6.

Table No. 2. COMPARATIVE STATEMENT of the Estimated and Actual Receipts and Expenditure of the Consolidated Fund (Revenue Account) for the Financial Year ended 31st March, 1901.

£ s. d. £ s. d. Surplus, 31st March, 1900 .. .. .. .. 605,351 14 0 Less— Amount applied in aid of Public Works Fund .. .. 500,000 0 0 105,351 14 6 Actual receipts, 1900-1 .. .. .. .. 5,906,916 3 9 Actual expenditure, 1900-1 .. .. .. .. 5,479,703 9 4 427,212 14 5 Surplus at 31st March, 1901 .. .. .. £532,564 8 11 3—B, 6.

17

Table No. 2. ICMPAEATIVE STATEMENT of of the Consolidated Fund (Be 1901. the Estimated and Actual Eeceipts and Expendituei 'enue Account) for tho Financial Year ended 31st March Differences. Estimated. Actual. More Less than Estimate, than Estimate. RECEIPTS. Revenue Account :— Customs Stamps Land- and Income-tax Beer Duty Railways Registration and other Fees Marine Miscellaneous Territorial Revenue £ s. d. 2,023,000 0 0 855,000 0 0 425,000 0 0 83,000 0 0 1,574,400 0 0 74,000 0 0 26,200 0 0 124,000 0 0 240,000 0 0 £ s. d. 2,180,861 11 i 903,934 17 11 468,392 14 4 : 85,170 10 0 1,720,640 19 5 67,537 7 10 29,553 6 10 126,410 18 7 270,203 5 9 £ s. d. 157,861 11 4 48,934 17 11 43,392 14 4 2,170 10 0 146,240 19 5 £ s. d. 6,462 12 2 3,353 6 10 2,410 18 7 30,203 5 9 Sinking Fund Increases Recoveries in respect of " unauthorised " of previous years 5,424.600 0 0 52,800 0 0 5,852,705 12 0 52,800 0 0 434,568 4 2 6,462 12 2 1,410 11 9 1,410 11 9 435,978 15 11 6,462 12 2 6,462 12 2 Totals 5,477,400 0 0 5,906,916 3 9 429,516 3 9 EXPENDITURE. £ s. d. Revenue Account :— Permanent Appropriations,— Civil List Interest and Sinking Fund Under Special Acts Subsidies paid to Local Bodies Territorial Revenue paid over Endowments Old-age Pensions Annual Appropriations,— Legislative Colonial Secretary Colonial Treasurer Minister of Justice Postmaster-General Commissioner of Trade and Customs Commissioner of Stamps Minister of. Education Department of Labour Minister of Mines Minister for Agriculture Working Railways Public Buildings Defence Department Police Department Department of Lands and Survey Valuation Department Rates on Crown Lands Services not provided for £ s. A. 31,800 0 0 1,771,985 0 0 199,456 0 0 75,000 0 0 35,000 0 0 48,900 0 0 200,000 0 0 26,222 0 0 118,032 0 0 43,175 0 0 I 131,217 0 0 1 410,586 0 0 92,601 0 0 27,444 0 0 561,854 0 0 8,511 0 0 19,924 0 0 74,581 0 0 1,069,313 0 0 47,425 0 0 287,434 0 0 119,689 0 0 148,450 0 0 23,620 0 0 1,075 0 0 29,172 19 1 1,745,615 12 6 200,908 4 5 76,218 4 7 34,233 1 4 "52,468 10 4 196,606 17 4 25,265 0 0 110,555 14 8 39,147 19 3 126,741 2 2 416,363 15 4 87,037 16 4 26,255 15 11 509,805 12 1 7,977 13 9 17,487 16 8 74,876 5 0 1,144,831 13 3 46,851 10 4 206,565 1 10 117,522 5 0 137,565 3 5 23,579 12 5 530 16 10 25,519 5 6 £ s. a. 1,452 4 5 1,218 4 7 3,568 10 4 5,777 15 4 295 5 0 75.518 13 3 25.519 5 6 £ 8. d. 2,027 0 11 26,369 7 6 766 18 8 3,393 2 8 957 0 0 7,476 5 4 4,027 0 9 4,475 17 10 5,563 3 8 1,188 4 1 52,048 7 11 533 6 3 2,436 3 4 573 9 8 80,868 18 2 2,166 15 0 10,884 16 7 40 7 7 544 3 2 / 113,349 18 5 206,940 9 1 113,349 18 5 Totals 5,573,294 0 0 5,479,703 9 4 93,590 10 8 Surplus, 31st Maroh, 1900 Less — Amount applied in aid of Public Works Fund .. £ s. d. 605,351 14 6 500,000 0 0 £ s. d. 105,351 14 6 Actual receipts, 1900-1 Actual expenditure, 1900-1 5,906,916 3 9 5,479,703 9 4 427,212 14 5 Surplus at 31st March, 1901 £532,564 8 11 £532,564 8 11 $—B, 6.

8.—6

18

Table No. 3. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1901.

Amount outstanding. Due Date. Sinking Funds ACCEDED. Net i Indebted- ' R t ness. Kate - Annual Charge. Remarks. Amount. When payable. ; Int. [ S.F. I '. £ £ 266,300 £ 130,055 £ 136,245 % 5 % 1 £ 15,978 New Zealand Loan Act, 1863 15 July, 1914 15 Jan. and 15 July. Consolidated Loan Act, 1867 339,300 Ann. drawing 339,300 j 5 16,965 Quarterly, 15 Jan., &c. Immigration and Public Works Loan Act, 1870 .. 1,000,000' 1 June, 1907 657,322 342,678 4 2-4 64,000 1 June and 1 Dec. j Sinking Fund payable 13 Mar. and 13 Sept. Canterbury Loan Ordinance, 1862 3,800 12,200 j 1 - 16,000 I 2 Jan., 1915 "I 2 July. 1916 ] Juiv, 1898 ) 12,725 3,275 6 1 1,120 30 June „ 31 Dec. Otago Loan Ordinance, 1862 Consolidated Loan Act, 1867 Immigration and Public Works Loan Act, 1870 -j Defence and Other Purposes Loan Act, 1870 General Purposes Loan Act, 1873 .. j District Railways Purchasing Acts, 1885-86 363,000 27,900 25,000 75,000 17,400 10,800 54,700 40,000 97,100 400 13,000 15 April, 1913 I 15 April, 1913 (15 April, 1913 I Uuly, 1910 115 April, 1913 15 Oct., 1913 1 15 May, 1914 (28 Nov., 1914 ( 1 July, 1909 '( 1 April, 1905 1 Sept., 1907 ( 1 Nov., 1929 \ 1 Jan.. 1940 ( 1 April, 1945 400 13,000 303,000 27,900 25,000 75,000 17,400 10,800 54,700 40,000 97,100 109,100 29,150,302 6,161,167 6,148,810 4 4 4 4 4 5 6 4 4 3 520 14,520 1,256 1,125 3,000 696 432 2,735 2,400 3,884 26,782t 1,166,012 215,641 184,464+ 15 April and 15 Oct. 15 April „ 15 Oct. 15 April „ 15 Oct. 30 June „ 31 Dec. 15 April „ 15 Oct. 15 April „ 15 Oct. 15 May „ 15 Nov. 15 May „ 15 Nov. I 1 April „ 1 Oct. 1 Mar. „ 1 Sept. 1 May „ 1 Nov. 1 Jan. „ 1 July April „ 1 Oct. Debentures not presented for payment. 390,900 1 100,000 | 82,900 j 137,100 109,100 •Only £200,000 has actually been issued to the public; the unsold debentures are available for the purpose of obtaining temporary advances from time to time. fThe Sinking Fund is payable on £1,530,900; the Land Assurance Fund is also charged with J per cent, as a contribution towards Sinking Fund. J £67,200 of this amount will be recouped by the Government Advances to Settlers Office. §Debenture not presented for payment. Government Loans to Local Bodies Act, 1886 Consolidated Stock Act, 1877 .. .. i 14 29,150,302 6,161,167 6,148,810 I 41,460,279 Consolidated Stock Act, 1884 — 157,500 509,500 t 667,000 | 1 Sept., 1905 | 31 Dec, 1907 34 Colonial Issue I - 667,000 23,345 1 Mar. „ 1 Sept. Naval and Military Settlers' and Volunteers' Land Act, 1892 30 31 Oct., 1899 30§ Native Land Purchases Act, 1892 (Renewed under the Aid to Public Works and Land Settlement Act, 1899) Land for Settlements Act, 1892 (Renewed under the Land for Settlements Acts Amendment Act, 1899) 125,000 31 Oct., 1906 125,000 I 34 4,375 I 30 April and 31 Oct. 45,276 31 Oct., 1906 45,276 34 1,585 30 April „ 31 Oct. Carried forward 44,752,585 1,750,835 800,102 43,952,483

19

8.—6

Table No. 3 — continued. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1901— continued.

Amount oinyTA.Ni.iNCi. Due Date. Sinking Nxt Funds Indebted- Knt« . accrued. | ness. riaie. Int. ; S.F. Annual Charge. Remarks. Amount. When payable. Brought forward £ £ 44,752,585 800,102 £ 43,952,483 % % £ 1,750,835 Land for Settlements Acts, 1894, 1897, 1899, and J 1900 709,490 349,000 02,000 >-1.7 55,490 1 ,31 Oct., 1906 1 April, 1909 j 1 April. 1909 709,490 349,000 02,000 34 34 20,932 13,088 2,170 30 April and 31 Oct. 1 April „ 1 Oct. 1 April „ 1 Oct. 30 April „ 31 Oct. 1 April „ 1 Oct. 1 April „ 1 Oct. 300,000 50,000 200,000 19,000 400,000 j 1 1 April, 1902 1 April, 1905 _ •• • 300,000 56,000 200,000 19,000 1283,000 "(117,000 4 4 4 4 34 12,000 2,240 8,000 475 11,320 4,095 30 June 31 Mar. and 30 Sept. 31 Mar. „ 30 Sept. *Loan may be paid off at any time after loth February, 1907, on six months' notice being given. t One-quarter per cent, over bank rate: varying interest, calculated at 3J per cent. I Treasury bills amounting to £700,000 are not included. §Represents the accrued Sinking Fund in respect of the total amount issued under " The Government Loans to Local Bodies Act, 1880," of which £1,421,800 has been converted into Consolidated Stock debentures. Lands Improvement and Native Lands Acquisition Act, 1894 A30 June, 1901 30 Sep., 1908 New Zealand Consols Act, 1894 r i i Aid to Public Works and Land Settlement Acts. 1896, 1897, 1898, 1899, and 1900 250,000 500,000 15,000 150,000 100,000 100,000 10J.000 100,000 100,000 100,000 100,000 100,000 100,000 05,000 100,000 100,000 438 843 500 25,000 25,000 30,000 30,000 30,000 459,389 2,080,000 1 Feb., 1910 f lFeb., 1902 15 Aug., 1921* 31 Oct., 1903 4 Jan., 1904 15 Jan., 1905 15 Feb., 1905 15 Mar., 1905 17 April, 1905 " 15 May, 1905 15 June, 1905 16 July, 1905 i 15 Aug., 1905 15 Sept., 1905 15 Oct., 1905 21 Nov., 1905 (.22 Dec, 1905 ( 1 Aug., 1908 \ 1 Jan., 1911 I Uan., 1910 / 1 Nov., 1905 1 Dec, 1905 lFeb., 1900 28 Feb., 1900 (,20 Mar., 1900 1 Feb., 1911 •• • .. 459,389 250,000 500,000 15,000 150,000 [-1,105,000, 3J 10,079 8,750 17,500 525 5,250 I 40,775 -j 1 Feb. „ 1 Aug. 1 Feb. „ 1 Aug. 15 Feb. „ 15 Aug. 1 Feb. „ 1 Aug. 1 Feb. „ 1 Aug. 23 April „ 23 Oct. 23 April „ 23 Oct, 23 April „ 23 Oct. 23 April „ 23 Oct. 23 April „ 23 Oct. 31 Mar. „ 30 Sept. 31 Mar. „ 30 Sept. 31 Mar. „ 30 Sept. 31 Mar. „ 30 Sept. 31 Mar. „ 30 Sept. 31 Mar. „ 30 Sept. 31 Mar. „ 30 Sept. Dairy Industry Act, 1898 .. .. -j 1,781 | 50,000 \ 90,000 L 1,781 ■« 62 1 Feb. „ 1 Aug. Government Advances to Settlers Act, 1894 .. -j '- 140,000 i 4 2,000 31 Mar. and 30 Sept. 34 3,150 31 Mar. . 30 Sept. Government Accident Iusurance Act, 1898 2,000 2,000 34 70 1 Feb. and 1 Aug. Less accrued Sinking Fund in respect of " The Government Loans to Local Bodies Act, 1886" 48,791,143 233,392§ 233,392 48,557,751 Totals 49,591,245+ 1,033,494 1,925,310 • ■

8.—6

20

Table No. 4. STATEMENT of the Estimated Liabilities chargeable on the Consolidated Fund (Revenue Account) outstanding on the 31st March, 1892, 1893, 1894, 1895, 1896, 1897, 1898, 1899, 1900, and 1901.

31st March, 1892. 31st March, 1893. 31st March, 1894. 31st March. 1895. 31st March, 1896. 31st March, 1897. 31st March, 898. j 31st March, 1899. 31st March, 1900. 31st March, 1901. Revenue Account. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. I £ s. d. £ s. d. £ s. d. Permanent Appropriations, — Civil List Under Special Acts of the Legislature Subsidies payable to Local Authorities Under the Land Acts, payable to Local Authorities 275 0 0 106 3 0 2,227 0 0 150 0 0 82 0 0 1,042 0 0 370 0 0 22 18 10 897 16 4 437 0 0 9 4 6 959 3 10 350 0 0 155 2 0 1,170 3 0 894 11 8 163 4 6 651 15 0 | 950 0 0 214 8 0 031 5 0 160 17 11 991 15 0 731 14 11 867 12 0 505 0 930 1 4 136 18 0 3,014 10 2 2,693 6 1 2,553 2 1 2,553 2 1 2,553 2 1 2,553 2 1 1,824 17 2 1,824 0 6 1,757 0 1 1,757 0 1 5,622 13 2 3,967 6 1 3,843 17 3 3,958 10 5 4,228 7 1 4,262 13 3 3,620 10 2 1,984 18 5 | 4,348 2 6 3,328 19 5 Annual Appropriations,— Legislative Colonial Secretary Colonial Treasurer Minister of Justice Postmaster-General Commissioner of Customs Commissioner of Stamps Minister of Education Minister of Labour Minister of Native Affairs Minister of Mines Minister of Agriculture Working Railways Public Buildings Minister of Defence Minister of Lands Rates on Crown Lands Valuation Department 06 8 5 1,234 17 0 3,305 0 0 3,018 1 3 7,787 7 1 7,720 13 7 223 1 1 2,888 0 0 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 5 222 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 j 2,689 17 9 ! 150 0 0 i 2,525 6 2 i 19,460 0 0 2,837 0 1 282 17 0 2,333 8 7 15 17 7 3,870 19 10 23 9 0 3,974 13 2 15,912 0 0 3,930 1 8 219 2 7 1,208 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 87 4 11 45 5 10 33 19 4 3,083 0 0 2,247 17 3 : 6,583 4 6 812 6 11 50 0 0 70 0 0 3,605 0 0 3,789 12 2 2,397 14 3 22,689 3 2 17,830 0 0 21,247 0 0 6,218 8 4 4,564 12 3 4,646 10 9 346 1 0 745 3 11 529 16 8 418 0 0 : 651 17 4 1,970 19 7 14919 7 56' 2 8 42 9 0 2,521 16 10 | 2,633 18 10 | 4,335 1 5 74,818 16 6 , 66,169 16 11 ' 74,911 6 0 2,556 5 4 .. 185 0 0 7,580 0 0 j 4,500 0 0 9,925 0 0 15,008 10 10 J 10,175 11 4 4,908 10 5 735 18 4 838 7 9 460 0 0 600 0 0 51 1 2 12,893 9 7 2,653 0 0 2,542 4 7 28 ,'276 0 0 5,750 17 1 500 14 2 1,724 2 11 112 19 0 576 0 0 2,498 19 6 150 0 0 3,357 2 0 ■• 70 14 11 1,815 4 4 50,669 5 0 742 10 0 ! 1,875 0 0 8,000 1 2 138 8 4 i 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 0,659 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 00 0 0 0 0 11 3,202 0 2 90,777 9 3 81 0 0 44,050 0 0 9,587 1 9 280 0 4 980 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 I 101,240 0 8 94,451 1 6 96,960 1 4 ! I !l02,328 3 6 ! 95,489 8 11 111,602 10 2 139,894 13 5 114,655 16 10 ,133, 225 0 2 203,474 7 5 Services not provided for 814 2 9 j 420 4 9 ■ • 522 8 0 I 3 7 6 25 0 0 Totals 100,868 19 10 99,717 16 0 116,387 11 5 98,418 7 7 101,618 1 4 106,706 18 8 143,515 3 7 116,640 15 3 137,576 10 2 206,828 6 10

8.—6

Table No. 5. STATEMENT of the Estimated Liabilities chargeable on the Public Works Fund outstanding on the 31st March, 1892, 1893, 1894, 1895, 1896, 1897, 1898, 1899, 1900, and 1901.

STATEMENT of the Estimated Liabilities chargeable on the under-mentioned Accounts outstanding on the 31st March, 1894, 1895, 1896, 1897, 1898, 1899, 1900, and 1901.

21

31st March, 1892. 31st March, 1893. 31st March, 1894. 31st March, 1895. 31st March, 1896. 31st March, 1897. 31st March, ! 31st March, 1898. 1899. 31st March, 1900. 31st March, 1901. Annual Appropriations — Immigration Railways Roads Waterworks on Goldfields Telegraph Extension Public Buildings .. Lighthouses and Harbour-works Rates on Native Lands Contingent Defence .. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 177,367 4 7 102,579 0 9 2,500 0 0 8,142 0 0 22,782 8 9 248 0 0 101,430 0 0 103,344 1 8 104,581 9 7 110,237 18 10 1,795 17 8 900 0 0 6,716 0 0 9,581 0 0 13,635 0 0 12,407 0 0 763 0 0 954 0 0 185 0 0 185 9 7 127,972 16 10 60,101 7 10 7,860 19 7 13,987 0 0 29,336 15 11 3,626 8 3 287 14 5 96,998 2 11 34,886 17 0 15,265 10 10 4,000 0 0 33,044 18 3 6,573 19 2 110 0 0 106,312 8 4 85,552 0 0 29,910 10 10 10,283 0 0 24,180 7 10 1,884 2 2 110 0 0 11,550 0 0 77,167 7 4 77,870 15 4 268,798 12 2 310,764 9 3 7,135 6 7 6,625 15 8 11,722 0 0 14,806 5 2 j 28,030 0 0 3,229 12 9 3,826 0 0 439 1 2 715 18 11 11,129 0 0 18,450 0 0 155 19 4 103,638 4 0 310,502 16 9 5,375 9 5 ■■ 20,273 0 0 44,346 9 4 3,988 19 10 554 5 8 591,995 19 0 447,388 4 5 2,010 15 0 26,989 0 0 73,375 2 4 10,313 16 7 22 14 8 140,000 0 0 500 0 0 •• •• .. Totals 229,360 7 3 243,009 10 1 243,173 2 10 190,879 8 2 313,870 14 1 275,783 1 2 394,427 5 2 [446,282 19 2 494,895 4 10 1,292,095 12 0 _, I

31st March, 31st March, 1894. 1895. 31st March, 1896. 31st March, 1897. 31st March, 1898. 31st March, 1899. 31st March, 1900. 31st March, 1901. State Forests Account Cbeviot Estate Account Land for Settlements Account Loans to Local Bodies Account Lands Improvement Account Native Lands Purchase Account .. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 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 21,058 9 8 128,304 5 1 31,549 11 4 454 19 7 723 17 7 302 8 0 1,067 16 0 21,83316 1 27,238 1 2 * 3,671 6 4 34,717 16 6 * 2,405 5 4 32,034 4 10 4,82011 0 33,259 0 4 * 131,379 9 2 24,137 7 2 113,988' 2 6 25,768 13 3 * * * Now included in Public Works Fund.

B— 6

22

Table No. 6. STATEMENT showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to the 31st March, 1901.

WAYS AND MEANS. NET EXPENDITURE. Expenditure on — £ s. d. Immigration .. .. .. .. .. 2,147,718 16 4 Public Works, Departmental .. .. .. 459,316 15 5 Railways, including Surveys of New Lines .. 17,168,025 18 9 Roads .. .. .. .. .. 5,563,949 2 3* Land Purchases .. .. .. .. 1,964,969 9 0 Development of Goldfields .. .. .. 686,353 7 8 Telegraph Extension .. .. .. .. 906,158 6 1 Public Buildings .. .. .. .. 2,509,649 17 10 Lighthouses, Harbour- works, and Defences .. 965,613 1 11 Contingent Defence .. .. .. .. 549,960 3 11 Rates on Native Lands.. .. .. .. 64,220 4 2 Thermal Springs .. .. .. .. 14,599 13 2 Charges and Expenses of raising Loans .. .. 1,057,770 16 1 Coal-mines .. .. .. .. .. 10,835 8 0 Interest and Sinking Fund .. .. .. 218,500 0 0 £ s. d. Loans: — Immigration and Public Works Loan, 1870 Immigration and Public Works Loan, 1873 Immigration and Public Works Loan, 1874 General Purposes Loan Act, 1873 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 Zealind Loan Act, 1886 District Railways Purchasing Acts, 1885-86 New Zealand Loan Act, 1888 Native Land Purchase Act, 1892 Lands Improvement and Native Lands Acquisition Act, 1894 Aid to Public Works and Land Settlement Acts, 1896, 1897, 1898, 1899, and 1900 Temporary advances on security of short dated debentures £ s. d. 4,000,000. 0 0 2,000,000 0 0 4,000,000 0 0 750,000 0 0 750,000 0 0 2,200,000 0 0 5,000,000 0 0 8,000,000 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 0 149,700 0 0 £ s. d. 500,000 0 0 34,287,647 0 7 2,285,000 0 0 ■ 665,000 0 0 t 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 30,854,187 7 11 2,705,000 0 0 56,000 0 0 264,657 16 4 19,963 1 3 j 4,963 7 4 i 60,616 3 0 28,116 16 10 2.257 1 9 17,581 5 0 i 506,819 19 3 j Balance on 31st March, 1901,— Cash in the Public Account .. .. .. 7,991 6 5 Advances in the hands of officers of the Government 224,524 11 8 3,605,975 10 9 232,515 18 1 £34,520,162 18 8 £34,520,162 18 8 * Has been redi iced by £89,800 received under section 31 'f " The Government Loans to Local Bodies Act, 1886."

23

8.—6.

Table No. 7. STATEMENT showing the Amount charged to Unauthorised in each Financial Year from 1st July, 1875, to 31st March, 1901.

Authority: John Mackay, Government Printer, Wellington.—l9ol.

Consolidat: ;d Fund.—Revenue Account. Financial Year. Other Accounts. Public Works Fund. Total. Services not provided for. Excess of Votes. Total. 1875-70 .. 1876-77 .. 1877-78 .. 1878-79 .. 1879-80 .. 1880-81 .. 1881-82 .. 1882-83 .. 1883-84 .. 1884-85 .. 1885-86 .. 1880-87 .. 1887-88 .. 1888-89 .. 1889-90 .. 1890-91 .. 1891-92 .. 1892-93 .. 1893-94 .. 1894-95 .. 1895-90 .. 1890-97 .. 1897-98 .. 1898-99 .. 1899-1900.. 1900-1901.. £ s. d. 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 10 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 10,010 1 0 2,288 3 2 1,741 7 10 2,350 7 0 8,985 3 7 22,422 10 10 3,188 17 7 2,258 19 7 3,305 15 11 11,187 13 8 26,367 18 6 £ s. d. 19,195 17 1 13,398 7 0 58,709 17 2 47,406 4 5 18,400 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 10 5 43,257 1 0 70,778 5 11 21,026 16 4 28,283 15 11 7,376 7 4 9,148 0 5 10,229 5 9 24,195 2 9 39,314 13 4 30,408 0 10 00,052 13 7 62,788 3 2 £ s. d. 32,363 1 9 31,790 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 50,444 1 5 52,455 13 0 49,408 13 8 38,679 14 7 47,009 0 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 4 41,573 12 11 39,773 16 9 71,840 7 3 89,156 1 8 £ 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 0 4,754 17 10 522 12 2 1,890 7 5 10,995 9 9 24,726 3 6 4,743 17 10 2,304 8 10 £ s. d. 63,875 11 8 2,197 4 5 22,009 14 0 32,179 1 1 17,096 9 9 34,133 17 3 2,217 9 8 8,137 17 11 31,741 17 10 872 0 11 6,465 17 5 28,633 10 8 30,407 2 3 18,033 2 10 12,287 18 10 7,097 19 9 7,594 1 2 11,149 14 2 1,335 12 11 330 8 1 33,245 2 4 7,051 0 8 53,048 14 0 8,222 10 0 7,990 18 7 17,518 3 7 £ s. d. 99,394 2 7 37,483 14 7 100,452 10 1 94,997 16 3 42,386 5 5 91,554 8 9 58,182 11 6 89,585 15 11 93,323 8 8 53,057 11 9 76,875 8 11 87,302 0 3 107,637 12 10 70,819 0 1 83,588 12 2 99,946 5 7 40,092 11 2 45,929 15 9 11,584 19 5 20,353 19 6 88,892 14 8 59,161 4 6 99,966 4 9 50,300 16 1 79,831 5 10 107,336 12 10 662 7 7