FINANCIAL POSITION OF THE DOMINION. MEMORANDUM BY THE RIGHT HON. THE MINISTER OF FINANCE.

Appendix to the Journals of the House of Representatives, 1921 Session I-II, B-06

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Session I. 1921. NEW ZEALAND.

FINANCIAL POSITION OF THE DOMINION. MEMORANDUM BY THE RIGHT HON. THE MINISTER OF FINANCE.

Laid on the Table of the House of Representatives by Leave.

I have the honour to submit, for the information of honourable members, brief statements showing (a) revenue and expenditure for the eleven months ended 28th February, 1921 ; (b) statement showing the position of the Public Works Fund on the 28th February, 1921; (c) statement of the actual revenue and expenditure for the twelve months ended 28th February, 1921. REVENUE. For the eleven months ended 28th February, 1921, the revenue collected under the various headings was £26,880,887, as follows : — Ordinary Kevenue Account— £ Customs .. .. .. .. .. 7,861,731 Stamp and death duties . . . . . . 3,384,482 Postal and Telegraph .. .. .. .. 2,283,964 Land-tax . . . . . . . . 1,657,587 Income-tax .. . . . . . . .. 3,541,974 Beer duty .. .. .. .. .. 326,192 Eailways .. .. .. .. .. 6,098,572 Kegistration and other fees . . . . . . 194,522 Marine .. .. .. .. .. 50,199 - Miscellaneous.. .. .. .. .. 1,135,182 Territorial revenue. . ... .... .. .. 178,110 National-endowment revenue . . .-. . . 100,448 Other receipts .. .. .. .. ... 67,924 £26,880,887

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EXPENDITURE. The expenditure brought to charge for the eleven months as above was as follows : — Ordinary Revenue Account — £ Civil List .. .. .. .. .. 25,495 Interest and sinking fund .. .. .. 7,544,140 Under special Acts of the Legislature .. .. 3,396,652 Legislative Departments . . .. .. 59,055 Departments of Finance . . . . . . 490,956 Post and Telegraph Department .. .. 2,120,516 Working Railways Department .. .. .. 5,061,998 Public buildings, domains, and maintenance of roads 153,087 Cook Islands .. .. .. .. .. 11,729 Native Department .. .. .. .. 31,426 Justice Department .. .. .. .. 587,760 Mines Department . . ... . . . . 34,498 Department of Internal Affairs . . . . . . 570,958 Mental Hospitals, Public Health, Hospitals and Charitable Aid Departments . . .. 422,884 Tourist Department .. .. .. .. 78,655 Defence Department .. .. .. .. 459,134 Customs, Marine and Harbours, and Inspection of Machinery Departments .. .. .. 238,251 Department of Labour . . . . . . 40,655 Department of Lands and Survey .. .. 287,998 Valuation and Electoral Departments .. .. 70,091 Department of Agriculture .. .. .. 252,078 Education Department .. .. .. 2,256,062 Services not provided for .. .. .. 16,663 £24,210,741 PUBLIC WORKS FUND. On the 31st March, 1920, the available ways and means for public-works £ purposes were .. .. .. .. .. .. 219,502 And additional funds have been received as under :— Finance Act, 1918 (No. 2), section 29 .. .. .. .. 200,000 Finance Act, 1919, section 5 . . .. .. 750,000 Finance Act, 1920, section 15 .. .. .. .. 1,590,000 Transfer from the Consolidated Fund . . .. .. .. 360,000 Miscellaneous receipts .. .. .. .. .. 21,008 Making a total for the eleven months of .. .. .. 3,140,510 A further transfer will be made from the Consolidated Fund of . . 140,000 And further sums are being raised under the Finance Act, 1920 . . 250,000 Making a gross total available for the year 1920-21 of . . 3,530,510 The expenditure under appropriations for the eleven months (excluding separate accounts having ways and means of their own) was. . .. .. £2,160,669 Estimated expenditure for the remainder of the year is 1,099,715 3,260,384 Estimated balance on the 31st March, 1921.. .. .. .. £270,126 It will thus be seen that a large sum has been found for public works during the past eleven months, but it will be necessary to confine the expenditure during the coming year under this heading to urgent and pressing works only.

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Statement of the Revenue and Expenditure for the TWELVE Months ended 28th February, 1921.

REVENUE. The increase in Customs revenue is due largely to the fact that overseas manufacturers were able to fulfil outstanding and current orders with a rapidity which was not anticipated by importers, many of whom are now overstocked. It is therefore certain that imports will be greatly reduced during the coming year, and that the Customs revenue will be reduced in proportion. The Post and Telegraph and the Railway revenues show increases on account of the additional charges imposed in order to meet the payment of higher wages and bonuses arising out of the increased cost of living. EXPENDITURE. A close oversight has been maintained over the expenditure, which is within the appropriations, but with the prospect of reduced revenues it is necessary that the utmost economy should be practised in connection with all State activities and administration. ACCUMULATED SURPLUS. At the 31st March last the accumulated surplus amounted to £17,500,000, This surplus is being utilized for discharged soldiers settlement and other purposes for which loans would otherwise have been necessary. The public debt has thus been saved a very large increase and the taxpayer has been relieved of annual interest and sinking-fund charges which would amount to, roughly, £1,000,000 per annum. The allocation of the accumulated surplus in this manner also provides an investment which produces interest at the rate of 4 per cent, per annum. SURPLUS FOR CURRENT YEAR. I anticipate there will be a surplus at the 31st March next, but the excess Customs revenue will to a great extent account for this. It is certain that the Customs revenue will show a large drop next year. I propose to carry as much as possible of the surplus forward to assist in tiding over that portion of the year when even under normal conditions the expenditure usually largely exceeds the revenue.

Revenue. Amount. I __ Expenditure. Amount. Customs Stamp and death duties Postal and Telegraph .. Land-tax Income-tax Beer duty Railways Registration and other fees Marine Miscellaneous Territorial National-endowment revenue Other receipts.. £ 8,485,965 3,797,473 2,811,743 1,669,884 6,308,994 368,418 6,934.904 233,329 55,662 1,361,248 223,498 100,448 68.000 Permanent Charges— Civil List Interest and sinking fund Special Acts Annual Appropriations— Class Legislative ,, Finance „ Post and Telegraph ,, Railways ,, Public Buildings ,, Native ,, Justice „ Mines.. ,, Internal Affairs ,, Defence „ Customs and Marine ,, Labour „ Lands and Survey , Agriculture ,, Education Services not provided for £ 31,275 7,991,812 4,388,142 12,411,229 64,550 520,559 2,786,387 5,642,185 199,174 34,963 721,503 41,074 1,200,580 546,426 279,739 45,188 374,354 483,789 2,362,920 80,153 15.383,544 32,419,560 27,794,773

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ECONOMIES AND SAVINGS. Heads of Departments/have been instructed that they must make savings wherever possible. Large savings have already been made, and further economies are being effected. For instance, the temporary staff, which at Ist April, 1919, totalled 1,069, had been reduced to 388 at the 31st December, 1920, while as a result of the legislation passed last session, which authorized the transfers from the accumulated surplus referred to above, our annual interest and sinking-fund charges will be considerably reduced. The investment of floating cash balances held in London and the banking legislation of last session also provide an addition to our revenues. A Board consisting of the permanent heads of Departments has been established to co-ordinate and standardize the whole system of purchasing and issuing Government stores and supplies, and in this connection I anticipate being able, later to announce a substantial reduction in expenditure. CONCLUSION. In the last Budget I issued a warning as to the necessity for caution in both public and private finance, and pointed out that we must be prepared to face the troubles and difficulties with which an inevitable reduction in the volume of money would be attended. Conditions have changed as anticipated and the position has to be faced. Ido not, however, regard the outlook as a cause for discouragement, but rather as an opportunity to exercise the virtues of prudence and good judgment. The figures I have placed before you indicate that the financial position of the Dominion is quite sound, and our ability to meet all obligations is unquestioned. Special measures are not so much required as the practice of economy, hard work, and co-operation. If all classes of society co-operate intelligently in maintaining the productive activities of this country, the temporary difficulties to which I have referred will I feel sure be easily overcome. W. F. Massey, Minister of Finance.

Table No. 1. Statement of the Revenue for the Eleven Months ended 28th February, 1921, compared with the Eleven Months ended 29th February, 1920.

Eleven Months ended 28th February, 1921. Eleven Months ended 28th February, 1920. Increase. Decrease. Customs Stamp and death duties ?ostal and Telegraph -and-tax Income-tax Beer duty Railways Registration and other fees .. Marine Miscellaneous rerritorial National-endowment revenue Dther receipts £ 7,861,731 3,384,482 2,283,964 1,657,587 3,541,974 326,192 6,098,572 194,522 50,199 1,135,182 178,110 100,448 67,924 £ 4,206,090 2,931,942 1,568,978 1,545,606 3,602,745 313,177 4,929,683 136,949 37,193 978,801 173,369 112,840 5,288 £ 3,655,641 452,540 714,986 111,981 £ 60,771 13,015 1,168,889 57,573 13,006 156,381 4,741 62'636 12,392 Totals .. 26,880,887 20,542,661 6,411,389 73,163 73,163 6,338,226

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Table No. 2. CONSOLIDATED FUND. Ordinary Revenue Account. Statement showing the Expenditure for the Eleven Months ended 28th February, 1921, compared with that for the eleven months ended 29th February, 1920.

Table No. 3. PUBLIC WORKS FUND. Statement showing Expenditure under Appropriations for the Eleven Months ended 28th February, 1921, compared with that for the Eleven Months ended 29th February, 1920.

G. F. C. Campbell, Secretary to the Treasury. J. J. Esson, The Treasury, Wellington, 10th March, 1921. Accountant to the Treasury.

By Authority : Marcus F. Masks, Government Printer, Wellington.—l92l.

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Eleven Months ended 28th February, 1921. Eleven Months ended 29th February, 1920. Increase. Decrease. Permanent Charges— Civil List Interest and Sinking Fund Under special Acts £ 25,495 7,544,140 3,396,652 £ 20,769 6,801,754 3,121,596 £ 4,726 742,386 275,056 £ Annual Appropriations — Class I.—Legislative ,, II.—Finance ,, III.—Post and Telegraph.. ,, IV. —Railways .. ,, V. —Publio Buildings, &c. „ VI. —Cook Islands VII.—-Native VIII.—Justice IX.—Mines ,, X.—Internal Affairs ,. XI.—Mental Hospitals XII.—Tourists .. XIII.—Defence .. „ XIV. —Customs and Marine „ XV.—Labour ,, XVI. —Lands and Survey .. „ XVII. —Valuation and Electoral ., XVIII. —Agriculture XIX.—Education.. Services not provided for 10,966,287 9,944,119 1,022,168 59,055 490,956 2,120.516 5,061,998 153,087 11,729 31,426 587,760 34.498 570,958 422,884 78,655 459,134 238,251 40,655 287,998 70,091 252,078 2,256,062 16,663 39,005 159,459 1,275,623 3,725,778 118,055 10,704 24,920 455,272 30,061 286,410 533,401 56,992 415,173. 185,986' 35,483 218,602 156,967 586,856 1,924,967 13,660 20,050 331,497 844,893 1,336,220 35,032 1.025 6,506 132,488 4,437 284,548 Il6'517 21,663 43,961 52,265 5,172 69,396 86*876 334,778 331,095 3,003 13,244,454 10,253,374 3,523,251 532,171 Totals 24,210,741 20,197,493 4,545,419 532,171 4,013,248

Eleven Months ended 28th February, 1921. Eleven Months ended 29th February, 1920. Increase Decrease. Class XX Public Works, Departmental ,, XXI. —Railways „ XXII.— Public Buildings ,. XXIII. —Lighthouses, Harbour-works, and Harbour-defences XXIV.—Tourist and Health Resorts ,, XXV.—Immigration .. .. .. ,, XXVI. —Construction, Maintenance, and Supervision of Roads, Bridges, and other Public Works ,. XXVII. —Development of Mining „ XXVIII.—Telegraph Extension „ XXIX. —Contingent Defence „ XXX. —Lands Improvement .. „ XXXI. —Irrigation and Water-supply ,, XXXII.—Plant, Material, and Stores Services not provided for £ 145,675 930,396 406,641 4,572 15,487 (Jr. 64,552 337,181 2,153 215,307 6,480 1,473 37,726 121,887 243 £ 117,649 550,174 342,545 3,011 3,873 Or. 64,954 209,164 1,173 125,335 7,520 2,023 17,799 49,442 £ 28,026 380,222 64,096 1,561 11,614 402 128.017 980 89,972 ■£ 1,040 550 19,927 72,445 243 797,505 1,590 1,590 Totals .. 2,160,669 1,364,754 795,915

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INDEX. PAGE. Accounts, Departmental .. .. .. .. .. .. ... .. xxxvi Accumulated Surplus .. .. .. .. .. .. .. .. iii Advances, State .. .. .. .. .. .. .. .. .. xvi Agriculture .. .. .. .. .. .. .. .. . . xiv Audit Office .. .. . . .. .. .. . . .. ... xxxix Balances on 31st March, 1921 :— Consolidated Fund .. .. .. .. .. .. .. . . iii Public Works Fund .. .. .. .. .. .. .. . . iii Banking .. .. .. .. .. .. .. .. .. . . xxxvi Beer Duty .. .. .. .. .. .. .. .. .. v Butter Equalization Fund .. .. .. .. .. .. . . .. xxx Child Welfare .. .. .. .. .. .. .. .. .. vii Cinematograph-films, Censorship of .. .. .. .. .. . . . . viii Coal-control .. .. .. .. .. .. .. .. .. xxii Conclusion .. .. .. .. .. . . .. xli Consolidated Fund: — Estimated Expenditure, 1921-22 .. .. .. .. .'". ... xl Estimated Revenue for 1921-22 .. .. .. .. .. .. xxxviii Expenditure for 1920-21 compared with 1919-20.. .. .. .. .. ii Result of Year's Operations .. .. .. .. .. .. .. iii Revenue for 1920-21 compared with 1919-20 .. .. .. .. .. ' i Consumptive Sanatoria .. .. .. .. .. .. .. . . vii Conversions —Loan .. .. .. .. .. .. .. .. .. iv Cook Islands . . .. .. . . .. .. .. . . .. xxxi Cost of raising Loans .. .. .. .. .. .. .. . . iv Customs Department .. .. .. .. .. .. .. . . v Customs Tariff, Revision .. .. .. .. .. .. .. ... vi Defence Department:— Defence .. .. .. .. .. .. .. . . . . xviii. Expenditure .. ... .. . . .. .. .. .. .. xviii Naval Defence .. .. .. .. .. .. .. .. xvii Repatriation ~ .. .. .. .. .. .. .. .. xix War Expenditure .. .. .. .. .. .. . . .. xix War Relief Funds .. . . .. .. .. .. .. .. viii Departmental Accounts .. .. .. .. .. .. .. . . xxxvi Dominion Laboratory .. .. .. .. .. .. .. .. viii Economies in Public Service .. .. .. .. .. .. .. xxxvii Education Department: — Education .. ~ .. .. .. .. .. .. .. xxvii School Buildings .. .. .. .. .. .. .. .. xxvii Teachers' Superannuation Fund.. .. .. .. .. .. .. xxviii Estimates:— Expenditure, 1921-22 .. .. .. .. .. .. .. .. xl Revenue, 1921-22 .. .. .. .. .. .. .. . . xxxviii Expenditure: — Details for 1920-21 compared with 1919-20 .. .. .. .. .. ii Estimated for 1921-22 .. .. .. .. .... .. .. xl War .. .. .. .. .. .. .. .. . . . . xix Farm Schools .. .. .. .. .. .. .. .. .. xv Finance, Treasury . . .. .. .. .. .. .. .. .. xxxiv Fisheries .. .. .. .. .. .. .. .. .. .. xxv Five-million Loan .. . . .. .. .. . . .. ~ .. xxxvii Forestry, State .. .. .. .. .. .. .. ... . . xiii Friendly Societies .. .. .. .. .. .. .. .. . . xxiv Frozen Meat, Wool, and Sheep-skins.. .. .. .. .. .. ... xxxi

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PAGE. German Reparation . . . . .. .. . . .. . . . . xxxv Government Insurance Department . . .. .. :.■ .. .. . . xxix Government Printing and Stationery .. .. .. .. . . .. xxvii Government Steamers .. .. . . .. .. .. . . .. xxv Harbour-works .. .. .. .. .. .. .. .. "... xxv Hospital Subsidies .. . . . . .. . . . . . . . . . . viii Housing .. .. .. . . .. .. . . . . . . . . xx Hydro-electric Supply . . . . . . .. . . .. .. . . xxv Immigration .. .. . . .. .. .. .. . . xxvi Imperial Government, Purchase of Supplies for .. . . . . ... . . xxx Imperial Pensions .. .. .. .. .. .. .. .. v Imports and Exports .. ... .. .. .. . . . . .. v Income-tax Receipts .. .. .. .. . . .. . . . . vi Industries and Commerce Department .. .. .. . . . . .. xxi Insurance of Public Buildings .. .. .. . . .. . . .. xxvi Insurance, State Fire .. . . .. .. . . .. . . xxvi Internal Affairs Department . . .. .. .. .. . . . . viii Labour Department .. . . .. . . . . . . . . . . xx Land and Income Tax Department . . .. .. . . . . .. . . vi Land- and Income-tax Receipts . . .. .. .. .. . . . . vi Land-tax, Payment of .. . . . . .. .. .. ... . . xxxix Lands and Survey Department: — Discharged Soldiers Settlement .. .. .. .. .. .. .. xii Kauri-gum Industry .. .. .. .. . . .. .. .. xiii Land for Soldiers .. .. .. .. .. .. . .. xi Land for Ordinary Settlers . . .. .. .. .. . . . . xi Land-settlement .. .. .. .. .. .. .. ... xi Swamp-drainage Reclamation .. .. .. .. .. . . . . xii Lighthouses .. .. . . .. .. .. .. ... .'. xxiv Loans: — Conversions . . .. . . . . .. .. . . . . . . iv Falling due . . .. .. . . . . . . .. . . . . iv Five-million . . .. .. .. . . . . . . . . .. xxxvii Loan Certificates . . . . . . . . . . . . . . . . x Percentage Cost of Raising . . . . .. .. .. . . .. iv Redemptions and Renewals . . . . .. .. ... . . .. iv War Purposes .. . . . . .. . . .. . . . . xxxiv Lodgments and Payments, Treasury . . .. . . .. .. . . iv Maori War Pensions .. .. ..... .. .. .. . . xxiii Marine Department:— Fisheries .. . . .. . . .. .. .. . . . . xxv Government Steamers . . . . . . . . . . . . . . . . xxv Harbour-works .. .. .. .. . . . . . . . . xxv Lighthouses .. .. .. . . .. .. .. .. . . xxiv Medical and Nursing Services for the Backblocks . . . . .. . . . . vii Mental Hospitals . . .. .. .. .. .. .. . . . . vii Miners' Pensions .. .. .. .. .. .. .. .. . . xxiii Mining .. • .. .. .. .. .. .. .. .. .. xx National Provident Fund . . . . .. .. . . .. . . .. xxiv Native Land Settlement . . .. .. .. . . .. . . . . xxxii Native Trustee .. .. . . .. .. .. .. .. . . xxxii Nauru and Ocean Islands .. .. .. .. .. .. .. . . xvi Naval Defence .. . . . . . . .. .. .. .. . . xvii Old-age Pensions .. .. . . .. .. . . . . . . . . xxiii Passports.. .. . . . . . . .. .. . . . . . . viii Payment of Land-tax .. .. . . .. .. .. .. .. xxxix Pensions .. . . .. . . .. .. ■ ■ . ■ . . .. xxiii Pensions Appeal Board .. .. .. .. .. .. .. .. xxiv Phosphates, Supply of .. .. .. .. .. .. .. ... xvi Post and Telegraph Department .. .. .. . . .. . . . . ix Price-investigation Tribunals .. .. .. .. .. .. .. xxi Printing and Stationery Department .. .. . . .. . . . . xxvii

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PAGE. Prisons Department .. .. .. . / .. .. .. .. ix Proposals for Year, Summary of .. .. N .. .. .. .. xl Public Buildings, Insurance of .. .. .. .. .. .. .. xxvi Public Debt .. . . . . .. .. .. . .. .. xxxii Public Health, Hospitals, and Charitable Aid Department .. .. .. .. vii Public Service Superannuation Fund .. .. .. .. .. .. xxviii Public Trust Office .. .. .. .. ~ .. .. xxix Public Works Department .. .. .. .. .. .. .. .. xxv Public Works Fund .. .. . . .. .. .. .. iii Purchase of Supplies for Impenal Government .. .. .. .. .. xxx Railway-construction .. .. .. .. .. .. .. .. xxv Readjustment of Taxation .. .. .. . . .. . . .. .. xxxviii Redemptions and Renewals . . .. .. .. .. .. .. iv Registrar-General .. .. . . .. .. .. .. .. .. viii Relief Funds, War .. .. . . .. .. .'. .. viii Reparation .. .. . . .. . . .. .. .. .. xxxv Repatriation .. .. . . .. .. .. .. .. .. xix Reserve Fund Securities .. .. .. .. .. .. .. .. xxxvi Result of Year's Operations . . .. .. .. .. .. .. xxxix Revenue: — Customs—Estimated, 1921-22 .. .. .. .. .. .. .. vi Details for 1920-21 compared with 1919-20 .. .. .. .. .. i Total estimated, 1921-22 .. .. .. .. .. .. .. xxxviii ■Samoa .. ... .. .. .. , .. .. .. .. .. xxxi School Buildings .. . . .. .. .. .. .. .. .. xxvii .Soldiers :— Land for Discharged .. . . .. .. .. .. .. .. xi Pensions .. .. .. .. .. . , .. .. xxiii Repatriation .. .. . . .. .. .. .. .. .. xix .Stamp Duties Department .. . . . . .. .. .. .. .. xi State Advances Office . . . . .. .. .. .. .. .. xvi .State Fire Insurance .. . . .. .. .. .. .. .. xxvi State Forestry .. .. . . .. .. .. .. .. .. xiii ■State Services .. .. . . .. .. . . .. .. .. xxxvi Sugar Agreement .. .. . . .. . . . . .. .. .. xxi ■Superannuation Funds.: — Public Service.. .. .. .. .. .. .. .. .. xxviii Railways .. . . .. .. .. .. .. .. .. xxix Teachers' .. .. .. .. .. . . .. .. .. xxviii ■Surplus accumulated .. . . .. .. . . .. .. .. iii ■Surplus, 1920-21 ... ... .. .. .. .. .. .. .. iii iSwamp-land Reclamation . . . . .. .. . . .. .. .. xii Taxation .. .. .. .. .. .. .. .. .. .. xxxviii Income-tax .. .. . . .. .. . . . . .. .. vi Land-tax .. .. .. .. .. . . .. .. .. vi Readjustment of .. .. .. .. . . .. .. .. xxxviii Tourist and Health Resorts, Department of . . .. .. .. .. .. xxiv Treasury, The .. .. .. .. . . . . .. .. .. i Treasury Finance . . .. .. .. .. .. .. .. .. xxxiv Valuation ... .. .. .. .. .. .. .. .. xxviii War: — Expenditure .. .. .. .. . . .. .. .. .. xix Loans for War Purposes .. .. . . .. .. .. .. xxxiv Loans raised in the Dominion . . .. . . .. .. .. .. xxxiv Pensions .. .. .. .. .. .. .. .. .. xxiii Relief Funds . . .. .. .. .. .. .. .. .. viii Waste-lands Development . . .. .. .. .. .. ~ .. xi Weights and Measures .. .. .. .. .. .. .. .. viii Western Samoa .. . . .. .. .. .. .. .. .. xxxi Widows' Pensions .. .. .. .. .. .. .. . .. xxiii W T ool Profits, Distribution of .. .. .. .. .. .. .. xxx Year's Operations, Summary of .. .. .. .. .. .. .. xxxix

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Session 11. 1921. NEW ZEALAND.

FINANCIAL STATEMENT (In Committee of Supply, 3rd, November, 1921.) BY THE EIGHT HONOURABLE W. E MASSEY, P. 0., MINISTER OF FINANCE.

Mr. Malcolm, — I have the honour to submit the annual statement of the finances of the Dominion as at the 31st March, 1921, also my proposals for the current financial year. The total revenues of the Consolidated Fund for the year 1920-21 amounted to £34,260,962, whilst the expenditure for the same period totalled £28,128,730, the excess of revenue over expenditure being £6,132,232, more than half of which is due to the extraordinary increase in the value of imports for the twelve months ended 31st March, 1921. TREASURY DEPARTMENT. Ec VENUE. The revenue for the year was estimated at £27,712,700, but the amount collected was £34,260,962, being £6,548,262 in excess of the estimate, or £8,179,622 over the revenue of the previous financial year, as indicated hereunder : —

Revenue for the Year ended 31st March, 1921, compared with the Year ended 31st March, 1920.

i—B. 6.

Year ended 31st March, 1921. Year ended 31st March, Increase. 1920. Decrease. £ 8,408,726 3,745,902 2,640,158 1,688,978 8,248,945 360,525 6,918,492 220,085 56,540 1,584,995 219,193 100,448 67,975 £ 4,830,324 3,344,933 2,096,757 1,557,903 6,369,765 355,403 5,766,016 175,756 42,646 1,204,866 218,757 112,840 5,374 £ 3,578,402 400,969 543,401 131,075 1,879,180 5,122 1,152,476 44,329 13,894 380,129 436 £ Customs Stamp and death duties Postal and telegraph Land-tax Income-tax Beer duty Railways Registration and other fees Marine Miscellaneous Territorial National-endowment revenue .. Other receipts 62,601 12,392 ,8,192,014 12,392 12,392 Totals 34,260,962 26,081,340 8,179,622

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Expenditure. The expenditure of the year, which was estimated at £26,893,497, reached £28,128,730, or £4,346,806 in excess of the expenditure of the financial year 1919-20. The details of this excess are as follow:—

Expenditure for the Year ended 31st March, 1921, compared with the Year ended 31st March, 1920.

II

Year endod 31st March, 1921. Year ended 31st March, 1920. Increase. Decrease. Permanent Appropriations, — Civil List Interest and Sinking Fund Under special Acts Subsidies paid to Local Authorities Territorial Revenue Endowments Old-age Pensions Widows' Pensions Military Pensions War Pensions £ 31,346 7,831,593 1,294,911 164,290 Cr. 13,100 112,934 699,789 187,101 40,198 1,885,663 £ 26,549 7,249,426 1,101,289 161,085 24,275 134,991 698,570 136,730 45,000 1,811,146 £ 4,797 582,167 193,622 3,205 1,219 50,371 £ 37,375 22,057 .74! 517 4,802 12,234,725 11,389,061 909,898 64,234 Annual Appropriations, — Legislative Departments Departments of Finance Post and Telegraph Department Working Railways Department Public Buildings, Domains, and Maintenance of Roads Cook Islands Native Department Justice Department Mines Department Department of Internal Affairs Mental Hospitals, Public Health, and Hospitals and Charitable Aid Departments Tourists Department Defence Department Customs, Marine, and Inspection of Machinery Departments Department of Labour Department of Lands and Survey Valuation and Electoral Departments Department of Agriculture Education Department Services not provided for 65,462 639,784* 2,588,360 6,211,001 225,165 13,789 35,913 725,972 39,634 632,660 464,071 44,500 189,061 1,941,494 4,305,965 164,142 16,498 28,457 571,492 36,637 336,356 556,899 t 20,962 450,723 646,866 1,905,036 61,023 7,456 154,480 2,997 296,304 2,709 92,828 93,620 531,042 292,041 68,858 502,465 227,474 24,762 28,577 64,567 44,540 292,542 81,979 290,800 2,460,116 105,514 40,016 238,365 196,242 818,567t 2,031,825 77,150 4,524 54,177 114,263 527,767 428,291 28,364 15,834,005 12,392,463 4,179,109 737,567 Transfer to Loans Redemption Account of Sinking Funds set free to redeem Debentures Advances to Southland Electric-power Board 400 400 60,000 60,000 Totals 28,128,730 23,781,924 23,781,924 5,149,007 802,201 802,201 Grand totals 28,128,730 23,781,924 4,346,806 * Includes Industries and Commerce Departmen' f Includes Industries and Commerce, now with ] ;, formerly shown in Departmem )epartment of Finance. of Agriculture.

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Surplus for the Year 1920-21. The surplus for the year amounted to £6,132,232, made up as follows : — £ £ Revenue .. ... .. 34,260,962 Expenditure .. .. .. 28,128,730 6,132,232 Add accumulated surplus at the end of the financial year 1919-20 .. .. .. 17,538,977 Total • .. .. .. 23,671,209 Deduct transfers to other accounts — £ Discharged Soldiers Settlement .. 13,330,000 Discharged Soldiers Settlement (Depreciation Fund) .. .. 50,000 Eeserve Fund, London .. .. 1,200,000 Public Works Fund .. .. 500,000 15,080,000 Balance at 31st March, 1921 .. .. £8,591,209 The balance is made up as follows : — £ Cash.. .. .. .. .. .. 4,920,294 Imprests in the Dominion and advances on account of other Governments .. .. .. 185,189 Imprests in London .. .. .. .. 632,236 Investments .. .. .. .. .. 2,853,490 Total .. .. .. £8,591,209 Public Works Fund. The expenditure upon public works amounted to £3.141,197, or £1,120,044 over the expenditure of the year 1919-20. Statement showing the Position of the Public Works Fund as at the 31st March, 1921. £ Balance brought forward on Ist April, 1920 .. .. .. 219,502 Receipts, — Loan-money — Finance Act, 1918 (No. 2), section 29 (aid to £ public works) .. .. .. .. 200,000 Finance Act, 1919, section 5 .. .. .. 750,000 Finance Act, 1920, section 15 (public works) . . 1,940,000 Transfer from Consolidated Fund (section 33, Appro-. priation Act, 1920) .. .. .. .. 500,000 Other receipts .. .. .. .. .. 21,184 3,411,184 Expenditure— 3,630,686 Under appropriation .. .. .. .. 3,140,574 Other expenditure . . .. 439 Charges and expenses of raising loans .. .. 184 3,141,197 Balance at 31st March, 1921 .. .. .. £489,489* * Note. —The balance on 31st March, 1921, is made up as follows : — £ Cash in Public Account .. .. .. .. .'. .. 180,911 Imprests in the hands of officers of the Government .. .. .. 308,578 £489,489

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Redemptions and Renewals. During the year loans amounting to £10,136,657 fell due. Offers of renewal were made in all cases, with the result that £8,358,457 was renewed in debentures and £261,760 in inscribed stock : total renewed, £8,620,217. The amount actually paid off in cash was £1,474,700, leaving a balance of £41,740 unpresented debentures. Funds for redemption were provided by the Treasury out of various accounts, and the liability was taken over later by the Consolidated Fund. Conversions. During the year one hundred and eighty investors took advantage of the conversion scheme authorized by the New Zealand Inscribed Stock Act, 1917. The total sum of £499,650 was converted into inscribed stock, maturing as follows : £9,000 at 5 per cent., 15th November, 1927 ; £324,950 at 4j per cent., 15th November, 1938 ; £165,700 at 4| per cent., 20th April, 1939. Loans falling due. The loans falling due during the seven years ending with the year 1928 are as follow : —

Cost op raising Loans. The percentage cost of raising the respective loans issued in New Zealand is shown in the following table : —■

Treasury Lodgments and Payments. The following tables indicate the volume of the business dealt with by the Treasury: — Lodgments to Credit of Public Account. Increase over 1913-14. £ £ 1913-14 .... .... .... 17,120,240 1919-20 .... .... .... 87,098,113 69,977,873 1920-21 .... .... .... 75,789,719 58,669,479

Year ending 31st March, London. Australia. New Zealand. Total. I 1922 1923 1924 1925 1926 1927 1928 £ 313,00C 55.30C 1,747.20C 37,00C 20C £ 313,000* 55,300 1,747,200 37,000 200 0* 0 0 0 0 £ 953,300 639,450 £ 953,300 639,450 £ i 5,398,440 ' 8,167,406 7,768,615 11,451,876 14,356,712 415,370 2,568,910 £ 5,398,440 8,167,406 7,768,615 11,451,876 14,356,712 415,370 2,568,910 £ 6,664,740 8,862,156 9,515,815 11,488,876 14,356,912 415,370 2,568,910 Totals 2,152,700 1,592,750 53,872,779 50,127,329 * Includes £300,000, New Zealand Consolidalealand at par on 15th August, 1921. id 3J-per-cent. stock maturing 19. ;0, repurchased fro: Bank of New

Authority. Amounts raised to 31st March, 1921. Charges and Cost per Cent. of raising Loans. Expenses. Finance Act, 1915 (Aid to Public Works) Finance Act, 1916 War Purposes Loan Act, 1917 Finance Act, 1918 Finance Act, 1918 (No 2) .. Two Million Public Works Loan, 1920— Electric Power Works Loan Act, 1919 Finance Act, 1919, section 5 Kailways Improvement Authorization Act, 1914 Discharged Soldiers Settlement Loans Act, 1920 £ 2,005,030 11,572,450 23,273,500 13,420,520 4,838,070 £ 5,030 54,667 103,540 20,552 14,843 s. d. 5 0J 9 5£ 8 lOf 3 01 6 If 1,387,510 600,000 12,490 4,450,000* 1 y j 306 0 3| 11,688 5 3 * Amount applied for: includes instalments falling due after 31st March, 1921.

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Payments from Public Account. ~ , ', T . , Increase Number or Increase Amount. iqiq_lzL Vouchers, over 1913-14. £ oVel ia ' 1913-14 .... 196,455 .... 17,106,489 1919-20 .... 377,859 181,404 87,596,662 70,490,173 1920-21 .... 352,319 155,864 73,275,613 56,169,124 The administrative work connected with payment of Imperial pensions, the care and treatment of disabled Imperial soldiers, and matters relating to the pay and allowances of members of the Naval, Military, and Civil Services from all parts of the Empire, which has grown considerably, has now been taken over by the Pensions Department. As the result of the change a considerable economy will be effected. CUSTOMS DEPARTMENT. The estimated revenue from Customs duties, including excise beer duty, for the year ended 31st March last, as compared with the amount actually realized and with the amount collected for the previous year, is as set forth hereunder, viz. :— Estimated Reve- Amount realized, In Excess of Amount collected, nue, 1920-21. 1920-21. Estimate. 1919-20. £ £ £ £ Customs .... 6,000,000 8,408,726 2,408,726 4,830,324 Excise beer 360,000 360,525 525 , 355,403 Totals .... £6,360,000 £8,769,251 £2,409,251 £5,185,727 When the estimate for 1920-21 was made it was anticipated that many delayed orders would come to hand and that there would be a revenue greatly in excess of that of any previous year The estimate was accordingly fixed at £6,360,000 for Customs and Excise beer duty, being over £1,000,000 in excess of the amount realized for 1919-20. As will be seen from the figures, this generous estimate was greatly exceeded, and it is now evident that the quantity and value of the delayed orders have been much in excess of what was expected. The delay was so great in some cases that the delivery of goods was not desired, owing to the fall in prices since the orders were placed. The number of gallons of beer brewed during the financial year 1920-21 was 14,926,626 gallons, and the average duty per gallon was 5-796 d. This is an increase of 376,550 gallons over the year 1919-20. The values of imports and exports during the past four financial years are as follows : — Imports. Exports. £ £ 1917-18 .... .... .... 20,983,612 31,298,270 1918-19 .... ..... .... 26,437,284 32,263,792 1919-20 .... .... .... 32,162,029 50,776,650 1920-21 .... .... .... 67,463,269 48,219,672 The import values represent the fair market value in the country of exportation, plus 10 per cent. Owing to high freights, the actual landed cost considerably exceeds these values. The export values are the f.o.b. values. It will be noted that during the last financial year the value of imports has, for the first time in many years, exceeded that of our exports, and to the extent of over £19,000,000. An analysis of the imported goods shows that the proportion received from Great Britain is 46-4 per cent, of the total value, as against 37-5 per cent, last year and 51-5 per cent, in 1914. The United States has increased from 11-6 per cent, in 1914 to 19-1 per cent. in 1920, while the trade with Japan has dropped from 4-3 per cent, in 1919 to 2-5 per cent, in 1920. It is evident from these percentages that the imports from Great Britain have been inflated by the fulfilment of delayed orders already referred to.

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Estimated Customs Revenue por 1921-22. To enable an estimate to be made of the revenue to be expected from Customs duties during 1921-22, inquiries have been made from merchants in all branches of trade. The consensus of opinion is that, in quantity, the imports will be considerably less than last year's, and that in prices there will be an all-round decline of from 17|- to 25 per cent. In practically all.branches of trade it is estimated that in stock lines of manufactured goods there is a sufficient quantity in the Dominion to meet the requirements of the current year. The comparative shortage of money in circulation will have the effect of causing those requiring goods to purchase, as occasion demands, from stocks held in New Zealand, thereby reducing the amount of imported goods. The revenue for the first two quarters of the current year is £1,577,287 less than that of the first six months of last year, and this may be taken as an indication of the diminished returns expected for the balance of the year. Taking all the foregoing circumstances into consideration, the Customs duties are estimated to produce £4,900,000, and Excise beer duty £500,000 ; bonded-warehouse duty, timber-export duty, and other receipts, £7,000 : total, £5,407,000. Summary. £ Customs duties .. .. .. .. 4,900,000 Excise beer duty .. .. .. .. 500,000 Bonded-warehouse duty, timber-export duty, and other receipts . . .. . . . . 7,000 Total .. .. .. £5,407,000 During the recess a departmental Commission was employed revising the Customs tariff, and resolutions affecting the tariff will be submitted for your consideration this evening. LAND AND INCOME TAX DEPARTMENT. The net receipts in this Department for the past year amounted to £9,937,923 (land-tax, £1,688,978 ; income-tax, £8,248,945) ; and compared with the collection for the previous year show an increase of £2 010,255. Land-tax. The land-tax receipts compared with those of 1919-20 show an increase of £131,075. The comparison is as follows : — £ 1920-21 .... .... .... 1,688,978 1919-20 .... .... .... .... 1,557,903 Increase of .... ..... £131,075 a — — This increase is due principally to the mcreased value of land in districts revised under the provisions of the Valuation of Land Act. Income-tax. The income-tax receipts compared with those of 1919-20 show an increase of £1,879,180. The comparison is as follows : — £ 1920-21 .... .... .... .... 8,248,945 1919-20 .... .... .... .... 6,369,765 Increase of .... ....£1,879,180 The increase is due mainly to the large growth in both the number and the incomes of taxpayers brought about by the increased value of business during the income year ended 31st March, 1920, and in part to the investigation work and closer inspection of taxpayers' returns.

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MENTAL HOSPITALS. The total expenditure for the year under this heading was £377,643, but the credits, mainly receipts for maintenance and sales of produce and stock, amounted to £115,905, leaving a net expenditure of £261,738, an increase of £70,934 over the previous year. Of this increase £31,721 was due to the advance in salaries and wages, and £39,213 is accounted for by the increased cost of supplies. The average number of patients was one hundred more than for the previous year, and the last item divided by the average number in residence gives a cost-of-living increase of £8 Bs. sd. per head. PUBLIC HEALTH, HOSPITALS, AND CHARITABLE AID. Child Welfare. An important step has been taken in the creation of the Division of Child Welfare. This branch has mainly for its object the dissemination of useful information regarding the health of the community, by means of suitable propaganda, lectures, and demonstrations. It will enforce the lessons of preventive medicine. So many diseases and physical ills may be avoided by early knowledge and simple treatment that it is obvious that the new division has a wide and important field of endeavour before it. Already 35,000 copies of a pamphlet containing instructions to prospective mothers have been distributed throughout the Dominion, and lectures, having for their object the instruction in mothercraft and child welfare, are being given in all the principal centres and in the schools. Closely related to the work of the new division are the activities of the Royal New Zealand Society for the Health of Women and Children. This society has been substantially assisted by the Government, the grant for 1920-21 amounting to £10,920, as against £4,774 in 1918-19. Under the provisions of the Health Act of 1920 the Division of School Hygiene and the Division of Dental Hygiene have been brought within the Department's activities. The Act provides for the co-ordination of the Department and the local authorities in sanitary inspection and the prevention of infectious diseases. The quarantine stations have been put upon a much more efficient basis during the past year, and only a small expenditure will now be required for upkeep. Medical and Nursing Services for the Backblocks. Hospital Boards are being urged to make better provision for maternity work for the outlying portions of their districts, and to provide facilities in connection with cottage hospitals for maternity patients. The Act of last session gives the power to call upon Hospital Boards to provide the necessary medical and nursing services in the outlying portions of their districts, a matter which many Boards were inclined to neglect. Any expenditure in the above direction is contributed to by way of subsidy. The better co-ordination of the nursing services, which are undertaken by various departmental, Hospital Board, or voluntary organizations is receiving attention. Such co-ordination is required to prevent overlapping of functions, particularly in the larger towns, also to enable nurses to be spared for outlying country districts where they are needed. The necessity of securing a substantial decrease in the figures of maternity mortality is fully recognized, and measures are being undertaken in this direction. Consumptive Sanatoria. The Pukeora Military Sanatorium has been taken over by this Department, and will provide ample accommodation for all male cases in the North Island. Steps are accordingly being taken to close Te Waikato Sanatorium, which is badly situated and expensive to administer. The Otaki Sanatorium has for some time been devoted to the treatment of female patients. In the South Island the North Canterbury Hospital Board Sanatorium can accommodate all cases from Canterbury and the northern parts of the South Island ; and an endeavour is being made to establish, with the co-operation of the various Boards concerned, a sanatorium in Central Otago for the southern part of the Island.

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Hospital and Charitable Aid. An increase of about £20,000 is estimated this year for subsidies to Hospital Boards. The increase is due entirely to a large number of outstanding claims, which were not received until after the close of the last financial year, and consequently require to be provided for on this year's estimates. Hospitals. Details of hospital expenditure are now being subjected to a much closer scrutiny than formerly, and increased efficiency and economy should be the result. A scheme has been initiated whereby crippled children, and especially those suffering from infantile paralysis, are able to obtain treatment at the Military Hospitals at Rotorua and Trentham. At the present time upwards of 140 children, in addition to this special medical treatment, are bein?; educated in the special schools that have been established by the Education Department at the hospitals mentioned. A Hospital Commission sat during the recess to consider certain hospital matters which were referred to them, and especially the question of subsidies to Hospital Boaids. The report has been submitted, and amending legislation will be introduced dealing with many of the recommendations. DEPARTMENT OF INTERNAL AFFAIRS. Dominion Laboratory. The receipts during the year were as follows : For analyses, £94 ; for licenses under the Explosive and Dangerous Goods Act, 1908, £687 ; charges for storage of explosives in Government magazines, £978. Censorship of Cinematograph-films. Films to the number of 3,146, containing 4,920,000 ft., have been examined by the Censor. Of these, thirty-eight were rejected, while excisions were made in 240. "A" certificates — i.e., recommending the picture as being more suitable for adults than for children —were issued in 105 cases. The revenue amounted to £1,544, which is in excess of the expenditure. Registrar-General's Office. The revenue of this Office for the last financial year amounted to £19,569, being an increase of over £1,000 on the revenue for the previous year. This is a record for the. Department. Weights and Measures. The fees collected in connection with the administration of the Weights and Measures Act, 1908, amount to £379. Passports. Fees collected for the issue of passports amount to £2,078. The total for renewals is £35. War Funds Office. The following are particulars of the funds : — £ In the hands of approved incorporated societies .. 1,100,000 New Zealand War Relief Fund .. . . .. 661 Convalescent Home Account . . . . .. 1,280 War Expenses Account . . . . .. .. 1,437 New Zealand Comforts Account . . . . .. 1,475 Sundry small accounts .. . . . . .. 86 New Zealand National War Funds Council .. 38,000 On transfer to New Zealand National Wax Funds Council .. .. .. .. .. 55,000 In the hands of the High Commissioner, now the subject of reallocation .. .. .. 29,806 £1,227,745

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PRISONS DEPARTMENT. The building operations of this Department were somewhat restricted for the greater part of the year owing to the general shortage of cement and timber. To meet the difficulty experienced in housing married officers the erection of a number of residences has been commenced on the prison reserves in the different centres, and with increasing supplies of material it is hoped that some will soon be ready for occupation. Farming operations on the Department's properties have been carried on vigorously, with the result that it has been found possible to build up the dairy herds, and thus increase very materially the total yield of butterfat. The gross receipts obtained from this source for the financial year were £4,293. Sales of stock and farm - produce realized £8,746. Prison industries, including the manufacture of concrete blocks, tiles, flagstones, &c, sale of crushed metal and similar material, brought in a total of £11,652, while for prison labour employed upon various prison buildings and other works a further credit of £6,856 was obtained. The total cash earnings of the Department for the financial year amounted to £46,863, but as moneys due from other Departments to the amount of £7,727 were not credited to the Prisons vote until after the 31st March the revenue for the year will be shown as £39,136, an increase of £7,959 over the total earnings of the previous year. The total expenditure for the year was £88,309. The estimated value of prison labour employed upon various works for which no payment of any kind was received was £20,243, while the net value of the labour required to carry on the ordinary prison industries, such as the making of boots and clothing for officers and prisoners, domestic work, and gardening, at the various institutions was £26,029. The total value of prison labour for the twelve months may therefore be assessed at £85,048. The increased earning-power of the Department has enabled it to meet without difficulty the additional expenditure caused by the payment of wages to prisoners. The new system which constitutes a complete departure from, the methods followed by the majority of Prisons administrations, came into operation on the Ist January last. The monetary payments have been of great assistance to a number of those who had been deprived of their breadwinners. The total amount expended under this head for the three months ended 31st March was £451. This expenditure is somewhat below the estimate, but it is essential that the system should be carefully administered and that the greatest care should be exercised to prevent abuses. POST AND TELEGRAPH DEPARTMENT. The amount of revenue collected by the Department during the year was £2,640,158. The benefit of the increased rates affected the revenue for only eight months of the year. The principal items were —Postage, £1,253,513 ; telegrams, £691,484 ; telephone-exchange receipts, £533,535. The Post Office Savings-bank business for the year ended 31st March shows marked expansion, the deposits totalling £35,031,244. The withdrawals were £32,803,888, leaving an excess of deposits over withdrawals of £2,227,356. The balance standing to the credit of depositors on the 31st March, 1921, was £43,352,031, compared with £19,048,029 at the end of 1914. The interest credited to depositors for the year 1920 and the first quarter of 1921 was £1,818,534. From the Ist January, 1921, an important alteration was made in providing depositors in. the Savings-bank with greater benefits in regard to the interest credited to their accounts. Prior to the Ist January interest was not paid on the amount of an account exceeding £.1,000. Now interest is paid up to £5,000. Four per cent, is now paid on an account up to £500, instead of only up to £300 previously, and 3j per cent, is now paid on so much of an account as exceeds £500 but does not exceed £5,000, instead of on so much as exceeded £300 but did not exceed £1,000 previously. The change has been fully appreciated by the public.

ii—B. 6.

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The aggregate number of money-orders and postal notes issued was 2,958,326, and the amount paid out, £5,468,260. The sale of war-loan certificates by the Post Office has reached the sum of £4,613,203. These certificates have been withdrawn from sale, and Post Office investment certificates substituted; the sales of the latter up to the 31st March amounted to £160,636. Full details of the Department's finances and particulars of its business will be found in the Annual Report. Owing to the non-arrival of a large quantity of material essential for the carrying-on of telegraph and telephone construction and maintenance works, a sum of about £200,000 will have to be carried forward to the vote for 1921-22. This material is now coming to hand, and will somewhat inflate the vote " Telegraph extension " for the year 1921-22. The total amount expended for the year out of vote " Telegraph extension " for the construction of telegraph and telephone lines was £336,468 ; and the sum of £143,526 was expended in maintaining in efficient and working order the existing telegraph and telephone lines and cables. The difficulty in obtaining adequate supplies during the last few years has resulted in the Department being considerably in arrear with its telegraph and telephone extension programme, as well as with important maintenance works. The year closed with a waiting-list of 7,374 applications for telephone-exchange connections, and twenty-five exchanges awaiting erection. In spite of the conditions now prevailing, it is hoped that with the arrival of the material referred to the arrears of work may be overtaken. The number of subscribers to the telephone-exchange system has, even under the difficulties referred to, increased by 8,785. Of these 1,753 were connected on the party-line system, involving the erection of 447 party-line circuits, many of which provided much-needed telephone service in scattered rural districts.. "The telephone-exchange system has increased by 335 miles of poles, 4,067 miles of open aerial wire, and 58 miles of telephone cable of various sizes, each, cable containing from 52 to 1,200 wires, and comprising in the aggregate 15,499 miles of wire. Five new telephone exchanges were opened during the year, and fiftyfive exchanges were provided with additional switchboard' accommodation. An automatic telephone exchange, having a capacity of 2,000 lines, was opened at Hamilton, replacing, with the very latest product of modern telephone engineering, an obsolete manual switchboard. Extensions to existing automatic or manual apparatus were made at all the principal centres, in order to relieve the situation as far as possible until those centres can be converted wholly to automatic working, which has been delayed to a large extent by the non-completion of buildings and the non-arrival of suitable automatic - switchboard apparatus. The installation of automatic exchanges is now proceeding at Auckland, Palmerston North, Wanganui, Kelburn (Wellington), and Oamaru. New central automatic exchanges are being considered for Dunedin and Wellington ; and a central exchange building is in course of erection at Christchurch. Owing to the shortage of materials, the development of the telephone system has necessarily been handicapped in this, as in other countries. Every effort is being made to provide for all requirements as speedily as conditions will permit. The telegraph and interurban toll circuits were supplemented by the erection of 266 miles of poles and 1,121 miles of wire, in addition to which 3,361 miles of line were overhauled or reconstructed. The installation of automatic printing telegraphs has been delayed owing to the non-arrival of the greater part of the apparatus, which is long overdue. A portion of the necessary material has now been received, and staffs are being trained in anticipation of the early introduction of this up-to-date system. The Chief Telegraph Engineer has returned from a visit abroad, during which he made a careful investigation into the telegraph and telephone systems, methods, and rates in operation in other parts of the world. A report embodying his principal recommendations will be submitted to Parliament, from which it will be seen that considerable improvements in both telegraph and telephone methods,

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combined with economies in various directions and increased efficiency, may be expected.' STAMP DUTIES DEPARTMENT. This Department has, from a revenue-producing point of view, made rapid progress during the last ten years; the net revenue for 1910-11 was £819,839, whereas for the year 1920-21 it reached £3,745,902. The sources of revenue include stamp duties, death duties, totalizator-tax, amusements-tax, bank-note tax, land transfer and deeds registration, registration of companies, building societies, industrial and provident societies, Sharebrokers Act, Dairy Industries Act, Mining Companies Act, &c. Very soon after hostilities ceased an abnormal wave of speculation in landed property took place. This had the immediate effect of increasing the revenue derived from conveyancing. Now that the buying of land has become so greatly reduced in volume the revenue is expected to show a sharp decline during the current year. LAND-SETTLEMENT. During the year 57,927 acres were acquired by the Land for Settlements Department under the provisions of the Discharged Soldiers Settlement Act, 1915, at a cost of £843,162, and 22,023 acres for individual soldiers at a cost of £434,809, under section 3 of the Discharged Soldiers Settlement Amendment Act, 1917. There has been a considerable falling-off in the demand by discharged soldiers for rural and pastoral lands, and a number of blocks regarded, as being very suitable for soldier-settlement have met with little or no demand. This has been more noticeable in the South Island than in the North, where there is still a fair demand for first-class dairying-lands. A large area was proclaimed for selection by discharged soldiers, but as it has been lying open for some considerable time without inquiry the Government decided that such lands should be withdrawn from selection by discharged soldiers only, and opened for application by the general public, preference being given to any discharged soldier who may apply. It is probable that most of these lands will be offered for general application within the next few months. Land has been acquired for returned soldiers either under the Discharged Soldiers Settlement Act or the Land for Settlements Act, and ordinary Crown lands have also become available from time to time. In many cases the soldiers have been granted loans to enable them to purchase private lands. The total area proclaimed under the Discharged Soldiers Settlement Act, 1915, up to the 31st March, 1921, was 1,321,091 acres, of which 437,790 were proclaimed during the past year; and during the same period seventy estates, comprising 171,898 acres subdivided into 6,430 holdings, were opened for selection, the bulk of the sections being disposed of. Owing to the adverse conditions which have been ruling lately a number of tenants have been considerably embarrassed financially, and in order to tide them over the present troublesome times the Government found it necessary to grant postponement of rent in cases where sufficient reason could be shown for so doing. The result of this policy is that the tenants have been enabled to carry on, and it is hoped that they will be able to meet their liabilities with the return of better prices for stock and produce. At the present time six acquired estates, totalling 7,124 acres, are being prepared for selection by discharged soldiers, and will be offered within the next few months. Waste-lands Development. Two large blocks have been prepared for settlement under the waste-land development system —one, near Riverhead, containing some 10,000 acres, subdivided into sixty-five sections, and another area between Rotorua and Taupo, but owing to the financial stringency their settlement is being delayed.

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Discharged Soldiers Settlement Account. The following statement shows the extent of the financial operations in regard to loans authorized and advances made under the Discharged Soldiers Settlement Act up to the end of the financial year : — Advances Section 6, Discharged Soldiers Settlement Act, 1915: Authorized. made _ Advances on current account: — £ £ 3,326 returned soldiers .. .. .. 3,206,674 2,390,740 Section 2, Amendment Act, 1917 : Advances towards purchase of farms, market-gardens, orchards, &c, and the discharge of mortgages : — 5,331 returned soldiers .. .. .. 8,512,874 8,280,037 Section 2, Amendment Act, 1917 : Advances towards the purchase and erection of dwellings, and discharge of mortgages thereon : — 9,196 returned soldiers .. .. .. 6,222,432 5,586,009 17,853 returned soldiers .. .. .. £17,941,980 £16,256,786 Repayment of principal . . £904,313 Transfers to Realization and other Accounts —securities in course of realization .. 15,996 , 920,309 Balance out on mortgage .. £15,336,477 The gross receipts for the year amounted to £1,229,492. Of this sum. £726,172 represents repayments of loans, while receipts in respect of interest and sundries total £503,320. Owing to the large number of applications received last year from returned soldiers for loans to assist them either to purchase and farm their properties or provide them with residences on easy terms, the financial authority under section 3 of the Discharged Soldiers Settlement Loans Act became exhausted, and Parliament passed legislation enabling the Government to raise an additional amount if required. In order that funds might be conserved the granting of loans for the purchase of single farms was restricted to cases where the withholding of the same would have caused serious financial embarrassment, with possible loss of capital to soldiers. In order that the Government might afford relief in the matter of houseshortage, loans were granted to applicants for the erection of dwellings and, where necessary, the purchase of building-sites. In a few cases of distress loans were also granted to assist in purchase of dwellings. Where it is abundantly clear that soldier settlers are deliberately evading payments under their mortgages and are neglecting their properties, steps are taken to either arrange for transfers to other suitable returned soldiers or to realize by exercise of power of sale. Swamp-drainage Reclamation. Considerable progress has been made with the various operations necessary to adequately drain and road the various schemes in hand, and as soon as areas were prepared for settlement they were opened for selection. Continued attention is being paid to the improvement of the areas selected in the past, this being necessary as consolidation takes place. Active work will be undertaken shortly in connection with reclamation of Hikurangi Swamp, as the plant is arriving from overseas. The possibilities of reclaiming large areas in Southland and Westland are being now, examined by field parties. In accordance with the policy of the Government, standard - type. machines, comprising floating dipper dredges, dry - land dippers, walking and caterpillar

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traction, drag-line excavators, and steam-navvy, together with petrol locos, and rock-drilling plant, Were purchased by the Chief Drainage Engineer during his visit to America. The acquisition of these plants will considerably expedite operations. Kauri-gum Industry. Early in the year the manufacturers found themselves with orders but no stocks of raw materials. The result was that orders for kauri-gum poured in and prices rose with the demand. In October and November the highest prices ever paid for kauri-gum were freely offered. Then came the trade depression abroad, and the demand at once ceased. At the beginning of 1921 prices had receded in some cases to the extent of 50 per cent., and there were few buyers even under those conditions. Owing to the general depression the large buyers and exporters have been virtually out of the market, and it has remained for the Government to purchase heavily throughout the various gum-digging centres so as to help the industry. As a result purchases for the year exceed £33,000, an amount far in advance of previous figures. Sales of gum, a fair proportion of which went to London, amounted to £39,205. Everything possible should be done to put this industry on a more stable footing. The question is one that received very careful consideration by the Royal Commission set up to inquire into the industry, and much good is' likely to result from the investigation then made. STATE. FOREST SERVICE. During last year the preliminary organization of the State Forest Service was undertaken, as outlined in the Director's report to the Commissioner of State Forests and which has been presented to Parliament. This important work has involved the subdivision of the country into conservation regions, the appointment of the necessary preliminary skeleton staff, and the securing of office accommodation and. equipment. Under the authority of the State Forests Amendment Act, 1919, 1,518,756 acres of national-endowment lands have during the year been proclaimed provisional State forests, and under section 34 of the War Legislation and Statute Law Amendment Act, 1918,269,252 acres of Crown land have been similarly proclaimed. With areas previously proclaimed the total area of provisional State forests is now 5,134,651 acres. These provisional State forests will be carefully examined by Forestry officers, and areas found to be more suitable for settlement will, after disposal of the timber, be withdrawn, from reservation and made available for settlement. Proposals to ensure the future efficient management of permanent State forests are now being prepared by the Director of Forestry. At the plantations the total area planted with exotic timber-trees during the year was 1,381 acres. This area is the smallest planted for some years, and this is accounted for by the fact that the plantations had not received proper attention during the war. Work was therefore largely devoted to replanting and consolidating the area previously planted. The net expenditure for the year was £79,551, an increase of £12,732 on the previous year's figures. The increase is due mainly to the increased rate of wages, the purchase of technical instruments, materials, office fittings, and the building operations at the plantations. Much of this expenditure will, however, be nonrecurring. The revenue was £19,697, an increase of £11,183, and was derived mostly from royalties. The borrowing-powers under the Finance Acts of 1916 and 1918 were increased under section 16 of the Finance Act, 1920, by £250,000, the total authority now being £500,000. The unexpended balance of the total authority at the end of the financial year was £300,000, which at the present rate of expenditure will be sufficient for three years, but this does not allow for the purchase of timber-bearing lands. To allow the carrying-out of predesigned plans for systematic forest management over a number of years it is advisable that suitable financial provision should be made.

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In order that men with full technical training in forestry may be available for employment as officers in the State Forest Service it is essential that a School of Forestry be established at the earliest possible date in connection with one of the University Colleges. DEPARTMENT OF AGRICULTURE. The 1920-21 financial year marked the end of the Imperial Government purchases of wool, frozen meat, and dairy-produce. The wool market has unfortunately been very depressed, but there are present evidences of an improvement in prices which are encouraging. The frozen-meat market after the termination of the Government purchase proved less satisfactory than was anticipated. While all classes of exportable produce have been heavily burdened by high shipping-freight charges, it may be said that frozen meat has suffered to the greatest extent. It had been thought that an additional market for our frozen meat would have been found in America, but this market proved a disappointment; and, moreover, a large quantity of lamb and mutton sold by the Imperial Government to American buyers was reshipped to London, where it naturally affected the market for privately owned meat shipped direct from New Zealand. Notwithstanding this temporary drawback, selling-prices of lamb at the market end have remained good, and there seems reason for being hopeful as to the outlook for lamb for the coming season. Dairy-produce maintained a high standard of values throughout the year, and the monetary return accruing constituted a marked feature of the Dominion's income. Markets for some subsidiary products —tallow, pelts, hides, canned meats —fell heavily, but those of dairy origin (casein, dried and preserved milks, &c.) maintained good values. It is anticipated that the fall in values of tallow, pelts, hides, and canned meats will be succeeded by gradually improving markets as accumulations are disposed of and consumption becomes normal. In connection with exports of primary products mention must be made of the shipments of fruit sent to England. These were under a guarantee from the Government of a minimum price to the shipper (either a bona fide grower or a growers' co-operative organization), and sold at prices which rendered any guaranteed payment unnecessary. Some small shipments of fruit were also made to Honolulu, where about three thousand cases of apples were sold at satisfactory prices. Another useful export industry, in a restricted degree, is that of honey. The flax industry has not been encouraging. To ensure the future of this industry flax-millers must, if possible, raise the standard of quality of their output. The quantities and assessed values of the principal primary products exported during the year were as follows (it should be noted that a considerable proportion of the wool and meat, and almost the whole of the butter, were shipped on Imperial Government account): — „ i# . Values. 1 ' Quantities. „ Wool .. .. .. .. .. 155,519,094 Ib. 10,297,340 Frozen meat — Mutton .. .. .. .. 2,720,000 cwt. 6,444,213 Lamb .. .. .. .. 1,342,193 cwt. 3,994,398 Beef .. .. .. .. 810,322 cwt. 1,834,113 Mutton and lamb joints .. .. 20,493 cwt. 55,450 Canned meats .. .. .. .. 114,039 cwt. 523,759 Butter .. .. .. .. .. 476,730 cwt. 6,114,464 Cheese .. .. .. .. .. 1,208,263 cwt. 6,514,519 Casein .. .. .. .. .. 36,310 cwt. 134,085 Dried milk .. .. .. .. 14,635,675 Ib. 876,833 Tallow .. .. .. .. .. 31,626 tons 1,853,753 Pelts .. .. .. .. .. 24,451,045 Ib. 2,661,517 Hides .. .. .. .. .. 272,213 number 845,873 Other animal by-products .. .. .. 395,819 Flax .. .. .. .. .. 16,232 tons 553,246 Fruit .. .. .. .. .. 1,400,369 Ib. 15,082 Honey .. .. .. .. .. 854,9181b. 30,962 Total .. .. .. .. .. .. £43,145,426 The value of the total exports from all sources was £48,219,672.

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In regard to cereal crops, a larger area has been sown in wheat than in the previous year, the comparison being—l9l9-20, 142,000 acres ; 1920-21, 213,900 acres (estimated) ; or an approximate increase of 71,900 acres. There has been a decrease in the area under oats, the acreage being—l9l9-20, 576,000 acres ; and 1920-21, 468,700 acres (estimated). The yields for both crops so far have been good, the latest figures available showing 32-96 bushels per acre for wheat and 36-71 for oats. Prices for oats and barley have shown a marked decline, on account of the considerable carry-over of both these lines from the previous season. As regards the live-stock in the Dominion, the 1919-20 sheep returns show a decrease of 1,914,048, thus bringing our aggregate number of sheep back to the level existing in the year 1912; and the interim returns for 1920-21 show a still further decrease. One point to be borne in mind in connection with this is the increased area devoted to dairying and to cereals, which has considerably reduced the amount of grazing-country available for sheep. A further increase in the number of cattle has taken place. The fruit industry continues to develop in spite of the serious handicap brought about by war conditions, which, amongst other things, caused a cessation of shipments to South American ports, where a good market was being built up. It is satisfactory to note that there is every probability of shipping being again available for this trade. The principle of co-operation is extending among fruitgrowers, and, given all-round wise and businesslike management, this movement will prove of material advantage in building up this industry. The poultry industry is making good progress, and if it continues to develop as at present it will become an increasingly valuable asset to the Dominion. In view of present-day conditions it is obvious that our volume of exports must be kept up to the highest possible standard, both as regards quantity and quality. Farming-methods in the Dominion are good ; yet there are many matters in connection with them in which the application of technical knowledge to everyday farming practice can be of material aid in increasing and improving the output. During the year the services of the Department's expert and instructional officers have been freely availed of by the farming community. In conjunction with the technical branch of the Auckland Education Board, farm schools for teachers and farmers have been successfully held at Ruakura Farm of Instruction. The demand for vacancies as learners, and from returned soldiers for tuition in farming, is still very marked. Including the gross returns from the State farms, but excluding the wool produced which is still held on the premises, the revenue to the Department amounted in the aggregate to £67,770, to which must be added £26,355 which has to be paid into special accounts, thus making a total of £94,125. Details of the receipts are as follows :— 1. Sales of stock and produce from experimental farms and areas, also horticultural and £ poultry stations .. .. .. .. .. .. .. .. 38,782 2. Quarantine-stations sustenance fees, &c, for imported live-stock .. .. .. 2,452 3. Sale of poison for destruction of rabbits .. .. .. .. .. 9,164 4. Fees for semi-official testing of pure-bred dairy cows and cow-testing associations .. 3,587 5. Dairy-produce-grading fees .. .. .. .. .. .. .. 695 6. Sales of Journal of Agriculture and photographic material.. .. .. . . 3,109 7. Fees for testing of seeds .. .. . . .. .. .. .. 533 8. Fees for fumigation and destruction of imported diseased fruit .. .. .. 323 9. Miscellaneous .. .. .. .. .. .. .. .. 9,125 £67,770 To enable the Department to meet the shortage of winter supplies of butter by purchases for local consumption, a vote of £300,000 was taken. The total actual expenditure under this item was £331,872, while the total proceeds of sales by the Department amounted to £332,763. In addition, the undermentioned revenue, totalling £26,355, was received. These sums are not credited to the Department's

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vote, but are treated as credits to the various Acts named which are administered by the Department:— £ 10. Slaughtering and Inspection Act: Meat and inspection fees .. .. .. 19,364 11. Dairy Industry Act: Dairy registration fees .. .. .. .. .. 1,928 12. Orchard and Garden Diseases Act: Nursery registration fees .. .. .. 480 13. Stock Act— £ Brand registration fees .. .. .. .. .. 2,298 Proceeds from sale of condemned stock .. .. .. . . 2,285 4,583 £26,355 Owing to the depreciation in values of farm-produce, credits to the vote may be expected in the current financial year to be less than in the preceding year. A large proportion of the expenditure was incurred in the inspection of stock, dairies, rabbits, and noxious-weeds. Whilst giving no direct monetary return, these services are of indirect value to the Dominion, in enabling its output of exportable primary products to be maintained to the best advantage. With the hearty co-operation of farmers this expenditure could be reduced and the services of capable officers diverted to development work. An additional responsibility has been entrusted to the Department in the handling of business in connection with phosphate from Nauru and Ocean Islands. The preliminaries in connection with the transfer of the Pacific Phosphate Company's interests in the phosphate deposits on these islands to the Governments of Great Britain, Australia, and New Zealand were rather lengthy, but the Commissioners appointed by the three Governments concerned have now full control of the undertaking. Abnormal conditions have prevailed in the fertilizer-market, which have militated against the full use of this source of supply. In the early part of 1920 supplies of fertilizers were short, and eagerly sought in every market. The same factors which operated in. respect of other commodities applied in the case of the fertilizer trade, and the world-wide depression found importers with heavy stocks of high-priced fertilizers in the face of a reduced demand and falling values. This restricted dealings in the Nauru and Ocean Islands product, but orders are now coming in. The price at which the Government is able to offer the rock is much below the price previously ruling. It is anticipated that from now onwards the volume of business will steadily increase. In terms of the Nauru agreement the phosphate business purchased is required to pay interest and sinking fund on the amount advanced for the purchase, and a first payment on account of interest and sinking fund has been received by the Government from the undertaking. The decrease in the aggregate vote of the Department is due to the removal to another account of the expenditure incurred in connection with the Board of Trade and the Industries and Commerce Department, which previously had been included in the vote for the Department of Agriculture. STATE ADVANCES OFFICE. It will be seen from the annual report and balance-sheet presented to Parliament that this Department is still lending money to settlers, workers, and local bodies for their various purposes at 4| per cent., a rate of interest which, under existing conditions, is extraordinarily low. Although the financial stringency has caused very heavy demands to be made on the funds of the Office, honourable members will be pleased to learn that owing to the exercise of care by the Board during the war period the Office has been able to continue its operations without interruption. During the past year 2,077 settlers have been assisted to the extent of £1,105,430, under those provisions of the Act which authorize the granting of loans to settlers. Workers also continue to take advantage of the Act, and loans were granted to 1,560 applicants, amounting to £718,550, during the year.

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The rate of interest to both settlers and workers is 5 per cent., less \ per cent, if payment is made within fourteen days of the due date, and it is a noteworthy fact that despite the financial stress the half-yearly payments have been paid as promptly as usual. This is due, no doubt, to the provision for granting J per cent, rebate for prompt payment. The total sum lent to local bodies during the year was £689,225 at 4j per cent. A very large amount of money has been lent by this Department during the past two years to assist persons in the purchase or erection of homes, as will be seen from the following table : — Loans authorized from Ist April, 1919, to 31st March, 1921. To build houses or purchase homes — £ To settlers .. .. .. .. .. 2,269 1,129,990 To workers .. .. .. .. .. 2,641 1,139,185 To release mortgages on home properties— To settlers .. .. .. ... .. 561 205,905 To erect workers' dwellings— To local authorities .. .. .. .. 59 317,700 , £2,792,780 It will thus be seen that for housing purposes this Office has within a period of two years loaned the large sum of £2,792,780. From the date the Department first commenced business (March, 1895) to the 31st March, 1921, the amount paid over is as follows :— To settlers .. .. .. .. .. 19,826,040 To workers .. .. ..- .. .. 4,446,685 To local authorities . . .. .. . . 3,856,570 £28,129,295 After deducting the repayments from this total, the amount of mortgages outstanding on the 31st March last was £13,876,165. The record of this Department since its inception in 1895 is worthy of notice. NAVAL DEFENCE. The "Chatham." The light cruiser " Chatham," presented as a free gift to the New Zealand Government, commissioned at Chatham on the Ist October, 1920, and left England on the 21st idem, arriving in New Zealand waters three months later, having visited certain of the Pacific islands, including British Samoa, en route. She is commissioned with a reduced complement of 353 instead of a full complement of 495, in order to avoid expense and to admit of absorption of the New Zealand recruits when trained. After a short stay at Auckland the " Chatham " visited Wellington and assisted in getting the " Philomel " ready for service as a training-ship. She has since successfully carried out annual gunnery and torpedo exercises in the Hauraki Gulf, on completion of which she the principal east [coast ports of the Dominion. After docking at Devonport in July she left on a cruise, which included the principal ports of the various groups of islands in the Pacific. This is in accordance with a request from the Admiralty that the " Chatham " should be employed in the general work of the station as well as H.M.S. " Veronica." This latter vessel is an Imperial unit employed on this station, but has twice visited British Samoa and the Island of Niue. She was employed in New Zealand waters as far as possible during the " Chatham's " visit to the islands. The " Chatham " will visit other principal ports of the Dominion during the summer months.

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The " Philomel." H.M.S. " Philomel," which was paid off after service during the war, has been fitted out as a training-ship, and is now moored near the Admiralty reservation at Devonport. The reservation provides ample facilities for the necessary recreation of the boys under training, without incurring expense for rent of grounds. Training commenced in May, and when the "Chatham" left on her island cruise thirty seamen (boys and youths) and twenty-four stokers had been recruited, of which numbers half were drafted to the "Chatham" before sailing. The first entry was limited, as accommodation in the " Philomel" did not admit of her receiving larger numbers. The recruiting of boys at a younger age, requiring a more intensive and longer course of training, was commenced on the Ist August. Ratings are being entered in twelve-year engagements, on a system of deferred pay in iieu of pension, as in the Royal Australian Navy, with the Option of reengaging for Naval service at the expiration of such term. Ratings on discharge are required to join the Reserve until reaching the age of forty years, for service in time of war. New Zealand Royal Naval Reserve. The wording of the Naval Defence Act, 1913, precludes the possibility of forming a Reserve of other than ex-Naval ratings, and you will be asked to pass an amending Bill to remove this obstacle and to admit of the proper formation of this very necessary arm of a Naval Division. Meanwhile, action is being taken to get into touch with the personnel who served in the Navy during the late war and are domiciled in New Zealand, and with the various departments, clubs, and organizations from whose members it is hoped to recruit a Reserve. Navy Office, Wellington. A small administrative staff has been established with headquarters at- Wellington, and a Naval Board constituted by Order in Council of the 14th March, .1.921, to deal with or advise on the more important matters that may arise. Coal Reserves. Reserves, each of about 1,500 tons, of Westport coal have been established for naval use at Devonport (Auckland) and Suva. Summary and Estimate. A base for stores, repairs, and docking is an essential. Owing to the Admiralty subsidy to the Auckland Harbour Board for the priority use of the Calliope Dock, workshops, &c, and the courtesy of that Board, such a base has been established at a minimum of cost, as will be seen from the very small amounts asked for docking and repairing of ships and storage of essentials. With the exception of the establishment of the " Philomel " as a trainingschool for seamen and stoker ratings for the New Zealand Division, the commencement on a small scale with a Reserve of officers and wireless ratings, and the establishment of coal-stocks at Auckland and Suva, no new work —such as building of magazines or defence of the base —has been provided for. With these exceptions, the estimates are purely for maintenance and upkeep of the " Chatham" and " Philomel," the payment, victualling, &c, of the personnel, and for administrative charges. The sum required for the financial year is estimated to amount to £249,310, in addition to which the sum of £86,472 is, for the reasons given in the estimates, required to be revoted out of the amount unexpended last year (which amounted to £211,383), making a total sum asked for of £335,782. DEFENCE DEPARTMENT. The expenditure out of the Consolidated Fund for Defence administration during the year ended 31st March, 1921, amounted to £531,042, or £108,211 less than the amount appropriated. This saving has been effected chiefly by the temp-

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orary abolition of the annual training in camp of Territorial units and by the closest attention to economy in all branches of the Department. Included in the past year's expenditure is the cost of the following activities : Civil aviation, £12,700; rifle clubs, £16,620: total, £29,320 — leaving the sum of £501,722, which was devoted to the training and preparation for war of the New Zealand Military Forces. This represents a per capita, cost for purely land defence of 7s. lid. for the population of the Dominion. The New Zealand Military Forces have been reorganized during the past year. This reorganization has, unfortunately /'entailed the abolition or amalgamatiom of a number of the old regiments and units of the Territorial Force, but this was found to be necessary to facilitate economy in administration. Sufficient supplies of military equipment and ordnance stores have now been received from England to enable the whole of the Territorial Force to be rearmed and re-equipped with modern equipment. WAR EXPENDITURE. The activities arising from the war are rapidly diminishing, and are now limited almost entirely to repatriation, the issues of medals and other awards to individual members of the New Zealand Expeditionary Force, payments in connection with war expenses, and the administration of hospitals and after-care of disabled soldiers requiring medical treatment. The War Accounts and Records Branch, which comprised a staff of 417 on the Ist April, 1920, is now reduced to 70, showing a reduction of 347 for the year. The expenditure from the vote " War Expenses" for the past year was £3,170,118. It was not found practicable to hand over the military hospitals to civil administration as early as originally intended, but arrangements have now been made to relieve the military authorities of the administrative responsibility connected with the after-care of ex-soldiers. It is anticipated that this change will enable economy to be effected without in any way prejudicing the interests of the soldiers. REPATRIATION. The Repatriation Department was set up for the purpose of re-establishing discharged soldiers in civil life, and up to the 31st March, 1921, assistance totalling £1,859,310 had been rendered to 50,181 men. Of this amount £1,524,352 is by way of loan, and it is gratifying to be able to report that repayments already total £508,592, or one-third of the amount advanced. The Department is now receiving repayments at an average rate of £35,000 per month.

SUMMARY OF ASSISTANCE RENDERED.

Nature of Assistance. Number" assisted. Amount. _oans : — Established in business Household furniture Tools of trade 5,516 10,367 1,003 £ 1,019,066 484,798 20,488 Grants — Training facilities, subsidies, &c. Transportation to employment, &c. Unemployment sustenance Placed in employment 6,858 2,462 1,073 22,902 324,762 4,922 5,274 Totals 50,181 £1,859,310

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MINING. The value of minerals tntered for exportation and of the coal produced in the Dominion during 1920 amounted to £3,431,391, as against £4,424,689 during the previous year. With the exception of mixed minerals, manganese, and kauri-gum, a decline was experienced in the production, the net decrease being £993,298. The decline was due mainly to the increased cost of labour and of materials, to shortage of labour, and to the lower grade of minerals won. The State collieries produced 147,421 tons of coal, as against 167,595 tons during the preceding year. The decrease was due to the closing-down of the Point Elizabeth Colliery on the 31st March, 1920. The profit of winning coal at the mines was £11,203, and the loss made by the depots was £4,310. With the aid of several recoveries and interest received the net profit on the year's transactions was £13,140. The total output of coal from the mines of the Dominion for the year 1920 was 1,843,705 tons, a decrease of 4,143 tons as compared with the previous year. For the year 1919 the decrease was 186,402 tons as compared with 1918. The decrease in the coal-output may be attributed to shortage of labour and to industrial and other troubles. Considerable financial assistance has been afforded to the mining industry during the past year by way of loans and subsidies under the Mining Acts. Further monetary assistance was also granted towards the expense of boring for oil. Extensive use was made of the Government prospecting-drills. During the year six parties hired the drills, and an aggregate of 6,822 ft. was bored in search of coal, alluvial gold, and cinnabar lodes. A working-area of coal was thereby proved in Canterbury, and the continuation of a cinnabar lode was proved in North Auckland. A discovery of interest was made about the end of the year upon an outlying portion of the Inangahua Goldfield by two Government-subsidized prospectors. More deve opment will, however, have to be carried out before a definite opinion can be expressed as to the future prospects of such discovery. LABOUR DEPARTMENT. During the early part of the year a great deal of difficulty arose in connection with the problem of the increase in the cost of living, but it is pleasing to record that in the majority of cases amicable settlements were arrived at. Towards the end of the financial year further difficulties resulting in some unemployment obtruded themselves in consequence of the pressure on the country's finances. The position was relieved as far as practicable by the establishment of relief works. Compared with the conditions experienced in the United Kingdom, America, and even Australia, however, the amount of unemployment in the Dominion was light and little in excess of that Which naturally occurs during the winter months, but which was not experienced during the war period owing to the abnormal circumstances then existing. It is proposed, during the present session, to consolidate the Shops and Offices Acts and introduce amendments for the removal of anomalies which have created difficulties in administration. The Industrial Conciliation and Arbitration Act will also be consolidated and amended. The difficulty which has arisen in connection with the position of the unions' nominated member of the Court of Arbitration has necessitated several amendments in the procedure for filling such vacancies. It is hoped to complete this year the consolidation and amendment of the Factories Act and the Workers' Compensation for Accidents Act. Housing. The erection of workers' dwellings was retarded very much during the earlier portion of the year owing to builders being unwilling to tender at a satisfactory and fixed price, and also to the difficulty in obtaining materials ; consequently it was impossible in many cases to arrange for contracts for dwellings at a price

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within the statutory limit of £1,000. Every effort was made to proceed with the dwellings by other means, such as by employing day labour or by letting small contracts to workmen or groups of workmen for labour only, the Department supplying the materials and advancing the money as the work proceeded. The total number of dwellings built or otherwise provided, including those still in course of erection, is 508, and their estimated total cost is £466,000 (including land and administration charges). These figures include ninety-six houses purchased by the Department for applicants. Local authorities have taken advantage of the provisions of Part V of the Housing Act, enabling them to obtain loans for the erection of dwellings in their respective districts. Up to the 22nd June applications were entertained for a total sum of £333,380, whilst £106,000 had been actually paid over. A few applications have been made by employers under Part 111 of the Act for loans to enable them to provide dwellings for their employees, and loans for thirteen houses have been granted. DEPARTMENT OP INDUSTRIES AND COMMERCE. The Department of Industries and Commerce has extended its organization and operations since the last Financial Statement was submitted to the House. The Department now deals with economic and accountancy investigations, overseas trade and shipping, New Zealand industries, business methods and., price-control, and has offices at Auckland, Wellington, Christchurch, and Dunedin. In the past the Department's activities have been concerned mainly with pricefixation, rationing of commodities, and the suppression of " profiteering." In March, 1920, price-investigation tribunals were formed in each of the main centres, and these bodies conducted a large number of investigations into complaints made by the public. For the period ended 31st March, 1921, the tribunals investigated 1,479 complaints, as follows : Auckland City and country districts, 566 ; Wellington City and country districts, 421 ; Canterbury, Marlborough, Nelson, and Westland, 260 ; Otago and Southland, 232. Returns show that 902 cases were dismissed, the investigations showing that the prices were not unreasonable, and 189 complaints were dropped owing to insufficient evidence. In a further 222 cases the tribunals arranged refunds and adjustments. In all, twenty-seven cases were brought before the Courts for charging prices which were deemed to be unreasonably high, and convictions were obtained in seventeen cases, fines amounting to £4,545 being inflicted. The work of the tribunals assisted the Board in its general supervision of prices, and resulted in considerable savings to the consumers. Now that prices are tending to decline there is not the same necessity for the work of these tribunals, and they have accordingly been disbanded. In future the investigations will be conducted by the permanent officers of the Department. During the past twelve months the Department has controlled the whole of the distribution of sugar for the Dominion. On the Ist July, 1920, the Board of Trade entered into an agreement with the Colonial Sugar-refining Company to buy raw sugar f.o.b. Fiji, to pay transportation charges to Chelsea and actual cost of refining, and to distribute the resulting refined sugar and by-products to the ultimate consumers. Under the agreement just expired the Government bought raw sugar at £35 10s. per ton f.o.b. Fiji, and the maximum retail price of the refined sugar was fixed at 6|-d. per pound. Full particulars of the work done in this connection will be laid before Parliament in the annual report of the Department. Owing to the acute demand for building-materials, mainly timber, bricks, and cement, regulations were gazetted on the 29th June, 1920, providing that construction works might proceed only by permit from the Board of Trade. These regulations were administered so as to ensure that the available supplies of such materials were used for essential purposes only. Immediately supplies became normal the restrictions were relaxed. For the purpose of ensuring sufficient wheat being grown for the Dominion's requirements the Government again guaranteed the prices to be paid to farmers for

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the season 1920-21. Co-relative prices were fixed for flour, bran, pollard, and bread. The purchase, sale, and distribution of wheat is conducted by the Government through the agency of the Wheat-control Office at Christchurch. COAL-CONTROL. In consequence of largely increased importations from overseas during the year under review it has been possible to make larger allocations to public services, industries, and trade generally, and also to build up reserve stocks. The organization set up under the Coal-trade Regulations, 1917, enabled the best possible distribution of available supplies to be made in the national interests, and in addition has adequately protected the interests of all consumers of coal. The total output of the Dominion mines for the year amounted to 1,843,705 tons, as against 1,847,848 tons for 1919, a decrease of 4,143 tons. Importations reached a total of 647,077 tons as compared with 455,494 tons imported last year —an increase of 191,583 tons. In order to supplement local and Australian supplies the Railway Department arranged for a considerable quantity of coal from other sources, and this has permitted larger allocations to be made for essential industries and other public services. The following table shows the output of bituminous and semi-bituminous coal from 1914 to 1920 inclusive, also importations for the same period : — New Zealand Mines. Importations. Year. Tons. Tons. 1914 .. ~ .. .. 1,494,315 518,070 1915 .. .. .. .. 1,404,400 353,471 1916 .. .. .. .. 1,422,074 293,956 1917 .. .. .. .. 1,247,989 291,597 1918 .. .. .. .. 1,122,308 255,332 1919 .. .. .. ... 961,107 455,494 1920 .. .. .. .. 923,575 647,077 The falling-off in output (as shown above) for last year when compared with the previous year amounted to 37,532 tons, but it will be observed that there has been a steady decline from 1914 onwards, with the exception of the year 1916, which showed an increase of 17,674 tons over the preceding year. The figures for the current year show an improvement in the production of bituminous coal, and if work continues uninterruptedly at the various mines on the West Coast the Dominion in the near future will be less dependent on outside sources of supply. About July last the Commonwealth authorities, in view of the prevailing shortage of coal in the principal States, inaugurated a system of control over the export of Maitland coals from Newcastle. Inter-State shipping under this system received first preference, New Zealand and foreign vessels ranking next in order for permits. As the Dominion depends largely on regular supplies of Maitland coal for maintaining railway services, gasworks, and other essential industries, this restriction seriously affected the supply and resulted in delaying vessels engaged in the Newcastle - New Zealand trade, in some cases for periods varying from six to eight weeks. Frequent representations have been made to the Commonwealth authorities to treat New Zealand vessels on a parity with inter-State shipping, but without securing any modification in our favour. However, further negotiations are in progress, which may lead to some improvement. I have been very glad to notice that our coal-mines are practically all at work, and that a very fine spirit prevails among our miners, who are anxious to supply New Zealand industries and homes with New Zealand coal. In a very short time the contracts which have been made for the supply of coal from other countries will have come to an end, and I trust we shall then be producing enough for our requirements.

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PENSIONS. The amounts issued during the year under this head are as follow : — Total Pensions. £ War pensions .. .. .. . . .. 1,886,952 Old-age pensions .. .. .. .. 731,236 Widows'pensions .. .. .. .. 187,402 Epidemic pensions .. .. .. .. 72,437 Military (Maori War) pensions .. .. .. 40,200 Miners'pensions .. .. .. .. 26,971 Police widows' pensions .. .. .. 436 £2,945,634 Against this amount must be credited the sum of £32,637, representing £30,134 received from national endowments on account of old-age pensions, and £2,503 from gold duty in respect of miners' pensions. Under the amending legislation of last year the allowance of £13 per annum by way of bonus granted under the Finance Act, 1917, was incorporated in the old-age and Maori War pensions, making the maximum now £39 and £49 per annum respectively. Miners' pensions were increased to £l 15s. a week for married men and £l ss. a week for single men. Miner and Maori War pensioners are now permitted to be absent from New Zealand for a period not exceeding two years without loss of pension. Epidemic pensions represent payments made from the vote provided to relieve distress arising out of the influenza epidemic of 1918; formerly this service was administered by the Public Health Department through the Hospital Boards. The total number of pensions in force at close of year, the annual values thereof, and the amount of the average pension are as follow : — Annual Average tvt i Value. Pension. Number. „ „ War pensions .. .. ..31,764 1,748,865 55 Old-age pensions .. .. .. 19,837 737,378 37 Widows'pensions .. ..\ 3,421 198,767 58 Maori War pensions .. .. 811 39,739 49 Miners' pensions . . . . .. 474 29,686 63 Epidemic pensions .. .. 849 71,486 84 Police widows' pensions . . . . 5 390 78 57,161 £2,826,311 War Pensions. The payment for war pensions shows a slight increase during the year; the figures compared with those of the previous year are as follow :— 1919-20. 1920-21. Payments made in New Zealand .. 1,752,900 1,754,382 Payments made in London . . .. 58,447 72,994 Payments made in Australia .. .. 30,849 Payments made in Canada . . . . 474 Other foreign payments . . .. 258 252 Allotments paid after casualty .. .. 28,475 Lump-sum payments . . . . 340 Totals ... .. £1,812,419 £1,886,952

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The annual values of the pensions in force at the 31st March, 1921, are as set out hereunder : — m s-n ■ at i Annual Value. Average. Class of Pension. Number. p p ° Soldiers" (permanent) .. .. .. 3,215 183,032 57 Soldiers" (temporary) .. 19,133 1,044,821 55 Dependants (temporary) .. .. .. 1,371 91,149 66 Widows~'of soldiers .. .. .. .. 2,034 226,932 112 Other dependants of deceased soldiers.. . . 6,011 202,931 34 31,764 £1,748,865 £55 The actual payments made to war pensioners since the inception of the warpensions legislation in August, 1915, total £5,608,870. The amending legislation of last year provided for the setting-up of a Medical Appeal Board to deal with cases where the pensioner was not satisfied with the amount of pension allotted, and also cases where pensions had been refused owing to the fact that death or disablement had not been due to or aggravated by war service. This Board has been appointed, and has already held sittings in various parts of the Dominion. Power was also given to the War Pensions Board to expend an additional sum of £50,000 per annum among totally disabled soldiers The full amount has been disbursed between soldiers in hospital, totally blinded soldiers, soldiers suffering from double amputations, and soldiers otherwise totally disabled. NATIONAL PROVIDENT FUND AND FRIENDLY SOCIETIES. The operations of the National Provident Fund during the last year indicate a substantial rate of progress. The number of new entrants was 6,000, which is a record for any year since the initiation of the scheme. The total contributors at the 31st December, 1920, was 19,724. The contribution income showed a substantial increase, amounting to £110,594, whilst the gross income from all sources amounted to £158,474, compared with £73,872 and £105,498 respectively for the previous year. The total of the fund increased from £338,729 to £473,360. The amount paid out in allowances to annuitants and for widows and children during the year amounted to £5,890. The sum of £31,972 was expended through the fund for maternity allowances —£6,654 to contributors and £25,318 to members of approved friendly societies. The payment of this allowance to the members of approved friendly societies has proved a valuable aid in raising the membership of these institutions. The percentage rate of increase is the highest since 1908. TOURIST AND HEALTH RESORTS. This Department has had an exceptionally busy year, and the accommodation at the various resorts was taxed to the utmost. The revenue from all sources amounted to £51,038, an increase of £8,820 over the previous year. A large number of visitors was attracted from overseas. The expenditure for the year, which was estimated at £88,474, amounted to £93,619 net. MARINE DEPARTMENT. Lighthouses. New cranes have been erected at Cuvier Island and Stephen Island lighthouses, much facilitating the work of landing stores. New dwellings are now in course of erection at Cape Maria van Diemen lighthouse, and. steps are being taken to erect new ones at Cape Campbell. The automatic lights for Gable End Foreland, Ohena Island, Ninepins, and Taiaroa Head have been received, and the necessary steps will be taken to install them, and also the one ordered for Tiritiri, as opportunity offers.

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Harbours. A large number of plans of works to be carried out by Harbour Boards have been approved. Buoys and beacons have been overhauled, cleaned, and painted, and new moorings put down where required. Fisheries. Regulations under the Fishing Industry Promotion Act, 1919, have been prepared, and applications for advances are now being received and dealt with, a number of advances having already been made for the purchase of fishing-vessels. The acclimatization of the quinnat salmon, which has been engaging the attention of the Department for some years, is now successfully established, and very large numbers of big fish are each year " running " in the southern rivers. Government Steamers. S.S. " Hinemoa." —This vessel has carried out the work of attending to the various lighthouses and coastal buoys and beacons controlled by the Department. Training-ship " Amokura." —This vessel has had a full complement of boys during the year, but has been unable to proceed to sea owing to her condition. She has therefore been kept in Wellington Harbour, and the boys have received as much training, without the actual sea experience, as it has been possible to give them. The Government has not yet obtained a suitable vessel to. replace the " Amokura." H.M.S. " Diamond " was offered by the Admiralty, but the cost of converting her to suit the requirements of the training scheme would have been so great that it was considered inadvisable to proceed with the work. S.S. " Tutaneltai." —This vessel has been engaged during the year in relieving the " Hinemoa," and in other services on behalf of the Government. PUBLIC WORKS DEPARTMENT. Public works of various types, principally consisting of railway construction, building, improving and maintenance of roads, development of hydro-electric power, erection and maintenance of public buildings, river control, and irrigation of arid lands, have been proceeded with On those railways which are considered of special importance construction has been accelerated, and others, which on account of the state of advancement of construction could not reasonably be discontinued, have been proceeded with at the average past rate. As these minor lines are finished it will be possible to further advance the policy of concentration, under which the works on any chosen line will be completed more economically and rapidly, and under which all lines will probably be completed sooner than would be the case if an attempt were made to construct them simultaneously. Legislation dealing with the construction and maintenance of main roads has been prepared and. will be submitted to Parliament. Roads to open up the undeveloped portion of the Dominion have been constructed as in the past, and this work will be continued in order to promote the productivity of the lands still awaiting settlement. Assistance in roadmaking of the partially developed regions will be accorded on the principle that those who help themselves are entitled to recognition and encouragement. As with railways, so with hydro - electric works. The easing of the world's markets has enabled the purchase of plant and material to be proceeded with, and the works in hand have been vigorously pushed on. The Department now lias in hand the increasing of the Lake Coleridge scheme, the developing of Mangahao scheme to its ultimate capacity, the extension of the Horahora scheme up to the maximum power available at that site, the installation and the first stage at Lake Waikaremoana, and in addition has been rendering substantial assistance to the Southland Electric Power Board, also making arrangements to assist the Dunedin City Corporation to duplicate its present plant, if such assistance be needed. The reason for the latter action is that arrangements

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are in train whereby it is hoped that the State system will be linked with the Dunedin plant and draw power-supply therefrom for a period of years until the demand of Dunedin itself equals the power which can be economically generated at its Waipori Station. By that time the Government will have developed one of the several available sources of power which have been investigated, or which may later on be found suitable. The work of improving the streams of the Waihou and Ohinernuri Rivers and building levees along their banks to protect the adjacent low-lying lands against flood-overflow and thereby permitting their draining, and to prevent further damage from mining-silt and other debris which is emptied into these streams by mining companies and drainage and other operations further up, has been vigorously proceeded with, and fresh plant which has recently been obtained will enable better progress to be made in the future. The construction of waterworks to lead water on to arid and semi-arid lands in Central Otago has made substantial progress, and during this year water will be supplied to a large additional area. The utilization of water on lands already commanded is steadily increasing, and the revenue while far from the maximum to be ultimately received already renders the scheme self-supporting. It is proposed to proceed with this important work which, in addition to being practically profit-earning, will greatly increase the productivity of Central Otago, and consequently the Dominion as a whole. A considerable amount of the most up-to-date machinery has been procured and is now mostly at work. The result so far has been good, and as the men working in connection with the machinery become more accustomed to the new conditions further improvement may be confidently looked for. Ample labour has been available, and in view of unemployment considerable work has been opened up which would not otherwise have been commenced. Purchases of material which had been held over during the war were proceeded with, and old orders were filled as the world's markets became easier. As a result of these combined factors the expenditure has been greater than ever before. Financial proposals in connection with the prosecution of public works will be submitted for your consideration in due course. IMMIGRATION. The Government immigration policy of " open nomination," together with the extra facilities offered under the " applied passages " scheme for special classes of skilled labour and the Imperial Government scheme of " overseas settlement within the Empire," have had the effect of showing a healthy expansion of the immigration movement during the past twelve months. Large numbers have been absorbed without disturbing the industrial conditions of the country, which is evidence of the capacity of the Dominion for absorbing immigrants of the right type. INSURANCE OF PUBLIC BUILDINGS. On the 31st March, 1921, the balance at credit of the special sinking fund established in 1913 for the purpose of covering losses on public buildings destroyed by fire was £59,727. In addition to the annual contribution of £10,000 out of the Consolidated Fund, a further sum of £3,496, representing interest and bonus, was added to the fund by the Public Trustee, whilst claims amounting to £16,187 were paid, the whole of which, with the exception of £25, represented expenditure on rebuilding and restoring school-buildings destroyed by fire. STATE FIRE INSURANCE. The State Fire Insurance Office has again had a most successful year, and the previous year's figures have been greatly exceeded. After providing £9,510 for reserve for unearned premiums, £3,000 for investment fluctuation reserve, and £15,567 for income-tax, the surplus for the year amounted to £47,210 —over £10,000 more than last year.

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The total sum underwritten amounted to £32,770,954, representing an increase over the previous year's figures of over £6,500,000 ; and the total net income for the year exceeded that of the previous year by £25,105. The accumulated funds at the end of the year totalled £316,057, an increase of over £59,000 for the period. PRINTING AND STATIONERY DEPARTMENT. There has been a considerable drop in the prices of paper and stationery within the past few months, and the cost of printing-materials is also a little easier. New machines have been installed during the year. Of the £10,000 voted last year for machinery, £7,000 has been expended, and commitments made for a further £6,000, so that it is necessary to ask for £8,500 to be again voted under this head. In the past, though credit has been taken for work done for individual Departments for such publications as the Gazette, Statutes, Kahiti, Journals and Appendices, Bills, Order Papers, &c, the relative votes have not been debited; but in future the cost of printing-work executed for Departments will be recovered by transfer. The total value of printing for the year (exclusive of stamps) was £196,838 ; and the value of the stationery supplied to Departments was £28,415 6s. 4d. EDUCATION. The expenditure during the last financial year out of the Consolidated Fund on education, including £102,972 under special Acts and £171,071 from educationreserve and national-endowment revenue, was £2,734,159. To this has to be added expenditure on school buildings, £244,722, out of the Public Works Fund, and £214,571 out of the education-purposes loan, making a total from Government sources of £3,193,452 —or, if the expenditure from income from reserves held by the University colleges and the secondary schools, amounting to approximately £75,000, is included, a total of nearly £3,300,000. This expenditure exceeds that for the previous financial year by about £678,000, of which £300,000 represents increases in teachers' salaries, about £264,000 increased payments for new buildings, and £13,500 increased grants to the universities. The total of £3,300,000 is the highest expenditure yet incurred in any year upon education. The increases provided last year in the salaries of all teachers in public, secondary, and technical schools, and the more liberal provision made for the training of young teachers with the view of attracting a greater number of entrants to the teaching profession, have already had an appreciable effect upon the supply of teachers, and, though in some districts it is still difficult to obtain suitable applicants, the numbers now offering are larger. There are 917 students in the training-colleges as against 500 three years ago. As these trainees complete their course Boards will be able to provide more efficient teachers, and the supply should soon become sufficient to remedy the difficulties experienced in the staffing of the larger schools. Among other important changes introduced recently is the provision for exchange of teachers with other countries. In order to give our teachers better opportunities of becoming familiar with other education systems arrangements have been made for giving a number of teachers experience in other parts of the Empire, and already several are engaged temporarily in the schools of Canada and Great Britain, while teachers from abroad are similarly employed in New Zealand. During last financial year the expenditure on new school buildings amounted to nearly £500,000, and was in excess of that of any previous year, and the commitments at the end of the year were also very large. Though in this way much has been done to provide school accommodation, it is recognized that much still remains to be done. The work of the Department in connection with children committed to the care of the State, and with the feeble-minded, the deaf, and the blind, was further developed during the year by the extension of the probation and boarding-out

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systems of dealing with the first-named class, by placing the feeble-minded boys in an institution separate from the older boys of the same type, and by the establishment in the large centres of special classes for the instruction of children who are partially deaf or whose speech is defective. For some time the Department has had under consideration the amendment of the Acts regarding child welfare, with the view of making better provisions for dealing with children requiring aid and protection, and it is proposed to submit legislation on the matter this session. Reforms of curricula and improvements in the instruction will be of little value unless first of all the physical well-being of the children is secured. Steps have accordingly been taken to improve and extend the medical and dental services, which during the year were transferred to the control of the Health Department. The numbers of School Medical Inspectors and nurses have been increased, and arrangements are being made with the Hospital Boards for free treatment of children in necessitous cases —treatment that is being gradually more and more availed of. School dental clinics are already in operation; and a number of dental nurses are being specially trained in the treatment of children's teeth, and as these nurses complete their training the school dental system will be extended to other districts. It is hoped to develop gradually the school medical and dental work until it reaches all the schools, and the health of every child will be specially cared for. VALUATION DEPARTMENT. During the financial year ended 31st March, 1921, district valuation rolls for forty-eight districts were revised under the Valuation of Land Act, the number of separate properties inspected and revalued being one hundred and fifty thousand. The number of special valuations made for stamp-duty and death-duty assessment, for determining the prices paid for acquiring the freehold of Crown lands under, the Land Laws Amendment Act, for assessing the value of Native lands in. connection with applications for alienation, and for the purpose of advances on mortgage from the State lending Departments, approximated ten thousand. The provisions of the Valuation of Land Amendment Act, 1920, relating to the constitution of the Assessment Court, became operative on the 31st March, 1921. A permanent President of the Court has been appointed. It is believed that the new Court will be able to keep in touch with the rapidly changing conditions which affect land-values, and will ensure consistency in valuations throughout the Dominion. PUBLIC SERVICE SUPERANNUATION FUND. The total number of contributors to the fund on the 31st December last was 15,387, and the total revenue for the year was £406,715, including members' contributions, £227,620 ; interest, £71,949 ; Government subsidies, £106,000. The total amount expended during the year was £192,007, which comprised retiring and other allowances, £132,073 ; refunds of contributions, £56,113 ; cost of administration, £3,790. The total number of superannuation allowances in force at the end of the year was 1,826, representing an annual aggregate payment of £.142,719. The amount of the total fund invested on the 31st December last was £1,388,968. TEACHERS' SUPERANNUATION FUND. This fund amounted on the 31st December, 1920, to £599,303, an increase of £72,601 for the year. The amount invested was £583,572. The revenue for the year was £160,821, including contributions, £87,310 ; interest, £30,295 ; and Government subsidy, £43,000. The expenditure was £88,220, including retiringallowances, £66,589, and refund of contributions, £19,590. The experience of the past few years has shown that there are many anomalies connected with the administration of the fund, and it is proposed to submit this session the legislation necessary to remove hardship and to improve the working and administration.

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RAILWAYS SUPERANNUATION FUND. This fund amounted on the 31st March, 1921, to £464,491, as compared with £408,232 on the 31st March, 1920. The contribution from the Consolidated Fund for the year was £75,000. GOVERNMENT INSURANCE DEPARTMENT. In the Life Branch of this Department the past year has been a most successful one. New business amounting to £1,659,660 has been effected, which brings the total number of policies in force at the 31st December, 1920, to 57,321, representing a total insurance, with bonus additions, of £16,259,310. This is the largest new business the Department has transacted in any one year since its establishment. The funds at the end of the year amounted to £5,542,552. Notwithstanding that claims arising out of the war and the influenza epidemic, amounting to £228,465, were paid during the triennium, an actuarial valuation of the Department's liabilities and assets as at the 31st December last disclosed a surplus of £238,704, of which £217,706 has been divided amongst the policy-holders, representing additions of £339,388 to the sum assured given above. It is a matter of satisfaction that the Department's financial position has been maintained on so strong a*basis as to enable it to meet the severe test imposed by the war and the influenza mortality, and yet show a large surplus upon a stringent valuation. The operations of the Accident Branch have also been very successful, both the premium income (£29,852) and the interest income (£4,954, after deducting taxes) being greater than in any previous year. As a result of the year's operations the funds show an increase of £9,325, which, with one exception, is the largest increase for any one year. During the year legislation was passed amending the law relating to workers' compensation. The amendments, which include an extension of the definition of a " worker," an increase in the maximum death payment, an increase in the rates of compensation from 50 to 55 per centum of the wages, and the granting of compensation from the date of the accident where the incapacity lasts three days or over, came into force on the Ist February last. As these amendments provide for substantial increases in the benefits, an increase in the rates of premium as from that date has been made necessary. In this connection it may be stated that the Department's careful tabulation of the whole of the New Zealand statistics relating to workers' compensation upon a scientific actuarial basis not only enabled it to furnish valuable and reliable data to the Legislature as to the cost of the increased benefits, but also placed it in a position to effectively regulate the rates to be charged in connection with workers' compensation insurance throughout New Zealand. PUBLIC TRUST OFFICE. The work of this Department has been further decentralized during the past year, and the administration of estates is now largely carried out by the Local Deputy Public Trustees controlling the districts where the assets of estates and the persons interested are located. This alteration in the system of control has been fully justified by results, and there is every reason to believe that the change has been fully appreciated by the public. The organization of the Office has been further extended by the appointment of officers to the permanent charge of districts where the business warranted such a course, and it is confidently expected that by bringing the benefits of the Office under the immediate notice of the public in the remoter localities a further increase of business will result. The value of the funds and assets under administration on the 31st March, 1921, was £22,364,319. The new estates placed in the Office during the yeai numbered 2,803. The amount advanced to local bodies and private mortgagors during the year amounted to £2,869,075, and the total funds invested are £13,636,815 The sum of £147,800 was invested in the Discharged Soldiers' Settlement Loan.

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During the period of financial stringency preference has been given as far as possible to applications for loans from local bodies for the purpose of completing necessary public works. This policy will be continued. The year's operations show a result appreciably lower than in any recent year. This is accounted for by two main factors —the increase in the salaries of the officers, and the granting of a higher rate of interest to the estates under administration. The bonus granted to officers led to an increase in the salarylist of £30,000, and the higher rate of interest granted to estates absorbed a further £45,000, so that provision had to be made for an additional sum of £75,000. The reserve funds, consisting of investments in trustee securities, buildings, furniture, and equipment, now total £486,350 —an amount which gives a feeling of security for the future. The Department is guaranteed by the State, but its success justifies the belief that the possibility of a call upon the Consolidated revenue is exceedingly remote. The number of persons who deposit wills in the Office for safe custody continues to increase. DEPARTMENT OF IMPERIAL GOVERNMENT SUPPLIES. During the year under review the purchase of wool, sheep-skins, frozen meat, cheese, and butter on behalf of the Imperial Government was terminated. The requisition of frozen meat ceased in respect of meat killed after the 30th June, 1920. The shipments since the purchase commenced on the 3rd March, 1915, total 3,456,527 quarters beef, 17,342,177 carcases mutton, and 17,667,803 carcases lamb. The wool requisition terminated with wool of the 1919-20 clip delivered into store up to the 30th September, 1920. The contract with freezing companies for the purchase of slipe wool applied only to wool produced by them up to the 30th June, 1920. The purchase of sheep-skins terminated with skins delivered into brokers' stores up to the same date. The total purchases of greasy wool amounted to 2,086,951 bales. In addition 261,652 bales of slipe wool have been purchased from freezing companies. The number of sheep-skins purchased on behalf of the Imperial Government and fellmongered in the Dominion totals 7,666,864. The requisition of cheese on behalf of the Imperial Government ceased with deliveries into store to the Ist July, 1920, and the number of crates shipped under the requisition was 3,137,769. A contract was completed between producers and the Imperial Government in respect of the 1920-21 season's butter delivered into grading-store up to the 31st March, 1921, and the total purchases made under this contract amounted to 1,202,717 boxes. The total shipments of butter since the commencement of the requisition up to the 31st March last amount to 2,897,481 boxes. Wool Profits. An amount of £1,619,069 was made available by His Majesty's Imperial Government, representing this Dominion's share of profits to the 31st March, 1919, on sales of wool by the Imperial Government for civilian use. This has been distributed through woolbrokers by cheques made out to the order of individual growers. Butter Equalization Fund. • The arrangement made by the New Zealand Government, under which manufacturers of butter for household use within New Zealand were subsidized so as to ensure supplies of creamery butter to Dominion consumers at a reasonable price and at the same time give to the manufacturers of such butter a price on a parity with that obtained for butter requisitioned by the Imperial Government, has been concluded.

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Total Payments. The total payments made by the Department from the 3rd March, 1915, to the 31st March, 1921, amounted to £158,576,644, as follow:— £ Wool .. .. .. .. .. 60,407,888 Sheep-skins.. .. .. .. .. 3.279,499 Frozen meat . . . . .. . . 53,039,535 Cheese .. .. .." .. .. 21,160,884 Butter .. .. .. .. .. 16,571,130 Hides .. .. .. .. .. 741,208 Scheelite .. .. .. .. .. 178,481 Other business .. .. .. .. 3,198,019 £158,576,644 WESTERN SAMOA. Civil government has been in operation in Western Samoa since the Ist May, 1920, although the mandate, as explicitly defined and confirmed by the Council of the League of Nations at its first assembly at Geneva, only reached the Dominion in April last. The mandate for Western Samoa does not differ in any respect from the principles embodied in the Treaty of Peace. It is now possible to make permanent provision for the government of the mandated, territory, and the proposed legislation to take the place of the present Samoa Constitution Supplementary Orders has been circulated. I regret that the meeting of the Imperial Conference at London prevented me from visiting Samoa during the recess and meeting the Samoan and European residents, but I will take the first opportunity that offers to pay my promised visit. The Minister of External Affairs recently paid a visit to the Group, and was impressed with the progress that has been made since the visit of the parliamentary party in March, 1920, notwithstanding the great difficulty experienced during this period in obtaining labour and supplies of all kinds. Many important questions affecting the Administration and the Crown estates were discussed with the Administrator and his officials, and settled during the visit. The Minister of External Affairs hopes to lay on the table this session a copy of the first report on Western Samoa, to be sent to the Council of the League of Nations pursuant to Article 6 of the mandate. I regret to say that the sudden collapse of the copra and cocoa markets about December last, and the subsequent stagnation of trade, have seriously affected the revenues of the Samoan Treasury and Samoan Crown Estates Account for the current financial year. Fortunately, the copra-market is steadily recovering, and the future, therefore, can be faced with confidence. With the advent of civil administration the New Zealand Government approved a programme of public-works services and utilities, at a, total estimated capital cost of £160,400, to be spread over a period of five years. This total comprises (a) productive works, £104,250, and (6) non-productive works, £56,150. It was intended to provide the whole of the sum required out of the accumulated funds of the Crown Estates, but the collapse of the markets already referred to has forced the Crown Estates Department to fall back on these funds to meet wages and other current expenses. These expenses include the cost of coolie transport, which, however, is recoverable by regular instalments spread over the contract periods. It may be necessary, therefore, this year to assist the Samoan Treasury by a loan to meet the expenditure on account of productive works. This money will be made available as required in accordance with the loan provisions of the Samoan Constitution Order. COOK ISLANDS. Mr. J. G. L. Hewitt, S.M., was appointed to succeed Mr. Platts as Resident Commissioner at Rarotonga, and took up duties in February. The trade and revenue of the islands during the year has been satisfactory.

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The loss of the auxiliary schooner " Jubilee," with all on board, on her voyage to Niue, is very much regretted. Search was made by the " Tutanekai," but no trace of the schooner could be found. Educational matters are receiving attention. A new school has been built at Rarotonga, and another school opened at Hapuku, Niue Island. The hospital at Niue, towards the erection of which £1,000 was granted by the New Zealand Government and £1,000 by the Red Cross Society, is in course of erection, but its completion has been delayed on account of loss of material in the " Jubilee." Additions are to be made to the hospital at Rarotonga, and a new operatingtheatre provided, but this work and other necessary public works have been delayed on account of the shortage in building-material. NATIVE DEPARTMENT. Native Trustee. A new and important departure in the policy affecting the administration of Native trust lands has been decided upon; and during last session, an Act was passed providing for the appointment of a Native Trustee to take over the administration of Native reserves hitherto dealt with by the Public Trust Office; and to deal with other matters affecting Native trust land a Native Trust Office Board has been constituted, which is empowered to lend money on Native freehold and leasehold lands and other securities. The Act came into force on the Ist April, and a senior Judge of the Native Land Court has been selected to be the first Native Trustee. An extension of the functions of the Native Trustee, in the direction of the administration of lands now vested in the Maori Land Boards, is in contemplation. Native-land Settlement. The amount expended, £263,109, was the largest for any similar period, but this included the amount expended on the purchase of a number of blocks in the West Coast Settlement Reserves to enable the lessees to acquire the freehold of their leaseholds, and this amount will be repaid to the Native Land Settlement Account as the purchases are completed. PUBLIC DEBT. The gross public debt at the 31st March, 1921, was £206,324,319, and, as indicated by the following table, shows an increase of £5,153,564 during the year.

Public Debt for the Financial Year 1919-20 compared with the Financial Year 1920-21.

Under section 8 of the Discharged Soldiers Settlement Loans Act, 1920, the sum of £12,330,000 was transferred direct to the Discharged Soldiers Settlement Account; this included securities to the value of £11,996,250 originally advanced out of the accumulated surplus, which have been cancelled and discharged from the public debt, thus converting what appeared as a liability into an asset and relieving the ordinary revenue of the annual payment of sinking-fund contributions

. 1919-20. 1920-21. Increase. Decrease. £ 97,341,780 11,120,000 80,089,025 12,619,950 £ 103.373,446 8,792,354 81,538,569 12,619,950 £ 6,031,666 £ )rdinary public debt )ischarged soldiers Var debt itate Advances debt 1,449,544 2,327,646 201,170,755 206,324,319 7,481,210 2,327,646 2,327,646 5,153,564

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on that amount. The Consolidated Fund will continue to receive interest at the rate of 4 per cent, per annum on the capital amount so transferred. During the year £17,149,789 was raised for the following purposes : — £ £ Discharged-soldiers settlement .. .. .. 8,560,554 Land for settlement (discharged soldiers) . . .. 1,108,050 9,668,604 Public works .. .. .. .. .. 2,890,000 Electric supply .. .. .. .. .. 1,407,510 4,297,510 War expenses .. .. .. . . .'. .. 1,449,545 Education loans .. .. .. .. .. .. 270,000 Fishing industry .. . . . . .. . . .. 1,490 Hauraki Plains settlement . . .. .. . . . . 54,000 Housing .. .. .. .. .. .. 270,000 Loans for employers for workers' dwellings . . .. 3,150 273,150 Land for settlements .. .. .. .. .. 10,000 Mining advances .. .. .. .. .. .. 10,000 Native-land settlement .. .. .. .. .. 225,000 Nauru and Ocean Islands .. .. . . .. . . 600,000 Railways-improvement .. .. .. .. .. 47,490 Rangitaiki land-drainage .. .. .. .. .. • 30,000 State forests . . . . .. .. . . . . 70,000 Swamp-drainage . . . . . . . . . . . . 55,000 Waihou and Ohinemuri Rivers improvement . . . . . . 88,000 Issue of inscribed for redemption purposes . . 25 Total .. .. .. .. £17,149,814 Full details of the debt transactions will be found in 8.-l, Part II ; but for the convenience of honourable members they may be briefly summarized as under : — £ Gross debt at 31st March, 1920 .. .. 201,170,755 Less transferred to Discharged Soldiers Settlement Account .. .. .. 11,996,250 189,174,505 Increase by borrowing as above .. 17,149,814 206,324,319 Less sinking funds accrued — £ Public Trustee .. .. 5,630,887 State Advances .. .. 3,109,950 Ordinary Revenue Account 2,207 State Coal-mines Account .. 20,028 8,763,072 Net public debt .. ~.£197,561,247 The public debt of New Zealand at the 31st March, 1921, was held as follows : — £ New Zealand .. .. .. .. 104,977,354 Australia .. .. .. .. .. 1,655,450 London :. .. .. .. .. 99,691,515 £206,324,319

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The annual charge for interest and sinking fund on the above amounts to £10,108,414, and is payable as follows : — £ In New Zealand .. .. .. .. 4,685,712 In London .. .. .. .. .. 4,294,239 In Australia . . . . . . . . . . 69,359 9,049,310 Sinking fund .. .. .. .. 1,059,104 Total . . . . . . .. £10,108,414 Of the interest, £1,792,432 will be recouped to the Consolidated Fund. Against the public debt tangible assets to the amount of £47,535,124 are held, while the total amount expended on railways, public buildings, telegraphs, and settlement lands amounts to £84,314,003, for which the Dominion holds good value. The estimated value of Crown lands is £25,000,000, whilst a sum of £19,033,007 has been expended on directly and indirectly productive services, which may be set off against the debt. WAR LOANS. At the end of the financial year the loans arranged by the Treasury on account of war expenditure amounted to £81,538,570, of which £55,198,325 was raised in New Zealand, and £25,840,000 was advanced by the Mother-country mainly for the maintenance of our troops in the field. The following statement shows the amounts borrowed under the various authorizing Acts : — Statement op War Loans authorized, and the Total Amounts raised in New Zealand and London respectively, with Charges and Expenses thereon, as at 31st March, 1921. ..... . , Amount Raised in T ' ■ i Total Amount Authorizing Act. ~ .. , -. T „ , , Imperial . .., ° authorized, i New Zealand. „ r , raised.* Government. £ £ £ £ Public Revenues Amendment Act, 1914 .. 2,000,000 .. 2,067,411 2,067,411 Public Revenues Amendment Act. 1915 .. 10,000,000 2,093,750 8,105,992 10,199,742 Finance Act, 1916 .. .. .. 16,000,000 11,572,450 4,736,842 16,309,292 War Purposes Loan Act, 1917 .. .. 28,000,000 23,273,535 4.830,000 28,103,535 Finance Act, 1918 .. .. .. 20,000,000 13,420,520 6,600,000 20,020,520 Finance Act, 1918 (No. 2) .. .. 10,000,000 4,838,070 .. 4,838,070 ___- __ . . . . _ Totals .. .. .. 86,000,000 55,198,325 26,340,245t 81,538,570 * Including charges and expenses. £ f Actual amount advanced .. .. .. 25,840,000 The capital liability thereon .. .. 500,245 £26,340,245 A sum equal to 1 per cent, of the total capital moneys borrowed for war purposes, and outstanding on the 31st March in the preceding year, is paid to the Public Trustee to hold and invest the same with all accumulations of interest thereon ; 4| per cent, per annum is received on the investments of the sinking funds, under which it is calculated that each war loan will be extinguished within forty years. The annual charge for. interest and sinking fund on these loans amounts to £4,615,200, made up as follows : —

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XXXV

Annual Interest and Sinking Fund chargeable against the Consolidated Fund on Moneys borrowed for War Purposes as at 31st March, 1921. Annual interest charges— £ £ On 2,810 at 3 per cent. .. .. .. .. .. 85 On 1,168,421 at 3| per cent. .. .. .. .. .. 40,895 On 3,044,750 at 4 per cent. .. .. .. .. .. 121,790 On 53.242,118 at 41 per cent. .. .. .. .. .. 2,395,895 On 14,180,471 at sVer cent. .. .. .. .. .. 709,024 On 9,900,000 at 5| per cent. .. .. .. .. .. 532,125 £81,538,570 £3,799,814 Sinking fund — 1 per cent, on £81,538,570 .. .. .. .. .. 815,386 £4,615,200

Statement of Amounts of War Loans raised in New Zealand and London to the 31st March, 1921, with Rates or Interest payable thereon.

GERMAN REPARATION. I am pleased to be able to inform honourable members that this Dominion's share of the reparation money will amount to about £26,000,000. This amount will be payable in instalments, but I am advised that the priority of costs of occupation and of Belgian reparation will postpone any receipts by the British Empire until the middle of the year 1922 at the earliest. Although it is satisfactory to know that there is a good prospect of our obtaining from Germany a proportion of the large amount which we expended on the war I need not emphasize the importance of not relying upon this money too much, as it may be a long time before it will come in.

Mill to Authorizing Act. At 3J per Cent. : At 4|- per Cent. At 5 per Cent. At 5f per Cent. Total. Capital Liability. Public Revenues Amendment, 1914 Public Revenues Amendment, 1915 Finance, 1916 War Purposes Loan, 1917 Finance, 1918 £ 1,110,000 £ 890,000 £ £ £ 2,000,000 £ 2,067,411 3,200,000 4,710,000 7,910,000 8,105,992 4,500,000 1,530,000 3,300,000 6,600,000 4,500,000 4,830,000 6,600,000 4,736,842 4,830.000 6,600,000 1,110,000 4,090 000 10,740,000 9,900,000 125,840,00026,340,245 New 'eah :nd. Authorizing Act. At 3 per Cent. At 4 per Cent. At At 4| per Cent. At At 5 per Cent. Total. <*$* Liability. Public Revenues Amendment, 1915 Finance, 1916, and Appropriation Act, 1917 War Purposes Loan, 1917 Finance, 1918 (section 10) ... Finance, 1918 (No. 2) £ £ 393,750 £ 1,700,000 £ £ 2,093,750 £ 2,093,750 1,120,000 10,452,450 11,572,450 11,572,450 2,810 1,531,000 20,978,265 11,169,080 4,811,010 2,292,460 720,440 27,060 23,273,535 13,420,520 4,838,070 23,273,535 13,420,520 4,838,070 2,810 3,044,750 49,110,805 3,039,960 55,198,325 55,198,325

XXXVI

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RESERVE FUND IN LONDON. The Keserve Fund in London now stands at £2,000,000, having been increased during the year by the transfer of £1,200,000 from the accumulated surpluses. The annual income from the Reserve Fund, which is invested as under, amounts to £90,845, and owing to the present high rate of exchange is of great assistance towards meeting interest and other charges payable in the United Kingdom.

Reserve Fund Securities held in London.

DEPARTMENTAL ACCOUNTS. The public accounts are compiled on. a cash basis, and relate generally to actual payments and receipts within the year, and do not show the profit or loss to the State on each service. Great diversity of practice exists in Departments, and a greater measure of uniformity is necessary. This involves a complete change in the system of' compiling the annual departmental statements of accounts. I have been-giving this matter considerable attention since I assumed control of the Department of Finance, with the result that several Departments have this year submitted their accounts in commercial form, whilst others are co-operating with the Treasury in making such arrangements as will enable this necessary reform to be instituted during the current year. Balance-sheets in commercial form relating to Departments will be laid on the table in due course. STATE SERVICES. Certain State services have hitherto been, conducted at an annual loss, which has to be met by the general taxpayers instead of by the users. These services should be self-supporting and should be conducted upon a proper business basis. With this object expenditure has been reduced in several cases, whilst in others a rearrangement of certain fees and charges is being made which will largely reduce the charges at present borne by the Consolidated Fund. BANKING. The legislation passed in the 1920 session in connection with, the Bank of New Zealand has had the effect of producing increased revenue to the Crown in the distribution of profits earned by the bank during the financial year ended 31st March, 1921. The shares originally held by the Crown were 75,000 " A " preference shares (£6 13s. 4d. called up), £500,000 ; 37,500 "B " preference shares (£6 13s. 4d. called up), £250,000, but for which the Crown paid a premium of £3 6s. Bd. per share, the capital invested being £375,000, or £10 per share on the "B" shares. In the recent reconstruction of the capital of the bank all shares were cancelled, in lieu of which shares of £1 each were issued. The present holding of the Crown is

Name of Stock. Nominal Value. 3-per-cent. Transvaal stock 3-per-cent. Egyptian guaranteed bonds .. 3|-per-cent. India stock 3-per-cent. India stock. . 2§-per-cent. India stock 5-per-cent. British war-loan stock 5-per-cent. British, war-loan stock £ 230,000 59,000 153,010 357,766 65,340 20,000 1,263,158 Totals 2,148,274

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now 500,000 "A" preference shares of £l each, fully paid up, and 625,000 " B " preference shares of £l each, fully paid up, or £1,125,000 in all. The dividend received for the financial year 1919-20 was 10 per cent, on the "A" preference shares, amounting to £50,000, and 17| per cent, on £250,000 " B " preference shares, amounting to £43,750, which equalled llf per cent, on the capital invested. For the financial year 1920-21 the dividend received on the "A " preference shares was the same as that of the previous year, but the dividend, on the " B " preference shares amounted to £62,500, being £18,750 in excess of that of the previous year, or 16§ per cent, on the capital invested. FIVE-MILLION LOAN. During my recent visit to England I was successful in arranging the flotation of a loan of £5,000,000 at 6 per cent, for public works, electric-supply development, and railways improvements. The principal is repayable at par in 1951, but I reserved the right to redeem the stock at any time after the Ist August, 1936, on giving three calendar months' notice. The price of issue was £96 per cent. The loss on issue price of £4 per cent., with the loan expenses, estimated at £3 7s. 6d. per cent., makes a net return of £92 12s. 6d., which gives a rate of interest of £6 9s. 6d. per cent., or interest with redemption in fifteen years, £6 16s. Id., or in thirty years, £6 lis. 3d. The full amount has been subscribed, and has been allocated in the following proportions: Public works, £2,250,000; electric supply, £1,750,000; railways improvement, £1,000,000. The loan was so favourably commented upon by the Press that it was somewhat surprising to find that the underwriters were at the time of closing left to find 58| per cent. It not infrequently happens, however, that investors withhold or withdraw their applications, expecting that the loan will, after closing, be quoted at a discount, in which case they hope to be able to purchase at a lower figure than the issue price. As evidence of the strong position New Zealand holds in the London market, the loan was quoted at a small premium shortly after issue, and some of the stock which was recently sold to cover the charges and expenses of the loan realized £99j. If further evidence were needed of the high standing of our credit in London I might mention the great success of the loan, recently floated by the Thames Valley Power Board under the guarantee of the Government. This loan was rushed by applicants, and covered several times over. ECONOMIES IN THE PUBLIC SERVICE. Prior to leaving for England in April last I arranged with the Public Service Commissioner to set up a Committee of Senior Departmental Officers to go exhaustively into the details of expenditure right through the whole of the Public Service, and I am bound to say excellent work has been done, and many directions have been pointed out where economies can be effected. The work could not have been done so thoroughly, if at all, by men who had not a thorough acquaintance with the ramifications of the different Departments, and I have no hesitation in saying that what has been done will be of immense benefit to the Government in its endeavour to bring the annual expenditure within the revenue. This must be done before any all-round reduction of taxation can take place. I hope before the session comes to an end to be able to report that good progress has been made with the retrenchment which the financial stringency has rendered absolutely necessary. My own impression is that when we get over our present financial difficulty we shall be able to look back and say that this depression which we are now experiencing will not have been an unmixed evil. All the extravagances which may have grown up during the long period of prosperity which we enjoyed will have disappeared, and we shall be able to start with a clean slate, and the country will be all the better and more soundly prosperous for its experience. I know that what is necessary cannot be given effect to without sacrifices on the part of many of our population, but when sacrifices had to made in days gone by the citizens of New Zealand did not shrink from making them. They rose to the occasion and by

XXXVIII

8,—6.

courage and force of character triumphed where people with less courage and less force of character would have failed. It must be remembered, however, that a very considerable portion of the annual charges against the Consolidated Fund, is of such a nature that a reduction is not practicable, and for this revenue must be provided—l refer more particularly to the permanent annual charges, including interest, sinking funds, pensions, and increases of salaries on account of the increased cost of living, which for the current year will amount to approximately £13,250,000. Included in the amount quoted above is £4,615,200 for interest and sinking fund on our war loans, and £1,750,000 for war pensions, which, however, should be a gradually diminishing quantity. The country has also had to undertake a heavy recurring expenditure on account of the necessary expansion and improvement of our educational system. The total expenditure on education for the year 1920-21 amounted to £3,193,452, as against £1,324,738 for the year 1912-13. ESTIMATED REVENUE. For the year 1921-22, I estimate the revenue at — £ Customs . . . . . . . . . . 4, 900, 000 Railways .. .. .. .. .. 7,350,000 Stamp and death duties .. .. .. .. 3,010,000 Post and telegraph .. .. .. .. 2,79.0,000 Land and income tax . . . . .. 7, 700,000 Beer duty .. .. .. .. .. 500,000 Registration and other fees .. .. • .. 180,000 Amusement-tax .. .. .. . . 80,000 Marine .. .. .. . . .. 60,000 Miscellaneous .. .. .. . . .. 900,000 Territorial revenue . . . . . . .. 190,000 Endowment revenue .. .. .. .. 110.000 Other receipts .. .. .. .. . . 230,000 £28,000,000 ESTIMATED RESULT FOR THE YEAR 1921-22. As the full effect of the economies which are being actively introduced will not be felt during the current financial year it is anticipated that the expenditure will amount to =629,266,367, whilst the revenue is estimated at £28,000,000. To the latter, however, has to be added the actual cash balance carried forward at the beginning of the year —viz., £4,920,294 —leaving an estimated cash surplus of £3,653,927, reducible by the amount which may be appropriated on the supplementary estimates. It will possibly be within the recollection of honourable members that during the session of last year I referred to the necessity for retaining in hand the previous year's surplus of £6,132,232 in anticipation of the period of stringency which has since come upon us. By the aid of the past year's surplus I am pleased to say that sufficient cash has been in the hands of the Treasury to meet ordinary charges, and although for the current year the chances at present of fully meeting our expenditure out of the year's revenue appear uncertain, still I am sanguine enough to believe that at the 31st March we shall be able to show a balance of cash in hand as stated above. READJUSTMENT OF TAXATION. Legislation will be laid before Parliament this session, with the object of giving effect to the intentions of the Government in the way of economy and retrenchment, and which will provide for a readjustment of the revenue so that the burden of taxation may press more equally upon the different sections of the community,

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and, so that relief may be given where it is most urgently required. Honourable members will find in connection with the proposed revision of the Customs tariff that the duties are being increased on certain articles, most of which come under the heading of luxuries. This is not being done for protective purposes but to assist the revenue, which has been somewdiat seriously affected, by the financial stringency from which New Zealand, along with other countries, but certainly less than other countries, is suffering at present. As a matter of fact, the whole system of taxation in operation in New Zealand requires to be revised, as well as the Customs tariff, and I hope with the assistance of members to make some very important changes and improvements in. this respect before the session comes to an end. Legislation for this purpose will be introduced very shortly. Economy must be practised at every possible opportunity, and production must be encouraged. By these means only can depression be met and prosperity restored. In addition to the measures which are being taken at this side of the world, to restore the pre-war conditions an increase in the purchasing-capacity of our customers in England would probably do a great deal to assist us to reach the goal which we have in view. PAYMENT OF LAND-TAX. With the object of assisting and encouraging the prompt payment of the landtax for the current year a Bill has already been laid before the House providing for a rebate of 10 per cent, in the event of the tax being paid before or within twenty-one days after due date. AUDIT OFFICE. The increasing activities of the Audit Office are clearly set forth in the report of the Controller and Auditor-General on the Public Accounts for the financial year 1920-21, which has already been presented to Parliament in conformity with the requirements of the Public Revenues Act, 1910. This report contains many valuable suggestions which are receiving careful attention. Honourable members will, I feel sure, have noted with regret the fact that Colonel Collins, C.M.G., 1.5.0., after fifty-six years of untiring public service, during which he occupied many important administrative positions, has intimated his intention of resigning his present appointment as Controller and Auditor-General before the end of the year. It is fitting, therefore, that I should, place upon record my appreciation of the highly efficient, long, and faithful service rendered to the State by Colonel Collins, as well as of the strict impartiality with which his responsible statutory duties have been carried out. RESULTS. Total revenue, £34,260,962 ; total expenditure, £28,128,730 ; surplus, £6,132,232. Cash balance carried forward, £4,920,294. Transferred from accumulated surplus— Reserve Fund, London, £1,200,000; Discharged Soldiers Settlement Account, £13,330,000; Public Works Fund, £500,000; Discharged Soldiers Settlement (Depreciation Fund), £50,000. Public-works expenditure, £3,141,197. Redemption and renewals effected, £10,094,917. Customs revenue and excise, £8,769,251. Land and income tax receipts, £9,937,923. Total expenditure on mental hospitals, £377,643. Post and telegraph revenue, £2,640,158. Savings-bank deposits, £35,031,244. Excess of deposits over withdrawals, £2,227,356. Interest-bearing limit of savings-bank deposits increased. Total war-loan certificates sold, £4,613,203. Stamp revenue, £3,745,902. Purchased during the year for settlement of discharged soldiers 79,950 acres, costing £1,277,971. Advances authorized to 17,853 discharged soldiers, £17,941,980.

8.—6

XL

Total area proclaimed under Discharged. Soldiers Settlement Act, 1915, to 31st March, 1921, 1,321,091 acres. Total area of State forests, 5,134,651 acres. Total value of exports, £48,219,672. Increase of approximately 71,900 acres sown in wheat. Coal reserves established for naval use. Naval Board constituted. Reorganization of New Zealand Military Forces. Repatriation expenditure to 31st March, 1921, £1,859,310. Coal-production during the year decreased by 4,143 tons. Coal-production in 1920 compared with 1914 decreased by 560,000 tons. Coal imported, during 1920, 647,077 tons. War pensions paid during 1920-21, £1,886,952. Pension Medical Appeal Board established. Total contributors to National Provident Fund at 31st December, 1920, 19,724. £31,972 expended for maternity allowances. Expenditure by Education Department approximately £3,300,000, including Consolidated Fund, appropriations, £2,460,116 ; Education Acts, £102,972; education reserves and national-endowment revenue, £171,071; and Education Purposes Loan, £214,571. £500,000 expended on school buildings. Total payments made for supplies purchased on behalf of Imperial Government, £158,576,644. Wool profits distributed, £1,619,069. War loans raised to 31st March, 1921, £81,538,570. Gross public debt at 31st March, 1921, £206,324,319. Sinking funds at 31st March, 1921, £8,763,072. Net indebtedness per head, £162 3s. Net annual interest and sinking-fund charges, £10,108,414. Increased revenue from distribution of Bank of New Zealand profits, £18,750. PROPOSALS. Estimated. Customs revenue, £4,900,000. Estimated land and income tax receipts, £7,700,000. Tariff revision. Co-ordination of Public Health Department and local authorities in sanitary inspection and the prevention of infectious diseases. Improvement of nursing services. Transfer of military consumptive sanatoria to Public Health Department. Legislation in connection with hospital subsidies. Automatic printing telegraphs to be installed. Telephone and telegraph methods to be improved. Expedition of operations of swamp-land, drainage. Extension of farm schools for teachers and farmers. Nauru and Ocean Island phosphate business to be developed. Formation of New Zealand Royal Naval Reserve. £335,782 to be provided for naval defence. Re-arming and re-equipment of Territorial Force. Consolidation of and amendments to the Shops and Offices Acts. Consolidation of and amendment of the Industrial Conciliation and Arbitration Act. Consolidation of and amendment of Factories Act and the Workers' Compensation Act. Assistance to fishing industry. Concentration for more economic and rapid completion of railways. Legislation in regard to main roads. Assistance in roadmaking in partially developed regions. Further development of hydro-electric works. Financial proposal in connection with productive public works to be submitted. Construction of waterworks to supply arid lands. Exchange of teachers with other countries.

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Legislation extending provisions for child-welfare. Extension of school medical and dental services. Adjustment of the Teachers' Superannuation Fund. Further decentralization of the work of Public Trust Office. Additions to hospital at Rarotonga. Extension of functions of the Native Trustee. Departmental balance-sheets in commercial form to be laid before Parliament. Economies in the Public Service. Expenditure to be reduced. State services to be made self-supporting. Total estimated revenue, £28,000,000 ; estimated expenditure, £29,266,367. Estimated cash surplus, £3,653,927. Readjustment of taxation. Land-tax: Rebate of 10 per cent, for payment before or within twenty-one days after due date. CONCLUSION. As a result of the war there has been a greatly increased expenditure in the Dominion, such as increase of interest and sinking fund on the large sums borrowed during and since the war period, pensions for incapacitated and partially incapacitated soldiers, allowances to dependants of soldiers, and increases of salaries and bonuses to persons in the employment of the State rendered necessary to meet the increase in the cost of living. Along with those items of increased expenditure there has been a very serious drop in the prices of our staple products, particularly wool, which fell to a lower price than has been reached for twenty years. The demand for New Zealand beef also fell off, with a corresponding reduction in price, and hence for the last few months we have suffered from financial and commercial depression such as the Dominion has not known for many years past. A change for the better has, however, recently taken place. At recent wool sales, both in New Zealand and England, prices have improved considerably, and the feeling is growing that the Dominion is over the worst of its troubles, and that the prosperity which we enjoyed for so many years will, by the exercise of economy and industry on the part of our people, soon return to these Islands. I am glad to be able to say that, so far as it is possible to judge, the season on which we have entered will be one of the best that we have experienced for many years past. Already large quantities of dairy-produce have been forwarded to the cold stores, and in this branch of agriculture, owing to the very large number of settlers who have gone in for dairying, and the new country which has been made available, the season promises to be a record one. It is to be hoped that the producers will receive satisfactory returns for their labour, and, if so, every section of the community will be benefited. We have difficulties to contend with at present, some of them serious—many of our producers have made losses during the past year —but I ask my fellow-citizens to have confidence in themselves and the confidence which it deserves in the country to which they belong. We have had depressions in this country in previous years and got through them successfully, perhaps none the worse for the experience then gained, and I have no doubt that in these respects history will repeat itself on the present occasion. There is no royal road to prosperity. There is only one way to get there, and that is by work ; by continuous and persistent effort; by each individual and each section of the community putting forth all the energy which they possess and using the talents with which Nature has provided them in order to get back to the industrial and financial prosperity which we formerly enjoyed.

vi—B. 6.

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TABLES TO ACCOMPANY THE FOREGOING STATEMENT. Page. Table No. I.—Abstract of Receipts and Expenditure of the Financial Year ended 31st March, 1921. See Parliamentary Paper 8.-l (Part I). Table No. 2.—The Public Debt on 31st March, 1921. See Parliamentary Paper 8.-l (Part II). Table No. 3. —The Debt transferred to the New Zealand State Advances Office at 31st March, 1921. See Parliamentary Paper 8.-l-(Part II). Table No. 4. —Statement of the Estimated Liabilities of the Consolidated Fund outstanding on 31st March, 1911 to 1921 inclusive .. .. .. .. .. ..2 Table No. 5. —Statement of the Estimated Liabilities of the Public Works Fund and other Accounts outstanding on 31st March, 1911 to 1921 inclusive .. ~ .. ... 3 Table No. 6.—Statement showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to 31st March, 1921 .. .. .. .. .. 5 Table No. 7. —Estimated Expenditure of 1921-22, compared with the Actual Expenditure of 1920-21 6 Table No. B.—Estimated Revenue of 1921-22, compared with the Actual Revenue of 1920-21 .. 7 Table No. 9.—Statement showing the Amount charged to " Unauthorized " in each Financial Year from Ist July, 1875, to 31st March, 1921 .. .. .. .. .. 7 Table No. 10. —Return of Subdivisions of Rural Freeholds in New Zealand from Ist April, 1912, to 31st March, 1921 .. .. .. .. .. .. .. ..8 Table No. 11. —Statement showing the Financial Position of the Dominion on the 31st March, 1921, compared with the 31st March, 1920 .. .. .. .. .. .. 9 Table No. 12. —Statement of Assets held, and Capital Expenditure, as against the Public Debt on the 31st March, 1921 .. .. .. .. .. .. .. 14

I—B. 6.

2

8.—6

Table No. 4. Statement of the Estimated Liabilities chargeable on the Consolidated Fund (Revenue Account) outstanding on the 31st March, 1911, 1912, 1913, 1914, 1915, 1916, 1917, 1918, 1919, 1920, and 1921.

31st March, 1911. 31st March, 1912. 31st March, 1913. 31st March, 1914. 31st March, 1915. 31st March, 1916. 31st March, 1917. 31st March, 1918. 31st March, 1919. 31st March, 1920. 31st March, 1921. Revenue Account. Permanent Appropriations, — Civil List Under special Acts of the Legislature Pensions £ s. d. 753 11 8 1,458 11 10 £ s. d. 230 18 2 3,372 10 3 £ s. d. 208 6 9 2,518 4 6 £ s. d. 227 16 9 14,937 0 0 68 11 8 £ s. d. 143 19 6 8,614 13 4 £ s. d. 3,200 0 0 ! 15,508 6 8 72 13 11 £ s. d. 84 0 4 1,012 14 10 £ s. d. 53 14 4 2,351 0 0 270 9 3 £ s. d. I 23 8 5 I 2,746 0 0 312 8 4 £ s. d. 4,738 18 10 498 2 0 £ s. d. 148 4 5 7,168 0 5 594 0 6 - 2,212 3 6 3,603 8 5 2,726 11 3 15,233 8 5 8,758 12 10 18,781 0 7 1,096 15 2 2,675 3 7 3,081 16 9 5,237 0 10 ! 7,910 5 4 Annual Appropriations, — Legislative Departments Departments of Minister of Pinance Post and Telegraph Department Working Railways Public Buildings, Domains, and Maintenance of Roads Justice Department* Mines Department Internal Affairs Department .. Defence Department Customs Department Marine Department Labour Department Lands Department Agriculture Department Education Department Valuation and Electoral Departments! 176 2 0 1,780 15 0 49,039 0 0 143,363 0 0 ( 1,543 1 9 ( 448 0 0 6,788 1 3 11,549' 2 5 3,152 2 10 74 15 11 427 16 8 63,981 0 0 172,451 0 0 1,961 15 11 5,472 0 0 5,973 6 0 11,311 12 2 6,648 6 0 103 14 4 182 7 5 58,831 19 10 150,514 0 0 3,487 6 1 3,516 0 0 12,178 15 11 61 11 2 10,968 16 10 12,958 10 5 152 2 1 592 14 6 63,566 5 6 136,909 0 0 1,719 8 6 6,099 0 0 8,884 4 8 8,658 17 6 19,064 12 2 7,055 15 5 246 11 0 397 4 6 79,466 10 8 157,575 0 0 9,195 0 0 6,156 0 0 6,707 6 9 6,846 13 11 14,655 17 5 25,369 5 11 400 3 9 393 7 8 63,474 0 0 113,679 0 0 6,281 0 0 3,435 0 0 7,044 0 1 10,791 15 6 20,408 19 1 83 15 1 1,588 14 2 65,245 4 7 129,112 0 0 4,964 0 0 5,877 0 0 6,863 4 1 19,572' 3 3 7,792 13 9 955 12 1 7,707 16 7 81,067 19 6 136,976 0 0 114,463 0 0 10,227 2 6 20,796 2 2 17,292 7 6 958 6 5 33,827 13 6 88,463 0 0 170,311 5 10 11,181 0 0 8,691 10 8 33,587 10 3 20,288 9 10 30 10 9 10,991 11 11 174,127 0 0 262,551 0 0 20,400 0 0 8,136 17 9 1,300 0 0 16,115 9 8 5,637 7 1 1,818 11 1 51,929 0 9 125,012 17 6 408,363 0 0 16,078 0 0 20,884 18 10 2,455 0 0 32,599 12 3 6,396 0 9 | 2,469 19 1 2,760 16 5 2,927 6 10 1,447 16 4 1,234 2 1 1,248 16 8 3,350 16 3 5,144 0 5 6,118 14 9 2,283 12 7 4,082 11 0 412 5 5 6,768 15 8 4,044 10 7 1,979 15 7 255 3 6 6,170 12 3 11,716 11 4 850 0 1 11,385 5 3 10,403 7 0 8,877 16 11 869 0 7 4,065 19 9 8,420 0 0 2,402 10 6 465 17 10 2,625 5 2 3,134 0 0 13,862 8 2 570 4 3 1,695 8 10 6,500 0 0 41,060 0 0 890 3 8 1,914 19 2 4,060 0 0 20,332 0 0 1,057 3 8 1,104 15 3 8,016 0 0 14,196 0 0 447 3 1 2,998 17 4 50,173 0 0 18,585 0 0 362 3 8 828 12 3 2,061 0 0 4,122 0 0 1,343 11 2 4,528 0 5 14,988 0 0 11,616 0 0 ■ 1,243 15 1 1,470 15 6 641 13 8 233,514 11 7 290,054 16 3 286,396 18 0 269,907 7 6 327,937 3 5 276,981 15 10 271,646 14 0 319,003 19 8 446,825 6 9 510,418 1 2 702,736 17 5 Services not provided for 647 9 1 I 5 16 6 82 10 1 ■• •- .. 87 1 0 . ■- •• - ■ 293,740 14 9 289,123 9 3 321,766 4 3 449,907 3 6 515,655 2 0 710,652 19 3 Totals 236,374 4 2 i336,695 16 3 285,140 15 11 1295,762 16 5 1272,743 9 2 * Includes Native Department. t Previous to 1918-19 Valuation Department was included in Lands Department and Electoral Department was included in Internal Affairs Department.

3

8.—6

Table No. 5. Statement of the Estimated Liabilities chargeable on the Public Works Fund outstanding on the 31st March, 1911, 1912, 1913, 1914, 1915, 1916, 1917, 1918, 1919, 1920, and 1921.

31st March, 31st March, 1911. 1912. 31st March, 1913. 31st March, 1914. 31st March, 31st March, 1915. 1916. 31st March, 1917. 31st March, 1918. 31st March, 1919. 31st March, 1920. 31st March, 1921. Annual Appropriations — Public Works, Departmental Railways Development of Water-power Irrigation and Water-supply Public Buildings Lighthouses, Harbour-works, and Har-bour-defences Tourist and Health Resorts Immigration Roads Development of Mining Telegraph Extension Contingent Defence Lands Improvement Plant, Material, and Stores.. Electric Supply £ s. d. 34 0 0 636,640 12 11 212 13 6 10 0 221,135 14 6 £ s. d. 283 19 3 622,761 12 2 56,157 9 1 £ s. d. 566 16 8 255,340 3 0 £ s. d. £ 8. d. 105 17 1 1,930 0 0 287,777 3 10 417,718 0 0 £ s. d. 710 0 0 293,522 0 0 £ s. d. 1,316 0 0 233,271 0 0 £ s. d. 691 0 0 150,492 0 0 £ s. d. 973 0 0 229,396 19 9 £ s. d. 869 0 0 240,240 0 0 £ s. d. 818,593 0 0 176,855' 6 3 80,910 10 11 235,148 17 9 j 175,040 13 11 188,640' 8 11 1,424 0 0 150,934 14 8 681' 0 0 117,774 10 4 1,360' 0 0 71,646 3 6 4,322 0 0 64,969 2 7 3,257 0 0 112,903 14 9 347 5 7 442 1 9 22 0 0 157,326 0 0 2,034 4 7 71,904 0 0 33 5 10 1,973 12 0 722 19 6 880 17 6 3,595 6 10 219,069 0 0 527 9 8 1,791 0 0 162,258 11 6 945 13 9 133 14 7 4,889 0 0 1,642 0 0 226,114 16 4 250,195 0 6 1,192 4 9 499 12 2 235,665 16 3 247,113 17 4 55 0 0 288 15 1 203 16 1 399 7 4 53 0 0 1,217 0 0 174,220 0 0 140 7 8 190 0 0 116,564 0 0 55 17 9 70 0 0 129,710 0 0 4,250' 0 0 156,409 0 0 187 4 lOJ 304,313 0 0 49 5 6 2,182 1 4 393,226 0 0 682 0 0 463,842 17 6 111,372 0 0 171,297 1 0 11,468' 0 0 11210 6 10,887 11 6 509 18 11 15,90.' 0 0 321 4 1 266,273 0 0 14815 2 1,24018 2 34 11 8 7,801 0 0 2,980 0 0 13,962' 0 0 38,62l' 0 0 372 0 0 72,898 0 0 138,698 0 0 .. •• Services not provided for 1,092,106 10 8 992,098 5 10 1,094,961 0 11 677,666 0 7 506,932 12 10 424,833 18 6 519,256 7 4 954,071 7 5j 1 933,433 19 1 1,191,847 5 9 122 0 0 673,932 10 11 - - - - Totals ,. 1,092,106 10 8 1,191,969 5 9 673,932 10 11 992,098 5 10 ,1,094,961 0 11 677,666 0 7 506,932 12 10 424,833 18 6 519,256 7 4 954,071 7 5 1,933,433 19 1

8.—6

4

Table No. 5— continued. Statement of the Estimated Liabilities chargeable on the undermentioned Separate Accounts outstanding on the 31st March, 1911, 1912, 1913, 1914, 1915, 1916, 1917, 1918, 1919, 1920, and 1921.

31st March, 1911. 31st March, 1912. 31st March, 1913. 31st March, 1914. 31st March, 1915. 31st March, 1916. 31st March, 1917. 31st March, 1918. 31st March, 1919. 31st March, 1920. 31st March, 1921. £ s. d. ! Aid to Water-power Works Account Discharged Soldiers Settlement Account .. , Eduoation Loans Account • Electric Supply Account ; Government Aocident Insurance Account .. 543 18 4 Government Life Insurance Account .. 432 10 0 Hauraki Plains Settlement Acoount .. 21 19 2 Housing Account Irrigation and Water-supply Account Kauri-gum Industry Account Land for Settlements Account .. .. 2,849 17 1 Land for Settlements Account (Discharged Soldiers Settlement Account) Land for Settlements Account (Opening up Crown Lands for Settlement Account) .. 10,376 0 0 National Endowment Account .. .. 4,945 3 0 Native Land Settlement Account .. 173 18 3 Railways Improvements Account.. .. 31,352 0 0 Railways Improvement Authorization Act 1914 Account Rangitaiki Land Drainage Account .. 142 15 3 Scenery Preservation Account .. .. 83 8 0 State Advances Account.. .. .. 318 11 5 State Coal-mines Account .. .. 14,547 3 9 State Eire Insurance Account .. .. 904 15 10 State Forests Account .. .. .. 559 1 0 Swamp Land Drainage Account Telegraph Extension Account Waihou and Ohinemuri Rivers Improvement Account Waimarino Bush-fire Relief Aocount War Expenses Account Wellington-Hutt Railway and Road Improvement Aocount .. .. .. 15,324 0 0 £ s. d. 606 14 4 412 11 10 1,861 3 1 2,977' 3 9 9,582 0 0 4,687 5 8 429 10 0 132,486 0 0 £ s. d. 132,162 1 4 .. I 293 8 10 1,256 11 0 163 7 10 56' 0 0 1,195' 19 0 9,396 0 0 2,732 18 3 2,559 10 11 103,233 0 0 £ s. d. 34,964 0 6 313 16 5 447 19 0 45 15 7 206' 0 0 3,38513 7 13,566 0 0 468 0 0 2,567 17 10 63,669 0 0 £ s. d. 12,919 0 0 279 1 4 645 6 6 165 3 9 6,740 0 0 188 8 11 3,452 5 4 14,362 0 0 4,862 0 0 1,294 8 9 £ s. d. 22,861 0 0 315 18 4 366 9 0 100 17 7 3,705 0 0 1,354 5 0 2,452 0 0 5,843 0 0 3,177 0 0 1,105 11 7 £ s. d. 28,778 0 0 3,168 12 9 I 140 18 3 347 11 0 143 16 7 737 18 10 9,874 0 0 1,680 0 0 433 1 6 £ s. d. 18,603 0 0 218 12 9 253 1 0 130 4 3 2,525 6 5 311 9 11 16 16 0 £ s. d. 16,673 0 0 191 10 10 459 18 0 371 4 1 1,808' 8 3 165 5 6 14,594 6 10 12,150 14 11 £ s. d. 102,991 0 0 273 9 10 677 14 10 118 4 8 1,630 19 2 3,76l' 1 11 515 18 8 175 2 5 192 13 0 673* 7 0 £ s. d. 9,510 0 0 355,636 0 0 210 1 3 600 1 6 4,210 16 10 8,477 4 7 •• 525 18 9 1,564 15 5 4,253 0 0 1,426 9 1 889 3 8 102 2 3 389 0 11 310 13 4 76 8 9 470 8 8 10,707 3 7 711 18 4 390 4 6 344' 5 7 117 19 1 131 6 0 331 3 11 215,792 0 0 115 16 0 97,296 0 0 29 0 0 34,692 0 0 413 11 3 15,734 8 3 189 7 10 20,096 0 0 459 4 5 7,388 0 0 1,081 0 6 29 3 11 615 9 2 22,000 0 0 18 10 4 5,066 10 1 683 10 2 884~ 1 7 600 19 8 899 0 0 2,044 15 10 1,507 9 2 183 10 7 819 16 5 286 10 1 361 0 0 10,000 0 0 1,071 12 7 153 9 11 362' 8 8 1,06815 2 572 8 5 10,000 0 0 18 13 5 124 12 10 267 0 11 290 14 0 11,000 0 0 85 9 0 59 17 5 310 8 2 707 19 11 17,800 0 0 313 13 3 •■ 6018 11 16,138 5 4 163' 7 11 9,902 5 6 8,050 1 1 8,215 18 0 4,558 0 0 283 0 0 6,298 0 0 8,066 0 0 4,853 0 0 2,695 17 10 3,948,625 0 0 500 0 0 1,877 0 0 •• 596,709' 15 1 916,436 0 0 3,415,111 0 0 5,415,000 0 0 2,216,349 0 0 603, OOo' 0 0 7,600 0 0 7,777 0 0 3,679 0 0 200 0 0

5

8.—6

Table No. 6. STATEMENT showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to the 31st March, 1921.

WAYS AND MEANS. 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 Insoribed Stook Act, 1917, and Finance Act, 1919, Section 5 .. New Zealand Loan Act, 1884 New Zealand Loan Act, 1886 District Railways Purchasing Aots, 1885 and 1886 New Zealand Loan Act, 1888 Native Land Purohase Act, 1892 Lands Improvement and Native Lands Acquisition Act, 1894 Aid to Public Works and Land Settlement Act, 1896 Aid to Public Works and Land Settlement Amendment Act, 1897 .. Aid to Public Works and Land Settlement Amendment Act, 1898.. Aid to Public Works and Land Settlement Act, 1899 Aid to Public Works and Land Settlement Act, 1900 Aid to Public Works and Land Settlement Act, 1901 Aid to Public Works and Land Settlement Act, 1902 Aid to Public Works and Land Settlement Act, 1903 Aid to Public Works and Land Settlement Act, 1904 Aid to Public Works and Land Settlement Act, 1905 Aid to Public Works and Land Settlement Aot, 1906 Aid to Public Works and Land Settlement Act, 1907 Aid to Public Works and Land Settlement Aot, 1908 Aid to Public Works and Land Settlement Act, 1909 Aid to Public Works and Land Settlement Act, 1910 Aid to Public Works and Land Settlement Act, 1911 Aid to Public Works and Land Settlement Act, 1912 Aid to Public Works and Land Settlement Act, 1913 Aid to Public Works and Land Settlement Aot, 1914 Finance Act, 1909 Finance Act, 1915, and New Zealand Loans Act, 1915 Finance Act, 1916 Finance Act, 1917 Finance Act, 1918 (No. 2) Finance Act, 1919, Section 5 .. Finance Act, 1920, Section 15 .. Post and Telegraph Act, 1908 Midland Railway Petitions Settlement Acts, 1902 and 1903 Paeroa-Waihi Railway Act, 1903 Waikaka Branch Railway Aot, 1905 Wellington and Manawatu Railway Purchase Act, 1908 Appropriation Act, 1912 Irrigation and Water-supply Act, 1913 £ 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 3,000,000 0 0 250,000 0 0 1,000,000 0 0 600,000 0 0 1,500,000 0 0 1,325,000 0 0 479,487 7 11 1,000,000 0 0 149,700 0 0 500,000 0 0 1,000,000 0 0 250,000 0 0 500,000 0 0 1,000,000 0 0 1,011,600 0 0 1,250,000 0 0 1,750,000 0 0 997,690 0 0 750,000 0 0 1,000,000 0 0 989,700 0 0 1,000,000 0 0 1,250,000 0 0 1,000,000 0 0 1,750,000 0 0 1,500,000 0 0 1,748,900 0 0 1,750,000 0 0 3,000,000 0 0 1,250,000 0 0 2,000,000 0 0 1,000,000 0 0 850,000 0 0 2,500,000 0 0 150,000 e o 1,940,000 0 0 200,000 0 0 150,000 0 0 75,000 0 0 50,000 0 0 1,000,000 0 0 15,000 0 0 100,000 0 0 £ s. d. 63,282,077 7 11 Receipts in Aid:— Amount transferred from Consolidated Fund Contributions of Canterbury Province for Railways Proceeds of Railway Material handed over to Cook County Council Stamp Duties to 31st December, 1876 .. Transfer from Confiscated Lands Liabilities Account Reoeipts under Section 16 of the Reserves and other Lands Disposal and Publio Bodies Empowering Aot, 1912 Special Reoeipts under Section 9 of the Railways Construction Act, 1878 Special Reoeipts under the Ellesmere Lake Lands Acts, 1888 and 1893 Special Receipts under the Railways Authorization and Management Act, 1891 Special Receipts under the North Island Main Trunk Railway Loan Application Act, 1886 Sinking Funds released • 10,805,000 0 0 56,000 0 0 4,963 7 4 264,657 16 4 19,963 1 3 21,890 4 5 60,616 3 0 55,870 8 6 2,257 1 9 114,550 19 6 506,819 19 3 11,912,589 1 4 £75,194,666 9 3

8.—6

6

Table No. 6 — continued. STATEMENT showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to the 31st March, 1921— continued.

Table No. 7. Estimated Expenditure of the Consolidated Fund (Revenue Account) for 1921-22, compared with Actual Expenditure of 1920-21.

NET EXPENDITURE. Expenditure on— Immigration Public Works, Departmental Railways, inoluding Surveys of New Lines Roads Land-purchases Development of Mining .. Telegraph Extension Publio Buildings Lighthouses, Harbour Works and Defences Contingent Defence Rates on Native Lands Thermal Springs Tourist and Health Resorts Lands Improvement Plant, Material, and Stores Charges and Expenses of raising Loans Coal-mines Interest and Sinking Fund Payment to Midland Railway Bondholders Irrigation and Water-supply Electric Supply.. £ s. d. 2,259,743 6 4 1,689,929 12 5 37,603,191 17 5 12,547,997 16 11 2,061,790 19 4 883,725 19 9 4,409,445 19 3 8,300,794 2 1 1,156,779 3 10 1,070,466 3 1 68,671 16 10 14,599 13 2 286,294 15 5 140,367 15 9 329,206 7 1 1,253,257 7 11 10,835 8 0 218,500 0 0 150,000 0 0 250,179 7 10 Cr. 600 0 0 £ s. d. Balance on 31st March, 1921,— Cash in the Publio Account Imprests outstanding 74,705,177 12 5 180,910 13 7 308,578 3 3 489,488 16 10 £75,194,666 9 3

Estimate for 1921-22. Actual for 1920-21. Increase. Differences. Decrease. Revenue Account. Permanent Appropriations, — Civil List Interest and Sinking Fund Under special Acts £ 31,100 8,512,352 4,667,803 £ 31,346 7,831,593 4,371,785 £ 680,759 296,018 £ 246 Annual Appropriations,— Legislative Departments Treasury Department.. Land and Income Tax Department Stamp Duties Department National Provident and Friendly Societies Department .. Working Railways Department Post and Telegraph Working Expenses Public Buildings Domains Maintenance and Improvements of Roads Native Department Department of External Affairs Department of Industries and Commeroe Department of Justice Supreme and Magistrates' Courts Prisons Department Crown Law Office Police Department Cook Islands Pensions Department Mines Department Department of Internal Affairs.. Audit Department Public Service Commissioner's Office Printing and Stationery Mental Hospitals Health Department Naval Defence New Zealand Military Forces and Cadets Aviation .. .. .. .. .... Non-effective Services.. Rifle Clubs Customs Department Marine Department .. .. Department of Labour Department of Lands and Survey Valuation Department Electoral Department Department of Agriculture Tourist Department Education Department 13,211,255 12,234,724 976,777 246 58,602 39,933 63,370 105,852 25,650 6,490,000 2,555,142 111,705 5,748 68,000 25,437 4,189 189,494 32,046 90,472 86,330 ' 6,550 435,160 14,856 138,002 55,678 362,601 24,486 9,676 22,500 296,225 177,635 335,782 467,043 15,426 11,999 21,490 132,190 144,010 39,446 258,232 62,172 3,477 306,333 92,666 2,669,507 65,461 50,841 51,040 95,737 30,224 6,211,001 2,588,359 154,590 5,209 65,366 35,913 28,266 291,130 41,784 95,274 88,309 5,889 398,978 13,790 139,592 39,634 574,297 19,904 11,708 26,752 261,739 202,332 48,692 509,947 14,355 5,378 1,362 124,504 167,537 44,540 292,542 70,752 11,227 290,800 93,620 2,460,116 12,330 10,115 6,859 10,908 4,574 278,999 33,217 42,885 "539 2,634 10,476 24,077 101,636 9,738 4,802 1,979 661 36,182 1,066 1,590 161044 4,582 211|696 2,032 4,252 34,486 287,090 24,697 1,071 6,621 20,128 7,686 42^904 23,527 5,094 34,310 8,580 7,750 1_!533 209 ', 391 945,158 "954 16,055,112 15,728,491 618,537 1,921,935 618,783 618,783 Total 129,266,367 127,963,215 1,303,152

8.—6

7

Table No. 8. Estimated Revenue of the Consolidated Fund (Revenue Account) for 1921-22, compared with the Actual Revenue of 1920-21.

Table No. 9. Statement showing the Amount charged to "Unauthorized" in each Financial Year from 1st July, 1875, to 31st March, 1921.

Diffe: •ences. Estimate for 1921-22. Actual for 1920-21. Increase. Decrease. Revenue Account. Ordinary Revenue, — Customs Railways Stamp and Death Duties Postal and Telegraph Land and Inoome Tax Beer Duty Amusement-tax Registration and other Fees .. Marine Miscellaneous Territorial Revenue Endowment Revenue Other Receipts £ 4,900,000 7,350,000 3,010,000 2,790,000 7,700,000 500,000 80,000 180,000 60,000 900,000 190,000 110,000 230,000 £ 8,408,726 6,918,492 3,665,799 2,640,158 9,937,923 360,525 80,103 220,085 56,540 1,584,995 219,193 100,448 67,975 £ £ 3,508,726 431,508 655,799 * 149^842 2,237,923 139 ] 475 "l03 40,085 3,460 684,995 29,193 7,156,824 895,862 6,260,962 162,025 895,862 Total 28,000,000 34,260,962

Consolidated Fund.—Revenue Account. Othek Accounts. Public Works Fund. Financial Yeab. Services not pro- BxoeBB , Votea . vided for. Total. Total. 1875-76 .. 1876-77 .. 1877-78 .. 1878-79 .. 1879-80 .. 1880-81 .. 1881-82 .. 1882-83 .. 1883-84 .. 1884-85 .. 1885-86 .. 1886-87 .. 1887-88 .. 1888-89 .. 1889-90 .. 1890-91 .. 1891-92 .. 1892-93 .. 1893-94 .. 1894-95 .. 1895-96 .. 1896-97 .. 1897-98 .. 1898-99 .. 1899-1900 .. 1900-1901.. 1901-1902 .. 1902-1903 .. 1903-1904 .. 1904-1905 .. 1905-1906 .. 1906-1907.. 1907-1908 .. 1908-1909 .. 1909-1910.. 1910-1911 .. 1911-1912.. 1912-1913.. 1913-1914.. 1914-1915 .. 1915-1916.. 1916-1917 .. 1917-1918 .. 1918-1919 .. 1919-1920 .. 1920-1921.. £ 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 16 3 4,473 15 8 7,293 9 9 5,981 17 8 9,337 11 2 14,337 19 7 7,303 17 10 3,521 18 2 4,412 5 3 10,610 1 0 2,288 3 2 1,741 7 10 2,350 7 0 8,985 3 7 22,422 16 10 3,188 17 7 2,258 19 7 3,305 15 11 11,187 13 8 26,367 18 6 3,836 7 0 9,027 5 4 3,344 11 0 6,215 4 8 8,576 16 7 4,989 9 1 4,133 3 3 14,127 8 1 15,324 5 7 10,427 9 4 20,332 3 1 2,506 15 0 4,730 15 8 109,512 12 4 30,865 10 2 41,600 17 4 17,909 4 7 13,519 17 3 77,149 13 2 108,498 19 2 £ s. d. 19,195 17 1 13,398 7 0 58,709 17 2 47,466 4 5 18,466 2 1 37,825 6 6 38,474 18 9 64,631 0 2 45,284 2 6 39,039 17 11 47,106 10 3 38,117 13 5 42,104 15 10 35,157 16 5 43,257 1 0 76,778 5 11 21,026 16 4 28,283 15 11 7,376 7 4 9,148 0 5 16,229 5 9 24,195 2 9 39,314 13 4 36,468 0 10 60,652 13 7 62,788 3 2 68,866 10 9 101,076 10 4 47,775 11 4 22,109 12 2 52,385 3 7 28,559 6 2 37,713 8 11 50,890 5 1 23,100 14 0 27,200 14 6 62,950 14 7 115,428 2 5 80,228 10 11 68,004 2 1 47,222 13 9 106,454 9 0 48,886 8 7 66,701 19 8 362,295 0 5 392,596 5 9 £ s. d. 32,363 1 9 31,796 4 1 77,789 9 8 58,880 0 6 24,284 11 10 43,977 0 3 42,374 15 0 69,104 15 10 52,577 12 3 45,021 15 7 56,444 1 5 52,455 13 0 49,408 13 8 38,679 14 7 47,669 6 3 87,388 6 11 23,314 19 6 30,025 3 9 9,726 14 4 18,133 4 0 38,652 2 7 27,384 0 4 41,573 12 11 39,773 16 9 71,840 7 3 89,156 1 8 72,702 17 9 110,103 15 8 51,120 2 4 28,324 16 10 60,962 0 2 33,548 15 3 41,846 12 2 65,017 13 2 88,424 19 7 37,628 3 10 83,282 17 8 117,934 17 5 84,959 6 7 177,516 14 5 78,088 3 11 148,055 6 4 66,795 13 2 80,221 16 11 439,444 13 7 501,095 4 11 £ s. d. 3,155 9 2 3,490 6 1 653 6 5 3,938 14 8 1,005 3 10 13,443 11 3 13,590 6 10 12,343 2 2 9,003 18 7 7,163 15 3 13,965 10 1 6,212 16 7 27,821 16 11 13,506 2 8 23,631 7 1 5,459 18 11 9,183 10 6 4,754 17 10 522 12 2 1,890 7 5 16,995 9 9 24,726 3 6 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 18,633 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 53,648 14 0 8,222 10 6 7,990 18 7 17,518 3 7 6,955 4 10 12,837 3 6 9,584 9 11 31,862 8 3 19,965 16 2 55,556 14 10 80,170 3 3 16,641 15 7 11,638 18 8 12,833 7 5 4,982 8 7 73,404 8 3 16,671 3 3 8,189 3 10 2,363 3 9 6,636 4 1 7,693 0 5 £ 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 79,911 11 5 123,140 19 2 62,952 18 9 73,734 16 8 104,884 6 2 101,973 0 9 122,446 4 5 96,916 19 10 53,564 5 3 51,471 0 10 89,125 11 7 191,403 0 8 101,767 15 6 186,559 1 8 95,193 13 5 189,543 15 10 100,499 11 6 80,221 16 11 451,756 13 5 671,591 8 11 662 7 7 253 8 10 200 0 0 2,248 6 6 13,547 11 7 23,956 9 10 12,867 10 8 429 9 0 15,257 11 1 3,500 7 0 1,009 9 7 860 5 4 63 15 0 137 5 8 853 3 5 14,742 5 9 34,852 5 5 26,010 17 11 1,239' 5 4 1,750 12 6 11,07214 6 168,745 11 6

8.—6

8

Table No. 10. Return of Subdivisions of Rural Freeholds in New Zealand.

Subdl 'ision by freeholders. Sub. the Ls m division md Sett] inance A under lements kCt. Subdi Land fo ivision under the >r Settlements Act. Tot >al Subdr 'isions. © a a 'S go SS'S ■S.S » s* S 1 £ a ~ am Area disposed of. f-i c§ bb Is Area. <4H v a s SUSP'S Si © 53 I > | Area. Is □Q | m «s a© <u a q ■ssa -I U2 Area. To Acres Acres Acres 1/4/12-31/3/13 837 1,981 400,569 10 87 11,354 19 322 128,329 866 1/4/13-31/3/14 1,291 3,199 416,051 4 27 4,182 16 276 144,546 1,811 1/4/14-31/3/15 885 2,055 404,115 6 37 3,279 10 130 18,374 901 1/4/15-31/3/16 582 1,070 201,115 1 5 374 10 158 51,158 593 1/4/16-31/3/17 694 1,108 184,799 .. nil .. 15 165 58,334 709 1/4/17-31/3/18 643 1,096 194,572 1 6 1,545 16 222 35,891 660 1/4/18-31/3/19 753 1,227 207,933 .. nil .. 12 248 32,674 765 1/4/19-31/3/20 1,519 2,622 616,210 .. .. .. 64 416 219,259*1,583 1/4/20-31/3/21 1,724 3,046 565,653 60 474 114,711*1,784 Acres. 11,354 4,182 3,279 374 1,545 19 16 10 10 15 16 12 64 60 322 276 130 158 165 222 248 416 474 Acres. 128,329 144,546 18,374 51,158 58,334 35,891 32,674 219,259* 114,711* 866 1,311 901 593 709 660 765 1,583 1,784 2,390 3,502 2,222 1,233 1,273 1,324 1,475 3,038 3,520 Acres. 540,252 564,779 425,768 252,647 243,133 232,008 240,607 835,469 680,364 Total .. 8,928 17,404 3,191,017 22 162 20,734 222 2,411 803,276 9,172 20,734 222 2,411 803,276 9,172 19,977 4,015,027 Ordinary Crown land selected under settlement conditions during the nine years ended the 31st March, 1921 Native land vested in the Maori Land Boards disposed of for closer settlement during the nine years ended the 31st March, 1921 7,010 1,496,272 395 158,341 Grand total made available for closer settlement during nine years ended the 31st March, 1921 27,382 5,669,640 Note.—Subdivisions of Native land not vested in the Maori Land Board but disposed of lease are not included in the above return. by way of sale or * Disposed of to discharged soldiers under the Discharged Soldiers Settlement Act.

9

8.—6

Table No. 11. Statement showing the financial position of the Dominion on the 31st March, 1921, as compared with the 31st March, 1920:— [Note.—The term "liabilities" in these tables includes expenditure on public works for which contracts had been signed or material ordered on the 31st March, 1921.] CONSOLIDATED FUND. £ Balance on 31st March, 1920 .. .. .. .. 17,538,976 Liabilities on 31st March, 1920 .. .. .. .. 515,655 Balance on 31st March, 1921 .. .. .. .. 8,591,209 Liabilities on 31st March, 1921 .. ... .. .. 710,653 STATE FORESTS ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. 5,517 Unexhausted authority for raising loan .. .. .. 130,000 —— 135,517 Liabilities on 31st March, 1920 .. .. .. .. Nil. Balance on 31st March, 1921 .. 9,537 Unexhausted authority for raising loan .. .. .. 310,000 319,537 Liabilities on 31st March, 1921 .. .. .. .. 5,066 STATE COAL-MINES ACCOUNT. £ ' £ Balance on 31st March, 1920 .. .. .. .. 63,090 Unexhausted authority for raising loan .. .. 25,000 88,090 Liabilities on 31st March, 1920 .. .. .. .. 17,800 Balance on 31st March, 1921 .. .. .. .. 48,293 Unexhausted authority for raising loan .. .. 55,000 103,293 Liabilities on 31st March, 1921 .. .. . . .. 22,000 SCENERY PRESERVATION ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 4,944 Unexhausted authority for raising loan .. .. 6,000 10,944 Liabilities on 31st March, 1920 .. .. .. .. Nil. Balance on 31st March, 1921 .. .. .. .: 2,901 Unexhausted authority for raising loan .. .. 6,000 8,901 Liabilities on 31st March, 1921 .. .. .. .. 29 NAURU AND OCEAN ISLANDS ACCOUNT. £ Balance on 31st March, 1921 .. .. .. .. .. 28,172 PUBLIC WORKS FUND. £ £ Balance on 31st March, 1920 .. .. .. .. 219,502 Unexhausted authority for raising loan .. .. .. 950,000 — 1,169,502 Liabilities on 31st March, 1920 . . .. .. .. 954,071 Balance on 31st March, 1921 .. . . .. .. 489,489 Unexhausted authority for raising loan . . ... 3,060,000 3,549,489 Liabilities on 31st March, 1921 .. .. .. .. 1,933,434 RAILWAYS IMPROVEMENTS AUTHORIZATION AOT 1914 ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 22,794 Unexhausted authority for raising loan.. .. . . 2,535,000 ___ 2,557,794 Liabilities on 31st March, 1920 . . . . .. .. 20,096 Balance on 31st March, 1921 .. . . .. . . 7,206 Unexhausted authority for raising loan.. .. .. 2,487,510 2,494,716 Liabilities on 31st March, 1921 .. .. .. .. 7,388

2—B. 6.

8.—6

10

Table No. 11 — continued. WAIHOU AND OHINEMURI RIVERS IMPROVEMENT ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 6,263 Unexhausted authority for raising loan.. .. .. 20,000 26,263 Liabilities on 31st March, 1920 .. .. .. .. 500 Balance on 31st March, 1921 .. .. .. .. 27,751 Unexhausted -authority for raising loan .. .. .. 82,000 109,751 Liabilities on 31st March, 1921 .. .. .. .. 1,877 ELECTRIC SUPPLY ACCOUNT. (Formerly Aid to Water-power Works Account.) £ £ Balance on 31st March, 1920 .. .. .. .. 1,504 Unexhausted authority for raising loan .. .. 6,881,000 6,882,504 Liabilities on 31st March, 1920 .. .. .. .. 102,991 Balance on 31st March, 1921 .. .. .. .. 1,079,533 Unexhausted authority for raising loan .. .. 8,973,490 10,053,023 Liabilities on 31st March, 1921 .. .. .. .. 355,636 CHEVIOT ESTATE ACCOUNT. £ Balance on 31st March, 1920 .. .. .. .. .. 146,812 Balance on 31st March, 1921 .. .. .. .. .. 160,712 NATIONAL ENDOWMENT ACCOUNT. £ Balance on 31st March, 1920 . . .. .. .. .. 100,448 Liabilities on 31st March, 1920 .. .. .. .. Nil. Balance on 31st March, 1921 .. .. .. .. .. 102,481 Liabilities on 31st March, 1921 .. .. .. .. Nil. LAND FOR SETTLEMENTS ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 156,668 Authority for raising loan .. .. .. .. 500,000 656,668 Liabilities on 31st March, 1920 .. .. 516 Balance on 31st March, 1921 .. .. .. .. 373,756 Unexhausted authority for raising loan .. .. .. 500,000 873,756 Liabilities on 31st March, 1921 .. .. .. .. 526 NATIVE LAND SETTLEMENT ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 22,869 Unexhausted authority for raising loan.. .. .. 500,000 — 522,869 Liabilities on 31st March, 1920 .. .. .. .. 673 Balance on 31st March, 1921 .. .. 90,693 Authority for raising loan .. .. .. .. 500,000 590,693 Liabilities on 31st March, 1921 .. .. .. .. 1,426

11

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Table No. 11 — continued. LAND FOR SETTLEMENTS ACCOUNT. (Discharged Soldiers Settlements Account.) £ £ Balance on 31st March, 1920 .. .. .. .. 318,596 Authority for raising loan .. . . .. '.. 2,000,000 2,318,596 Liabilities on 31st March, 1920 .. .. .. .. 175 Balance on 31st March, 1921 . . . . . . . . 173,146 Authority for raising loan .. .. .. .. 1,000,000 1,173,146 Liabilities on 31st March, 1921 . . . . .. .. 1,565 LAND FOR SETTLEMENTS ACCOUNT. (Opening up Crown Lands for Settlement.) £ £ Balance on 31st March, 1920 .. .. .. .. 22,377 Unexhausted authority for raising loan .. .. .. 250,000 272,377 Liabilities on 31st March, 1920 .. .. .. .. 193 Balance on 31st March, 1921 .. .. .. .. 18,035 Authority for raising loan .. .. .. .. 250,000 268,035 Liabilities on 31st March, 1921 .. .. .. .. " 4,253 HAURAKI PLAINS SETTLEMENT ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. • 2,333 Unexhausted authority for raising loan.. .. .. 34,000 —— 36,333 Liabilities on 31st March, 1920 .. .. .. .. 118 Balance on 31st March, 1921 .. .. .. .. 9,378 Unexhausted authority for raising loan .. .. .. 100,000 109,378 Liabilities on 31st March, 1921 .. .. .. .. 4,211 RANGITAIKI LAND DRAINAGE ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 50,754 Unexhausted authority for raising loan .. .. .. Nil. — 50,754 Liabilities on 31st March, 1920 .. .. .. .. 459 Balance on 31st March, 1921 .. .. .. .. 4,822 Unexhausted authority for raising loan.. .. .. 70,000 74,822 Liabilities on 31st March, 1921 .. .. ... .. 1,081 WORKERS' DWELLINGS ACCOUNT. £ Balance on 31st March, 1920 .. .. .. .. .. 77,100 Balance on 31st March, 1921 .. .. . . .. .. 52,100 STATE ADVANCES ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 240,297 Loan-money to receive .. .. • • • • 1,162,000 Unexhausted authority for raising loan .. .. .. 3,250,000 _ 4,652,297 Liabilities and commitments on 31st March, 1920 .. .. 708 Balance on 31st March, 1921 .. .. .. .. 177,246 Unexhausted authority for raising loan .. .. .. 3,250,000 Loan-money to receive .. .. .. .. 900,000 4,327,246 Liabilities and commitments on 31st March, 1921 .. .. 615

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12

Table No. 11— continued. WAR EXPENSES ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 4,533,728 Unexhausted authority for raising loan.. .. .. 6,611,475 11,145,203 Liabilities on 31st March, 1920 .. .. .. .. 2,216,349 Balance on 31st March, 1921 .. .. .. .. 3,424,283 Unexhausted authority for raising loan .. .. .. 5,161,930 8,586,213 Liabilities on 31st March, 1921 .. .. .. .. 603,000 WAIMARINO BUSH-FIRE RELIEF ACCOUNT. £ Balance on 31st March, 1920 .. .. .. .. .. 23,592 Liabilities on 31st March, 1920 .. .. .. .. Nil. Balance on 31st March, 1921 .. .. .. .. .. 41,479 Liabilities on 31st March, 1921 .. .. .. .. Nil. MINING ADVANCES ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 4,178 Unexhausted authority for raising loan.. .. ~ 20,000 ' —- 24,178 Liabilities on 31st March, 1920 .. .. .. .. Nil. Balance on 31st March, 1921 .. .. . . .. 1,696 Unexhausted authority for raising loan .. .. .. 50,000 — 51,696 Liabilities on 31st March, 1921 .. .. .. .. Nil. KAURI-GUM INDUSTRY ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 16,323 Unexhausted authority for raising loan .. . . . . 22,000 38,323 Liabilities on 31st March, 1920 .. . . .. .. 3,761 Balance on 31st March, 1921 .. .. .. .. 7,418 Unexhausted authority for raising loan .. .. .. 22,000 29,418 Liabilities on 31st March, 1921 .. .. .. .. Nil. FRUIT-PRESERVING INDUSTRY ADVANCES ACCOUNT. . £ £ Balance on 31st March, 1920 .. . . 384 Unexhausted authority for raising loan .. , . . . 40,000 40,384 Liabilities on 31st March, 1920 .. . . . .. .. Nil. Balance on 31st March, 1921 .. .. .. .. 2,382 Authority for raising loan .. .. .. .. 40,000 — 42,382 Liabilities on 31st March, 1921 .. .. .. .. Nil. DISCHARGED SOLDIERS SETTLEMENT ACCOUNT. £ £ Balance on 31st March, 1920 . . .. .. .. 975,254 Unexhaused authority for raising loan .. .. .. 4,655,000 — 5,630,254 Liabilities on 31st March, 1920 . . . .. .. Nil. Balance on 31st March, 1921 .. .. .. .. 3,478,454 Unexhausted authority for raising loan.. .. .. 4,760,696 5,239,150 Liabilities on 31st March, 1921 .. .. .. Nil.

13

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Table No. 11 — continued. SWAMP LAND DRAINAGE ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 1,723 Authority for raising loan .. .. .. .. 150,000 151,723 Liabilities on 31st March, 1920 .. .. .. .. 163 Balance on 31st March, 1921 .. .. .. .. 29,057 Unexhausted authority for raising loan .. .. 150,000 179,057 Liabilities on 31st March, 1921 .. .. .. .. Nil. COLD-STORAGE ADVANCES ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. .. 10,550 Unexhausted authority for raising loan .. .. 149,250 159,800 Balance on 31st March, 1921 .. .. .. .. 22,819 Unexhausted authority for raising loan .. .. 149,250 172,069 EDUCATION LOANS ACCOUNT. £ £ Unexhausted authority for raising loan .. .. 1,250,000 Liabilities on 31st March, 1920 .. .. .. Nil. • — 1,250,000 Balance on 31st March, 1921 . . .. .. .. 55,429 Unexhausted authority for raising loan .. .. 1,730,000 1,785,429 Liabilities on 31st March, 1921 .. .. .. .. 9,510 FISHING INDUSTRY PROMOTION ACCOUNT. £ £ Unexhausted authority for raising loan .. .. 25,000 Liabilities on 31st March, 1920 .. .. .. Nil. 25,000 Balance on 31st March, 1921 .. .. .. .. 96 Unexhausted authority for raising loan .. .. 25,000 26,096 RESERVE FUND ACCOUNT. £ £ Balance on 31st March, 1920 .. .. .. 800,000 Unexhausted authority for raising loan .. .. 1,200,000 2,000,000 Liabilities on 31st March, 1920 .. .. .. .. Nil. Balance on 31st March, 1921 .. .... 2,000,000

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14

Table No. 12. Statement op Assets held, and Capital Expenditure, as against the Public Debt on the 31st March, 1921, together with Supporting Schedules. Liabilities. Public debt— £ £ Ordinary .. .. .. .. .. .. 106,256,496 State advances .. .. .. .. .. .. 12,619.950 118,876,446 War .. .. .. .. .. .. .. 81,538,569 Discharged-soldiers settlement .. .. .. .. 5.909,304 — 87,447,873 £206,324,319 Assets. £ Sinking funds accrued .. .. .. .. .. ~. .. 8,763,072 Investments of cash balances of the Public Account .. .. .. .. 10,320,705 Bank of New Zealand shares .. .. .. .. .. . . .. 875,000 Reserve Fund securities . . .. .. .. .. .. .. 2,000,000 New Zealand Consols investments .. .. .. .. .. .. 475.985 State Advances investments .. .. .. .. .. .. .. 14,478,068 Advances made by Treasury .. .. .. .. .. .. .. 433,438 Advances on account other Governments .. .. .. .. .. 125,490 Cash in Public Account .. .. .. .. '.. .. .. 8,450,372 Cash in New Zealand Consols Account . . .. .. .. .. . . 6 Cash in hands of officers of the Dominion .. .. .. .. .. 1,612,988 47,535,124 Total amount expended for railways, public buildings, telegraphs, Native lands, harbours, lighthouses, settlement lands, electric development, &c, to 31st March, 1921 .. *84,314,003 Crown lands —estimated value .. .. .. .. .. .. .. 25,000,000 Surplus of liabilities over assets .. .. .. .. .. .. 49,475,192 £206,324,319 Sinking Funds accrued : Schedule I. £ Public Debt Extinction Act, 1910 .. .. .. .. .. .. 1,871,205 War loans .. .. .. .- .. •• .. .. .. 2,507,164 Land for settlements . . .. .. .. .. .. .. .. 935,790 Government loans to local bodies .. .. . . .. .. .. 799,601 Naval Defence Act, 1909 .. .. .. .. .. .. .. 822,334 War and defence loans .. .. .. .. .. .. .• 192,691 Native-land settlement .. .. .. .. .. .. .. 11,977 Section 26 (5) (a), State Advances Act, 1913 .. .. .. .. .. 6,497 New Zealand Loans Act, 1863 .. .. .. .. .. .. 2,207 Guaranteed mining advances .. . . . . .. .. .. .. 751 State advances .. .. ■ • • ■ • • • ■ • • • • 1,592,827 State Coal-mines Act, 1908 .. .. .. .. .. .-. .. 20,028 £8,763,072 Investments of Cash Balances out of Public Account : Schedule 11. £ Ordinary Revenue Account .. .. .. .. .. .. .. 2,853, 490 State Coal-mines Account .. .. .. .. .. .. .. 30,000 Deposits Account .. .. .. . • .. .. .. .. 1,260, 975 Cheviot Estate Account .. .. .. .. .. .. .. 157,130 Workers' Dwellings Account .. .. .. .. .. .. .. 52,100 Waimarino Bush-fire Relief Account .. .. .. .. .. . . 39,700 War Expenses Account .. .. .. .. .. .. .. 1,655, 500 Nauru and Ocean Islands Account .. .. .. .. .. .. 10,000 Electric-supply Account .. .. .. .. .. .. .. 1,000,760 Land for Settlements Account .. .. . . .. .. . . 269,250 Land for Settlements Account (Discharged Soldiers Settlement Account) .. .. 135,000 National Endowment Account .. .. .. .. .. .. 67,800 Discharged Soldiers Settlement Account .. .. .. .. .. 2,719,000 Discharged Soldiers Settlement Loans Act, 1920, Depreciation Fund Account .. 50,000 Cold-storage Advances Account .. .. .. .. .. .. 20,000 £10,320,705

* This does not include £19,033,007 expended on directly and indirectly productive services, such as roads, immigration, State coal-mines, drainage-lands, &c, shown in table.

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15

Table No. 12 — continued. Advances made bti Treasury : Schedule 111. £ Mining .. .. .. .. .. .. .. .. .. 23,028 Fruit-preserving .. .. .. .. .. .. •• •• 72,010 Kauri-gum .. .. .. .. .. .. .. . ■ • • 53,000 Cod storage .. .. .. .. .. .. .. .. .. 128,250 Loans to employers for workers' dwellings .. .. .. .. .. 3,150 Southland Electric Power Board .. .. .. .. .. .. 154,000 £433,438 Advances on Account of other Governments : Schedule IV. £ Bechuanaland .. .. .. .. .. . • ■ ■ • • 249 British Guiana .. .. . . .. . • ■ • • • • ■ 39 British military occupation of Samoa .. .. .. .. .. ■• 17,510 Commonwealth Government . . .. . . . . .. . • • • 33,860 Canadian Government .. .. .. .. •• •• ■• 2,155 Ceylon .. .. .. .. .. ■• 1,102 Cook Islands .. .. .. .. .. Or. 150 Federated Malay States .. . . .. .. .. .. .. 468 Fiji ..' Or. 4,054 Hong Kong .. .. .. .. .. . - ■ ■ • ■ »• - ■. "^ Imperial Government .. .. .. .. .. ■• ■■ •■ 21,228 Mauritius .. . . .. .. .. . . .. .. V. 534 Niue Island .. . . .. . . .. .. .. .. • • 191 Nyassa'and .. . . .. .. . . . . • ■ - ■ • • 5o Nigeria .. .. .. .. .. • . • • • • • •' 232 Samoa 51,688 Trinidad .. .. .. ■ .. .. .. .. ■■ •• 63 Straits Settlements .. .. .. . . .. .. • • • • iJ S Union of South Africa . . .. .. .. •. • ■ • • 156 £125,490 Total Amounts expended to 31st March, 1921 : Schedule V. £ Railways 38,917,375 Public buildings .. .. .. .. .. .. •• •• 8,300,794 Telegraph extension .. .. .. .. .. .. •• •• 4,409,446 Purchase of Native lands .. .. .. .. .. •■ •■ 2,061,791 Lighthouse;, harbour-works, &c. .. .. .. .. •• •• 1,156,779 Land for settlements . . .. '.. .. .. .. .. •■ 9,370,906 Land for settlements (discharged soldiers'! .. .. .. .. •• 2,692,327 Discharged-soldiers settlement .. .. .. .. .. •• •■ 16,601,238 Electric-power supply and development.. .. .. .. .. . . 803,347 £84,314,003 Schedule VI : Directly and Indirectly Productive Services. Roads 12,547,668 Immigration .. . . .. .. . ■ ■ • -•• • • • 2,259, 743 Tourist and health .. .. .. .. . . •• •• •■ 286,295 Development of mining .. .. .. .. •• •• •• 883,726 Roads to open up Crown lands .. .. .. .. •• •• 1,309,077 Lands-improvement .. .. .. .. •• •• ■ •„ •• 140,368 Waihou and Ohinemuri Rivers improvement .. .. .. ... • ■ 189,074 Irrigation and water-supply .. .. .. •• ■• •• ■• 250,180 State forests 200,000 Scenery-preservation . . .. .. • ■ • ■ • • • • • • 94, 000 Hauraki Plains settlement .. .. .. .. •• •• •• 239,000 Rangitaiki land-drainage .. • • • ■ • • • • • ■ • • 280, 000 Swamp-land drainage .. .. .. .. •• •■ •■ •■ 126,276 State coal-mines .. .. .. • • • ■ • • • • • • 227, 600 £19,033,007

Authority : Maectis F. Masks, Government Printer. Wellington. —1921.