B.—No. la,

2

FINANCIAL STATEMENT.

By "actual" I mean expenditure inelusivo of advances made from them would yield a very much larger amount than that during the year, but exclusive of advances made prior to that stated by the Government, and that I was strongly urged to period, and observe that the excess of actual over estimated amend my estimate in that respect, some false prophets even expenditure, under the head " Permanent Charges," arises from foretelling that the income from that Bource would flow in at the circumstance that the Colony had to make advances during the rate of £200,000 per annum. It will now be conceded, I the past year for payment of interest and sinking fund on suppose, that the Government took the prudent view. The allocated debts, which have not yet been refunded by the deficiency of actual income will then be discovered under the Provinces. item " Miscellaneous," wherein the most noticeable decreases The Committee will next please to eomparo the estimated ex- attach to the following services, viz:—Postal, Marine, and traordinary expenditure of the past year with the expenditure Crown Grants. Fuller departmental explanations on these of that class actually incurred during the same period. The points will be offered at the proper time, result appears in the following figures, viz.: — I next compare the estimate of Extraordinary Ways and ,_ ~ _ ~, ,„„„ H Means with the proceeds actually realized from those sources Estimated Extraordinary Expenditure, 1866-7. , ~ , „„}. „ ■~ ~ . ~ 3 for the year 1866-7, with this result, viz.: — Cook Strait Cable and Telegraph Extension £ to Auckland ... ... ... 38,000 Estimated Proceeds, Extraordinary Ways and Means, 1866-7. Treasury Bills (removal of Seat of Govern- £ ment) 11,500 Treasury Bills 150,000 Military Settlers 207,000 Unexpended Balance of Loan 170,000 Liabilities on account of Settlement of Military Settlers 50,000 £320,000 Actual Proceeds of Extraordinary Ways and Means, 1866-7 £306,500 £ g d _ Actual Extraordinary Expenditure, 1866-7. Treasury Bills 125,000 0 0 Cook Strait Cable and Telegraph £ s. d. Proceeds of Loan 173,000 0 0 Extension to Auckland ... 14,852 7 0 Incidental Beceipts 17,4*9 10 9 Treasury Bills (removal of Seat of ■ Government) 11,775 0 0 £315,189 10 9 Military Settlers, and liabilities on The amount opposite the item " Incidental Receipts " arises account of settlement 255,743 10 10 from sales of confiscated lands, which I last year declined to estimato for as a source of revenue, and I think I was fully £282,370 17 10 justified by the result; for although I have thought it would These statements may therefore be regarded so far satisfactory, be more satisfactory to the Committee to disclose the amount as showing that the total actual ordinary and extraordinary actually received from these sales, yet it cannot be regarded expenditure incurred for the year 1866-7, did not reach the as net proceeds, inasmuch as the special attendant expenses, expenditure as estimated for that year by the sum of £17,805. which are included in the expenditure side of the year's The next point is to compare last year's ordinary revenue, account, exceed the proceeds. as estimated to provide for the estimated ordinary expenditure, When I inform the Committee that I hold Treasury Bills with the income actually received. The following is the result to the amount of £25,000 ready for delivery at par, but which of the comparison, viz.: — I did not find it necessary to issue to the purchaser during the past financial year, I hope the announcement will be Estimated Ordinary Revenue, 1866-7. regarded as an indication not only that these estimates have turned out remarkably exact, but that the Government resisted Customs . ... 850,000 ... >• v. •. i i a temptation to which governments are in general supposed Bonded Warehouses 4,500 to yield, viz., that of spending as much money as they can StamP9 SO'ooo lay their hands upon. . Miscellaneous 154,000 j anticipate that the Committee will now be able to follow me with a greater degree of clearness as I present a balanco ' ' sheet showing the result of the past year's transactions of the Ordinary Revenue Actually Received, 1866-7. Colony, than they would if left to gather these results £ a _ ,j_ presently from the published accounts. For although any Customs 865 032 8 0 one w'lo as stucuc(l the accounts of the Colony as published Bonded Warehouses 5,325 0 0 annually in the Blue Book must admit that the information Stamps £34,688 12 5 ifc contains is at once voluminous and detailed, yet at Less stamps used 843 15 10 tho same time he may be excused if he rises from that 33,844 16 7 interesting study with but a dim vision of results. The Miscellaneous ... ... ... 123,804 1 3 purchaser of a stack of hay could not be more disappointed < if taken into a field and confidentially shown the process £1,028,006 5 10 of haymaking as exhibited in cocks and windrows, than This shows an over-estimate of revenue amounting to I imagine tho student of New Zealand Finance would be upwards of £30,000. In explanation, I would observe that if who wends his way through advances, reserves, savings, transwe bracket the two main sources of revenue on which the fers, &c, and arrives at last opposite a column of figures Colony now relies for its ordinary income, viz., Customs and under "receipts and transfers" exceeding in amount by several Stamps, it will be found that my estimate of last year was millions sterling the possible income of the Colony. In singularly exact, for it will be seen that I estimated the revenue sympathy with such disappointment I have taken some pains derivable from Customs and Stamps at £900,000; and it now to have the accounts for the past year analysed; and I now appears that the actual receipts have reached the sum of present them divested of tho processes by which the same £898,876 : a closer approximation could not well, I conceive, figures aro first marched past, and then counter-marched back have been made ; and I think I am fairly entitled to call the by way of review. No Treasurer, I venture to affirm, has yet attention of the Committee to tho accuracy of the estimates been able to attempt such a task within a few weeks after the of the Government, because it will be remembered that an close of any financial year with any great confidence in his opinion was very generally expressed, both by the opponents figures; and it is much to the credit of all the officers of the and supporters of the Stamp Duties, that the revenue to arise Treasury department that the accounts of the past year have