FINANCIAL STATEMENT.

3

B.—No. la.

been brought xip so as to enable me to submit the results of which I have given—l say it is out of that source that I have, an analysis of the accounts for the year ending 30th June, during the past financial year, derived the funds with which to 1867, so closely approximate as I believe the one which I effect the following refunds—refunds which, I have no doubt, now present to be. I would merely observe that the brevity my predecessor would also have effected had he been in office, of the statement is not to be regarded as any measure of the viz.:— time taken to arrive at it. Amount of Overdrawn Account at £ s. d. The following is an abstract of results, viz.: — Bank of New Zealand, in July, Receipts. £ s. d. 1866 26,361 15 4 Ordinary Ecvenue 1,028,006 5 10 Intestate Estates, &c. (as particuIncidental 17,489 10 9 larized before) 24,431 2 2 Extraordinary 298,000 0 0 Making the total of refunds and £1,343,495 16 7 payments from the Treasury, Expenditure. effected during the [year, outside Ordinary 1,063,382 18 1 the statement of expenditure Extraordinary 282,370 17 10 which I have already submitted 50,792 17 6 and I have now disclosed (presented I hope in an intelligible £1,315,753 15 11 shape) all the transactions of the year, so far as I am aware. Showing an excess of expenditure over income of very trifling When, therefore, lam thus enabled to inform the Cornamount indeed, considering the dimensions of the figures. mittee that not only have the funds belonging to intestate Outside, however, these figures, there have been transactions estates and certain other trusts been refunded by the to which I must refer, and which indeed are of a character Treasury during the past financial year, and placed ad deserving special explanation. I need, perhaps, scarcely inform interim in deposit at interest with the Bank of New the Committee (for the question has been raised in various Zealand, awaiting their final disposal by the Legislature, forms from time to time) that the uso of money, in deposit Dut a i 9o t hat t he overdrawn account of the Government, with the Government, has insensibly grown up into a habit yrith the Bank of New Zealand, which, in 1864, culminated in New Zealand; and however the exigencies of the public to £818,000, and in July, 1866, stood at £26,361 15s. 4d., has, service may have induced the custom, it is one which I shall ou the Ist July, 1867, wholly disappeared, and that the Governnot pretend to uphold; and the Government has accordingly meut o f jf ew Zealand is now in the course of receiving instead decided to propose its discontinuance. There are, indeed, o f paying interest on its balances, I think the Committee will certain deposits of a current character which may, I think, concur that it is a satisfactory announcement, and affords a be fairly employed as a working balance; whilst there are prac tical illustration of the prudence with which our finances others of such a character as to require that they should be must necessarily have been conducted. Still, an exchequer held aloof in trust. The 'practice, however, has not hitherto sys tem which permits such transactions as the indiscriminate been in accordance with this opinion, and considerable sum s use o f trust f un( j S) a nd the indulgence in unlimited overdrafts, belonging to intestate estates and other funds have been, from ig notj it must be confessed, a sound one, and if any argument time to time, employed for the purposes of revenue. As weTe neC essary, in addition to those which I hope to adduce, in an instalment of reform of this abuse, and in anticipation SU pp Or t of an amendment in our revenue laws (to which subject of legislative action being taken, I have to state that I have j shall pres ently recur, as one of the proposals of the Govern, caused the following refunds to be made from the Treasury, men Q t the present instances certainly afford such argument. Tlz-: We have now done with the past and its comparisons, and £ s. d. proceed to the immediate future, which does not allow of comIntestate Estates 15,667 15 8 pa risons, although it must be admitted that the opprobrious Real Estates Administration ... 1,047 16 6 epithet usually attached to comparisons is, fortunately, not appliSupreme Court Account ... 385 10 8 cable in tue present instance. It will become, perhaps, the duty Justices Relief Act 225 7 9 of my successor to institute such at the proper time and pass a Estates of Deceased Soldiers ... 904 10 5 judgment. What a fine opportunity the future, although it be Native Reserves, Wellington ... 168 2 5 only the immediate future—the jporf/a^mm-affords Dunedin Disputed Reserves ... 6,031 18 9 the financier) especially if he be of a sanguine temperament. All the financier wants —all anybody wants —is time. The £24,431 2 2 great battles of the world were lost, and the bankruptcy lists are This sum has been placed in deposit at interest with the Bank mci up> b(?cause the loser 3 and flfifenltew are not "up to time." of New Zealand. -g^ a ith oug h the future is glorious because unknown, the GovernI have said that this amount is not included in the expend!- ment doe 3 no( . propoge to avail itself of the elastio margin it ture side of the statement which I have just submitted to the a ff ol .a s . It points to the past with a pardonable satisfaction Committee; as, therefore, the expenditure is shown in that ag proof that itg anticipations and estimates were reliable, and statement to exceed somewhat the income, the question of the resultants of prudent and careful calculations. In accordcourse arises, where did the money come from to enable the ance -^th this spirit I content myself with a moderate estimate refund to be made ? I proceed to explain, and at the same o f the revenue for the year 1867-8, which I particularize thus, time take the opportunity of pointing out the source from vi z .. which not only this sum but a further amount was derived, Estimated Revenue, 1867-8. £ whereby the Treasurer was enabled to effect other repayments Customs 870,000 as well. My predecessor (the honorable member for Gladstone) Bonded Stores 5,000 informed the Committee last year that " there had been expen. Stamps 75,000 diture provided for from other sources than the loan itself, Miscellaneous 134,000 and which must bo returned by the loan;" and, therefore, he first allowed for such refunds, and then stated the balance of £1,084,000 the loan as available at £178,000. I subsequently stated it Whilst however I believe that I have not presented to the at £170,000 ; and the proceeds have, in fact, amounted to Committee a sanguine estimate, I wish equally to guard myself £173,000. Out of the reserve, then, allowed for such refunds, against submitting our estimates below par, under the depressas stated to the Committee last year, and therefore not affecting ing influence of any local commercial crisis. There is a pecuthe amount set down as available for appropriation, and con- liarity in New Zealand which distinguishes her from most other sequently outside the statement of receipts and expenditure Colonies, and cannot fail to strike the financier, whose duty it