B.—No. 2.

Let us suppose, further, that half of the Stamp Duties are to be brought to aid, and that these should be made to yield as follows :— Ist year, £40,000, 6th year, £65,000, 2nd year, £45,000, 7th year, £70,000, 3rd year, £50,000, Bth year, £75,000, 4th year, £55,000, 9th year, £80,000, sth year, £60,000, 10th year, £85,000. Our totals will then be as follows : —

Aid from Stamp Duties;

£1,000,000 Guaranteed Loan. Gratifying announcement from Commissioners.

Its benefits to be spread over the Colony.

Expenditure and Receipts contrasted.

Totals.

I should add, that these calculations suppose that the railways, the undisposed of land, the roads, and the increased population, will, at the end of the ten years, represent the outstanding liabilities. I have not taken into account the gratifying announcement received from the Commissioners, that the Imperial Government are disposed to guarantee a loan of a million for Public Works and Immigration purposes. Such a guarantee would mean a saving to the Colony of about £20,000 per annum. We should have no hesitation in receiving such a favour from the Imperial Government, and if received so much will it be the better. But until we know the conditions with which the guarantee is accompanied, it is prudent to do no more than to enable ourselves to use it should it be available. I have no knowledge of the conditions ; but I may say that the Government are resolved on this, that if the money is to go in aid of a general system of Public Works and Immigration, the saving it will effect should be participated in by all parts of the Colony. I have taken eight and a half millions as the basis of my calculation, because the million and a half for Immigration purposes I suppose to be expenditure of an immediately reproductive nature. But I have assumed, also, that in addition to a cost of about five thousand pounds per mile, two and a half million of acres will be paid away for railway purposes. Now five thousand pounds a mile should be sufficient, or nearly so, to cover the average cost of cheap railways, and the two and a half million acres of land I look upon as something more than a margin for contingencies or for exceptionally heavy works. I regard it in a great measure as an aid to Immigration in connection with railway construction, and 5

17

FINANCIAL STATEMENT.

&i pe: Interest, G months Cent. Total Interest. Receipts over and above Working Expenses on Railways. Receipts from Railway Estate. Stamp Duties Estimated. Total. Interest, 12 Months on on £ £ 850, 000 850, 000 850, 000 850, 000 850, 000 850, 000 850, 000 850, 000 850, 000 850, 000 £ 23, 375 70,125 116, 875 1G3,625 210, 375 257,125 303, 875 350, 625 397, 375 444,125 £ £ 5, 000 10, 000 20, 000 30, 000 40, 000 55, 000 70, 000 90, 000 110, 000 130, 000 £ 40, 000 45, 000 50, 000 55, 000 00, 000 05, 000 70, 000 75, 000 SO, 000 85, 000 £ 45, 000 55, 000 80, 000 105, 000 150, 000 195, 000 240, 000 315,000 390, 000 465, 000 1st Year ... 2nd „ ... 3rd „ ... 4th „ ... 5th „ ... 6th „ ... 7th „ ... 8th „ ... 9th „ ... Oth „ ... 850, 000 850, 000 850, 000 850, 000 850, 000 S50, 000 850, 000 850, 000 850, 000 Less 10, 000 20, 000 50, 000 75, 000 100, 000 150, 000 200, 000 250, 000 That is to say, expenditure and p ■.eipts e; ich year as folL w:— Expenditure. Receipts. 1st Year 2nd „ 3rd „ 4th ., 5th „ 6th „ 7th „ 8th „ 9th „ .Oth „ £ 23, 375 70,125 116, 875 163, 625 210,375 257,125 303, 875 350, 625 397, 375 444,125 £ 45, 000 55, 000 80, 000 105, 000 150, 000 195, 000 240, 000 315, 000 390, 000 465, 000