FINANCIAL STATEMENT.

5

B —No. 2b.

amount to £28,917 9s. 3d., being a difference of £5,360 9s. Id. Then, he took credit for £13,650 16s. lid., to be received from the Confiscated Lands Account; but he overlooked the fact that even if that amount were recovered, £9,373 9s. lid. of it was due, not to the Consolidated Eund, but to the Special Fund from, which the advance had been made. I cannot, however, treat any part of it as an asset. I have examined into the quantity and position of what remains of the Confiscated Lands; and I believe that after granting to the Natives from whom they were taken a considerable portion—as we mean to do—any balance remaining will not pay, certainly not more than pay, the expense of management and claims upon them. Thus £13,650 16s. lid., included as an asset by my predecessor, ceases to exist. Then, Sir, he omitted to include as a liability the interest to 30th June, upon Temporary Loan Debentures, Deficiency Bills, &c, to an amount of £2,311 10s. 6d. He also omitted the liability, which I have already referred to, in respect of Savings on Civil List, Native Schools, and Armed Constabulary Reward Eund, £17,585 ss. 7d. There is also £5,000 of additional liabilities, which I have ascertained to be due and which has since 30th June last been in great part paid. These items amotmt to the discrepancy of £43,908 2s. Id., thus : — £ s. d. Provincial Account differences ... ... ... ... 5,360 9 1 Confiscated Lands ... ... ... ... ... 13,650 16 11 Interest on Debentures, &c. ... ... ... .., 2,31110 6 Savings on Funds, &c. ... ... ... ... 17,585 5 7 Additional Liabilities ... ... ... ... 5,000 0 0 £43,908 2 1 Having thus explained, I trust clearly, the position of the Consolidated Eund on the 30th June, 1872, I will proceed to do the same in reference to two portions of what is called the Special Eund—-viz., The Defence Loan and Public Works Account. And first as to THE DEFENCE AND OTHER PUEPOSES LOAN. The following is a Balance Sheet showing the position of the cash raised under that Loan as at 30th June, 1872.

ASSETS. CR.

LIABILITIES. CR.

By Cash in the Colony in the Bant of New Zealand ... By Casli on Deposit in London, being the proceeds of sale of Bonds for £150,000, after paying all charges* By Advances in the hands of Officers A portion of this amount is recoverable in cash; the remainder, when accounted for, will be debited as Liabilities at 30 June, to which extent it is a cross entry as against the £23,792 17s. 4d. on the other side. By Amount recoverable from the Province of Otago in separate account ... ... ... ... By Amount due from New Zealand Settlements Aet Account ... This amount is not realizable, and is therefore excluded from the Assets. £ b. d. £ s. d. 62,653 17 6 149,764 0 6 4,589 19 6 9,373 9 11 1,247 0 3 £218,254 17 9 * The accounts of the Loan Agents in which this sum appeal 'une, 1872. •s, were not receivi id until after 30th

To Liabilities and Engagements for Defence Services This is the unexpended Balance of the Appropriation for the Year 1871-72, reserved for this purpose. To Amount payable to Consolidated Fund, to replace amount expended therefrom in 1871-72 for Defence Services £ s. d. 23,792 17 4 £ a. d. 8,358 11 4 To Temporary Loan Bonds redeemable* To Advance on Temporary Loan Bonds, repayable* ... 32,151 8 8 30,000 0 0 39,617 1 10 69,617 1 10 To Balance of Amount raised under this Act on account of the Province of Otago, applicable to redemption of Otago Dock Bonds 9,563 7 8 To Cr. Balance available for Defence Services of 1872-73 111,331 18 2 106,922 19 7 £218,254 17 9 * Redeemed 13 September.