8.—2

6

Colonies are adopting the four per cent, rate, and when we make a change at Home it would be better to adopt the same rate. The result of the change that has been made, though it causes an increase of nominal indebtedness, will be to reduce materially the annual payment for interest; and there will no longer exist the necessity to make payments by a sinking or drawing fund, whilst we are at the same time borrowing more. We may at last show our appreciation of the doctrine, that the only true sinking fund is the excess of revenue over expenditure. The transactions in the several Loan Accounts during the year are shown in detail in Table B (1), and are epitomised in Table Gr. For the convenience of honorable Members, I will state here the total operations in the Defence and Immigration and Public Works Loans, from the date of commencement of those operations to the 30th June last. Under the Defence Loan Act, the amounts authorised to be raised, the amounts raised, the amount expended, and the balance left, are as follow :—

Nominal indebtedness increased; but material reduction in annual interest.

TTue sinking fund.

Tables B. and G.

Defence and Other Purposes Loan.

Immigration and Public Works Loan.

CONFISCATED LANDS. Among the accounts comprised under the head of Special Funds, is the New Zealand Settlements Act Account; and as an indication of the approach of the time when the revenue from these lands will cover the expenditure, I may refer honourable Members to Table G., from which it will be seen that this account exhibits, for the first time for many years, a balance on the credit side. But this balance, though representing the actual condition of the account as affected by receipts and payments up to the close of the financial year, understates the case, since it fails to exemplify the fact that not only has the revenue for the year been sufficient to cover the expenses of

Confiscated Lands

Balance on credit tide.

BeTcuue for year,

Teak. Amount Raised. Amount to be Expended. Amount Expended. Baiance. 1870-71 1871-72 1872-73 450,000 0 0 185,600 0 0 87,900 0 0 £ s. d. 450,000 0 0 185,600 0 O 87,900 0 0 343,500 0 0 160,000 0 0 150,000 0 0 £ a. d. 343,500 0 0 160,000 0 0 150,000 0 0 £ s. d. 279,221 0 10 198,131 13 10 142,415 1 7 £ s. d. Unapplied balance of suras authorized to be expended up to 30th June, 1873... Balance of amount raised in excess of expenditure authorized to 30th June, 1873, available for the service of the year 1873-74 723,500 0 0 70,000 0 0 723,500 0 0 653,500 0 0 653,500 0 0 619,767 16 , 3 33,732 3 9 33,732 3 9 70,000 0 0 70,000 0 0 Balance (see Table G.), consisting of— Cash —In Colony „ In London 653,500 0 O 76,204 10 10 19,770 14 10 653,500 0 0 653,500 0 0 653,500 0 0 653,500 0 0 95,975 5 8 Advances—In Colony „ In London 5,537 7 0 2,219 11 1 7,756 18 1 £103,732 3 9 Undex the Imm: Oth June may be sta igration and Public Work: ited thus :— Loan Act, the operations to thi Amount A' rAIXABLE FOE E: 'ENDITTJEE. Ybae. Amount Raised. Amount Expended. Balance Sums Raised. Stamp Duties Account. Total. 1870-71 1871-72 1872-73 £ s. d. 750,000 0 0 850,000 0 0 423,900 0 0 £ s. d. 99,953 19 3) 611,561 9 i[ 1,193,844 4 9) £ s. d. 118,537 6 5 £ s. d. 37,202 10 2 39,683 16 0 £ s. d. Totals 118,537 6 5 2,023,900 0 0 1,905,362 13 7 76,886 6 2 195,423 12 7 Balance (see Table Or.) Cash —In the Colony „ In London ... £', t 175,057 13 5 77,919 13 7 152,977 7 0 Advances —In the Colony ... „ In London 41,172 9 9 1,273 15 10 42,446 5 7 195,423 12 7