11

8.—2

have made for supplementing it out of sources other than loans. The account Avill be enlarged by certain amounts I have treated of in my revieAV of the financial operations of the past year. I refer to the Sinking Fund and repayments accrued against the securities held in trust and authorized for conversion amounting to £67,094, and the sum of £100,000, part of the surplus of the past year. The amount of these sums is £167,691, and this Aye propose to place to the credit of the Public Works Account, adding it to the amount shown to be available on the 30th June, which Avill then give a grand total of £2,224,634 7s. 10d., for appropriation for Public Works, including re-votes for outstanding liabilities. PUBLIC TBUSTS. The transactions of the Post Office Savings Bank during the year ending the 31st December, 18.77, show a steady increase of deposits. The total sum to the credit of depositors was £767,375, against £723,910 for ls76—an increase of £13,465. The excess of deposits over withdrawals for the year AA ras £11,271, against an excess of withdrawals over deposits for 1876 of £32,146. The interest credited depositors AA ras £29,193, against £28,762 for the previous year. The Public Trust Office has now under administration 22 Estates under Avill or deed, 894 Intestate estates, 85 Estates of Lunatics, and 18 Trust Fund accounts. It has funds invested to the amount of £65,176, and had cash in the bank on the Ist July last £12,287 10s. 6d. That this office is becoming a very great convenience to the public is shown by the fact that solicitors are advising their clients to transfer to its management trusts that are of long duration, or in which complicated arrangements arc involved. The office is not only self-supporting, but a sum is accumulating from the profits of the department Avhich will form a Eeserve Fund in case losses should occur. In the Government Insurance Department the past year's business has been very satisfactory. The number of policies issued b"ing in the proportion of 10 to 7 o\ rer that of the previous year, and much above the aA rerage of the last five years. They represent £680,000. There are nearly 9,000 policies in force; yet the death claims Avere only 37 in number, against 39 the previous year, both being far less than the expectation, according to the best tables of mortality. The sum of £67,799 has been invested during the past year.

PBOGEESS OF THE COLONY. The tables accompanying and illustrating this Statement have been revised and rearranged in harmony with the institutions of the colony. The comparative returns of the three principal Australasian Colonies have been produced to show, not the natural productions only, but the whole import and export trade of each, thus affording a more reliable index of their prosperity. The comparisons shown convey a different lesson from those conveyed by the tables of previous Statements. The most gratifying feature to the people of this colony is the remarkable increase of exports for the year ending December, 1877, which stand at £(5,327,472, against £5,673,465 in the previous year —an increase of £654,007. The imports, unnaturally inflated in 1874 to upwards of £8,000,000, have fallen to £6,973,418, indicating probably a more healthy condition. The quantity of wool exported in the' calendar year 1877 exceeded that of the preceding year by about four and a-half million pounds weight, the value showing an increase of £203,122. The value' of gold exported in the past financial year Avas £1,475,609, against £1,407,247 in the previous year, the increase being £68,422. The export of grain slightly declined in the year ending December, 1877, the return being £290,415, against £314,142 in 1876.

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BEFOBM OF THE TAEIFF. I have now to state the proposals Aye intend to make, respecting the tariff. Sir, every observer of the effect of the system of ad valorem duties, which was applied to a multitude of articles in 1873, has been led to condemn it. It is a remarkable fact that the revenue derived from these duties has shown no increase, the returns of last year standing at the amount derived in the year when the