1.-8

6

APPENDIX.

[Corrections made in part of MSS. speech shown in erased type and italics.] And now, Sir, I will refer again to the Financial Statement, to come-down to the and come back to consider the present position of the colony. I take the same exception to this Financial Statement that I took to the Speech of His Excellency the Governor: I object to it for what it does not contain. Our attention is sought to be engrossed by the movements of the Consolidated Fund. The Treasurer feas-tfee displays the revenue and expenditure with engaging vivacity; lie has the moneys as it were on the table before him, and he shifts thea* it to and fro ; he makes them it fall in a glittering cascade to attract our attontiea admiration ; aad he collects a little pile and calls it a surplus, and he covers over the deficiency with his the Financial Statement! But while he is engaging seeking thus to engross the attention of honourable members fey with the beauty of the Consolidated Rweaae Fund, in the next room throughout the-l&et-ttoefe-yetTO at feeea Ms confederates have been amusing themselves with a larger fund as regards the opportunities for speculation —the Public Works Fund, sad ee-ea to which our Consolidated Fund is in some respects a comparative trifle. I will ask honourable members to bear with me while I touch on the occurrences of the last three years with reference to the Public Works Fund — that fund which is made up of borrowed money. In 1888, tke-seeead just before the second session of this Parliament, it will be remembered that there was a crisis in respect of the two-million loan in London. The loan Bilhel which was to have authorised the previous year had been bungled—aad tho leaa it could not be raised. It tvas a period of great anxiety. It was a crisis in the history of the colony in more senses than one. T-faero wao dariag Soon after the month of March the-geried-whea in that year 1880, a certain monetary institution had to present its half-yearly report and balance-sheet. I refer to the Bank of New Zealand. I mean to refer often to that bank, but never except in so far as the bank is concerned with the finance of the colony ; outside of that I have no concern with it at all, but inside of that I have, and every member of this House has, a deep concern in its transactions. Oa-the 3lot March It was necessary then for tkej» the bank directors to present their report and balance-sheet. Do not honourable members remember the meeting ei-4hat-day in Auckland when the chairman of directors presented his report ? There were ugly reports current as to the stability of the bank. The chairman of directors, Sir, was then Sir Frederick Whitaker, and he was also then and as he is still AttorneyGeneral in the present Administration. lam not going to indulge in any phantasies, feat-we / shall deal with facts. We are here to speak the truth —impugn it whoso list listeth; and I say that that honourable gentlemen was at that date was deeply indebted to the Bank of New Zealand. I will not say that the amount of his aeeeaat overdraft was £40,000 or any other sum, because aa some honourable Minister may get up and say it

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[Correotions'made in proof and revise of part of speech shown in erased type and italics.] And now, Sir, I will refer again to the Financial Statement, and come back to consider the present position of the colony. I take the same exception to this Financial Statement that I took to the Speech of His Excellency the Governor: I object to it for what it does not contain. Our attention is sought to be engrossed by the movements of the Consolidated Fund. The Treasurer displays the revenue and expenditure with engaging vivacity; he has the money, as it were, on the table before him,, and he shifts it to and fro ; he makes it fall in a glittering cascades to attract our admiration ; he collects a little pile and calls it a surplus, and he covers over the deficiency with the Financial Statement! But, while he is seeking thus to engross the attention of honourable members with the beauty of the Consolidated Fund, in the next room his confederates have been amusing themselves with a larger fund—the Public Works Fund —to which our Consolidated Fund is ia-wmio- respeete a comparative trifle, as regards at least the opportunities for speculation. I will ask honourable members to bear with me while I touch on the occurrences of the last three years with reference to the Public Works Fund—that fund which is made up of borrowed money. In 1888, just before the second session of this Parliament, it will be remembered that there was a erieie hitch in respect of the proposed two-million loan ia-Leadea ? The loan, which was to have been authorised the previous year, had been bungled—it could not be raised. It was a period of great anxiety. It was a crisis in the history of the colony in more ceases ways than one. Soea-aitef-tfte-aieath-ei-Marfth In the usual course, early in that year a certain monetary institution had to present its half-yearly report and balance-sheet. I refer to the Bank of New Zealand. I mean to refer often to that bank, but never except in so far as the bank is consented nected with the finances of this colony ; outside of that I have no concern with it at all, but inside of that I have, and every member of this House has, a deep concern in its transactions. It was necessary, then, for the bank directors to present their report and balancesheet. Do not honourable members remember the meeting in Auckland when the chairman of directors presented his report ? There were ugly roporta rumours current as to the stability of the bank. The chairman of directors, Sh=j then was the Hon. Sir F. Whitaker, and he was also then, and as he is still, Attorney-General in the present Administration. I am not going to indulge in any phantasies. I will deal with facts. We are here to speak the truth—impugn it whoso listeth; and I say that that honourable gentleman was at that date deeply indebted to the Bank of New Zealand. I will not say that the amount of his overdraft was £40,000 or any other sum, because some Minister may get up and say it was not so, because the amount was a little larger or a little smaller, as the case »ay might be; but I will say it was a very, very heavy