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pared with Western Australia, there is an annual saving of £2,000 on the forty years' currency, or £80,000 for the full term ; or a saving of £1,000 on the twenty years' currency, or £20,000 for the full term. But, supposing the Western Australian loan had had a fifty years' currency, then the comparison would show an annual saving of £2,125, or £106,250 for the full term. These figures speak for themselves; but I will take one more illustration of the advantage derived from a 3-per-cent. loan over a 3-J-per-cent. loan, both having a currency of fifty years. Taking the 3|-per-cent. loan at par and the 3-per-cent. loan at £94 Bs. 9d., the annual saving effected on a million and a half loan would be £4,125, which represents a saving of £206,250 for the full period of fifty years. Furthermore, I can assure you that in the annual charge I have taken into consideration the amount required to restore the full capital charge by the time the loan falls due. This saving of the taxpayers' money maybe stated in another and even more forcible way. Take, for instance, the £4,125 just referred to: now, this amount, if invested at 3 per cent, compound interest, would, by the time our loan expires, reach in round figures the large sum of £466,000 ; or if compounded at a 3j-per-cent. rate, it would produce over £500,000 during the same period. With these figures before you, I am justified in feeling a profound sense of satisfaction at having been, in my humble way, the associate in carrying to a successful result what, in my opinion, must be termed a splendid operation—-an operation which, in addition to the enormous advantages gained by bringing money down to a level that admits of its being profitably employed by those who- require it to develop the industries and commerce of the country, again enables New Zealand to lead the van of new and beneficial undertakings amongst her continental neighbours. THE COMMERCIAL POSITION OF THE COUNTRY. One has become so accustomed to hear pessimists decrying the commercial position of the country that it would seem almost a hopeless task to attempt to convince these detractors of New Zealand of their folly. This pessimism has, in truth, become with some an incurable disease. The great difficulty which has in recent years confronted all producing countries has been the steady decrease in the prices of the natural products of the soil. There are many causes assigned for the downward tendency which has taken place in values. Some attribute it to monometallism, others to overproduction; and_ again are to be found those who believe that the system of assured and rapid transit has so developed all over the world in our own times that the former position of values, which had been maintained for a continued period at a high level, has for ever disappeared. Whatever may be the causes, it is beyond question that a marvellous transformation has taken place, and that the duty is forced upon statesmen to assist in the solution of what is recognised to be a great and intricate problem. In this matter New Zealand has not lagged behind. The Government have endeavoured to apply common-sense to lengthen the reach of commercial activity ; and I take it that it will not be disputed that one of the first essentials for a producing country is not only to create an increased output of its products, but to have new markets to which to send those products. The more outside markets to which we can get access the greater will be the competition for the purchase of our goods. The Government, believing that the true policy for this country is to assist the settlers to find fresh markets, have, subject to ratification by Parliament, entered into reciprocal tariffs with South Australia and Canada, by which interchange can be effected with them of some of our products. BANK ASSETS COMPANY. I deem it my duty to state that in my opinion the present position of the Bank of New Zealand Estates Company is far from satisfactory. Honourable members are aware that this company owns large areas of land, which, whilst in many cases suitable for closer settlement, are not now worked to the best advantage. Attached as the company is to the Bank of New Zealand, lam convinced that it will be advisable at an early date to seriously consider in what manner this intimate relation can be modified. At the same time I may say that