2

8.—15

The increase in the gross amount of the debt is due principally to the operations under which •debenture loans have been converted into inscribed stock bearing a reduced rate of interest, the remainder of the increase being represented by loans to local bodies and purchase of Native and other lands for settlement, upon which direct returns more than equal to that which is paid out are being paid into the Treasury. It is right also to state that included in the gross amount of the public debt as stated above are £800,000 4-per-cent. debentures, guaranteed by the Imperial Government, which are still in possession of the Government, being deposited in London to the order of the Agent-General to meet any possible unexpected financial contingency. These debentures, if issued at the present time, would realise quite a million of money. New Zealand has always stood in an exceptionally strong financial position by the fact that these debentures are thus held. It should also be remembered that over £15,000,000 of the New Zealand public debt is represented by the Government railways of the country, which earn over 3 per cent, per annum on their cost, a fact which is often lost sight of when comparing the colony's public debt with those of the United Kingdom and other countries, such as Canada. The capital represented by the railways of the United Kingdom is now approaching, if it does not already exceed, £1,000,000,000's of money : add that amount to the national debt of this country, and the comparison between it and the New Zealand debt can then be made on more equal grounds. Conversions and Sinking Funds. It has been represented that the present New Zealand Government have adopted the policy of releasing the sinking fund of the public debt and applying the proceeds to ordinary revenue purposes. But such an assertion is entirely contrary to the facts of the case. The policy which provided for the release and disposal of the sinking funds was deliberately adopted by the New Zealand Legislature in 1884, and the mode in which any released sinking fund is applied is regulated by statute, and under such regulation no part of the sinking fund can possibly be used for ordinary revenue purposes. This is a fact which ought to be understood by every one interested in the finance of the colony, and it has been more than once fully set forth in the official statements made by the representative of the New Zealand Government in London, and freely circulated in this country, notably in the statements issued by the late Agent-General (Sir P. D. Bell) in January, 1885, and again in May, 1888. The conversion of the public debt into stock bearing a lower rate of interest than that charged on the original debt has been successfully effected to a very considerable amount, and the result has been advantageous to the colony, inasmuch as it has largely reduced the amount of interest payable thereon. Progress of the Colony. It is only necessary, in order to produce satisfactory evidence of the progress of the colony, to call attention to the statistics given below. These statistics for the most part speak for themselves. Special attention is, however, called to those relating to the postal service of the colony, the very large increases in the number of letters and telegrams received and despatched affording striking evidence of the commercial progress of the colony. It is also worthy of special remark, as regards the exports of the colony, that during the time when there has been a continuous fall in the prices of produce yet the value of the exports are still on the increase, showing that the increase in actual amount of produce exported is much larger than would at first sight have been supposed, judging from the small increase of value. Notwithstanding the low price of produce, and the depression caused thereby all over the world, New Zealand, by reason of its superior climate, its fertility of soil, and its great agricultural, pastoral, and mineral resources, holds its own in favourable contrast with other countries.

New Zealand—Table of Statistics, showing the Progress of the Colony.

Population. Years. 1854 .. .. .. .. .. 88,554 1867 .. .. ■■ •• •■ 260,668 1878 .. .. .. .. -. 456,412 1888 .. .. .. .. .. 649,380 1894 .. .. .. .. .. 728,221 Public Revenue. Years. , £ 1853 .. .. .. .. .. 146,855 1858 .. .. .. .. .. 341,125 1867 .. 1,787,314 1878 .. .. ... .. .. 4,167,889 1888 .. .. .. .. .. 3,859,000 1894 .. .. .. .. .. 4,368,537 Savings-bank Deposits. Years. £ 1858 .. .. .. .. •■ 7,862 1868 243,615 1878 .. .. .. .. .. 1,043,204 1887 .. .. .. .. .. 2,407,776 1893 3,241,998

Postal. Letters. Years. Received. Despatched. 1858 .. .. 254,605 .. .. 228,251 1867 .. .. 2,408,331 .. .. 2,402,909 1878 .. .. 8,236,062 .. .. 7,288,699 1886 .. .. 19,896,448 .. .. 18,188,144 1893 .. .. 27,650,272 .. .. 27,132,287 Newspapers. Years. Received. Despatched. 1858 .. .. 346,603 .. .. 337,745 1867 .. .. 1,670,520 .. .. 1,390,368 1878 .. .. 5,097,907 .. .. 4,312,459 1886 .. .. 7,479,209 .. .. 6,844,838 1893 .. .. 10,699,299 .. .. 8,856,731 Telegraphs. v „„„„ Miles of Number of * eala ' Line. Messages. 1860 .. .. 699 .. 27,407 1871 .. .. 1,976 .. .. 312,874 1874 .. .. 2,530 .. .. 752,899 1882 .. .. 3,974 .. .. 1,570,189 1887 .. .. 4,646 .. .. 1,835,394 1893 .. .. 5,513 .. .. 2,069,691