8.—6

No person with any expert knowledge expects to see an underwritten loan subscribed to by the public and the dealers anything like as heavily as one issued at a time when underwriting is not necessary. In the absence of the Loan Agents' accounts, which have not yet been received in the colony, I am unable to state the precise net price realised, but, as there is no reason to anticipate that the cost of raising will be any greater than that of the previous issue, the net result to the two accounts should be about =£91 15s. per cent. —a very satisfactory result indeed. The over-counter sales of 4-per-cent. short-dated debentures in the colony have now become a very popular investment. Over a million has been taken up in this manner during the past year. £750,000 were issued under the authority of " The Aid to Public Works and Land Settlement Act, 1902," and £338,700 to provide ways and msans for the acquirement of estates under " The Land for Settlements Consolidation Act, 1900." As in the case of similar sales made last year, purchasers had the option of having the principal made payable either in the colony, Australia, or London. In all 243 parcels were sold, ranging from £100 to £100,000. Of the debentures thus disposed of, £546,500 were made payable in the colony, £386,500 in Australia, and £155,700 in London. As this method of investment becomes better known a larger demand for this class of security may be looked for. EEVIEW : TWENTY YEAES, 1882-1902. It is not out of place for me to put before members the financial position of the colony twenty years ago and our position to-day, and also to recapitulate in categorical form the lines on which progress has gone. Finance, Eeceipts and Expenditure. In 1882 the receipts for the year were £3,805,23 ? , and the expenditure £3,616,896. In 1902 the receipts were £6,152,839, and the expenditure £5,895,914. The public debt twenty years ago was £28,479,111; in 1902 it was £52,966,447. In 1882 the interest charges and sinking fund amounted to £1,500,989; in 1902 it amounted to £1,803,939. Having shown the increased expenditure and receipts, the increased public debt, and interest required to be paid, I will proceed to show that the security now existing to the public creditor and the ability of the colony to meet its engagements are far superior to what they were twenty years ago. In 1882 there was a deficit of £1,628,316; in 1902 we closed the year with a surplus of £270,489. During the ten years from 1892 to 1902 the total net surpluses amounted to £3,279,914, and of this amount £3,205,000 was transferred to the Public Works Fund and expended on public works and for development purposes. On that sum no interest is payable, whilst the public creditor has the security. A survey of the development and the improved position to meet our obligations as contrasted with that existing twenty years will show— Population. The population, other than Maoris, numbered 517,707 in December 1882, as against 807,929 persons in 1902, an increase of more than two hundred and ninety thousand persons, or 56 per cent., being a yearly average of 2-25 per cent. Of this the natural increase amounted to 261,048 persons, an average of 12,431 per annum, showing that, whatever may be said of the birthrate, there has been a satisfactory margin between that and the death-rate, which in New Zealand is admittedly low. The increase by births over deaths in 1882 was 13,308 ; in 1892 11 417 • and in 1902 ; 12,280. Besides 807,929 persons, the populations of the recently annexed islands, 12,292 persons, and 43,143 Maoris, have to be added to make the full population of the colony on the 31st December last, which amounted to 863,364.

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