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8.-6

EXTINCTION OF THE PUBLIC DEBT. Every penny of our public debt is now provided with means for its extinction within a reasonable time. The greater portion of it, representing about £65,000,000, which had no special internal reserve or sinking fund for its repayment, is now under the operation of the Public Debt Extinction Act, 1910. This Act has established a system whereby the whole of this £65,000,000 will be repaid in seventy-five years. The Act also applies to all future loans, which will be extinguished by it in seventy-five years after their origin. Until the funds are required for repayment of loans falling due they are to be invested in New Zealand in loans to settlers, workers, and local bodies, and their investment will thus greatly assist in the development of the Dominion. The first year's contribution from the Consolidated Fund under the Act, amounting to £144,885, will be invested in such securities before the end of the present financial year. THE FUTURE. The financial position of the Dominion is absolutely sound in every way. Tt has vast resources, a vigorous and enterprising population —small, it is true, in proportion to the area of the country to be developed; but it is increasing both by excess of births over deaths and by immigration much faster than that of many other countries. Taxation is light compared with that of other less-favoured lands, and is imposed on those best able to bear it. The settlement of our lands is proceeding rapidly. The demand for our principal products is good, and must of necessity continue as the world's population increases. There need be no doubt whatever of this country's future, which must be one of general advancetuent and development. J. G. Ward, Minister of Finance.