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Auditor's Report. Sir, — Rarotoriga, sth June, 1914. 1 have the honour to inform you that 1 have audited the accounts of the Cook Islands Administration for the year ended 31st March, 1914, and find them to be correct. I have also audited the books of the High Court and Land Titles Court, and find that all moneys received as recorded by the official receipt-butts and statements from Resident Agents have been duly accounted for. I have, &c, A. G. Clarke, The Resident Commissioner, Cook Islands Administration, Rarotonga. Auditor.

Report of Treasurer and Collector of Customs. Sir, — Rarotonga, Cook Islands, 21st May, 1914. I have the honour to forward herewith statement of revenue and expenditure for the year ended 31st March, 19.14, and trade returns for the year ended 31st December, 1913. The revenue for the year amounted to £11,722 18s. 5d., which, with the balance on hand on the 31st March, 1913, £2,062 18s. 3d., made a total of £13,785 16s. Bd. for carrying on the administration. As compared with the previous year, the revenue shows an increase of £2,302 18s. sd. Of this increase, the revenue from Customs is responsible for £1,987 os. Bd., High Court for £123 Is. 2d., and Fruit Inspection Account for £163 ss. 2d. In the matter of decreases the largest items are stamps, £87 15s. 7d., and Land r l itles Court fees, £82 Bs. 6d. The expenditure (summary appended) amounted to £10,194 2s. : — £ s. d. Public works .. .. .. .. .. .. 3,936 1 0 Salaries .. .. .. .. .. .. .. 3,817 3 7 Contingencies . . . . .. .. .. .. 889 2 8 Hospital supplies and attendance ... .. .. .. 998 13 11 Subsidies . . . . . . . . .. . . .. 142 0 0 . Compensation for land resumed . . . . . . . . 155 0 0 Maintenance of lepers . . . . . . . . . . 59 19 5 Maintenance of lunatic .. .. ... .'. .. 36 12 0 Rents .. .. .. .. .. .. .. 23 15 0 Grant to Mr. E. Elaine, revising laws .. . . .. .. 50 2 6 Assistance to Natives and expenditure on account of hurricane . . 85 12 0 £10,194 2 0 Liquor Account : The sales of liquor from the Government bond for the year amounted to £9 12s. lid. Waterworks Account : The amount expended to date in providing fresh-water supplies in Rarotonga totals £5,426 11s., being apportioned as follows: Avarua, £2,547 18s. 6d.; Ngatangiia, £840 Is. 6d.; Arorangi, £718 Is. 9d.; Matavera, £490 17s. Bd.j Titikaveka, £829 11s. 7d. : total, £5,426 11s. The revenue from water rates for the year amounted to £294 16s. 6d. The sum of £662 3s. 6d. was expended in erecting fresh-water tanks at Mauke, Mitiaro, Atiu, and Aitutaki. Fruit Inspection and Fumigation Account : The fees collected for the.fumigation and inspection of fruit amounted to £797, compared with £750 17s. 9d. the previous year. The expenditure was £699 2s. 5d., including £167 14s. I'd. expended on the Pua-Au Nursery. Postal : The volume of business in this department has been well maintained. Money-orders numbering 956, value £15,068 ss, 10d., were issued, and 1,194 orders, value £14,597 17s. od., were paid. The commission earned was £58 13s. Postal notes to value of £536 were issued. In the Savings-bank the deposits for the year were £1,528 os. 10d., and the withdrawals £649 14s. lid. Trade: The oversea trade of khe Group is valued at £220,209 —imports £110,283, and exports £109,926. The increase for the year is £24,639—imports £16,421, and exports £8,218. The output of bananas increased by 11,129 cases, copra by 89 tons, and pearl-shell by 6 tons. Until within the last few mouths good prices have been obtained for all the Island products — fruit, copra, and pearl-shell. The outlook for the present year, however, is not so promising. Firstly, the hurricane in January last spoiled the orange and cocimut crops in all the islands except Rarotoriga, Mangaia, Penrliyn, and Palmerston, and as it will take the trees some time to recover, a diminished output is inevitable.. Secondly, there has been a big drop in the value of the pearl-shell shipped from this Group. The Penrhyn and Manihiki pearl-shell is known as " black-edged," and is used for the manufacture of black-pearl buttons. The going-out of fashion of this style of button accounts for the drop in the price of shell. During the last four months copra has been steadily declining in value, and is now quoted at £25 per ton on the London market, compared with £30 in December last. For some years coconut-oil lias been exclusively used for edible purposes and soapmaking. It now appears that palm-oil, which in the past has been entirely used for soap and candle making, is, owing to the discovery of a new refining process, about to supplement coconut-oil in the making of margarine. As enormous quantities of palm-oil is being produced on the African coast, and now being more easily converted into butter than coconut-oil, it is only to be expected that copra will decline in price. Thus the hurricane and the fall in value of shell and copra must materially affect the prosperity of these Islands. I have, &c, W. J. Stevenson, The Resident Commissioner, Rarotonga. Collector of Customs and Treasurer.

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