THE COLONY'S FINANCES

Press, Volume LX, Issue 11512, 19 February 1903, Page 5

THE COLONY'S FINANCES

MR SEDDON A2fD THE SURPLUS

BAiNKING LEGISLATION.

(PRESS ASSOCIATION' TKLEGHAM.)

AUCKLAND, February 18.

The Premier, in his speech, eaid- the figures obtained by the Telegraph Department from the Treasury showed that for ten months of the present financial year Customs t returns had exomlcd those of the corresponding period of last year by £84,326. The other increases were:—Railways £125,587, stamps £36,f88, income tax £2176, registration and other fees £9229, ,and marine £727, making a total ot £258,233. Under decrease* the land tax showed £9862 and beer duty £690. There was a falling off in land revenue of £18,315, and the miscellaneous items showed a falling off of £720, but the net excess for the ten months was £228,646. The Government would be able to announce a surplus of at least £250,000 at the end of the financial year, despite the remissions of taxation and railway rates, and other concessions, and the increased expenditure. When the Government decided to place a loan of a million and a quarter on the London market, it decided not to accept less than £34 10s. The loan had been underwritten for that amount. The last time he went to London the market minimum was £94.

The Premier said that during the next session Parliament wou.d be asked to provide a preferential tariff with the Mother Country and for intercolonial reciprocity. It would be asked to make provision for utilising and municipalising the latent electric power in the water forces of the colony. Next session it would be necessary to pose legislation affecting the Bank of New Zealand. At present the bank shares were bringing £4 11s, though what had put shares above par, £3 6s Bd, he could not understand. Several suggestions have been made. There were some who said there should be a State Bonk, which should start with the Bank of New Zealand, and others said the Government, in going behind the bank, should letain control, even although tho bank's liability to the colony were met. Thirdly, there were those who thought the amount subscribed by the colony as a guarantee should be converted into bank capital, and that the colony should be to that extent a partner in the bank. All these were matters worthy of consideration, and affected, in a measure, the position of tho bank. He said this with the twofold object, torse to let the colony know that banking legislation was nereesary, and eeoondiy that if there was any boom in shares, the people would know that the matter was to be dealt with by Parliament. If they dealt in shares their eyes would be open. Tho bank was in a splendid position. When it was dealt with, he felt sure that satisfaction would be given to all concerned. Both the banks and the colony could not pay more at present.