FINANCIAL STATEMENT

Dominion, Volume 12, Issue 308, 24 September 1919, Page 8

FINANCIAL STATEMENT

SUEPLUS OF £3,678,733 HEAVY WAR EXPENDITURE ADDITIONAL WAR NEEDS, £29,325,000. £2,000,000 FOR PUBLIC WORKS WAR MEMORIAL TO COST £100,000. . INCREASE IN TEACHERS' SALARIES ' . . WATER POWER, HOMES FOR THE PEOPLE, AND SOLDIER SETTLEMENT

Tho Minister of Pinancs (Sir James Allen) delivered his Finanoial Statement in the House of Representatives last night.

TREASURY- FIANCE

lhe Minister gave the following summary of - the points of the Statement:— For tho convenience of honourable m embers I summarree the most important items relating to tho financial operations of the Treasury:— War-loan moneys raised in the Dominion, as at Juue 30, had reached a totalof approximately approximate cost of raising one-half of 1 percent. Investments in London increased to .£ 16,804,33-1. as at March 31, 1919. Ordinary revenue'reserve increased to as at March 31,1919. Redemptions and rcnewafe effected am minting to .£1,705,265. Net surplus of year's revenue, 733. ' Tota.l accumulated surplus on Mnrch 31, 1919, Total lodgments to PuDlic'Account, year 1918-19, £72,440,211, as compared with •■617,120,240 for the year 1913-14. Total disbursements from Public Account, for 1918-19, as compared ' with .£17,106,489 for the year 1913-14. Customs revenue, .£330,681 above estimate. Pu'biic-works expenditure, £1,207,921. '■ Income-tax receipts increased by £5 99,775. Land-tax receipts, increased by .SI2G, 955. Stamp Tovenue increased by £232,759. Kxress of Post Office Sivings Bank deposits over withdrawals, £3,162,263. Thirty-one estates purchased for discharged soldiers, makins a total area of 507,890 acres throw a open for settlement. £831,420 authorised for soldier settlers by way of financial assistance. £318,752 authorised as advances to discharged soldiers engaged in town vocations to purchase homes. ' _ 34,071. war lmisions granted to March 31, 1919, representing an annuil value of £2,289,333; ' Total payments to ,pniducers for slip plies purchased on behalf of the Imperial Government, .£95,909,600. War expenditure to June 30, 1919 (including £4,095,011 imprest advances to meet commitments', £06,118,045.■

' PROPOSALS

I a'.sb place in concise form the new p roposals submitted to honouraWe 'bcrs:— £50,090 additional subsidy to Railway Superannuation Fund. £600,000 to be provided for Government hydro-electric schemes. Increased payments to Government employees. , Teachers' salaries to be increased. \ Additional provision to be.made for school buildings, etc. Provision for workers'dwellings. £2,000,000 for war pensions. £2,090,000 for public works. . • . Loan for soldiers' land-settlement, A 14,500,000. Educational, curative, and vocational training to be provided for. War gratuities and i*lowances to 60 idiccs-, £6,050,000. War memorial; £100,1100. . . Tot.ll- additional amount required for Expeditionary Force, £29,325,000. •Allowances to be granted to widows and children of epidemic, victims. ' '

A GOOD,IYEAR. The proposals for meeting the normal < requirements of government as well as tlio heavy financial responsibility which | has devolved upon this Dominion owing to tho war, now happily brought to a victorious conclusion, said the Minister. It is a matter of great satisfaction to be ablo to inform honourable members that the anticipations fcr the financial year 1918-19 were more than realised, aud that tho yew's operations resulted in a' considerable surplus of Mvenuo over expenditure. Contrary to expectations, revenue from practically all sources substantially increased during the year, notwithstanding the interruption to trade and tlio difficulties of overseas transport. The total revenue for tlie year ending March 31, 1919, amounted to £22,352,372, an increase of £2,146,150 over the previous year, or £2,107,172 in excess, of tho estimate. The expenditure for 1918-19 showed an increase of .£3,553,311 over that of 1917-18, or £1,110,478 below the amount appropriated, a fact which indicates the; prudence and economy exercised by thoss entrusted with the : administration of State services during tho most difficult period in' our history. The maii^ items of increased expenditure were on account of interest and sinking fund on war loans, war and other pensions, and charges arising'out of-the recent epidemic, and the expenses of' the trading departments, which were largely in : oreased owing to the advance in the cost of materials' and in wagco.

REVENUE AND EXPENDITURE

pitals and. Charitable Aid Departments .;. 318,608 " 225,701 Tourists 'deportment 13,656 ' -J8.733 Defence Department 416,427 423,112 Customs, Marine, and Inspection of Ma- ■ chinery Departments 186,561 ' 163,395 Department of labour 32,954 30,746 Department of Lands ftiid Survey 209,403 • 159,831 Valuation and Electoral Departments... J3.070 38,425 Department of Agriculture, Industries, and Commerco 240,465 224,565 Education Depigment ! 1,602,995' -1,511,256 Services not provided for 12,420 5,795 9,451,749 8,451,47$ _i. _ Totals .' 18,C73„)99 15,120,288 A total increase of .-£-3,553,311. - SURPLUS It is my pleasing duty ' to announce that the surplus for the year amounted to ,£3,678,773, It is arrived at as follows:— £' £ ■ Revenue 22,352,372 - Expenditure *... 18,673,599 — 3,678,773 Add surplus at the end of the financial year 1917-18 • 11,560,788 Total accumulated sur- s plus ....'. .£15,239,561 PUBLIC WORKS FUND Although expenditure upon public works has necessarily been very much curtailed, essential services have been provided for, and a total amount of £1,207,921 has been expended. STATEMENT SHOWING THE POSITION OF THE PUBLIC WORKS FUNP AS AT MARCH 31, 1919. £ Balance brought forward on April 1, 1918 !.... 295,540 / Receipts. Loan MoneyFinance Act, 1918 (No. 2, Section 29 (Aid to £ . Public Works) 300,000 Finance Act, 1917, Section 77 725,000 Other receipts 13,580 i —*- 1,098,580 1,394,120 ' Expenditure. Under appropriation 1,207,432 Other expenditure ... 439 1,207,921 Balance at March 31, 1919 ; i18G,199* _ *Note.-The balance on March 31,, 1919, is made up as follows:— ■ ■ ' £ Cash in Public Account 157,360 Imprests in the hands of officers . ■ of the Government 28,839 £183,190 LOANS I REDEMPTIONS AND RENEWALS. , I Excluding our liability to the Im- ! pcriul Government for war expenditure, j which will be dealt with elsewhere, the I total debt falling due during the year • amounted, to ,61,705,865, and of this j amount ,£1,448,850 was renewed,. ,£169.105 1 was redeemed with funds borrowed from tho Post Office, and was provide' by Departmental funds, leaving a balance of ,£6OO representing unprcsented debentures. CONVERSIONS. , During tho yenr 105 investors took advantage of llm conversion scheme nufhor--1 ised bv ihe Now Zealand Inscribed Stock ! Act, 1917. The total sum of j-:ifll.nr>n I was converted into inscribed stick wil'i j twenty years' currency and bearing liiI terest at 41 per cent, free of income tax. | LOANS,FALLING DUE. \ The, loans falling duo during the seven years ending with the year 1926 are as follow:— | Year i ending I March i 81. London Australia N.Z. Total

THE REVENUE FOE THE YEAR ENDED MARCH ill, 1919, COMPARED WITH THE YEAR ENDED MARCH 31, 1918: Year Year ended ended / March - March 31, 31, ■1919. 1918. £ ■ £ Customs 3,830,681 3,301,308 Stamp and death duties 2.121.773 1,892,011. Postal and telegraph 1.964,811 1,830.250 Land tax 1-512,093 1,385,708 Incomo Ux 6.219,330 5,019,561 Beer dutv '. '273,334 237,075 Railways' 4.575,445 4,GG8,223 Registration and other fees 111,993 101,249 Marino 35,151 .38,053 Miscellaneous 946,009 718,43 V Territorial 202,734 -205,643 National endowment' revenue 108,824 100,493 Other receipts 45,928 39,202 Totals 22,352*372 20,206,222 A. net increase of revenue of EXPENDITURE FOR THE YEAR ENDED MARCH 51, 1919, COMPARED WITH TH3 YEAR ENDED MARCH 31, 1913. Year Year ended , ended March March ' 31, 31, Permanent approyrta- 1919. 131 S. tions— £ £ . Civil List 2S.GG9 27,674 Interest and Sinking Fund 0,080,709 4,430,779 Under special Acts... 726,047 031,258 Subsidies paid to local authorities 140,309 139,213 Territorial revenue. 46,576 48,831 Endowments '50,419 104,543 Old-age pensions. ... 709,336 612,461 Widows' pensions ... 80,670 57,931 Military pensions ... . r i0,511 50,733 War pensions,, 1,199,544 515,384 9 218,850 6,008,810 A total inereine of .1)2,506,611. Annual appropriations— legislative Departments 30,729 -11,797 , Oepnrliiienls of Fiv nance 167,237 132,890 I'ost and Telegraph Department 1,699,701 1,457,145 Working Railways Deimrlment 3.415,595 3,067,658 Public Build;!'';-!. D'>uiiiii!>. am! M.iinleit- ■• iriM of l.'ii.uis 121,381 09,393 Native Department... 25,1i'.>! 24.242 -In dice '!)i'p:iiliN('iU .-19,794 485.42S j Mines i)i'pulni?iit.... -JU,G3S 26,613 ID.'partinent of luterniil A Hairs 271.21?) 249,747 Mental Hospitals I'uli- • lie Hea'ith, and ilof-

COST OF ,RAISING LOANS. I Tite percental cost of raising the respective- loans issued in New Zealand is shown in the following table: — Amounts Cost per raised Charges cent, of to March and raising .11,1919. Expenses. Loans. Authority, 4 '4 . s. d. Finance Adt, 1915 (Aid to ' Public Works) ...... 2,005,030 5,030 50J Finance Act, WIG 11,572,150 . 51,067 0 5J War . Purposes Loan Act, 1917 23,273,500 103,510 8 10} Finance Act, 1918 _..' 5,215,400 292 - COMPULSORY CONTRIBUTIONS TO WAR LOANS. The legislation passed to enable the Government to compel persons to subscribe to the war. loans in cases where they had not voluntarily contributed their fair proportion -has been prominently bsfore the public. The list of subscribers has been carefully examined and compared with the list of taxpayers, and every means has been, taken to compel tho financial shirker to shoulder his fair proportion of the responsibilities. TREASURY PAYMENTS AND LODGMENTS, .The number of payment vouchers which passed through the Treasury during the year 1918-19 was 295,813, whereas during tho year 1913-14 (the year before tho war) tho number was 10(1,155. The total lodgments to the credit of the Public Account were 472,M0,211 and .217,120,210 for the abovo two years respectively, and total payments out of Public Account 471.181J37 and 417,100,189 respectively. customslepartment

tions and quarantine stations, to a not exuendituro of ,£197,000. A sum of iIGO.OOO will be required to meet the allowances to epidemic widows and widowers. The Government decided to authorise hospitals beards to pay on its behalf to widows with children amounts not exceeding £\ ss. a week for the widow and 10s. (id. a week for each child, and to widowers with children in nour circumstances a sum not exceeding ,C 1 ss. a week in order that they may engage a housekeeper' to 1 keep their homes together, and look after the children. The annual cost of'three allowance" will bo possibly about JilO.OOfl, of which illifl.OflO is required this year. A further item in connection with the influenza, epidemic is tlie'cost of the Epidemic Commission, estimated to bo J51M0.In addition to these increases in the exuenditure. there has been a general increase in the administrative expenditure of the Department; additional staff has been necessitated, and the splitting-itjv of the present large health districts into smaller districts means the appointment of additional health officers and consequent offiecaml administrative expenses, including incr-jased Activities necessitated in the orcvcntion of infectious diseases. There will also 1)0 considerable increase ix quarantine expenses during the year.' Other items of increase are thoso under the heading "Bacteriological Laboratory," and wages at the Department's institutions, which Jiavo increased in accordance with the gener.ai increase in waxes. *

PRISONS i The various buildings and other works that are being carried ov.t by prison labour progressed satisfactorily during the rear. The returns from the fa was iijid from industrial work show a substantial iiicrefis« over thoso for the preceding year, although the totals-then reached formed a record for the Department, The revenue from various sources amounted to «£2I,GSI, while the estimated value of the labour employed on the farms a.nd on various prisun industries wa5'.£19.823.' The engineers' estimates of the value of Di'isou labour employed on public works, exclusive of work for which cash credits v.ero received, amounted to 411.577, The value to tho Statu of prison labour during tho year 1918-19 was', therefore. .£53,051, which is equal to 55 per cent, of the gross expenditure for the twelve months. POST ANO~mEGRAPH ■ . The amount' of revenue on postal matter ' and telegrams oollcctcd by the Department during tile year was £1,9114,811. Tho Post Office Savings Bank business for the vear was unusually large, the deposits totalling ,£18,101,105. Tho withdrawals totalled iH.938.8t2, leaving, an excess of deposits over withdrawals for the year of .£3,162,203. Thin is a haltmillion more than the excess for the previous yda.r. The balance remaining at credit of depositors at the close of the vear 1918 was £33,418,125, a?, compared with <£17,131,'1KJ fit the undo* i 1913. The interest credited to depositors for the year 1918 exceeded a million sterling. ■ • The postal note business for the year 1918-19 shows a slight decrease; but this is more than made up by increased money order business. The aggregate ot money orders and postal notes issued \va3 JC1,372,5"G, and the amount paid, out ■fcj,957,143. ' l L' Nearly half of the pepartments revenue is derived from po.'tarrM. the next largest items being tele-grams and telephone exchange receipts. " Tho Department lias- nrovu'.ed the machinery for the collection of a Itirg; "portion ot tho money invested in the various war loans which have iiom times to tim» ' beE>n placed upon tho market, 'ihe sales of war loan certificates alcne. which ars ■ handled exclusively by °' hee > ; have reached the sum of Ai,01i8,j97. !' STAMP. DIMS' , The revenue collected ■ by the . .Duties Department (luring tho -l, 19 amounted to A'2,Ui,i/3, or• A-M-n 1 ? : excess of the collections for the previous •. Eiwucial yehr. STAMP DUTIES. i ' Kevenue' for/1918-19 : ...... 2.K4.74 ' Revenue. for lMi-18 1,89-,OU ■ Increase •— -£'232,759 The amounts collected by way oi ' tojalisator tax and bank note .tax aro i shown hereunder. tOTALISATOE TAX. . 1 1918-19 229,273 . [I 1917-18 213 ' 932 !: Increase .filo,3Al

fully examined and compared with the list of taxpayers, and every means has been, taken to compel tho financial shirker lo shoulder his fair proportion of the responsibilities. TREASURY PAYMENTS AND LODGMENTS, .The number of payment vouchers which passed through the Treasury during the year 1918-19 was 295,813, whereas during tho year 1913-14 (the year before tho war) tho number was 19(1,455. The total lodgments to the credit of the Public Account were «E72,4-10,211 and .jei7,130,240 for the abovo two years respectively, and total payments out of Public Account ,£'/•},184J37 and ,£17,1C5,489 respectively. customslepartment ESTIMATE OF CUSTOMS REVENUE < \ FOR 1919 - 20 ' Beforo proceeding to estimate tho revenue for 1919-20 it. may be as well to state the amount realised in 1918-19. This was estimated at JE3,5f1D,000. and the' amount collected was i:3,830,<i81, being well above tho average revenue received during the past ten years. As a matter of fact it has only once been exceeded, namely, in 1916-17, when .£3,849,675 wai collected. The excise beer duty was .£273,334, as (jgainpt the estimate of J2225.0M. , The number of gallons of beer bVewed ttallgl 11,169,920. This gives an average duty per gallon of 5.87 M. The quantity brewed for the previous' financial year totalled 11,039,053 gallons. In sstimating the revenue for th" financial year 1919-20 the usual inquiries have been made from ine principal commercial houses importing soft gonds, hardware, drugs and. chemicals, electrical goods, glass and chinaware, wines au<: spirits, tobacco, cigars, etc., and the general opinion expressed leads (o the belief that we mny look for miite : much revenue as in any previous year. The returns already to hand for April, May, and Jnne, 1919, are considerably in excess of those for the corresponding months of 1918. the fipriivo's being—April. May, .Tune, 1919, ..61'.077.G02. as against .W1.007 for the san\e months of 1913. Shinpinnr facilities are bound .to b; better than during the war period, and should there be no serious .industrial trouble, or interference with shipping, there appears to lie no goof! reason why the'revenue for the financialyenr should not. reach .P-WXl.Oflfl. The' valiv; of imports and exports far the past three financial years are .v follow:— /' Imports. . Exports. £■ .£ 1916-17 2C.162.70fi a0.538.«fi 1917-18 2i1.M3.612 ftI.BM.S7A 1918-19 • S2.2<n.Tn? • It should be carefully borne in. mind that tho import values are based upon the fair market value in the country of exportation plus 10 per cent. This'is the value for ad valorem apd primage duties. The true landed cost is probably 20 pel)- cent., in advance of tho figures show a for imports owing to tho high freights. . The followin? comparative return lowing the vnlue of goods as compared with tonnage imported will be of interest. The proportion of value obtained from Great Britain, United States, and other foreiir-' countries is also shown:—

It will be seen that in spile of adverse, conditions Great Britain has held its trade remarkably well. Nevertheless, the trade with the United States has increased in value from a littlo over two millions to nearly five millions, and there is clear evidence that the value of imported goods generally has appreciated all round by 70 per cent, since 1914. The necessity of obtaining licenses to trade has been abolished for most countries in Europe, and Great Britain only retains a limited .list of prohibited exports and imports. RECAPITULATION OF ESTIMATED REVENUE TO BE COLLECTED BY THE CUSTOMS DEPARTMENT FOR 1919-20. Customs' revenue , 4,400,000 Beer duty .: 2<0,0C0 Bonded warehouse duty, timber export duty, and other (.000 ,£4,677,000 DIRECfTAXATION The net receipts in this DeMrtaent for the past year amounted.to £i,i3iMJ, land lax, .£1,512,093; ; inc'jme las. 416 219 336' and, compared with the collection' for the previous year, show an increase of X72G.760. LAND TAX. Tlf- land tax receipts compared with those' of 1917-18 show an increase of 4J12G985. Tho comparison is as follows: Receipts, 1918-19 '..... 1;512,G93 Receipts,'. 1917-18 •••■■ 1.380.i08 Increase , .«2G,985 This increase is attributable, to the increased value of land in districts revised under the provisions of the \ ablation of Land Act. INCOME TAX. fc The income-tax receipts compared with those of 1917-18 show an increase of i'599,i75 Tho comparison is as follows: Receipts, . 1918-19 0,219,330; Receipts, 1917-18 5,619,501 Increase £599,775 The increase is due to the increased incomes of taxpayers, and in part to the review of previous years' assessments made bv the Department. PBBIFhEALTH ' THIil INFLUENZA EPIDEMIC. The total spent on mental hospitals for the year was .£261,977/, and the receipts for maintenance, sales of produce from the, farms, etc, amounted to 4.71,867, lcavim; a net expenditure of 41190,110, an incrense of .£25,430 over the previous Vonr. . Increases in the scale of salaries for attendants and nurses from April 1, 1916, and increased war bonus {or the Imlf-.vcar, together with the higher cost of provisions, beddini;, clothing, .fuel, etc. and tho larger number of patients under care, account for the increase in expenditure. s A heavy increase in expenditure under the vote "Puhlie Health, Hospitals, ami Charitable Aid" will-'be necessitated this 'vear. I he principal items of which are those relniini; to the inlluenza epidemic. It is anticipated that the total cost of the enidemic will bo about 4:220,000, which should be reduced by recoveries from the sale of equipment and the use I hereof at the Department's own institu-

BANK NOTE TAX. £ 1918-19 188,003 • 1017-18 ; IW.M* - Increase '■ ••••••• £20,080 AMUSEMENT TAX. • The amusement tax collected during the year amounted to £40,291, as comparod with £10,273 collected (luring the five months ended March 81, 1918, during which year the tax first came into operation. ■ LANDS AND SURVEY . LAND REVENUE. The gross revenue for the past yeai amounted to £1,246,843, a sum considerably in excess of that received for the previous year. ',' ' The ordinary arrears of rent and oilier payment-at Majroh 31, 1919, amounted to .040,765. DISCHARGED SOLDIERS' SETTLbMENT. - • Great activity has ten displayed in the work of this important branch of the Department. The total aroa pro ; rimmed undeiv the Discharged Soldiers Settlement Act, 1015, up to March 31 > 1910, was 507,890 acres; of which an area of 113,671 acres was proclaimed during the year. Possession was obtained by the Crown of thirty-one estates purchased from private owners under the Land for Settlements Act, the majority of which have been subdivided and selected. In addition, the purchase of a number of oilier properties was completed, but possession had not hern given at tin close, of tho year. Practically all the settlement land oponed during tho year has been selected, and no effort has been spared'to meet tho keen demand for improved hidings. All classes of Band which are considered to he suitable for farming by discharged soldiers are being utilised solely for this purpose, and, in addition, many pastoral runs in tlio South Island, tho licenses of which have expired, are beilisr subdivided and will lie disponed of to soldiers experienced in this 'class of farming. Many discharged soldiers continue to take advantage ot Mm benefit* conferred by sections,2 and :i of the Discharged So'.diors' Settlement Amendment Act, 1917. Under the firstmentioned section they may obtain linancial assistance to acquire freehold or Crown leasehold land'and to. effect improvements thereon, whilst under the latter section holdings may lie acquired for one or more soldier anplicantfi through the medium of tho Land Purchase Board. (V> of the features of settlement under tho Act has been the great demand for urban residential properties by returned soldiers who are cnsaßrd in town voenlir.ns. Dp to March 31 last advances for lliin purpose were oul k .orised to;™ returned soldiers. ,iniflimtin« to £318.752 Thi' transactions finally completed at that ilntn involved advances amounting to .C 312.55- ' ~ . ... Under tho provisions of section 0 of tho DMiarwd Soldiers' Settlement Act, 191b; nnd section 2 of tho Amendment Act, 1917 advances have been authorised nnd paid' an shown in the following fiUtomoni:— , , , „., Authorised. Paid. (Section C, advances on . cut-rent account— £ £ 800 returned soldiers 433,619 337,73(5 Section 2, Amendment Art. 1917: Rural lands—

2G3 returned soldiers 897,801 207,285 Section 2, Aniendiiient Act. 1917: Dwellings—529 returned soMiers 318,752 212,588 l,(i'J2 returned ,sol-diei-s <D1,1M,172 -£757,551 Repayment of advances, etc 35,130 Balance out on \ mortgage .£722.421 From the above statement it will bo ' f pcen that the advances authorised no,ii\v rcttch«:l the amount of.loiin which can be raiwd under the provision of section 8 of tho Discharged Soldiers' Settlement Act, 1915. ' Owing to the rapid demobilisation of troops, and the pxealer cxpedU tiou now shown by the Lands Department in arranging and settling transactions, the- whole of the lean authorised has since been raised, and applications have b?en recommended by the various land boards considerably in excess of this amount:. It is anticipated that requests for financial assistance this yI« r i will bo very heavy, and provision' fc being nifljto accordingly. > . ORDINARY SETTLEMENT, ' It wilt be gathered from the above that only a restricted area of land .has been made available for ordinary publn selection. This comprises, generally, 6ec-' tions unsuitable for discharged soldier occupation, owinir to poor quality, remote- <; ness from markets, or indifferent accest A considerable area, of this class of land,, is still open for selection on favourable terms.

SWAMP LAND RECLAMATION. The past financial year has seen very considerable activity in connection with the various swamp reclamation schemes, this being, rendered possible by the aid of OiißO-Slav labour and the availability of British labour Development of new areas on Hiuiraki Plans lias been actively proc-cciited, and sonio 5900 acres will bo available for selection by. discharged.'soldiers by next spring. Next year some WWfl acres will be available in connection with Kn.itaia and Wailii schemes, ana also further areas in Hauraki Warns. It is anticipated that operations suspended at Poukawa will bo again undertaken, and also other projects launched. Active surveys.are being conducted in connection with Eikurangi and Waikare Swamps, and very probably engineering survevs of Seawood. Moss and Lake Grnssmero'will lio commenced as soon as start officers'return from the war. Machinery is most'difficult to obtain, the delivery of two dredges from England being '.now thirty months overdue. The acnu:s!tion of American dredge machinery is now 'under consideration and may shortly »e available as post-war conditions become f " SK LAND■REMIIRING SPECIAL " TREATMEMT.

Steps will be taken to deal with the p!>or lands' of the Dominion, such as the pumice and'gum lands which compnse approximately over. IfM acres ana Parliament' will ha asked to. provide Uw iioceflßTy funds. .To accomplish tnis in a ratisl.-.ctory manner it may be desirable to introduce a modification of ho cW homestead tenure, under, which fi.« grants of limited areas were made to Selectors who would occupy and tain, into-profitable cultivnhon tn«e. waste lands of t!ie Crown. In order to effectivelv deal with juich areas it way also ■V necessary to financially assist these taK as to enable them to ut.lis • the lauds in a. comparatively speedy ami ( up-to-date manner. AGiIICULTDREr INDUSTRIES AND CUMHEiUEDuring the year production has aßalji bean well maintained ufc a high standaW, "hrtli as wards quality and quanut). S continuance'of the «peri made for the purchase by the impeii.u. ,luw has been most benettcial in stability of values in all classes ol Uie S *S large amount of exportable pro- : ,lrce which came forward aould have j S incroa«d to smue^te n ■ a ( n,M'ini-[ of exceptionally qij we ",T prevailed over a confab e P <> portion of the Dominion in tho anhuii.. ■this had the effect of :rcdne.«! «« Jut of ilairy produce, towards the ctae , l T stock" slaughtered for frees** * siderable auantity Imnerial Government' ft as let I er in h? previous season the whole of . nbove was. accommodated n tue ."&*% st«.S wo\lc— neM; . The butter sent, into die gradnig bou, showed a small .Urease compared n the shape of whey hutfe*.. nuu P and casein is making furt ei P and the enterprise shown hj tl.o gaged- in dairyinj aufais jeu i future this impo , branch of .the md" tl - The wool clip snow, a good «^ h average price up V■ Hie ind J Bro higher than tha,ot last *"• , clip; and, though some ooi °i t , . grata still re mains »«* ™$£' c | ip kr^niSrtotSatforthe has been The fruitgrowng « ck n of faclM . handicapped by 0 f availties for export aiid»> 0 £ made able labour, but prugu* is; « in developing mnletTO." -Riding wm . ,i - ft *V K a"e la. which will additional cool sto.n e m . {wt assistance- to Pedicel", m oiuer, made in this, direction. STATE FORESTRY W as intended to Ptaci «» Minister, under the control of aff™ ; , WM and'in November , f of Iho ! sawmills by the bo en. (m ,_ : State to purchase prwatt ! t o{ ostry purposes; (3) t * ePC " * forests . | Crown land. purposes l (.1) taking lands limiting : °xf pl '°7 lb i .?• and «'• I N ?r of 01 he "r nting'of licenses to6nlG 5 wll standing timber on public acres has I .inm been proelaimeU State forests .mi. dor thai authority. Additional, oreae 1 till be, proelaimKl as soon as the nccesV maps are completed. ? .must Jta nndcrstoid that the so ling aside of pro, " Itonal State forests is not a final rei serration. As soon as. tho necessary ar■nnJemnit* can be made, the reserves wilfbe inspected, and such lands as aro , found to be more suitable for settlement I than for retention under forest; will be made available for settlement., Hie total I area of Stale forests and provisional Mate I forests is now about 3,273,000 acres, but ! of this area a large proportion docs not. i bear timber of lnillinjt value, and a proportion is treeless mountain land. laHing a mean between the proportion o£ - j the forest areas of l'rnnce and t>erI many, this Dominion should have an ! pi™ of 13,300.000 acres under forest to satisfy present and fuluifi demands. I As the dairv. fruit, and other liidus- | tries which use o. larso quantity nf • i white pine were finding it .liupossiblo I to obtain adequate supnlies, mwnw I were taken through the Board of trade l-i limit tho export of this timber tn .jn ' per cent:, of the total production. 1 his ! has met with strong opposition f»ui i localities where a large export trade has ! been worked up. but. on the other, hand, the usersV>f-finite pine in New /eaHul have made stronr: repiwutntioiw that if.- export shnu'd lie c<tirelv stopped. Ucsulations have also been pnzettrd limiting the quantities of.other timbers which mnv be exported from New Zealand during the present year, and sawmillers have lieen notified that '.he ouantilies exportnWo will be further reduced year by year. «-

In the plantations a total new area of 2800 acres was afforested, about onethird of the area having been planted by discharged soldiers. Arrangements aro being made to employ: a larger number of soldiers; but difficulty is experience)' in providing both accommodation and trained supervisors. The Commissioner of State Forests has Dubllcly announced that the forests of New Zealand must be henceforth utilised for the people of New Zealand, "and that consequently the export of all classes of timber must be limited at present and cease wholly in the near future and further that on.iland not suited for settlement only.timber ripe for milling bq cut, and the growing timber conserved on all lands continuing as State forests. Against the'policy so declared there has been considerable protest from certain districts vhere'it is contended that tup / export trade already established should ,_continue and be allowed to increase' in volume. -Applications' have'been invited bv ad- • .-tisement in England for "qualified per--Ais to fill the positions of Director and Assistant Director of' Now Zealand Forestry. Special education, training, and experience in forestry have been required as essential qualifications for any applicant, 'Under section 32 of the Finnnce Act (No. 2) of last year, authority was pro--vided for raising ■ £200,000 .for forestry •>urposes over • and ■ above the. ,£50,0<10. ■dthorised • under section 50 of the Finance Act, 1916.

- STATE ADVANCES A perusal'of the annual report and balance-sheet for this Department, whir! 1 has been 'duly ■ laid before Parliament; shows the result, of the year's working to be eminently satisfactory. This essential and over-growing Department! was never in a bettor position to assist and help deserving settlers and workers, aril its usefulness in the future will, I feel sure, be more than ever appreciated by those who seek to obtain cheap.money from tho State. ' During the year the Department has, through. accumulations of capital, been able to increase tho. limits of advances and. to advance considerable sums of money to settlers, workers, and local 1 authorities. The amount that can be borrowed by a local authority iii.a-" year has been increased-from ,£SOOO ■ to ,£IO,OOO. To those in search of a, houic thy sum of ,£IOOO can be lent by tin Settlers' Branch'. '■'' • '■', - To settlers for improvements on rural lands'the sum of £1000 can still be'.borrowed, whilst for,' the repayment of'mortgages on real estate ,£459 is- available. To the workers'.£4so,: the maximum sum allowed by law, is obtainable, provided the security.'-is. sufficient and..' satisfactory. ■'.' '■' ■ ■ " ■''^■■■,'-"" : '■• . ■ •• During the period of I the war the., rate of interest chargeablo to borrowers.-, on loans'remained unchanged:' i\ pet cent, is payable by local authorities, and. n per cent, by settlers and workers. The latter rate "is, however,'reducible' to 4J per cent, when payment is made promptly.' , ■■"-.. STATEMENT SHOWING TOTAL AMOUNTS OF ADVANCES -PAID OVER FROM" 'THE COMMENCEMENT OF THE:SCHEME ; TO ; MARCH 31, 1919. ... ';■ i •'•; ■ . ■-, ■'■■■& •■-.■• . Advances to. settlers '--'...»» • 17,957,600 Advances to workers ■''...,'.,....... 3,560,840 Advances to local authorities 3,099,865 Total ...,...:..,..../:. STATEMENT- SHOWING' 'AMOUNTS ; ' CURRENT' AS AT " MARCH 31, 1919. , -'•■■■,." ;/•'*•"' . Advances to. 5ett1er5'....',..:....'.». 7,985,276 Advances, to, workers -.-■ 2,576,579 Advances' to local authorities 2,846,836 '■''.■'Total■/•-.'. .......:......:.l £13,408,691 STATEMENT SHOWING LOANS AUTHORISED BUT NOT. PAID OVER AS AT MARCH 31, 1919. i ■ ■'" ' '.''■'■■' ;■:■ '■' - £ Advances to settlers ..............';... 125,340 Advances to worker's ~ ,29,275 Advances to local authorities ...^313,150 Total . 1„....\.........:......:. Mffl'jfo ■'' .; ;;pilw;': : :v/;; i :ii .'he expenditure out of the Consolidat- ' " Fund for Defence administration,, including Ordnance and Supplies services and the maintenance and. training.of the Territorial Force, during the financial . ar ended MaTch 31, 1919, amounted to 416,427, or £11.685 less than the amount :' - pended during the year 1917-18., ..'; The 'requirements of this Department 'i.-ir the .current year will be fully, exlaihed in the annual Defence report. j! j WAR EXPENDITURE. ..'.'•

At the end of the financial year 1918-lb tie war expenditurei,of this Dominion, including imprest advances outstanding, ha<i reached the' sum ; of whilst towards meeting commitments connected with the New Zealand Expeditionary Force, including charges for the maintenance of our troops in the held, equipment, supplies, pay, allowances, and other incidental charges, there wa6 a cash balance and. temporary investments amounting to ,£6,084,469. These sums do not include provision 'for interest and sinking fund charges on'war'loans raised, nor for war pensions, which : are a charge upon the ordinary reyenui of Hi Dominion. . - . '\ . ' • Full particulars of; the ,wa* expenditure ' will be placed before yon later, but I must remind honourable members v that, notwithstanding the fact that thv war has concluded, our financial responsibility remains very great, as large 6ums will havt, to be provided for gratuities, cost of repatriation, etc. - , It will be necessary, to continue. ■ to make generous provision, for the expert medical treatment and skilled nursing of our sick and wounded, for whom special hospitals and sanatoria have been provided. ■ The payment of retrospective married allowances to soldiers' wives, for which approximately ",£500,000 was authorised, has 'absorbed to date, but large numbers of applications are still coming in. ■'■'•-. ■'-.. Heavy charges for the sea transport of the returning troops, their pay, maintenance, etc., have to bo'met. ,1 submit hereunder' a statement showing the. receipts and expenditure of the War Expenses Account, as disclosed'. by the Treasury books for the quarter ended June 30. 1019:— -*,-■■ 'WAR EXPENSES ACCOUNT AS AT JUNE 30, 1919. ■ . . ■ £, Balance brought forward on April 1, 1919 7,979,826 Receipts— £■ Loin money 1,645,610 "Other receipts ;........ 34,943 1,680,553 '\ . . . ~ 9,660,379 Expenditure ..1 1,300,826 Balance at June 30, 1919... '.£8,359,553 *The balance on June 30 is mado up as follows: Cash in Public Account, .£443.424; investments, imprests outstanding, £4,095,911: total, .. TRAINING OF UNDISCHARGED RETURNED SOLDIERS. ■ Snecial attention is paid to the educational and-vocational training of returned soldiers by the Defence Department. Workshops have been built and equipped at nineteen hospitals and sanatoria. The funds for necessary buildings and a considerable portion of the equipment have been provided by the New Zealand Red Cross and other patriotic societies. There are sixty-eight instructors now engaged by the Department, and the subjects taught number fifty-nine. The work has a valuable curative effect, and is designed to prepare soldiers to go back to civil life. The educationnl and vocational training branch works in closo association with tho Repatriation Department, which arranges to carry on the training after the soldier is discharged. ' The total number Of soldiers benefiting from the scheme in August was 1033; some of these attend several classes, tho total nuinber on the class rolls being M 57.

REPATRIATION; PROGRESS OF THE WORK. As indicated in the Budget of last year, a Department of Repatriation has been established under the authority of the Repatriation Aot, 1918, to deal -with all matters affecting the return of our soldiers

to their civil life., It has also taken ovor the duties and work hitherto undertaken by the Discharged Soldiers' Information Department. The new Department, - which commenced its activities at the beginning of the year, is concerned with the soldier after his discharge, and was controlled by a Ministerial Board comprising the following members of the Executive Council: Tho Minister of Railways (chairman), the Minister of Agriculture, the Minister of Education, and the Minister of Lands. Quite recently two returned officers, who had been on active service with the New Zealand Expeditoinary Force, on their elevation to Ministerial rank were appointed to fill the vacancies on the board caused by the resignations of the Minister of Agriculture-and tho. Minister-of Education.

It will be remembered that the pronosal to control repatriation by a composite Board of Ministers evoked considerable criticism. The experiment, however, has proved satisfactory both to the Deuartment and to its district boards and cnijimitfees; . In this connection, too, it is interesting to note that the Dominion of Canada, which inaugurated its Department under the .control of one Ministerial bead known as the "Minister of Soldiers' Civil He-establishment," has | now found it expedient, after two years of'experience, to vest the control of this went national work in a Repatriation Committee consisting of six Ministers of the Dominion Government. The Repatriation Board, in organising tho work of the new Department, came to the conclusion that the most satisfactory results would be attained by decentralising control' and administration as far as possible. The district repatriation boards and local tees constituted under the statute have .therefore beeii given full executive powers. They have authority to deal with ond decuie applications made by discharged soldiers in their respective districts lor assistance in any oi tho 'directions covered by the regulations. This policy of decentralised control has proved ;i grntilying. success, and lias enabled au cases to be disposed ot with the utmost dispatch. 1 District boards have been established at each ot the four main centres, and local committees wich. ofhees ana paid staffs have' also . been set up at the principal provincial towns. In addition, fifty-six honorary repatriation committees have been constituted throughout tho Dominion. These bodies are comprised of members- representative- of and nominated by such organisations as those of the returned soldiers, labour, and the industrial, commercial, patriotic, and, social interests of the community, and they are carrying out their duties with enthusiasm and with a very sympathetic regard for the soldier applicants. Here again the Dominion has reason to be grateful to the citizens who are giving their services so freely in the all-important work of reabsorbing our army into civil occupation. ■ The local administrative staffs have been recruited exclusively from the ranks of the discharged soldiers themselvs; .' The assistancerendered by the Department to discharged • soldiers may be classed under three main headings, as follows;— ,'."'■■

bonrds or local committees may grant loans up to ,£3oo' to enable soldiers.to-set up in business, and loans iip to ,£SO for the purchase of furniture, tools pf trade, or equipment. Loans in excess of .&50 are. subject to .the 1 approval of the Ministerial Board. No interest is charged on the first .£50,-. or on' any loan up to .£SO. In this category over three thousand six' hundred applications have been approved between the middle of February and August 20, 1919, involving' advances to the .extent of over ;6380,000. From present indications _ the soldiers who have been' established in business on their own account by this, means are doing well, and are meeting their obligations in the ;matter of repayments, both of interest and instalments of priucipal, in a quite satisfactory'manner. Training.—Comprehensive arrangements have been made for the training of returned soldiers: (a) Whdse disabilities render them unfitted to resume their pre-war occupations; (b) who enlisted.a. n comparatively early age and who arc consequently not .qualified tradesmen, also apprentices' completing their indentures; (c) who-desire to obtain ' farm work or who may wish to take up land under;'the Discharged. Soldiers' Settlement Act, but who have had ,no previous experience." At the present time over,sixteen, hundred men are being trained under'the various schemes. All trainees are "granted financial assistance % the' Department in the form of sustenance, or subsidies. Employment.—The Department (including the original Discharged Soldiers' Information Department) has up to date placed.about nine thousaid men in employment, and as the number at present receiving unemployment sustenance in ,the whole Dominion is only seventeen it will be seen that tho unemployment situation is well in hand. The Department aiso pays transportation expenses of men proceeding to employment, and tho medical fees of applicants for positions in the Public Service. ■ '. SOLDIERS' FINANCIAL ASSISTANCE BOARD. During the yeftr the Soldiers' Financial Assistance Board held 245 meetings and dealt with 11,652 applicants, including 1831 cases previously considered. Of: thjs number, 2150 ."were declined, 1920 were withdrawn by the applicants, and 7582 grants were authorised. Grants amounting to .£163,601 were approved, and the sum of J5137,415 was actually disbursed. It -was hoped that the board's activities would cease soon after tho signing •of the armistice, but, owing to the ex-, tension of the regulations permitting retrospective grants, large- numbers of new applications ■as well as applications previously declined. through want of jurisdiction are being received. * WAR RELIEF FUNDS. Tables showing details of the administration of patriotic funds throughout the Dominion are now being prepared for 'presentation to Parliament. Contributions of the public to various overseas relief funds are as follows— S For the For the \ear period ended since outMarch break of ,31,1919. the war. £ X Belgian Relief, Funds..." 37,599 348,720 Other Belgian funds ... 310 6,740 For other allies ..: 15,874 38,231 Civil relief in Great Britain 2,942 14,729 British Ked Cross Fund 142,379 329,801 British Navy Belief Fund 13,183 / 111,421 New Zealand Hospital Ship Fund 1.276 65,023 New.Zealand Comforts Fund' £0,393 .178,670 New Zealand War Relief Fund *.... 475 16,455 For equipment of aeroplanes, ambulances, etc. 1,418 iO,S2i For regimental funds ... 1,016 3,752 For local war funds ... ' 184.. 7,824 For sundry overseas funds 12,249 13,720 Total voluntary subscriptions ' 279,298 1,145,919 Government contribu- . tion to Belgian Belief . v Funds 223,145 Grand totals 279,208 1,371,061 The general receipts for overseas relief funds are leas than they wero for tho previous year, except for tho British Red Cross Fund and tho British Navy Relief Fund, 0 in aid of which special collections were tnken up during tho year, Tho cessation of hostilities has enabled the funds raised for Belgian and Allied relief to bo sef free, and as a result remittances overseas in connection therewith have oeon increasod by ■£51,000', and only a comparatively small amount of the funds so raised now remains io l.e remitted. MUNITIONS li~ SUPPLIES Owing to the cessation of hostilities with Germany, the activities of the Munitions and Supplies Dcpartm snt were duly brought to a close on March 31. 1919, Up to this time the total expenditure by tho Department in procuring uteres foi military' purposes mnountod to approximately four and a half millions staling, the whole of this sum, representing an annual expenditure of .£1,300,000, being bandied without a single case of fraud, although at the beginning of tho Department's activities it had been found necessary to inflict fines where specifications had not been faithfully carried out, " amounting in one oase to ,£2OOO.

When the armistice was signed tau Department was committed to incomplete contracts to the value of £145,000. Offing to the fact that a clauso had been inserted in the contracts giving the Department the right to terminate by taking over materials, theso commitments wero cancelled, at a total cost by way of compensation amounting to .£ll2, and by taking over flow the contractors goods useful to the military authorities to the value of -fSM.OOO. A surplus stock of consiimablo goods to the value of .£9588 was disposed of at a net loss on cost of 42772; ; ' It is satisfactory to record that the cost of administering iho Munitions and Supplies Department ainoiulcd in ToUnci figures to ,£18,009, beiug an average annual cost of ,£SOOO. In this connection it is well to remember that the economy in expenditure has been due largely to valuable services rendered gratuitously by the advisers and experts who patriotically placed their services at the disposal of the Minister in charge.

' EXPORT RESTRICTIONS PRIORITY PERMITS. With tha signing of tho armistice came Hie lifting of all export restrictions'imposed during the war period by tho authorities in the United Kingdom, Canada, United States of America, India, and Aus.trahn. During the time file permit procedure was in iorco 9118 applications were dealt with, covering orders to the value of •£4,553,049, and in the majority of cases the representations mado were instrumental in establishing the desirability from a national ppint_ of view of releasing tho goods requireTT. A resolution' passed by tho Association of the New Zealand Chambers of Commerce expresses on behalf of the commercial community their appreciation of the organisation set up to deal with priority-permit applications. COAL - SUPPLIES The- matter of. coal supplies has been one of grave concern, and called for- the closest attention in order to prevent the Dominion's vital industries ucing imperilled through lack of, supplies. A comparison of tho outputs of the Now Zealand mines and the importations of coal from overseas during the years 1911 and 1918 respectively clearly discloses tho acute position which has had to be faced:—. Output. Importations. Total. Year. ..Tons. Tons.- Tons. 1914 2,275,614 '518,070 2,793,684 1918 2,034,250 255,332 2,289,582 (Decrease ■ ' ' ■ for 1918 , 241,364 ; 262,738 504,103 It is satisfactory to note that it has been possible to so arrange tho allocations'of the coal available that no industry has been -forced to suspend operations through lack of fuel.. ■ Special difficulties which .have had to 1)0 qontendetl with in regard to importing coal from overseas were the influenza epidemic, both,in New Zealand and ;in Australia, and also the .maritime striko in Australia. Every effort, however, has been and still is being made by representations through the Secretary of State for the Colonies, the High Commissioner for New Zealand, . the Commonwealth Government, the New Zealand Government agent in Sydney, and the overseas shipping controllers in tho United Kingdom and Australia, to 6ecuro as much shipping space as possible for tho carriage of coal both from Australia and America.

In order to conserve our supplies it was found necessary to take special action in regard to tho bunkering of oversea vessels, and this has .had the de. sired effect. ''.''■ A State firewood depot has recently been opened, and .the extent to which 'its supplies are being availed of by the ■public shows that its establishment waa -justified.- ; Mii The value of minerals entered for exportation and of the coal produced in the Dominion during 1918 amounted to .£3,688,168, as against ,£2,496,870 during tho,previous year. .The increaso during 1918,-however, is duo to the higher valuation placed upon the coal. With the exception of silver, mercury, and tungsten ores,, a decline was experienced' in the' production of all minerals.

The decline .in mineral production was duo to-the increased cost of labour and all niaterials, to shortage of labour, and to the lower grade of mineral won. The State collieries produced 288.119 tons of coal, as against 265367 tons during the -preceding, calendar year; while tho profit on State coal- business was ,£30,607, as against ,£24,466 for the previous financial year. _ These results are very satisfactory in view of-the low rato at which tho coal is, supplied to? tho public. . . ■ The proportion of deaths from accidents, at coal, mines during 1918 was 1.5 per one thousand persons employed and 2.95 per million tons raised. The total output of coal from the mines of the Dominion for the year 1918 was 2,034,250 tons, a decrease of 34,169 tons as compared with the previous year. Tho decrease in coal output may be attributed to 'shortage of labour and stoppage, of work owing to the influenza- epidemio and labour troubles. LABOUR MATTERS UNEMPLOYMENT. During the past year much difficulty has been' experienced by manufacturers and others in obtaining .sufficient suit-, able labour. INDUSTRIAL CONDITIONS. There were a number of industrial disputes during the year, causing cessations nf employment. Many of them were'of a trivial nature. The more serious related to strikes of coal-miners. The legislation which was passed Cast session empowering the Arbitration Court to increase the wages prescribed by awards, 'whero the cost of living had irisen since" those, awards were made, largely removed the causo of the disturbances. In four instances it was found necessary to institute proceedings for breaches of the,law. INDUSTRIAL UNREST. There is no subject which demands moro earnest consideration from thinking men and women at the present time than tho prob'eiu of industrial unrest. Tho suspicion between employer and employed, with all. its consequent evils of direct action and restricted output, must be removed if our country is to se'puro tho best results from industry and bocome tho home of a prosperous, happy, and law-abiding people As tho result of a, Labour Conference held in July, 191.8, a report was issued to the trado-undon movement of New Zealand, tho study of which I commend to my fellow-members and the public, generally. The report recognises the necessity for some constructive action to meet the present unsatisfactory conditions,, and pirates that "The hone of the immediate future undoubtedly lies in tho intimate and continuous association of both management and labour for tho purpose of adjusting differences and for the purpose of promoting the progressive improvement of their industrial service from which nloii" Hie national prosperity can be derived," and proposes an organisation for the eiii'danco of industry, consisting of a National Industrial Council composed of rPDiw«irntivPs of employers and emnloved, with joint district councils and works committees. Tln> proposals are based on the recommendi'tinns contained in reports In the Briti=li Prime Minister of a subcommittee of the Reconstruction Committee, genenil'v «iooVr>n of as (he "Wliitlw ri'iioi'ts'." The British Government -idont»d Hie rocmninend.itinns iu Hie Wlii'lleireiKH'K both for flnvoriynnnt industrial establishments and for mil-side industries a= well, and for |-lipso hirer a considerable ininilvr of .joint sti'iuling industrial irmneils, interim industrial reconstrnc- ' tion committcs, ami trade boards have been brought into existence, illustrating the purposes for which those organisations have bo'-Mi formed. T refer fa f'i> r»p(trr of the NnHo»nl' Joint Industrial Council for the Brit's-h Coir-mnt ci'd Matting Industry, which states the objects:— "The comrcil is a .Trade Parliament, composed (if em plovers' and workers' representatives in equal numbers. Tts primary object is to secure, bv association in its. srnvpHimort of n'.l pn/wvl in the industry, the advancement in the industry and of oil onmipprrd therewith. Tt will endeavour hi- Hip fullest n'»' freest discussion to establish such conditions as

shall be equita'hje as between employer and employed. "Meetings of the council will be held at least- once a quarter, and the following questions, amonfst others, will be considered:— "(a) Wages, hours, ind working conditions in tho industry as a whole. "(b) Measures for iegulari=;ng production and employment, for reducing the effects of seasonal fluctuations, and for ensuring to the workpeople tho greatest possible security of earnings. "(c) Methods for tha settlement of differences botween different parties in the industry. "(d) The improvement of tho health conditions obtaining in the industry." How far the scheme has developed in its application to Government industrial establishments I nin unable to say, bi the Right Hon: Sir B. Home, Minister of Labour, speaking at a preliminary conference held on February 20, 191'J, said: "I want you to know that wherever tho Government is in the position of employers, they aro agreed tha"-this principle which gives tho workmen a sharo in the management shall be carried out." In view of the developments which aro taking placo in Qreat Britain, and understanding that Inborn' 'in Now Zealand desires a confersneo to discuss the question, I trust that employers and members of Parliament will .seriously consider the proposal.

HOMES FOR THE PEOPLE

WORKERS' DWELLINGS. Owing to the scarcity of labour and the continued high cost of building, only fourteen dwellings \vere provided during the year. With the approach of more normal conditions it is intended to pro ceed with, the erection of a large number of theso dwellings, and arrangements 'fo? tho first two hundred have already been .made.

HOUSING. ' Tho question of the housing of tho people is receiving the closest.attention of the Government, with tho object ot overcoming the shortage of houses which the lack of labour and building material has brought about during the war, and which has resulted.i-a the almost complete cessation of building-operations by private enterprise. Tie difficulties created were, unfortunately, accentuated bj tho recent influenza i;pidoinic.

Now that conditions tiro improving, an endeavour will bo made to enable the breadwinner of every family to become the owner 1 of Mi home on tho easiest possible terms. It is therefore proposed to. introduce legislation widening the scope of the present law so as to enablo local bodies (including harbour boards), as well as farmers and other employers in certain essential industries, to undertake their share of this important work. The Bill will include provisions enabling the Government to assist local authorities with the necessary finance for house-building purposes. The Government intends to proceed with the erection of dwelling-houses throughout the Dominion as rapidly as the supply of labour and materials will permit. In order to facilitate tho work it has been decided to,appoint experts,-who will Jio Instructed to devote their attention to Investigating and introducing tho latest methods of building'-xmstruction. NATIONAL PROVIDENT FUND • The number of contributors to tho fund at the-close of the financial year was 14,000. The annual revenue is now X 70,000, and tho accumulated funds amount to ,£260,000. The maternity claims dealt with -luring tho year amounted to .£17,013, of which ,£13,744 was due to approved frieudly.societies, and ,£3899 to contributors to the fund. The) amount of ,£17,000 has been expended by tho Government since the beginning of tho war to meet tho concession of one-half contribntiorts in respect of contributors on activo service as nuthorised by the 1914 Amendment Act.. A noteworthy feature of the work is the increasing number: of applications from local authorities, for tables of superannuation, .benefits suitable-for staffs, and the movement in this direction indicates that the majority of these bodies will shortly be incorporated in the system provided by the Act. The experience (luring the recent deplorable epidemic demonstrated in ■ a striking manner the value of the fund's operations in the direction of assisting {Tie dependants of contributors iia cases where the wage-earner had died/ -The fund 'began operations in 1912, and, consequently, the number of members who had the five-year quidification as "con> tinuous" ' contributors was not large in 1918, but nevertheless the board was able to authorise the payment of claims for widows and children uggregating .£19,092. With the rapidly increasing membership and consequent development o." the scheme it is reasonable to expect tnost important results) to the community in general from this benefit system. An amending Bill will lie introduce' to carry out the arrangements that have been made with friendly societies in respect to maternity bnnu^cs. FRIENDLY SOCIETIES At the end of tho y.»ar it was possible to review the measures adopted to assist the societies In their financial difficulties due to the war, and to express in more definite terms the res.ult of the obligation undertaken by Government to maintain the,stability of the members' benefit funds.

The Government's concession of paying one-half the cost of the mortality benefits of soldier members' since tho outbreak of war, and which was' in 1916 merged in the Departmental Reinsurance Fund, was terminated on March 31 last, although .renewed risks up to that date will have twelve moi.ths to run. The cost of tho subsidy from 1914 to 1916 by way of votes in aid of the outside reinsurances of the ■societiiss was .£11,950. In tho Departmental Bmnsurance Fund, operating since 1916 under mutual agreement between the Government and the societies, there were 5.1,638 members insured, and, up to date. 1161 deaths have been .recorded. The Government's contribution towards this fund amounts to

ihe Government recognised the claims of the societies to consideration on account of the losses to their benefit funds occasioned by the non-payment of contributions by soldiers While absent on service. A grant was authorised which will have tho effect of reinstating the funds. Up to March 31 the amount of .£10.117 had been pnid to societies' fuiids on this account. A further payment of £25.000 will be necessiry to meet the lin. bility, and a vote for that amount will be submitted in the current year's estimates. The difficult problem of dealing with the future sickness of discharged soldiers, which, is anticipated to be in excess of normal, has also been taken up, and the Government has authorised tho establishment of , special soldiers' sick funds for the purpose of isolating these risks. /Under' the social insurance syster> enacted in 1910 for the benefit of friondly societies, maternity claims numbering 0554, amounting to i2G,210 hnvo been paid out by the Government since January 1, 1917. It is intended to increase this allowance to members of friendly societies from £i to ..£O, and raise the income qualification abovo the rate fixed in the main Act. It will be seen, thore.i'ore, that tho-Gov-ernment has met tho various difficulties of the societies as they hnvo arisen. The value of subsidy and benefits granted during tho war period for assistance has reached a total of .£97,591. exclusive of the State's liability ::'or soldier excess sickness. The Gover-mient's activities have thus covered every.war contingency affecting the iinanco of' these societies, ami iii this connectio.'i 1 may mention that the Government fully appreciates tho valuable work cairied out by theso beneficent institutions, .and desires to show'that appreciation by grunting the help' that will assist in the conservation of tho benefit funds. TOURIST AND HEALTH RESORTS. Adverse conditions due lo the jniliienza epidemic and oilier en uses have prevented this Department showing as good •a return as was anticipated. 'However, in I'aco of many adverse inllneneei, the revenue shows a net increase, of .1:450 ovor that of tho' previous year. The actual revenue was .£33,659, ngninsl .£32,935 for the previous year.

EDUCATION

MORE MONEY REQUIRED In the vear 1911 the Education Act was consolidated and the New Zealand Uniyersitv Act amended. Both those Acts had been prepared before tho outbreak of war in August, 1911, and the Government in its present proposals to Parliament has been forced to take into consideration the changes in conditions caused bv the war, especially with regard to the purchasing power of money. The provisions of the Education Act for grades of salaries of teachers enacted in 1914 cannot fairly be continued under the altered circumstances. Similar considerations apply to the measure of annual smuts from the Consolidated Fund for secondary schools and technical schools; and it is also felt that the claims of the New Zealand University and of tho four University colleges to increased grants must'be recognised. During the second session of last year the Hon. ,T. A. Hanan, then ' Minister of Education, obtained from Parliament, under section 37 of the Appropriation Act, authority to expend an additional sum of £118,000 for the purpose of increasing the salaries and allowances of public school teachers, Native school teachers, pupil teachers, probationers, and training college students beyond the amounts authorised by tho tables,to the v Education Act. Only one-fourth of that additional.amount of .£IIB,OOO came to account during the financial year endinu March 31, 1919, and the, expenditure for that year was therefore*' not greatly increased. But tho whole of the necessarily comes into tho expenditure for the present year, and tho Government has found it necessary to make provision on this year's estimates for a further sum of .£200,000, thus rendering available during tho present year for increases of salaries and allowances to teachers employed and others engaged in primary education a total of ,£318,000. .'This addition, together with the increase due to the,natural growth of population and the greater cost of services and commodities, results in the annual charge on the Consolidated Fund for primary education'showing an increase in the present estimates of =£331,000 in excess of tho estimates of last year. Special increments of tho rates of annual grants to secondary schools and technical schools involve a further sum of .£39,000 on tho present estimates. Authority-tor such special increments will be provided by the Education Amendment Act to be introduced this session. With respect, however, to the increases of salaries and allowances to those engaged in primary education, it has been found impossible, within the time available, to amend tho provisions of the Education Act, 1914, relatinc to stalling and salaries, and, therefore the precedent created by the late Minister of Education in section 37 of the Appropriation Act of last year 'has been followed, and power will he sought to make the necessary additions j bv regulation instead of by statute. The increases will all take effect retrospectively as from April 1, 1919. To provide an adeauate number of trained teachers.inducements to enter and continue in the education service should not be substantially inferior to those offered in tho Public Service, and an effort has been made to bring tho salaries and- allowances of men and women engaged in the teaching profession up to approximately that scale. The number of trained teacneis now engaged in education is insufficient for the present needs, and such reforms ns reduction in size of classes cannot be effected without increase in those, numbers. Accordingly this year provision is made not only for higher salaries, but also for the training of a greater number of students'at the training colleges alio, increased allowances to such students. A Bill amending,tho New' Zealand University Adt is also proposed, by which the annual grant to Ihe University is increased by ,£IOOO, the annual grants to each of tho University colleges by .£2500. with a further .£2500 to the' Otago University for its Medical School, and a grtfnt of ,£2OOO for workers' extension lectures. The increased grants to the universities nud'colleges will not commence until April U 1920, and therefore provision in those respects does not appear upon the present estimates. I have now to turn from the charges for eduostional purposes upon the Consolidated Fund to the subject ot grants from loan funds for capital expenditure on land and buildings. The method which has been adopted up to the present time for provison of grants for such purposes has been to app-opnate out of the monevs to bo raised in each year by loan for public works a certain limited part for education purposes, with the result that annually the demands for general publ ? c works such as railways, roads and bridges, and post and telegraph offices, have been brought ihto competition with the demands for educational lands, buildings, and improvements. The total amounts available for all public, work during the past five years - have been necessarily limited, and the supply oi money for educational grants has been thereby reduced to a'far less sum than was necessary for normal expansion. .The country has therefore to meet an accumulation of unfulfilled past demands for such education purposes as well as the normal requirements of the present and of the immediate future. New buildings are required throughout the Dominion, and additions to a large- proportion of tho existing buildings are absolutely necessary. To attempt building operations on such a-scale as would be necessary to meet all the demands immediate-' ly would be to court failure. The Government has decided to ask Parliament to enable specific loans to be raised, for education lands and buildings only, to the amount of half a million during the present year, and throe-quarters of a million during each of the four following years. Tho analogy of the loans for land - settlement has been followed in the Bill which will be submitted to _ the House, so that the moneys will be raised as required and as the operations proceed, By this means and without conflict with the activities of the other Departments of State in respect of public works the Government hopes that full provision can bo made for the acquisition of lands and the erection of buildings to bo commenced immediately and to 'be proceeded with us rapidly as. tions of supply of labour and of material will permit. Out of the Consolidated Fund provision will continue to be mnde for maintenance and upkeep, but it is not proposed to continue the present system nf grants to the education boards to he held as reserves for restora*tion of buildings.

PUBLIC SERVICE SUPERANNUATION

The total number of contributors to the fund on December 31 last was 14.071. an increase of 287 during the year. The total revenue for tho year was .£254.80" including members' contributions, ,£150,899; interest, -£55,704; Government subsidy, ..£48,000. The total amount expended during the year was .£144,75R, which comprised retiring and other allowances, ,£102,900; refunds of contributions, „£39,31G; cost of administration, ■£254-2, The total number of allowances existing at the end of the year was 1584, representine an aggregate annual payment of ,£110,171. The amount of the total fund invested on December 31 last was ,£1,125,700. TEACHERS. The fund amounted on December 31, 1918, to .£458,050, as compared with .£420,225 on December 81, 1917. Dunthe year 1918 allowances totalling .£4571 were granted, the total annunl rate at the end of the year being .£51,049. The Teachers' Superannuation Board, with tho approval of the Government, concluded very satisfactory' arrangements with Iho Public Trustee for tho investment of the fund. On December V 1918.- the amount invested totalled .£440,421; of (his sura .£59.000 was invested at 4,',- per cent.,' .£26,161 at 5 per cent.. .E3S.4GO at 5} per cent, and .£322,200 at 5 J tier cent. The amount held bv the Public Trustee uninvested was .£2003. RAILWAYS. In my last Uiulgel, presented, on August 6, 1914, the committee was informed that as a result of an investigation the Actuary reported it was necessary to provide an additional ,£25,000 per annum for the next three years (o make Hie Kailways Superannuation Pund sound, and Hint at the expiration ui three yeurs a further investigation should lie made. fu accordance with the recommendation of the Actuary, an extra .£25,000, making in nil .£50,000, was provided on ihe Estimates for Hie year 1914-15, and (his slim was duly paid. ' Shortly after taking over the duly of]

Finance Minister on September 1 last, the General Manager of liailways reported that the accumulated funds had declined from ,£377,585 in J917 to .£303,801. at March 31, 1919, n decrease of iil-1,000 in two years; and that during tho same period the liability of the fund to the contributors had increased by XGi.BOO in respect of cash contributed. He further stated that "it was imperatively necessary that steps be at once taken to stabiliso the llailway Fund without further delay," and lie strongly recommended "the sum of .£150,000 be paid to the credit of the fund this 'year, and that future payments by way of subsidy should be ,£50,000 per annum." The General Manager's communication was at once referred: to tho Actinry, who has reported that it will take some time to collect the necassary data and make the valuation, and he an immediate increase in the subsidy of ,£50,000, making an annual contribution of i! 75,000 instead of .£25,000, and that the matter, be reviewed and adjusted when the result of the i.ctuarinl investigation is available. The sufficiency of the funcl, is guaranteed by the State, but in order 'to remove any possible feeling amongst the Hallway employees as tu the stability of the Superannuation Fund, and to assure them of the readiness of tho Government to keep it sound, the extra ,£50,000 will be provided on this year's Estimates, and instructions will ho issued for an actuarial investigation as early as possible. OTHER SHORTAGES. The annual contributions to the 'Pi lilic Service Superannuation ]''und m iitecrd--ance with the Actuary's report of May 25, 1918, for the triennial period ended December 31, 1910, was increased from ,£48,000 to under the authority of section 26 of the Appropriation Act, IDIB.

By section 25 of the same Act the Subsidy to the Teachers', Superannuation Fund was increased from «£17,0C0 to ,£13,000 in accord with the Actuary's report of September 22, 1917, for the triennial period ended December 31, 1916. It was clear from the reports (hat the Actuary intended the increased subsidy should'be made for the years 1917, 191?. as well as for 1919. The amount cf subsidy short-paid for the two years is Ji7G,OOO for. the Public Servieo Superannuation, and .£52,000 for the Teachers' Superannuation, or a total of ,£128,000. I am making further inuiry with regard 1 to this shortage, and, if found necessary, will make provision by appropriation before the session closes. BOARJTOFTRADE During the yeir the Board of Trade was mainly concerned with the purchase and distribution of New Zealand, v-l.cai, and the handling- of the purchase of wheat by the-Government to make itp tho local shortage; an exhaustive riquiry into tho coal-mining industry; the preparation and administration of tlio scheme for Die control of the timber industry with a view to tho satisfaction of the £mv Zealand requirements before export «as permitted ; the preparation and administration of a scheme, in conjunction with the Munitions and Supplies Department, for the importation, distribution, and sale of petrol j the administration of schemes for,the control of prices of. those commodities which in the opinion of the Government it was necessary in the public interest to control. The board in its annual report draws| attention tp the need for extension of its powers and junctions to meet the difficult problems that will arise during tho reconstruction pe.'iod, and also as part of the permanent peace policy. If the board is to achieve the purpose for which it was created it is essential that its functions should bo, enlarged and its powers extended. Especially should it have the power to obtain full information regarding the operations of any trade or industry which it has to investigate, and to publish, in its discretion, such facts as should be made known in the public interest.

PENSIONS The amounts paid for pensions, other than recejit war pensions, during tiie year are as follow :—•"'. Allowance Statu- under tory'Finance Total pensions. Act. pensions. > ■ <£ £i '£ Old-age pensions...' 482,438 260,605 743,043 Widows' pensions 14,714 36,053 80,772 Military (ilaon ' War) pensions ... ■ 39,477 11,033 , 50,510 Miners' pensions... 10,722 2,555 /13,277 Totals 577,351 310,251 887,602 The pensions paid show an increase over last year in every class except Maori War pensions, but taking Uie actual statutory pension, as apart from the war bonus under the Finance Act, 1917, the only increase over last year is in tho widows' pensions, "and this is due to the recent epidemic. The actual variations are as follow :— Decrease. Increase. £ £ Old-ago pensions 19,617 Widows' pensions ..;... — 2728 Military (Maori War) pensions 5,363 , — Miners' pensions ......... 1,246 — Against the total payment of ,£887,602 must bo credited .£38,234, including A 32,647 from national endowments on account of old-ago pensions,, and £4425 from gold duty in respect of miners' pensions, leaving a net charge of i' 849,368 against tho State. '• Under the provisions of the Financo Act, 1917, the bonus granted under that Act to old-age. widows', military, and miners' phthisis pensioners, continues till twelve months alter the. termination of the war, which is a day to bo fixed by Proclamation. ■ It will bo soen, therefore, that the payment of the bonus can be continued until lato in 1920 without further legislation. "It is considered desirable to defer the necessary legislation till it can be considered by a now Parliament next session. Amending and consolidating legislation, therefore, will bj introduced next session to deal with tho bonus, and to remove various anomalies which from time to tinio hayoieen pointed .out. The annual liability in respect of each class of pension, the total number in force at close Of -year, and the amount of the average pension are set out hereunder:—

No. in Aver■force at age March Pen--1 31, Value, sion. 1919. <£ £ Old-age pensions 19,872 731,910 36 Widows' pousions ... 3,211 112,618 35 Military (Maori War) pensions 1,040 47,314 .15 Miners' pensions ..':... 240 13,003 52 Totals - 904,945 ■ Except in the caso of widows' pensions there- lias been a decrease during the year by deaths and cancellations as compared with new grants, as shown in the undermentioned table:— i Deaths and New cancelgrants, latins. pensions ..-. 2235 2323 Widows' pensions 1319 330 Military pensions ...... 12 125 M'ners' pensions 82 112 WAR PENSIONS Jm. the gross payments under this head tliero ha 6 been, as waa of course expected, a heavy increase in the total. The figures are as follow:-' 1917-18. 1918-19. £ . je 'Payments made in New Zealand -105,000 1,150,155 Payments made iu London 12,507 28,023 Payments made in Aus- , ' tralia 2,025 10,870 Payments inado in Canada ;.... - 102 Other foreign payments 291 295 Allotments paid after casually ~ '1,404 120 Lump sums ; 105 200 Sundry 2 — Totals JC515.447 .£1,199,755 The total new claims to dato, including those lodged during tbo vear, are:— • Prom From Sol- Depend(Hoi's.. ants. Prior to March 31, 1918 ... 12,904 6,452 Por .year ended March 31,

Deaths and cancel-

1919 14,749 5,292 'Mais 27,653 11,741 The annual liability at March 31, 1919, was ,£1,615,827, and the average pension is ,£59. The following table shows the various classes of pension in force at end of year:— Annual Average Number. Value. Pension. £ £ Permanent pensions to soldiers, 1,318 69,6 Gil 53 Temporary pensions to soldiers 18,329 1,097,303 GO Temporary pensions to dependants (ineluding 1240 children) „ 1,070 55,940 ' 52 Pensions *to widows (including 2209 children) 1,970 233,451 119 Pensions to other dependants) 4,730 159,404 34 27,427 1,615,827 59 The pensions granted to date, and tho I annual value thereof, aiv as follow.— .Annual Number. Valuo £ 1915-16 1,214 .V-J|iß 1916-17 5,316 285,707 1917-18 10,587 760,057 1918-19 10,954 1,107,081 34,071 .£2,289,333 , It is estimated that an expenditure of, .£2,000,003 under this head will have to bo provided for during the current year. PUBLIC SERVICE. Honourable- members are aWaro that last session provision was rnndo for a complete revision of tho salaries, and wnges of public servants. During tho recess this important and necessary work lias been carefully undertaken. As a result, the departmental votes for salaries disclose.such substantial! increases as to dispense with the necessity of providing for the payment of a special war bonus to meet the increased cost of living. This increase in the pay of public servants is not only in keeping with tho general advance in the ruling rates paid for all classes of labour, but is a just recognitinn of the excellence of the -work carried ( out by all departments and branches of the Public Service during the heavy strain of the wist five years; and I am sure honourable members will bo pleased to noto that the status of those puttie servants who went on active service has been carefully preserved, and that in almost evcTy intsance the State employee on his return from the.front will take up his duties under improved conditions as regards pay. > theHplus RESULT OP TWIT WAR'S OPERATIONS. Consolidated Fund (Ordinary Rovenue Account), ■■)£■. . Balance brought forward on April 1, 1918 11,560,788 Receipts During Year. ( £ £ Revenue 22,306,444 Other receipts— Recoveries on ace. previous years 45,928 22,352,372 Expenditure during yearAppropriations 18,673,599 — 3,078,773 Balance on March 31, 1919 ... J15.239.5G1

FINANCIAL RESPONSIBILITIES

TO BE'PROVIDED BY LOANS. The following table indicates generally the loan moneys required during the twelve months commencing September 1. 1319 also _ the unexhausted authorities for borrowing already provided, or to be provided this sessiou, the cash balances available at that date, and the sources from whicli it will be necessary to secure the loans:—

Is: *PB§^ E sis SvlMr 'I 3 CST* 38-' p: ■£ &.> «' p : eog S« g• s (J ►? i • g : ■ 3 » i .. &; » iB&B• eg • £ 3 • s: 2, :2 a S. : P H. & : "8! & • SH ? »' : • i 2 :* *: gS* « ■I. "I! = ??8l ff.S.a '? : ::: ;ob ;f o °> : i': i Ig2 • I o : g-*>» « fe . !: : : S-"-' : - B w3 , - M CO / W M l M _S JO |5 IBPS 0 "° ■ CO Ot CUM 2 "cn©"-d S Q M Sow 5 ons S • o =>«$ * b"©2 'a © ©oo <5 ©o© £. © . 000 © 000 . ' \> c Phi' 2 ovp " P Nrot k >-'E £■: i" S 1 & - S £ E h8 - ?&■?? M .sg n" s-gas i « CO » 2 P co S , a p<* <o.& * « g •=) -5? • W B'S 5| g| g| sj 5| N c g: 0 N " £% H «5 wg EL'S E,! 2* ~£3 Sw §1 g| el' 1? ,?& « w tf h a §&83| P ' P ? » ? 'F'r's ' ■ . if o & •

*A considerable portiou of .this has al-> ready been spent, 'but vouchers have not vet reached tho Treasury. In addition to the above new requirements the Treasury will also havce to raise money to carry on the development works and other State activities now in progress throughout the Dominion. ' THE ACCUMULATED SUB-PLUS. It is not, in my opinion, wise to raise tho iE12.500.000 required for discharged soldiers' settlement by public subscription in New Zealand, nor is it feasible to- float a loan for the purpose outside Neiv Zealand. 1 purpose, therefore, to provide this' amount from the accumulated surplus, which it is hoped will lie restored to tho full amount ,£15,239,501, bv March 31, 1920, leaving u balance after making this provision of accumulated surulus .L'2,73i),5G1.

The Reserve Fund securities, which at nresent amount to ,£BOO,OOO, have provul or great assistance during the war time, and it is, in my opinion, advisable to strengthen these securities by utilising .£1.200.000 of the remaining accumulated surulus in order to bring the total tieserve Piiml securities up to ,£2,000,000. I.propose that the balaneo,of the accumulated surplus, be carried' forward either to strengthen the Consolidated Fund during the early months of the financial year whou tho revenueis insufficient to meet the expenditure, or to be available lor investment in loans required for land-settlement for soldiers and authorised by the Discharged Soldiers' Settlement L'oans Act, 1910, or other purposes in connection with tho war, should any difficulty present itself in raising money in New Zealand or elsewhere. TAXATION. " It,would have been a great pleasure to mo to have been in a position to announce this year sonic reduction in the heavy burden of taxation; tho estimates of revenue and expenditure, however, make it clear that this must be postponed, nor has there been time for ino since I took over tho portfolio of Financo

to consider anomalies which may exist and make readjustments. 1 trust, however, that the time is r r ' far distant when by the increase in filiation and a return to the mora normal rate of expenditure some relief may be. afforded to tho taxpayers of the country. -. ESTIMATES OF REVENUE, 1919-20. When the draft Budget was placed in my hands on September 1 last thoesti-. mated expenditure exceeded the estimat-, ed revenue by .£934,000 with the supplementary estimates yet lo come; heads of Departments were asked to meet me, and as a result of their loyal co-opera-tion I am pleased to report 'that tho estimated expenditure was reduced .by 1 approximately £400,000. Provision lor increased expenditure on account of tho Education Department, which would have been postponed for the Supplementary Estimates, but which is now included m the main Estimates, reduced tho .£400,000 to .£200,000. "' " ■ As a result of experience of the. revenue received during'the five- -months of the financial year it is gratifying to note that the estimated revenue-for tho year will bo larger than was at first anticipated. For tho year 1919-20. under the. mam heads of each of the important Departments, I estimate the revenue at £ Customs : WOO Railways 5,000.001 Stamp and death duties 2,400,000 Post avid Telegraph I'SJS'SSS Land and income tax /■™„ , SSx Beer duty 2l0 ' 000 Registration and ether fees ... 110,000 Amusement fax 40,000 Marino 58,3» Miscellaneous • Territorial ■ rovenao }«.'™» Endowment revenue ~,?. ■ ™<%" Other receipts - • ts '" w , » .£22,919.165 T estimate a surplus for the year 1919-' 20 of .£478.108, which is available for the supplementary "estimates,, and is marie up as follows:— ' Estimated revenue. 1919-20 ... 22,919,165 Estimated expenditure -.441,057 Aiva.ilaWo for supplemen- ■ . ' tary estimates .54/8,108 GRATUITIES, ALLOWANCES, ETC. Proposals with regard to gratuities, allowances, pensions, etc., to members of the Expeditionary Force and others were submitted lo tho House on Friday night last. Payment of gratuities and allowances will bo provided for out-of the loan authorities granted last year on account of which £10,000,000 is now being raised. ' futurelbligations A WARNING. The attention of honourable members has already been called to tho pressure brought to'bear upon the Government to provide for an expenditure, beyond the capacity of the country to meet. I de-. sire to repeat that warning, and further to state thai; there was never a' time when ■ tho necessity for national thrift was greater than at present. ' Out future . obligations are particularly heavy, especially, the permanent chanie3 established against tho revenue of' tho Dominion as a, result of tho war. Interest and sinking-fund charges and war pensions are also very heavy, and have not yet reached their maximum. The requirements for public works, and the expenditure necessary to promote the development of education, and of agricultural and industrial pursuits, must not bo lost sight of. Our finance must be established on a.solid basis, for without sound finance national progress is impossible. .''.-■'-' HYDRO-ELECTRIC SUPPLY. ' The continued success of the Lake Coleridge hydro-electric supply system has been of. 'the greatest significance (particularly during the recent coal shortage) in maintaining the industries nnd domestic conveniences of the district supplied aud in reducing the demand for coal. The plant is now overloaded; and! it is proposed to complete the .'installa-tion-up to the capacity of, the existing lieadworks (16,000 horse power) as soon as the necessary materials can be obtained, and to push on with, the extensions to South Canterbury, as well as the necessary surveys for other power services in the South,' Island. For these works a sum of -SIOP.OOO will bo provided. . ." " . In the North Island tho Mangahao works (24,000 horse power), for the supply of tho Wellington province, are in hand, and will be pushed on energetically. For the Auckland province investigations are being carried 'out nt Ariipuni Ratiids, on .the Waikatp River, where it "is proposed to develop up to a capacity of 96,000 horse, power, with transmission lines extending northwards to Auckland, and ultimately joining; up with Wairua Falls power station at Wliangarei, eastward to Rotorun, Whakatane, and Gisbomc, ultimately joining up to the Waikaremoana nower system, and southward via tho Main Trunk railway line to join up with the (Mangahaq system at Palmerston, and via the Slrat-ford-Ongarue railway to New Plymouth. For these works a sum of £500,000 will be provided during the current year. Proposals by. certain local'bodies fare under consideration for the development of hydro-electric newer in several parts of the Dominion, but no decision lias yet been arrived at, except-in the ease of Southland, where the local scheme lias been taken in Hand vigorously. The hydro-electric work's at Horahora have been acquired by tho Government from the Waihi Gold' Mining Company, Ms enabling electric power to bo supplied very shortly throughout the Waikatoand surrounding districts. ''.' ."' ''''",'

TO HONOUR THE DEAD

A FITTING MEMORIAL.. . 'j Twice in the last five years.it has , fallen to my lot to deliver the Financial ■ < Statement, namely, on August G, 1914, -,; and to-day. , ■ Many anxious moments , have passod j during the interval,, but we never lost i confidence in tho justice of our c'a'iwo ] and the ultimate success of our' anus. . ■ The Statement made this day is tn« . i first delivered since the signing of peace, " and the occasion seems opportune to place on record the fact that this country fulfilled all its obligations (o the Motherland, and never failed to supply'its own . ; Expeditionary Forte with adequate support 'right up to tho signing of , the armistice. It may fairly be claimed that 'the assurance .of this practical sympathy .' j and support did inuch tc assist our sol- j diers iti securing the splendid repula- j tion which they have earned, and which : wo may rightly look upon as one of tho . i most valuable assets this country pos> .- j sesses. .This has not. been achieved with- ; out serious loss, serious not alone on ; account of the sitd hearts of relatives, j and friends who mourn the dead, but also - j becauso it will be very difficult- to re- ■ '■ j place the .loss of those who, .had tlicy j been spared to return to their home'', '•■ would have been associated with ns now, ; and later on would havo taken our place ,; in ondeavouring to solve the'many com- ' plcx problems with which this conchy | is called upon to deal. We can and j ought to do 'something to perpetuate tho -.i memory of tho men and women who ■ gnvo their lives for the benefit of thosa of us who re.mnin to sliaro in the bless- ; ings of what we hope will prove la be a lasting peace. | It is proposed, therefore, to set hside ! this session not less t\vi' .£IOO,OOO to ! : orect a national memorial, designed and carried out by the 'best talent available, ■! which will perpetuate for all time tho ■■■{ memory of those wlio with sclf-sacrific- 1 iug devotion gave their.lives to rave the 1 Empire, and will.be a constant-reminder '''• that there is no nobler duly than to i sacrifico self in the service of'all.- .•-": ■ . SANDER'S" EUCALYPTI EXTRACT, '":.; the unequalled remedy for colds, chest .'.'' troubles, lieadaclies, indigestion, rheu- ' matism. SANDER'S EXTRACT, the 1 surest protection from all infectious dis- -.! eases, fever, diphtheria, meningitis. '■'• SANDER'S EXTRACT, the great healer ! of wounds, burns, sprains, ulcers, in- ! flamed skin. SANDER'S EXTRACT, .:i prove<l at the Supreme Coo.rt~of Victoria I to contain antiseptic and 'healing, sub- ! stances not present in other eucalyptus •!• preparations, hence. its superior- and j unique curative power. ■ SANDER'S 'i EXTRACT, the only eucalyptus product- , j prepared exclusively from the leaves and ' j refined by special process, is free from v i (ho irritating and depressing qualities of ~•] the ordinary eucalyptus oils end the s*. ! | called "extracts," and is safe for into* . nal aa well as external use.—Adrt,'' " ,

1.020 42,800 29,i00 3,695,745 3,707.945 1921 3,000 551,200 9,551,257 10,105,457 1922 10,000 914,100 5.437,790 '0,361.890 1923 30,300 066,850 8,141,406 8,838,556 1921 1,721,101) 20,700 6,758,465 8,500,205 192.5 IS8.100 200,000 743,392 1,131,492 1926 1,460 — 382,010 383,410

Other , British pnrtsi United States, foreign countries. locals. _ Tear £ Tons £ tons <8 Tons. •*■ --ions. 10U "... lMW7«.t 1.3W.SU3 2.SB2.9RR 125,755,1,923,310 5S.-157 21858,096 1,53S,.55 1915 ... 17.727.137 1.172.859 2.6M.M3 W.741' 1,«1.«9 5,o 21,. S,b I' 1A0.057 191R yft.M3.4B1 1.WS PAR ■ a.nsn,fl?5 230,341 l,53a,897 GS,G97 $339,«a J.-h'^ 191-S'... 17.205.921 7PI.331 4.9B0.74R 100,908 1,987,275 3,,-195 2-iMMl 9SS,<37