FINANCIAL STATEMENT.

Evening Star, Issue 3561, 22 July 1874, Page 2

FINANCIAL STATEMENT.

(By Telegraph.) Wellington, July 22. Mr Vogel made his Financial Statement last evening. The following is an abstract of it. The amounts are stated in round numbers.

Mr Vogel said that the ■''tatement would not only be shorter than usual, but it would be unprecedented on account of the prosperity which it evidenced. The Statement was made at an earlier period than had been customary, a result for which he was indebted to the untiring exertions of the Treasury officials in preparing the accounts last year. It was anticipated that the actual results of 1872 73 would leave a surplus of L3,0U0 with which to begiu the year, but it proved that there was a difference of Lfi.ooo as compared with what was anticipated, i 1 o aroße P artl y through under-estimating the liabilities, and partly from some assets not being realised, the result being that instead of a surplus of L3.8G0 there was a deficiency of between L 2,100 and L 2.200. As to the loan, it would be remembered that during the last session an announcement was made that five per cent, debentures to the amount of half-a-million had been sold at L2 10s premium. In January last the loan agents invited tenders for LI, 000,000 at 44 per cent He had been favorable to the change to 4 per cent., but he approved of the action of the agents they had inserted a condition that the debentures might be retired at any time after five years. The half-million borrowed at 44 per cent, interest realised L9B, making allowance for redeeming the discount. This was tantamount to borrowing at the rate of L 4 12s fid per cent. It was originally calculated that money for the Immigration and Public Works policy would have to be borrowed at 54 per cent. It was gratifying, therefore, to know that the average rate of interest on the loans for those purposes yet negotiated, ineluding the allowance for recovering discount, amounted only to L 4 14s lid per cent. It was right that he should say that the market for Colonial loans was not so favorable last year as seemed to be then promised. There was now no demand for such debentures in the Colonies. This arose through the demand for capital for local enterprise, but it had to be borne in mind in considering the question of the borrowing powers of the Colony. The aggregate amount of the public debt, after'deducting sinking fund accrued, was L 12.600,000; and the annual charge was L777,00i), of which r.554,000 had to be paid by the Colony, and L 223,000 by the Provinces. After explaining the position of the various loan accounts, Mr Vogel referred to the land fund. This, he said, showed a remarkably progressive increase. During the year 1859-70, the receipts, exclusive of gold revenue, were L209.G00 ; 1870-71, 1,208,000 : 1871-72. L 326,00 0; 1872 73, L 389.642: 1873-74 Ll,O3 v j,ooo. The Post Office Savings Banlc account showed an increase ef deposits of 1*137,000, the total deposits in those banks being now L682,00:>. The revenue of the past year exceeded that of 1872-73 by L 300,000, and exceeded the estimated amount by L 239.000. The result was very large when the proportion it bore to the whole amount of the revenue was considered, lie could not state accurately the increase that had resulted from the substitution of ad valorem for measurement duties, as there had not yet been sufficient time to classify the returns, but there could be no doubt that the new duties produced more largely than the measurement duties. He was glad of this, both on account of the result and on account of the testimony it bore to the honor and truthfulness of the

commercial classes of the country. He emphatically expressed the opinion that taxation had not pressed heavily on the bulk' of the people, and that under the new system the duties had been more evenly distributed over articles of luxury than was the case formerly, lifter deducting expenditure and liabilities, allowing L 20.000 for liabilities yet to come in, and paying off L 45,000 of iieasury Bills, there was a balance at the •ad of 1873-74 available for the services of the current year amounting to L 207.000. After explaining at some length the position of the railways, Mr Vogel said that the r«. venue of the country was merely using so much simultaneously with the introduction* of immigrants and the prosecution of public works; that there could no longer be any doubt as to the success of the policy, and the Colony would be quite safe in taking over the main trunk lines of railway whenever it might be found convenient to do so, and m relieving the Provinces from all liability on account of those lines, apart from the revenue which it was now certain would be derived from the railways, in excess of working expenses. The consolidated revenue of the (Jolony had, during the last two years, increased by L 412,000, or within a few thousand pounds of the total annual •harge which the railways, when completed from one end of the Colony to the other, would entail. It must be pointed out, however, that further authority for borrowing to complete ti.e railway* would have to be given. However successful the Immigration and Public Werks policy might be, it must be remembered tint it is necessary to meet the Colonial requirements before straining the credit of the Colony for other purposes.' Consideration of the fact of the railways being pushed on more quickly than was originally intended, and of the fact that it was not desirable to encourage too largely construction of other works, impelled the Government to decide not to renew their proposals of last year as to Provincial boy*

rowing. The Governments were prepared to allow a limited am <* tint ef assistance to Provinces, but such aspis.ance was to be rendered through the Co’oilial Government, and to be charged either aeai;:st the amomt for settlement of itm> i.-rants or upon th-.* Con solidated Fund, but with power to tie Government to issue Treasury bills, if found necessary, to meet it. As to-be assisfci-uco t>* bo given to separate Provinces, Mr Vogel said, first, in regard to Auckland, the Government during Mie recess were under stood to Pai liame.st to allow the Province to raise L 50,000, to be advanced from time to time extending over n period of about three years, for worts upon the Thames goldfields. The security in this case, besides that of the Province, is of a specific and larje nature, and the importance of the object to be gained is not to be denied. The Government besides agreed, subject to the approval of Parliament, to advance to Auckland, on the security of one-half of its land revenue, to be impounded for the purpose, L 40.000. in sums of L 6.000 every three months. The Government propose to Parliament to carry out their arrangements. We do not propose to ask for Auckland any further loan beyond the power to devote some part of the immigration funds to objects directly promotive of the settlement of immigrants Taranaki, with its splendid lands, offers a field for the location of immigrants second to none in the Colony ; and wo shall ask for power to advance money to aid so essential a work. Similarly we propose to devote some funds to Westland and to Nelson. Tn respect to these four Provinces it is to be remembered that they have not as yet enjoyed so much of the direct benefit from the expenditure on immigration as they might be supposed to have the right to claim, {-Till for money expended on works we propose conations f r repayment, and may add also that, whilst we shall require the approval of the Provincial Governments to any work undertaken, we propose that the works shall be carried

out under the control or with the approval of the Public Works department. What I have sakl 6f these other Provinces respecting immigrate n applies equally to Marlborough. We shall propose, for work in connection with the location of immigrants advances extending over two years, besides a loan of L 4,000 to bridge the Clarence River. In regard to Wellington, hon. members will n« doubt have observed from the correspondence that the Government, during the recess, endeavored to induce the Provincial Government to reduce the amount of borrowed money they desired. We agreed to submit, for the approval of the Assembly, a proposition to allow Wellington to ol tain an advance of 1 66,000 on 80,000 ac-es of land, to be opened to selection by sm 11 settlers. We shall ask that this plan be cirried out. I may also mention incidentally that we propose to ask authority to construct proper Government buildings in Welling dm. The Felson case*s the roost difficult to°deal with. That Province has long lasrged behind in the race that other Provinces have ran It requires useful works, of which it is singularly destitute, and we propose to lend to it, on specific security, L.50,000, for works of which the Public Works i-epart-meut approve. .From Otago also the cry for borrowed money has come, Wc cannot see our way to at present sanction the sum that

Province asks for, unless by way of purchase of the Winton and Bluft line. If the Provincial Government is willing, we shall he prepared to propose to the Assembly to purchase that railway at a valuation, the payments to he made, in four equal instalments, on Ist February next, and the Ist February of the three following years, the money to be devoted to the construction of branch railways. Otherwise, in respect to Otago, and in respect to Canterbury and FTawke’s Bay, I have only to say we propose to continue their trunk railways, and to aid them in locating the immi grants they ao wonderfully absorb. The Government proposed not to undertake any further goldfields works until some of those already begun had been completed. They proposed to appropriate an additional LfiO.OOO far roads in the North Island and to continue to the same plan as formerly, by allocating to the Middle Island Provinces a like amount. Out of the sums that would thus become payable to Canterbury and 1* Aail AMrl «i, «. - - .1 J I a 1 H

Westland, it was proposed to put the road between Christchurch and Hokitika into good order. As to the Provinces, Mr Vogel said the case of the Provinces is not to he dealt with by merely exceptional advances for public works. There are three Provinces which labor under the great disadvantage of contributing largely to the Colonial revenue, for, whilst they make the contributions, they enjoy out of their own revenue local expenditure ; but the case of some Provinces is simply constant contributions—a constant disheartening tendency to the result so familiarly explained by the slaughter of the bird which lays the golden eggs. As mere matter of policy, if it is wise, in the midst of the immense increase of the Colonial revenue, to specially remember some of the Provinces which contribute it, and which are at present at great disadvantage as compared with other Provinces, it is not wise to Jet some parts ef the Colony languish under a sense of wreng; to allow them to feel they are still becalmed, whilst the favoring breeze removes from their sight other vessels, generally becalmed with them. The condition of the three Provinces of Auckland, Westland, and Nelson, as compared with the other Provinces, is lamentable, and requires from the surplus of the consolidated revenue the attention of the Legislature. Auckland’s case is far the worst : it will _ take that Province some years to work itse’f round, and to enjoy the future which I firmly believe is still before it, Westland deserves great sympathy. Weighted with a great public debt, its Go-

▼eminent, eagerly anxious to develop it, find themselves hampered in every direction, Westland has proved a mine of wealth to the Colony ; it is folly to desert it. The West coast of Nelson is somewhat similarly placed. Nelson will, however, now have the means, as it appears its rulers have the inclination to use those ineans, to become a prosperous Province. These considerations impel us to recommend that, out of the yearis surplus, a special allowance, in addition to that already provided by the scale of capitation allowances, he made to Auckland, Westland, and Nelson, at the rate of L 25.000 to the first, LIO.OOO to the second, and L 5,000 to the third. When hon. members study the whole of the circumstances they will not, I think, grudge the proposed aid. Passing on to the expenditure for the carrept year, 1874 75, he said that the essential principle of the Budget was different from that of any previous one its great object being to prevent the Government recruiting its revenues by resort to borrowed moneys. In fact, the present Budget bad for its object to relieve loans at the expense of the consolidated revenue. He proposed this year to take over, and to charge upon consolidated revenue, all the cost of interest, inclusive of interest upon works in course of construction, for which other provision had been made. He proposed, also, to hear on the consolidated tbe deft-nce expenditure, and half the amount to be paid as subsidies to Road Boards. Further, he propo;ed to pay off an additional L! 00,000 of Treasury bills Taking into consideration the number of officers of the Civil service who were inclined to leave the service on account of opportunities to benefit themselves, and the hardships to which they were subjected through the increased cost of living, the Government

had decided to recommend, as a matter of expediency ne less than of justice, that a special allowance should this be made of 10 per cent, to all officers whose salaries did not exceed LI 50 a year ; of 74 per cent, to all officers whese salaries exceeded Ll5O, but did not exceed L3OO ,* and of five per ornt to ad th»ao whose salaries exceeded L3OO, bub did not exceed LSOO. To do tuis would ah ■ rb 1.15,000 of the surplus. Adding rheso various items to the amount of the capitation grant, the special allowances to the Provinces, as wail as the ordinary expenditure on permanent charges, the total expenditure for the current year would be Ll, 630, GOO. This would include 1.271 000 to be devoted to the reduction of Treasury kills current, andto t ie payment of amounts which might, under existing authorities, have been charged on loans, thus justifying the statement he had made that the main feature of the Budget was to relieve loans at the expense of the consolidated revenue. He would explain, when he made his Immigration Statement, the further votes (hat would be required for

immigration and for railway purposes. His colleague, the Minister for Public Works, would in a day or two explain the various circumstances respecting the construction of the main trunk lines. He must, however, state that what he meant to include, when he spoke of main trunk lines which the Colony would be jus ified in accepting as Colonial lines, were hose lines which had been already author.sed, together with such other lines as would complete existing gaps between Kaipara and Auckland, New Plymouth, Na ier, and Wellington, as well as those necessary to complete through communication between Pickton, Nelson, Hokitika, North Canterbury, and the West Coast. The total revenue for the year, estimated with moderation, would be L 1,495,000. Adding to this the surplus with which this year was commenced, there would be a total o? i-1 704,000, and deducing tke total expenditure there would be a surplus of L 66.000. It must be remembered, however, that that surplus was liable to be largely trenched upon by supplementary estimates In cono'usi m, Mr Vogel urged that, while the country wns confidently pursuing its po ! iey of progress, they should wisely husband its strength, and have not larger recourse to borrowing than was absolutely necessary for carrying out the po icy which the House and the people had adopted.

Progress was reported, and leave obtained to sit again The House was adjourned at halt past nine.