FINANCIAL STATEMENT.

Feilding Star, Volume XVI, Issue 21, 25 July 1894, Page 2

FINANCIAL STATEMENT.

The Hon Mr W*rd delivered his Financial Statement in Committee of the House last evening. The following are the leading features :— r

In inviting the attention of the Committee to the consideration of the financial position of the colony I desire to say that it will bo my aim to place the same before you as lucidly as possible.

The figures are : Estimated revenue, £4,546,700; actual, £4,652,038, or £106,338 more than the estimate The stamps revenue contributed the largest excess— namely, £48,947; then the Customs, £35,502 ; territorial, £13,059; and other heads of revenue made up a total excess of £116,584. On the other hand the railways fell short by £7452 and marine and miscellaneous by £2794, making altogether £10 246 less than the estimate.

Results of the year 1893-94. — Land Fund — We commenced the year with a balance of £283,779; to this add actual receipts amounting, as I have stated before, to £4,653,038, making a total of £4,936,817, and after deducting ordinary expenditure, £4,386, 359, we had a gross surplus left of £550,458. These handsome results enabled me to transfer, without difficulty, £250,000, which Parliament decided should be devoted to the aid of public works expenditure, leaving after such deduction a surplus revenue of £300,458.

Public Works Fund— As heretofore the expenditure during the year was £333,300, which was less than that of the preceding year. This negatives the assertions which has been made, that the cooperative system would force upon the colony large and uncon trollable public works expenditure. The receipts, including £250,000 transferred to the Consolidated Fund amounted to £419,353, and adding £177,606 brought forward at the beginning of the year, produced a total of £596,959 ; deducting from this the expenditure of the current year. Cheviot Estate Account.— The trustees in this estate have been finally paid the amount of the purchase money, and instructions have been given to the Agent-General to include the £250,000 debentures issued under the authorities of " The Cheviot Estate Payment Act, 1893," in his present conversion operations. The £250, • 000 will carry interest at the 'rate of 3£ per cent per annum.

The Conversion Account — The ordinary details which accompany the Statement show that three conversion transactions have been completed during the past year, viz., £400,000 debentures due Ist March, 1893, issued under "The Public Revenues Act, 1893," and to which I referred in the Statement last year; £500,000 Imperial guaranteed debentures issued under "The Auckland Loan Act, 1863." For the complete conversion of these loans, including expenses 3£ per cent., stock is inscribed at the Bank of England to the amount of £1,038,180, and upon the half million guaranteed loan becoming converted an amount equal to over £260,000 of sinking fund will be set free. This, when applied in accordance with the provisions of the law, enabled the Public Works Fund to be augmented to the extent of £163,702, providing a substantial assistance towards the prosecution of works and remunerative employment to our work people. Estimated expenditure for 1894-95, £4,301,098; estimated revenue for 1894-95, £4,852,800; excess of re venue over expenditure, £51,702, which, added to the surplus of £290,---238 on the year just closed, makes a gross surplus of £841,940, of which £250,000 is to be spent on the construction of reproductive works and in aid of the land settlement. The net surplus at the end of the yoar should be £51,702, with necessary reductions for votes of supplementary estimates. Regarding the Public Trust Office, the properties subject to wills and instruments of trust have increased in number from 354 to 357 and in value from £442,671 to £543,238, while the properties of all classes at the close of 1893 in the offices were 2040 in number, of 4he estimated value of £1,450,---917. The Act of 1891, by which the colony guaranteed the capital funds of estates in the Public Trust Office, as well as a common rate of interest on these funds, is bearing good fruit. A vote of £340 will be asked for to meet the deficiency arising from bad and doubtful securities on which the capital funds have been lent out of estates in the Public Trust Office, making the deficiencies which have been made good in securities amount to £4098 outof the estimated total amount in 1891 of £5000 of the deficiencies then expected to arise. The Natives show an increasing confidence that the lands which have been reserved for them will be so administered by the Pu'hc Trustee that the owners will derive the greatest possible benefit Government Insurance Department This department has never occupied a stronger position than at the present time. The new business of tho year was virtually £100,000 in advance of the 1891! business, while the expense rate has still further declined and is now lower than at any time during the last eight years. After having made very substantial reserves a cash surplus of £140,000 remained, and has been converted into reversionary bonuses, which have been added to the policies in force. The sums assured, with bonus additions thereto, have now reached £9,000,000, and the funds at the close of the year amounted to £2,128,590.

Department of Agriculture — The work in this Department has steadily increased and endeavors made to assist settlers by supplying information have met with cordial approval. From time to time pamphlets on the different subjects hy the Government Veterinary Surgeons, and dairy instrucj tions, have been issued, and a very large number of specimens of plants and insects have been sent for investigation and report. A shipment of the Hessian fly parasite was received from Home, successfully hatched and liberated. Another consignment is expected. Dairying has continued to develop, and there were ITB factories and creameries at work last season, being an increase of 34. The increase of butter was 10,838 cwt, valued at £31,943, but on the other hand there was a decrease in cheese of 8,94$ cwt.> valued at £14,922, the total output being — butter 62,500 cwt., valued at £2G5,959 ; cbeese 38,362 cwt., valued at .£88,009. Although these returns

show a decrease of clieese, it is believed there was really no actual decrease in the quantity manufactured but through some cause it^waa not exported till after the end of the financial year, as the quantity shipped in April shows. During the year Mr Valentine, the dairy expert engaged by the AgentGeneral, arrived, and was at once fully employed in advising the department on the best means to assist the industry. The Government, believing better organisation in London was necessary, decided to despatch Mr Valentine for this purpose, and it is hoped that actual good, will result from this appointment. <' ; /

Postal and Telegraph Conference— The first Australasian Postal and Telegraph Conference held 'in New Zealand met at Wellington in March last. Now that ; wool ii to be admitted free into tho United States the great ad vantage' to this colony of the maintenance of direct- steam communication between New. Zealand and 'Frisco becomes the more desirable.

Settlement of the Land-r-The demand for Crown lands during the past year has been considerable, and thelP Lands Department has been kept busy to meet this. Over 1 ,000,000 acres of land were thrown open .for; selection under settlement conditions and for cash sales, bewdes about 1,700,000 acres for pastoral purposes^ C^he whole of these areas ■ are not ta^efe 4ip, f or much of the land remaining } the hands of the Crown is of inferior quality. The total number of selectors of lands last year was 2876, which includes selectors of miscellaneous leases, and licenses not of a permanent character. Deducting these there remains 2539 selectors under all otherheadings viz :— Purchasers for cash idO, jrho, i selected 34,999 acres ; deferred pay- . ment 96 y who took 12,668 acres ; perpetual lessees 17, selecting 8851 acres ; occupiers with right of purchase' 471 selecting 108,499 acres ; . lessees in perpetuity 1228, selectors taking up 255,362 acres; and finally 227 selectors of gracing farms, runs and pas- ; toral leases. The total ' figures show i a small decrease of 195 in the number of selectors as compared with lart year. The number ot estates purchased was five, of a total area of 9113 acres, the total cost of which was £39,000. TLese estates at this date are bringing in a return on the capital wrested of4sperceht. ' '^^ Bank of New Zealand.— l will not ; trespass upon the time of the House to say whether or not the creation of a State Bank would have been a solution so satisfactory as* many; predicted. It would not be an easily managed concern. It would be open to some, if not m»ny abuses. But a. financial institution, guaranteed the State, supervised by tbe State and controlled by the State, must in the very nature of things be a bulwark against extroardinary financial fluctuations calculated to impede the industrial and general progress of the colony. We have now all the machinery necessary to enable the Treasury to control the note issue, should this, ever be deemed desirable. The Government are of opinion that neither of the other colonial banks will, as the result - of the legislation giving the Bank of ! New Zealand a State guarantee, be prejudicially affected.

Railway Control— ln accordance with the generally expressed wish of the country, a change in railway control has been affected. Two of the former Commissioners ' has been replaced by two new ones. The Minister for Public Works will at a later date place fully before* the House the opinions of the Government as to the future' management and working of the railways. •■'"■- - <■ ■< ;• - ' : . ' . Local Government— The Government were very anxious to submit propoeals this session to extend the powers of local Government Bodies, and to deal with pressing necessities for reform in the administration of chuitable .'aid. Many of the local bodies are financially in a very unsatisfactory, Vstate, and in order to assist them it has been decided to bring in a measure authorising them to levy rates upon Crown Lands. From this source it is anticipated that they will receive about £10,000. Post and Telegraph Service— Tlw establishment of a permanent appeal board to enable officers to submit reasonable complaints from time to time concerning their positions will be profosed. (To be concluded in to-morrow's issue).