FINANCIAL STATEMENT.

Grey River Argus, Volume XII, Issue 1268, 22 August 1872, Page 2

FINANCIAL STATEMENT.

{BY SPECIAL TELEGRAM.)

[The following telegraphic summary of the Colonial Treasurer's statement was published by us yeß^Ma^^orenbon^ the shape of a, supplement, but as in that shape it could not possibly reach our humorous country flubßcribers,:ani4 : alao, because in the 'hurry of its production, several errors occurred, we re*publish it to-day in a revised form, j

WkttiWGTOJsiJ Aug. 20, 11 run. The Gtfiovui Tkbasurbb (Mr yogel) delivered ihe Financial Statement.in the Mmm 6fße^ggetttetive» this evening. He emtmim& W tetaa&ing that he had a mmc vgmsSmt&fe thm that which devolved npm Mm h^yese, for he had nob imwio^€^6id*fMmG4e»^6{imp(ated rwmm, V?htnk>dtmm fwtevio-wtd the wmttfistm is msm*ms- tfaz- m tft© with Vl%&® & w§mm>, «mm » total a»jtie&jsig4 feMgosy 'H %IM.m). He yras $m tosm $&& tihg > fefetency vtovedioU cmty Lm/W ; orTA3,m lees than vra# antkipatm~-&&t redaction being mainly owing to taring in connection with the Reserve Fond. The House authorised the issue of Treasury bills for L 45,000 .one,- year's date, and a like ampuntj.at two years 1 date, partially to • cover the deficiency, the balance^ to come out.of tfie cu^ be found that the cturent revenue of "the past year had performed its part of the Bautt gain, andprovision would be made IM^P .year, out of ..the revenue, to meet w^^ £45,000 increasing bills due this year. ,Withyespect;'t6 loans, L 66,000 under the Wellington Debts Act had. been negotiated in Sydney^ at.a cleir nett premium of 2, per .cent.,. He believe^ ttat, that was the highest amount .• ever Vr obtained by . publio negotiation^ for any o£ tiie Colonial ~ r debentures mauguratod. by the" Im Goyerhment. 'OS the Immigration and Public. $orks-;Loan L850. -OOO'liad been negotiated, and of the Defencejand other purposes, L 150,000, making'together one million. That, amount had been negotiated at homeval? a premium of 4a 2d, after deductitig^rued interest, which must be considered a very favorable negotiatibn; of the Ll6ojoooi*cently negotiated, there had been raised tinder the Defence and other purposes, L 635,000, of which 'there was "charged under tiie second.: schedule, of the' Act I.:—To1 .:— To Auckland, LsQ,pOp i^; l Taranakj,- ; IJ60()0 ; Wel- - sUngtpn, Li 7,000 j T and^Qtagb, L 90,000. By turhiDg to the second ■ schedule 1 of the Act hpn. members; would at once" see the ' nature of the various payments^under it. The total under- this schedule was L 163,436. Under schedule one there has -been expended L 295,578, .together with LlB/327 for .discount ands charges, making together a total of 1471,350, and leaving a, balance.of L 158,800 available for expenditure. .Of thisIIJ6B,OO6pLISO,OOO wa3 in cash in London^ L3ooin-cash in •tlie:. colony/ f and •■•' L 7900 under- advance in' the CoMy. • Of ; the r immigration and Public Works Loan.' there 3 had been altogether- r LI/6Q0,000 raised ; adding to that sum L27,294>being;a moiety of the Stamp Duties; thetptal was L 1,637,294. Of that -sum -L 711,611 waa^expended up to the 30th June Jast, leaving a balance of L 916,684; of which L 850,000 was in London on the 30fch .June; L 40,666 was in the Colony ■in ; cash, and ; 1<35,017 wai under advance. .The items of expenditure under the Immigration 'and Public Works Loan -were> lnterest and Sinking Fund, L 29.00 0; departmental expenses, 124,000 ; road in North Islahdj LX2,000) on railways; L241^0007; water supply, L 200 0; "purchase of land, North Island, L 49,00 0; immigration, 142,000; telegraphy L 58,000; . coal mines, ; ; Lsop, 4 payments to Road Boardaand Provmces, Llop,Qop; Greymouth protective works, L 3000; discount and charges, L 39,000 .' Before 'condading his remarks concerning the loans, he 'wished honorable members to understand that provision was made for payment, during the year, "of L 66,000 sinking funa on colonial loans, and 140,000 on proloans. T^tose payments represented the siiin which the colony and the provinces provide^ for' 'reducing the pubic, debt. Oii the 3Qth June last, there was L 440,000 in the Trust I ' Fund, of which L 387,000 was invested, and 1 L50,000 in cash, v Qn, the. 30th June, 1871, the amount in the Trust Fund was L 343,000, so that it had increased during the year 'by L 96,000. lAThe .Post : Office Savings Bank Fund had increased from L 294,000 in 1871 to L366;000 in 1872.^086 accounts, sit should: be; clearly understood, were kept entirely distinct from ordinary revenue and ordinary, payments, and he had taken the strictest precautions to secure that the interest-bearing accounts were sufficiently recovered for all accrued interest.; He would- next speak of the revenue of the year 1871-72. The actual ; revenue,^of/the.-yearvr, was L 1,007,000, against L 999 ,000 estinaated, and L 936 ,000 the^tual.receipts of ,the previous year ; there was,^ therefore, v an increase of L71,000^ over, .;,tb"e "actual ' receipts of 1870i71, M lot; L 17,006 over- •fche estimates. The C'u3tomarevenue: showed an increase of L25J000 on the estimates, and of L 42,000 over .the amount actually received during ' the^preyious year. . The exports duruig, the year' had exceeded those, of the^previons y^'ar^,by L 1,181,000, and tie, imports, showe'd^lanj.increase of L 427,000. Amongst the exports gold increased L 135,000 over the previous year, and wool showed a, considerable increase both in quantity and in value. The Btamp duties gelded L^OOP less than was esti? mated, - but on the '-postal reV^nue thflrp was an increase of L^OOO^ver the esti* jnates, -and, the;recqiptj| j?f the Telegraph Department showed a small increase — tho total revenue of theyearbeing^Ll,oo7,ooo. There was to be added on account of credits to vote, L 200 0; Treasury bills, L 90,000; Deficiency bills, L 100,000; making the total receipts of the year L1,199,Q0p. Still in .addition there were assets amounting to L 62 ,000, so that with receipts and ! assets the total for the year amounted to-L1.y261 j ; 000. The year's increase, as regarded revenue and the events of the year as a whole, showed a revival of prosperity in the ColonyV Gold mining was improving ; wool increasing in value; the land revenue had been, largely increased ; building was going on all over the Colony, not only as regarded dwellinghouses, but as regarded erections for business and manufacturing purposes; and generally much more attention was being given to mMiufactures of various kinds. With respect to agricuUure^he was under

the impreaaion that the State did not know as much of what was really being done, or give to it the assistance that ought to be given. During the five years ending 1871 there had been a continuous increase in the value as per head of the population, of the agricultural produce, exported from the Colony. The expenditure during the past jear for Colonial charges was, according to the appropriations, L 666,000. Supplementary expenditure upon Colonial account amounted to L 35,00 0; capitation allowance to Provinces, L 200,00 0; excess of payments to Provinces, L 31,00 0; deficiency bill paid off, L 60.000 j liabilities from 1870-71, L 62,00 0; payment to special fund on account of a liability of the previous year, L 20,00 0; half amount of Stamp I v duties paid to Immigration, and Public ' Works Account, L 37,000." These Bums make a total of L 1,014,000. There were still due— liabilities on account of interest' due in Sydney on the Ist July, and interest and Sinking Fund payable in London up to 16th July, amounting to 1*109,000; reserve fund, LU,OOO ; miscellaneous, LI 3,000; deficiency bills, LIOO,OOO. Adding all those items together, there was a total of L 1,250,000 expenditure ; which, deducted' from the total amount of the revenue left a balance of LIO,OOO with which to commence 1872-73. Statiug the matter in another way the figures stood thus— Assets, L 147,00 0; against liabilities to the amount of L 236,00 0; .thus leaving the same balance of rather more than Llo,ooo with which to commence the year. It was to be observed that the full amount f authorised ttfbe issued as deficiency bills, namely LIOO,OOO, had been issued, but greater portion of the amount did interest, being merely a nominal at die bank. L 40,000 of the ' •mount had been taken by the Trust .-. Fond. : Some objection was stated last year to allowing toe Government to issue LIOO,OOO of deLciency bills, but in reality it was of no astistance to the revenue— the greater portion of it was represented, -^by advances outstanding from the Con* ■olidated Fund. The full amount was more than represented in the assets. Hon. members would understand that after paying the deficiency bills, after pr - , ; . , , jviding for the unauthorised expenditure of last year, after providing for the full expenditure of theyear, after providing for the reserve fund and for all the .liabilities and engagements known to the Treasury, after having, in fact, provided for , interest and sinking fund due in London tip to the J5 th of July, or fifteen days beyond the close of the financial year, there still nmained a balance of L 10,600 with which to commence the year 1672-73. The Treasurer next described the proposed ' changea in the system of ' keeping the public accounts. According to the plan which would be submitted, • the > Comp-troller-General, and the Auditor-General . - .. would be associated . together as Commissioners of Audit, and the Paymaster- ,. General's account., would be. abolished. The new system had already .been initiated to some extent. ..Although it would impose upon the Treasury an amount of check to which it had not , , > hitherto been subjected, .the, department would learn to accustom itself to that ..check. The new system would answer the double purpose of securing the full authority. of Parliament over the expenditurejj and of enabling accbunts.to be „. wde up more promptly than hitherto. '" fl!e had Had prepared some interestmg statistics, comparing New Zealand with ' ' other countries. ; Taking the year 1869, which was the latest for which returns ' •-■'■' could be found,' it appeared .that' the revenue of the United Kingdom' was ■' -'" 65 millions sterling, of which less than 24 millions were obtained under the Ous- ■ T ioms ; arid 20- millions, the* amount.bf the Excise} represented the duties on, spirits during thVsanie year. 1 TEe to'fal amoant collected in New Zealand, including the taxes collected by the provinces, was. L902 ; 000. If there was the same itaxa- , ..«i*j^ißKxMß4f» »H in reat m * Britain! although the English customs

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tariff would not of itself yield so much as that of the Colony, the total revenue would be much larger than it was at present. Stamp duties in the United Kingdom represented 6s per head of the population, or nearly 60 per cent, more than in New Zealand. A comparison of the quantities of high dutied goods consumed in New Zealand and the United Kingdom, showed conclusively the wealthier comparative condition of the Colony. Of spirits, there wai consumed in the United Kingdom, per head of the population, per Kar, under one gallon ; bat in New Zeaid, the average was two and one-tenth gallons. Tobacco, one and three-tenths pounds per head in the United Kingdom ; New Zealand, two and six-tenths pounds per head. Wine, five-tenths of a gallon per head in Great Britain, against sixtenths in New Zealand. Tea, three and four-tenths pounds in the United Kingdom, against seven and one-tenth pounds in New Zealand. Coffee, a little under lib per head in the United Kingdom, against a little over 21b per head in New Zealand. Sugar, 461 b per head in the United Kingdom, against 671 bin New Zealand. The English tariff would have yielded in New Zealand L 043,000, as against L 823,000 actually obtained here for Customs duties ; but if other taxation bore the same proportion to Customs duties here as in the United Kingdom,

the total revenue of New. Zealand would " have been L 1,200,000 in 1869, as against L 894,000 actually raised during that year. But, besides,|the local taxation in the United Kingdom amounted to over 60 per cent, of the general taxation, while in New Zealand the local taxation was very much less. The secret of the apparent heavy taxation in this Colony was to be found in the fact that the rate per head of the value of imports and exports was considerably higher than it was in the United Kingdom during 1869. The value of imports into the United Kingdom represented L 9 14s 4d per head of the population ; and the exports represented a value of L 7 16s per head ; but in New ...Zealand, during the same year, the imports represented LI 8 4s per head, and the exports Lls 9s per head. Honorable members would recollect that our imports represented not merely consumable goods but articles of lasting value, and means of increasing wealth. During the five years endinglß7l, the total value of our exports was 24 millions, of which L 6,600,000, 600, 000 was the value of nonconsn enable articles, so that to that amount articles of permanent value and|means of increasing wealth were added to the Colony^ By another return it appeared that for the year ending Ist April, 1872, the value of imports into Great Britain, less the value of re-exports, represented L 8 3s per head of the population, whilst in New Zealand, during the same years and under the same conditions, the imports represented Ll6 6s per head. The British produce and manufactures exported from the United Kingdom represented a value equal to L 6 6b per head,butthevalueofNewZealand produce

exported from the Colony represented Ll7 16s per head. During the same year the Post Office revenue in the United Kingdom was equal to 2s lid per head of the population, as against 3s 4d per head in New Zealand ; and the Telegraph revenue amounted to s|d per head in the former case, and Is 9d in the latter. The population of England and Wales in 1861 showed a proportion of males between the ages of 16 and 65 equal to 28 per cent., whilst in New Zealand in 1871 the proportion between those ages was 37 per cent. Turning to the neighboring colonies, it appeared that the percentage of persons between the ages of 21 and 40 was 38 per cent., as against 29 per cent, in New South Wales and 29 in Victoria. The increase of population during the ten yean ending 1871 was in New Zealand equal to 165 per cent. , as against 46 per cent, in New South Wales and 36 per cent, in Victoria. During the same tenyears the increase in the population between the ages of 21 and 40 was 162 per cent, in New Zealand, 38 per cent, in New South Wales, while in Victoria there was actually a decrease of 10 per cent. A comparison of the exports and imports showed most favorably for New Zealand. Leaving on one side imports re-exported, and the value of re-exports, the result was Victoria, Ll4 4s per head ; Now South Wales, Ll2 9s per head ; New Zealand, L2l 16s per head, or, if the native popu- . lation were included, LlB 4s per head. Taking exports,, the figures were—Victoria, Ll4 10s per head ; New South Wales, L12 16s per head ; New Zealand, Ll9 2s per head, or, including the native population, Ll6 8s per head. When the principal products of the Colonies were considered, the result was the more strikingly favorable to New Zealand. Thus, upon the average of the five years ending 1871, New Zealand exported gold to the amount of LlO 8s per head per annum of the population, against L 7 19s in the case of Victoria, and 10s in that of New South Wales. For the same period New Zealand's average export of wool was equivalent to L 6 9s per head, as against Lo 7s for Victoria, and L4 l9s for New South Wales. The exports of agricultural 'produce and timber from New Zealand for the same period was equal to 13s per head of the population ; per year from .Victoria those exports averaged only 3s 4d per head ; and from New South Wales, 10s 6d per head. A further sum must be added in the cue of this Colony for flax, the export of which, including the native population, was equal to 4s Id per head. Much had been said and written respecting New Zealand's oppressive Customs tariff, but if the Victorian rates, including ad valorem duties, had existed, and if the values were entered the. same as at present, we should have raised as Customs revenue during 1871 L 781,000, against L 731,000 which we actually raised. That disposed of the allegation as to the higher rate of taxation in New Zealand as compared with Victoria. It was to be borne in mind that the native question had cost New Zealand five millions' sterling in the shape of expenditure more than would be required in a colony situated like Victoria, and that fact showed how great the resources of this colony really were. It was alleged that the cost of Government hero was heavy. Of course the rate per head of that cost was lar&er because the population was small. It was especially to be rememberoA that here the smallest aggregation of population asked for anlr expected to receive all the conveniences which in older countries were only expected by large communities. Still the comparison of the departmental cost of government was favorable to New Zealand. Taking the financial year 1871, the colonial expenditure in New Zealand, exclusive of interest and sinking fund, amounted to

L 594,000. The expenditure of the several Provincial Governments for Civil Service purposes, including education, police, gaols, harbors, and miscellaneous, but excluding public works, was L 251,000. Together those sums made a total of L 846,000 against an expenditure in "Victoria for like f purposes of LI ,415,000. Turning to the proposed expenditure for 1872-3, the total amount on the Estimates was L 933.830, showing an increase] of L 21,000 on the appropriation for 1871-2. That increase was principally represented by increases in permanent charges such as LSOOO for interest on L 90,000 of Treasury bills, and Lll,ooo interest for defence and other purposes loan. Other items going towariß the increase were the additional amount for members' expenses, cost of buildings, now become a colonial charge, and the expenditure on accomnt of Manukau lighthouse. There was also an increase in the expenditure of some of the departments, such as the telegraph and the land registry. Hon. members in looking through the Estimates must decide for. themselves what they would consider as reductions in expenditure fairly coming under the head of retrenchment, or under that of reductions arising from there not being necessity to continue certain services or officers. To the expenditure set down in the Estimates, there must be added L 208,000 for provincial capitation allowance, as against L 200,000 last year; moiety of stamp duties, receipts to be paid to Immigration and Public Works Fund, L 40,00 0; Treasury bills falling due during the year, L 45,000, being the second instalment of the deficiency stated last year, and leaving only L 45,000 to be cleared off next year. There must also be added a sum of L 21,000, which it was proposed to pay to 'the Immigration and Public Works Fund, in addition to one-half of the stamp duties, which had been paid over to that account; the L 21,000 being calculated to represent fairly the amount of interest and sinking fund on the payments made for works completed, and on final payments. This would make a total expenditure of L 1,060,000. It should be remembered that the capitation allowance to provinces represented LBOOO more than was paid last year. It was proposed also to relieve the Provinces from payment of LI 900 a year for salaries of

provincial auditors, and L 23,000 a year, the cost of inland mail carriage. These sums, together, would represent a payment of L 32,000 out of the consolidated revenue to and on account of the provinces more than was paid last year. It was not proposed to continue the extraordinary aid of L 50,000 which was laafcyear gran ted to the provinces in consideration of its being alleged that there were engagements to meet which required that amount, but L 50,000, being the same as last year, would again be paid to road boards. The estimated total revenue of the year was L 1,076,000. The . principal items were— Customs, L 820,000 ; stamps, L 80,000; postal, L50,000j telegraph, L 33,00 0; judicial fees and fines, L 32,000. It was estimated that the stamps would this year yield LBO,OOO, although several remissions would be proposed, namely, tho annual license-tee on companies for the promotion of industries and colonisation — meatpreserving companies, saw-mill companies, steamboat companies, tramway companies, public hall companies, fishery companies. It would also be proposed to remit the stamp duty upon cheques of friendly societies, and upon receipts given to them for moneys disbursed by them, and to remit the duty on all conveyances of land in trust for religious, charitable, and educational purposes. It would also be proposed that the stamp on receipts should be reduced to Id. The postal revenue was estimated at L3OOO more than last year, notwithstanding the contemplated reduction of the postage on newspapers to one halfpenny. So many newspapers were now sent by coach which would, no doubt, be sent through the post under reduced rate, that it was not considered the reduction would diminish the revenue of the department. The total estimated revenue then was L 1,076,000, or an increase of L 86,000 on the estimate, and of L 68,000 on the actual receipts last year. Adding L 10,600, the amount of the surplus with which the year 'was commenced, there was a total of Ll,086,000 ; and deducting the total proposed expenditure of L 1,060,000, 060,000 there wonld remain L 25,000 surplus upon the year. A portion of that surplus would be required to meet Supplementary Estimates to unauthorised expenditure. It must also be remembered that when the Estimates were commenced the report of the Select Committee on Public Buildings had not been received, which report contained a recommendation that a considerable sum should be expended on the repair of buildings. Provision for that expenditure was, of course, not included in the Estimates. On the other hand there would certainly be, during the year, savings on votes, and he was inclined to think thai if the House should desire that a further payment 1 should be made in aid of the Immigration and Public Works account, suoh payment could be made out of the surplus. In conclusion, he thought he need not apologise for the paucity of novel features and new proposals in the Budget ; after the changes during the last three years it was gratifying to be able now to dispense with further large alterations. This was the fourth consecutive session in which.' he had made the Financial Statement. When he considered the period covered

by those statements, he could not but congratulate the committee upon the present improved condition of affairs * of the Colony. He hoped that he had avoided creating in the minds of the committee anything like an impression that the Government took credit not belonging to them. The great revival of prosperity in the Colony was due to a power higher than that of kings or people. All that the Government claimed was that, when there was a disposition to despondency, they set themselves to do that which seemed best calculated to restore confidence, and they called upon the people not to be discouraged, but to arm themselves to contend with their difficulties, and to hope for a brighter future. That that future had shown itself , in such bright colors was due to a power beyond all Governments. The Treasurer concluded by moving a resolution that it is expedient to reduce the Stamp Duty on receipts to one penny. Tha resolution was agreed to by the Committee, and was reported to the House and adopted. The House then adjourned. The delivery of the statement occupied two hours and a quarter.

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