GENERAL ASSEMBLY.

Hawke's Bay Times, Volume IV, Issue 205, 16 December 1864, Page 2

GENERAL ASSEMBLY.

HOUSE OF REPRESENTATIVES,

. ‘ SATURDAY, DECEMBER 8. FINANCIAL STATEMENT. Mr. FixzHERBEHt rose and said, Mr. Carleton, there are various reasons which will be obvious

to the Committee,'why-I should naturally shrink from heavy task, which I cannot mit feel has devolved on mo to-day, when it is considered that the investigations which I have necessarily to make, comprise an examination of various documents, and a study of various Acts. And I may add to these considerations a fact, that is patent to the committee, that I have had to perform that task at the greatest disadvanvantage, and under circumstances which distracted the mind : and the brief period which has been allowed me to prepare a full statement, such as shall now be submitted to this Committee. What I submit, is a statement of the present financial position of the Colony ; and although it may be exceedingly painful for any one to listen to me, yet the only possible hope is that the difficult task, which has been imposed upon me, will bo satisfactory to the House. I trust if I should exceed the ordinary limits, that I shall receive a still further allowance of indulgence, that I may be enabled to make myself clear. The notes are all in my head, as I have not had time to put them together with the assistance of my colleagues. I lay on the table certain papers and returns, containing information to the latest period. Amongst the returns is included one referring to my very hon. friend the late Colonial Treasurer, showing the expenditure under the Act of 18G3, up to the 30th September of the present year, and I regret that it is not in my power to lay on the table likewise a copy of the contract made by the Crown agents with the Credit Mobilier Company, for the purchase of one million of the debentures. Had it'been in the House it would have been produced. In fact, I may state to the Committee that the Government is prepared to lay every information in its power before the members of the House; and I need only add that I shall be as brief as the subject will permit, confining myself to bare statements, and so far as possible, abstain from remarks. Before I go further, it would be necessary that I should indicate the nature of the statement that I am about to submit to the committee. Generally speaking, on occasions of this sort it is usual that the Minister of Finance should come down with what is called a Budget. From that I understand, he should bo prepared to submit to the opinions of the House of Representatives : to render up an account of the expenditure for the past year, distinguishing between authorized and unauthorized expenditure, that he should come down with proposed estimates of the revenue, for the current year, and that he should be prepared with the estimates of expenditure. And I understand by that term, that there should be another statement with reference to the financial condition of the Colony. But on the present occasion, for reasons which I shall refer to, I do not purpose to adopt that course. V\ hat I propose, is to divide the subject into two parts. On the present occasion, I propose to disclose the actual financial state and condition of the country. At an early date, say Wednesday or Thursday next at latest, I shall be prepared to come down with the other part, when it shall be submitted to the House, and then come down with the proposal of Ways and Means. The subject separates itself into two divisions, which for a clear conception it is extremely necessary that I should endeavor to set before you in as distinct a light as possible. These two divisions I may term the ordinary and the extraordinary. 1 shall begin by disposing of the ordinary or normal part of the question ; nevertheless, I do not think the Committee desire me to enter into any argument as to the meaning of Clause 23 of the Appropiiation Act of last year. If they should do so, I am prepared to show that what has been in the minds of lion, members—that our estimates only extended—that provision was made for ordinary expenditure to the 31st March next —is not a correct reading of the Appropriation Act of last session. My being correct then, there will bo no need whatever that in this Session, the committee should be required to enter upon the Estimates. And I might as well state one other point here. It will follow as a corollary that it will not be necessary for provision to be made authorize the unathorized expenditure over and above that provided for by the Estimates -, which would have to be done at the end of a financial year. In fact, sir, we have to consider that in consequence of the Legislation of the last session, the Appropriation Act of 1863 and 1861, instead of being for one year only, is for three years. I think that consideration throws light on the subject and shows with respect to the procedure in these matters a valuable statement for the information of hon. members. Now, sir, for the revenue of 1863 and 1864. The expenditure for the direct purposes of the General Government amounted to £300,000 and for genaral purposes voted in the Provincial sense £153,000, making a total of £153,000, of which there has been a sum of £231,000 only paid over to the Provinces, leaving as a balance of serviceable revenue among them of the sum of £22,000. I am making use of round'numbers. I shall hereafter have to show what becomes of that 22,000£. I have already said that the general expenditure, which I have said amounted to £453,000, was exclusive of the supplementary expenditure. That amounted for the years 1863-4 to the sum of £38,000, but there should be deducted from that the sum of £5,000, that being the saving in votes. Of course this deduction may be said to be only an assumption ; true, but it is a very possible and probable assumption This deduction of £5,000 in the saving iu votes would reduce the expenditure to £33,000, therefore the regular quarterly expenditure may be put down at £120,000, or an annual sum of £480,000. As I have now given a short summary of this expenditure, I shall not make any further remarks upon it. The next point to which I wish to draw your attention before proceeding to the year 1864 and 1865, is a passing comparison of the returns of the Customs from the different ports of the Colony for the year 1863 and 1864. I shall not attempt to puzzle both the committee and myself by going into some of the minor details. I 'prefer drawing the attention of the House to the more salient points. I will, therefore, begin with the Port of Auckland, in which a very remarkable increase is shown. I shall set aside all mention of minor points, the better to draw your attention to the more important ones. The way in which I.propose to show the increase is, that I will take the different quarterly returns from March 1863, to September, 1864. Well, in the March quarter

of 1863, the returns for this Port amounted to £20,000, and for the September quarter of 1864, to £IO,OOO, showing an exactly double amount. Hon. members will please to observe that 1 am confining myself entirely to round numbers. The returns for the different quarters show a steady increase. They are as follows : —£20,000, £22,000,' £23,000, 30,000, 35,000, £37,000, and 40,000. I now come to the town of New Plymouth. The two limits here are £1,500 and £4,000. The way in which the increase is shown is as follows: £1,500, £3,000, £2,000, £2,000, £2,000, £3,000, and £4,000. Thou as to Wellington, Nelson, and Lyttelton, they are slightly, but not materially, increasing. It is not necessary at present to have anything but leading facta brought out. If the committee should afterwards wish for particulars they can have them. I will now draw the attention of the House to Dunedin. The first of the the series- of seven months amounts to £59,000, and the last t© 49,00 f I The seven quarters run thus£s9,ooo, £67,000, £63,000, £70,000, £57.000, £41,000, and £46,000. This is exactly opposite to the other series which I have pointed out. The decrease here is rather striking. Then Invercargill shows 7,0002. in the March quarter, 1863, and 11,0002, in the September quarter of 1864. I will not refer to the other ports. [A Yoice, —Will yon say nothing of Napier?] I am glad that the hon. gentleman reminded me of that. That town shows a steady increase. The returns in the seven quarters are thus .-—2,0002., 2,0002., 2,0002., 2,000 1., 3,0002., 3,0002., 3,0002., With regard to the Province of Marlborough, Havelock shows a return of 1,8002., whereas Picton has only 8912. in the last quarter. This considerable falling-off in the last town can bo accounted for by the fact that the opening of the port of Havelock drew a great deal of the shipping away from Picton. Having now considered somewhat in full the estimate of the returns for the year 1863-4-, 1 will now lay before you the rough draft for estimated receipts for the present year 1864-5.

—ln my opinion the estimate for Auckland is rather too high, it should be about 165,0002.; whereas that of Canterbury should have been at least 90,0002. But without making these alterations, it will be found that the estimated revenue for the present year (186-1-5) is in round numbers 610,000, whereas the receipts of last year amount to 611,000 in round numbers. This may be slightly in excess, at any rate, if it is correct, it is very clear that our Customs revenue is not increasing, and if we trace that back we shall find it to be a very significant fact. Then, Sir, the postal revenue may be interesting to go through. The postal and the customs increase seems to be reversible. I will give you a return of last year’s receipts and this year’s expected revenue—

—The relative totals were thus seen to be £38,800 and £42,505. Then the comparative difference in the receipts for last year, and the estimated receipts for the present year from several other sources of revenue, was as follows :—For 1863-4 £78,301; for 1864-5, it amounted to £707,907-4 ; so that, notwithstanding the slight falling off in the amount of the estimated revenue for the present year, yet that the amount that there is, will, I think, be sufficient within a very few pounds for the expenses of the current year. Before I finish this subject, however, 1 will revert to what I said about the supplementary estimates. I should have mentioned that it will be necessary to add to the supplementary estimate of revenue the sum of £5287 which belonged to the year 61-62. Therefore, you will see, that when I allude to this amount, I must ask hon. members to go back a little. When I stated that the quantity of supplementary estimates of 63-64 was £38,246 minus the £SOOO, probably arising from the saving of the votes, I ought to have stated that this surplus of £5,287 restores the sum to its original amount. I will now recapitulate the circumstances, the periodical bearing of which I wish particularly to impress upon your minds. The amount of ordinary expenditure is • £BO,OOO added to the £254,000, for which there is sufficient provision, and, as a matter of course, it remains with the votes of the House to keep the revenue and expenditure within bounds. According to the votes of the House, the revenue as it at present stands for this year is in excess of the revenue of the past year. It will be sufficient to provide for the ordinary expenditure, and it is desirable that the House should keep that comprehensive idea in view, it being desirous to arrive at the financial position of the Colony. There is a branch subject of immediate interest, and for information on which the committee are most anxious. I understand that the committee are anxious to know what is the financial state of the Colony, and I need not keep asking the pardon of the House for troubling them so much with details, for I know that the Standing Orders are suspended especially on my behalf. The House should not forget the stage they have attained, and they are now to obtain a kind of knowledge of their condition. 1 understand what the committee desire to know, and in order to supply this information, I have labored in as painstaking a spirit as possible, and with a desire to make as full a disclosure as possible. ‘Whenever it became a question of estimates, I have endeavoured not to overstate. Many will agree with mo that 1 have pursued the proper course in being guided by that principle. I will endeavour to lay before the House a true statement of the condition of the Colony. On Wednesday or Thursday, I shall be prepared to bring down information upon the

whole question. I will state now because bon. members will be able to follow‘me better—l shall first come to our liabilities, that is to say, debts that we have actually contracted. It is'another consideration whether wo have paid them or not. I am not saying anything that would lead to any conclusion of that sort, but I am alluding to the debt incurred, and that must be paid—l mean as to means of payment. When I have gone through that, I shall take it up to the 30th of November, and then go on. I now come to the heading of extraordinary expenditure. I propose to consider not what has not been inevitably incurred, but the liability which is not debt actually incurred, but what can be eliminated from the' consideration required in order to put before you the whole financial condition of the country. That is to say, to take the corrections from the expenditure for the next seven months, our liability to the end of our next financial year. Then comes the per contra, the means of meeting the engagements that have been already contracted; debts we owe and the liabilities that are now in course of being contracted. I shall make remarks as 1 go on, and ofcourseatthe end I shall have to show you by a trial balance that which will justify me in using the expression of trial balance. To begin with liabilities, always remembering that the date is to the 30th of November : The first item is a very large one, and one on which a great deal has been said and with regard to which honorable members will doubtless be desirous of information—it is that of the Imperial debt which we owe, and which amounts to £501,197 8s 9d. I clo not say that I have worked it out exactly, but that it is in round numbers not very far from that amount. I will make a few observations with regard to the account rendered to the 31st of March, wherein their is an amount claimed against the Colony of £561,301-. Then there is nccruing since the 31st of March a further sum of £72,000, making altogether a total of about £633,000, and that is exclusive of the old sum of £69,927, for Fcncibles. I state the gross sum as £561,301- on the 31st March, which, with £72,000 added, makes ns nearly as possible a total of £633,000! This last sum is subject, to those deductions, and I deducted them accordingly, in order- to show how I have arrived at my results. I find that on a certain date—l will not make sure about the exact period—the sum was set down at £168,833, and then it jumps up to £193,180, as per Treasury minute. I say there is a blank which requires explanation. I say that I do no take that into account. I am explaining how I am bringing down the difference of £24, 8s Id. The next item is that known as Head Money. I need not enter into the ins and outs of that arrangement, but I will just state it in figures. The arrangement was made by Sir George Grey that the Colony should be made liable at the rate of £5 per head per annum for every soldier. Then there was the sum of £50,000 appropriated to the purposes of the Native Office. In 1862 toe account was rendered for £27,000. The sum for 1863 we have appropriated is £28,000. In 1861- there was £3-I,OuO of head money due with £90,000 expended, making a total of £89,000 of head money and £107,( Oil expended. There is a third amount I am unable to give accurately. I refer to the arrangement made by the Government for the transport service on the Waikato. The Imperial troops availed themselves of the corps for common purposes, but from the information I can obtain, I think I may set that down at £15,000, that is the calculation I have made. I deduct from the amount of £633,000 the sum of £132,000 which would reduce the whole amount to £510,000. With regard to immigration, 1 will couple that with telegraphs. The observation I made some time ago with reference to this question was not detailed because I had not then the figures before me, and my object has been not to overstate, and I have not overstated our liabilities. To the best of my information the two items of immigration and telegraphs will amount to £60,000. With regard to the position, the original order was to the extent of £50,000, but a counter order has been sent home, which might have the effect of reducing the amount to £30,000. The next item is Treasury Bills, of which there are now issued £IOO,OOO worth, and these will have to be taken up, and I may say that those bills that are now current, that are renewed and renewable, are set under the loan of 1862. Thus I come to four other items which have a character in common ; surplus revenue, £22,945 ; deposits, £19,491 13s lid; Taranaki land purchase fund, £32,000 ; Wellington land purchase fund, £1,600. These four items have a character in common, except in this respect, that in investigating accounts it is significant to note that sums appropriated for specific purposes have been used for the general purposes of the Province. I allude to it without comment.. (Laughter). I mean to impress upon the Committee that, if I fail in giving an explanation of the figures, or conveying to hon. members a proper idea of the condi ion of the colony, I shall have failed in a great part of my duty. I am very fully impressed with the importance of the task committed to me, and I may set down the surplus revenue at £26,365. I may have put down £26,000 with £2OO or £3OO, more or less, and I am not sure that I may not have overstated the amount in this way, or stated some of the items that should have stood in the ledger under some other term. I have struck out the sum of £26,000 which ought to be included in deposits and Auckland for Native purposes. I merely make these statements to show the spirit in which I have prepared the statement. With regard to the financial position, the first loan that the Colony raised was the amount of £500,000, which was allocated to various purposes. It was intended as a means of purchasing land from the Natives, and the interest on that sum, in the sinking fund, would have to be provided. That sura was dedicated to a particular service, and it has been spent. The whole of the 500,000£ is now taken up. The whole debentures have been issued. Of the million of debentures provision has been made for the first year’s interest, but there has been no provision made for the sinking fund. 1 have not yet had the opinion of the Attorney-General, but provision must bo made for 5,000 as an annual charge on the Sinking Fund. I have a calculation showing, in one respect, the loss sustained by the Colony by the fact

that the debentures that hare been disposed of at a loss, have entailed a loss upon the Colony. We have now to repay money that we have never received, and the loan shows a loss of 25852. a-year. I have next a large item to bring forward, in which the fullest explanations will be necessary—the Bank of New Zealand over drawn account, which amounted to 412,286 1. 9s 2d up to 26th November 1864. Connected with this, the nest item is the interest due on that overdrawn account that is, that portion of it due up to that time, but not yet put to the account. This amounted to 6,0492. 10s. 2d., so that, adding this to the larger item the amount would stand at 418,2002. in round numbers, due to the Bank of New’ Zealand at that date. It is necessary to explain tins in order that the committee may understand what I hare ascertained to be the state of the transactions upon this point. I will Jay before them the information I have received. I must first explain why I have put the date down as the 26th November instead of the 30th of that month. Ou my coming into office, my first duty was, of course, to ascertain the state of the drawing account. I found the balance at the Bank of New Zealand to the debit of the Colonial Treasury, on the 26th November, 1864, to be 812,2862. 9s 2d ; against this there had been given drafts on Londo'n for 823,0002. I have a return showing the nature of these drafts. They commenced in April, and extended to the 7th November. They wvre drawn by William Fox on Frederick Whitaker. It is unnecessary to read them, as I shall lay them on the table; but I may state that they were for various sums—so,ooo2. 25,0002, and so on, down to 3,0002. They were drawn and endorsed by the Government. [An lion, member: “ On whom w-ere they drawn ?” j I cannot say at the moment on whom they were drawn ; the return I hold in my hand is the only one I have, and it does not state that, but I imagine they were drawn on the Directors "When the usual statement, which is submitted to the Colonial Treasurer, was handed to me, I enquired into the nature of the bills. I found that the Government were enabled to overdraw their account to the extent of 812,0002. Drafts of sixty days were drawn here and sent home, and the Bank was perfectly satisfied to take these drafts, and to honor cheques drawn here. It is part of my duty to explain this, and it is a necessary ingredient, in order to enable you to comprehend readily the financial position of the country. I must explain here the apparent discrepancy of the •112,0002. and the 5,0002. which docs not agree with the amounts I have previously stated, but this is capable of easy explanation. There had bem sold by the Crown Agents a certain number of Debentures in respect of which they had received and paid over in cash the amount 0f423,0002. to the Bank of New Zealand in London. That Bank retained in London 23,0002. to meet orders given by the late Government; and placed to their credit at tho branch here 400,0002. which was deducted from the debit on that day, and placed to account on the 3()th November. This was money paid olf of the overdrawn account. I must observe with regard to this, that I think it would have been better if in the Loan Act of 1863, power bad been given to issue Treasury bills, there would not have been the pressure upon the conducting of the Treasury business of the Colony in this affair. Money must be found. It is a lesson that may be, and ought to be, remembered in tho future. 1 am sure that in this sense you will see that I am right in ray opinion. There was no provision made lor obtaining this money, and whether the way I have suggested is a beneficial way or not I will leave you to consider. 1 am only showing tho nature of the financial operations, and that is an integral part of our operations. It is the object that I am endeavouring to explain. There are some other documents and correspondence on this subject, which I shall lay upon the table, that will be of interest to tho committee; but I do not wish to mix considerations of wliat should be done with the de facto state of affairs. I next come to the Taranaki Relief Fund, for which purpose, 290,0002. was voted. If there is money, this ought to bo paid. I put it down as a debt. There have been payments amounting in all to £50,000 paid olf that account, so that it now stands at £150,000. But I will not go more particularly into this branch of the subject now, as I shall refer more particularly to it hereafter. The. next two items are the lighthouses of Otago and Wellington, consisting of £6,000 and £IO,OOO respectively. Those are debts which must be paid ; and i am afraid in the amounts I have stated 1 have rather underrated our liabilities than otherwise. There may be counter orders, of which I am not aware and which may not have taken effect, but I fear our liabilities in these items are rather over than under what I have stated. Then there is the Otago Telegraph costing £7,000. They are anxious to have their money, and looking at the state of their finances I do not wonder at it. 1 have now come to tho end of our debts, and I can only wish that it was as easy to pay them as to set them down. The total amount is £1,333,570, which includes the £500,000 for the Home Government. I have already explained how I arrived at items connected with W. S. Grahame in London ; these amounted to £BO,OOO, but that Would be reduced by £50,000 appropriated for the purpose of immigration, and counter orders bad been sent home that would reduce the actual expense to the Colony to £30,000. This item may be slightly understated, but not to such an extent as to delude the committee. I have the responsibility of speaking officially, but I would beg gentlemen to remember that I have merely indicated generally our liabilities, and not stated them precisely, still I do not think that there will be a very great difference, but if there is, it will be against us. I have been informed since I ascertained these various accounts, and brought them to account, that there is another item which must be added. It is a sum of £13,000 due to the Imperial Government for the Postal Service, and it is not included in the £500,000 due, but not yet remitted to that government. Adding this £13,000 to the previous amount, £1,333,570 will make the grand total of the debt £1,463,570. There was a vote for this amount last session, but it was not remitted. I will now proceed to the next heading which I propose to bring under examination. It is th® current rate of expenditure during the financial

year, from the Ist December, 1863, to the 30th June, 1864. There is one estimate, which, if I may use the term, I think should bo called an “inevitable” estimate. It is the war expenditure ■which I put down at £42,443 per month, and which, speaking in the light of past expenditure, I see no way of regarding as other than an inevitable expenditure. Perhaps I ought not to use idea. However, what I mean is, that that term, lest it should lead to an erroneous the main portion of this expenditure is incurred by the Waikato Regiments, and that I doubt whether it is a mere estimate subject to retrenchment, or an inevitable expenditure. My own opinion is that that expenditure has been absolutely incurred. The money, concerning whichl am about to speak, has not been spent, it is being spent. Engagements have been entered into, and I do not know any way in which the expenditure can be obviated. This would make £297,000, in round figures, to the 30th June, 1865. The survey expenses may be estimated at £1230 per month. There is now being actually paid £2,400 per month, but the excess of that immediate expenditure is in consequence of there being contracts in progress, which will shortly come to an end, and thus the expenditure for the survey staff may be considerably reduced. Then there is what is called the Militia of the Province of Auckland. In the ordinary sense of the term this would be a misnomer, as it referred to the Waikato. There are four of these Regiments, three of which are complete, the other one not being yet quite filled up. The expenditure for these regiments amounts to £30,000 per month, and there is another regiment at Taranaki, the monthly expenditure for which is £6,900. These are formidable items. The Defence Force throughout the Colony amounted to £6OO per month, and the steamers Sandfly and Prince Alfred, £3OO and £350 respectively. The former is, I understand, employed on the East Coast and the latter on the West, in services occasioned by the extraordinary circumstances of the Colony. I believe it is probable that they will be very shortly dispensed with, and if so, that expense will be struck off, and given to our assets. I cannot speak now, however, otherwise than that our current rate of expenditure is what I have stated, and I believe it may be increased. I speak of these expenses to the best of my knowledge, for I could not pretend from that knowledge to estimate with positive accuracy upon these matters, though I have taken the greatest pains to inform myself upon the subject. On account of the great increase in the work of the Audit Department, it has been found necessary to subsidise the pay to the extent of £9O a month. The extraordinary circumstances of the Colony have necessitated this addition, as also in the case of the Militia Store Department, which amounted to £3O per month, the Raglan road party £6O, and timber £BOO. With regard to this last item, I naturally inquired into it, as it was not an expenditure that should continue month by month, and I found that it bad been set down in this way because there were outstanding orders to the amount of £IO,OOO, which, it was estimated, would come in at the rate of about £BOO a mouth. We now come to the last item but one, the steamer Waikato, the expense of which was £5,200, of which it is estimated that four-fifths will be recovered from the Commissariat chest. I don’t charge this four-fifths, which would make an annual disbursement of £60,000, but I put this item down at £1,300, making the total of our war expenditure monthly amount as I have stated to £42,443. I think that sum would be increased instead of diminished, nevertheless it cannot be put upon a less amount. These two steamers might have been less expense, but there may be an unforseen contingency arrive in a financial sense, and I am borne out in that by the officer who had the whole control of this expenditure, only this morning, having carefully gone into these matters. I will therefore add for contingencies the sum of £2,000 per month. I hope the Committee will see what I have done in that respect. In order that the last item, under current expenditure extraordinary, which is for the location of settlers, amounted to £ , and I must ask, therefore, to explain how it is that I arrived at it; it would be found an exceedingly moderate sum. It mayibe thought large, but there were great objects to bo attained, ar.d the expensiveness in attaining that object. It may be asked when it was necessary to take that into account. I shall tell the committee how I arrived at it, and would refer back to the actual appropriation loan of the 3,000,000 1, and I there find that for these appropriations, there is a sum 0f300,0002. for the introduction of emigrants, and 900,0002. for their location. I say then, for the location of these emigrants there have been certain promises made, therefore there must be sums in the same proportion. The war expenditure shows contingencies of 140,0002. which, added to our liabilities, makes 1,734,6722. which the Colony will stand indebted to the 30th June. Before I go into it I should wish to say a word about the Loan Appropriation Act, which honorable members will find deserving of study, and has a bearing upon our financial position, which has been for a long time one of anticipation and discount, and here I observe that, in my opinion, it is to be regretted that the Loan Act, 1863, did not contain an extensive power to issue Treasury Bills. The next is the Taranaki Relief .Fund 150,0002; this was originally 200,0002. but I understand two payments have been made on account, which have reduced the amount to that at which I stated it. It is a debt that the committee, I am sure, will consider must bo provided for. Lighthouse—Otago £ 0,000 ■Wellington 10,000 Telegraph—Otago 7,000 represent sums which have been advanced by those for the services indicated, and will not, I conceive, be disputed. To those items (I have quite recently been informed) is to be added Postal 13,0002. for which a vote was taken last session, but which amount has not been remitted to England. This is altogether exclusive of the first item of 500,0002. (Imperial debt). I recapitulate liabilities incurred:— Imperial debt to 20th Nov., 1861 £502,197 8 9 Imniltration and telegraphs 80,000 0 0

Treasury Bills 100,000 0 0 Residue duo to Provinces ... £22,915 0 0 Deposits 19.191 13 11 Taranaki land Fund 92,000 0 0 Wellington Land Fund... 1,600 0 0 Sinking Fund 6,000 0 0 Bank of New Zealand, overdrawn account and interest 419,335 19 4 Taranaki Belief Fund 150,000 0 0 Lighthouses: — Otago £ 6,000 0 0 Wellington 10,000 0 0 Telegraphs ;— Otago 7,000 0 0 Postal:— 13,000 0 O £1,346,570 2 0 I proceed to the second denomination, which I state as follows:—Current rate of Expenditure (extraordinary), 4 Expenditure from Ist December, 1864, to") ' ■2 / 30th June, 1865 (£42,443 per month) ...) g > Contingencies for the sum provided 1 um „ (£2,000 per month) ) 14l00 ° W ) Location of settlers 90,000 £401,102 and observe that the first item is for maintaining four regiments (commonly known in the colony as Waikato Regiments), and one Taranaki ditto, and that the amount for the location of settlers is computed according to the rates prescribed in clauses two and three of the Loan Appropriation, Act. 30,0002. having been set down for liability incurred for bringing in immigrants (and the estimate is only moderately stated) 90,0002. will be the sum that must be estimated for location. 1 observe generally (with the exception of the Sandfly and Prince Alfred, which probably may be dispensed with) that from the last enquiries I have been able to make, I conclude that this statement of the current rate of expenditure is understated rather than otherwise. I next proceed to the examination of the assets. I take the balances from the various sub-treasurers, 20,0001 ; a refund from Provinces, 1,4032; refund from Southland (to secure which the Land Fund has been impounded), 21,2222. I now pass to an an amount which I state at 609,2852. Is Bd., and which consists of “ balance of debentures realized,” an examination of the statement of account furnished by the Crown Agents, will explain. I make up the account in this way, viz.:— By balance in hands of Crown agents £ 19,285 1 2 Instalment payable by credit 3lobilier Co., in Nov. 1864 £120,000 July 1865 170000 Jlakingatotal balance of debentures realized of 309,285 1 2 Let me now see if the Colony possesses any other assets. The balance of the loan of 1856, (500,0002.) has been exhausted—the same jis the case for that of 1861 (150,0002.) ; the Loan Act of 1862 (500,0002.) is absorbed in the subsequent Act of 1863 (3,000,0002.) and I know of no other assets excepting two millions of bonds, being balance of bonds issuable under this Act. I say balance of bonds advisedly, because, although when it became my duty to examine this account, I perceived that legal power was taken to issue millions of bonds to raise 3,000,0002. sterling, yet, speaking as a member of the House of Representatives, I for one, and I think I express the general opinion, certainly never contemplated burthening the Colony with a larger amount to be'.repaid than 3,000,0002. sterling. Assuming therefore that position, and in the fulfilment of the task I have officially to discharge, viz., to make up an account of how far the ordinary and extraordinary votes of the House of Representatives last year have been observed and carried out, or exceeded, and to estimate how far what remains of the surplus thus granted will be sufficient to carry out the services for which special appropriations have been made by act, but which have for the present been passed over, I proceed, by way of testing our financial position, to convert our remaining bonds into sterling money. I say by way of testing, because I hope, sir, it will not be supposed for one moment that that is an operation which I advise to bo put in practice, far from it. For this purpose I put down the two million debentures, balance of loan, as estimated to realise 1.620,0002. and this must be admitted to be a very sanguine estimate, I now summarize : Assets £1,971,916 ,1 8 liabilities incurred... £1,346,570 2 o Current Expenditure extraordinary to 3oth June 1865 401,102 o o Thus leaving the sum of 224,243 19 8 Wherewith to carry out the intention of the Legislature in terms of the “ Loan Appropriation Act” of last session. In order to judge how far this sum will fall, short of enabling those appropriations to be regarded, a reference will have to be made to the Loan Appropriation Act; that Act is a study of itself, and I recommend its figures and phraseology to the hon. members. I have now nearly completed my task, and have to express my thanks to the Committee for the great patience with Jwhich they have listened to me throughout. But now, hon. members may say, “This statement is all very well, but I want an (answer to the question, how much have we spent?” Now although I think —and I may say with all submission—that there is frequently an erroneous meaning attached to the word “ asset” when you come to the analysis of accounts; yet, I will easily satisfy hon. members on this point bv referring: them to the elaborate statement prepared by mv hon. friend the late Colonial Treasurer, which 1 have before referred to. By that return it appears that up to the 30th Sept., 1864, there was expended under Loan Act 1863, 1,085,0382. ss. 3d; to that amount has to be added for October and November, say £15,000, and that process is now going on, at the reduced expenditure of say 45,0002. per month, instead of 75,0002. And as I have referred to that return I cannot refrain from noticing what may have been certainly a clerical error, but may also have been intended as a grim jest. Unhappy country ! Unlucky Maories! Fortunate Treasurer! I congratulate my hon. friend on his power. The difficulties that have baffled statesmen and generals were solved by him in a moment as he closes his ledger and proclaims the “ total suppression of rebellion” at the trifling cost of 737,0002. sterling.

Custom Receipts for the year 18G3-4. Estimated Custom Receipts for the Tear 1864-5. Aukeland £127,000 £170,000 Taranaki 10,oo0 14,000 Wellington .... 47,000 49,000 Hawke's hay.... 12.000 15,000 Xelsou 25,000 25,000 Marlborough.... 4,000 11,000 Canterbury .... 83,000 87,000 Otago 243,000 194,000 Southland ,... 60,000 45,000

Year Year 18113-4. 1804-5. Auckland £7,700 ... £11 000 Taranaki 000 ... 1,000 Wellington 2,200 ... 2,7' i0 Hawke’s Bay 80) ... 1,000 Nelson 1,300 ... 1.50o Marlborough CO) ... 550 Canterbury 0,800 ... 8,000 Otago 15,700 ... 11,000 Southland 3,200 ... 3,000