FINANCIAL STATEMENT

Hokitika Guardian, 28 July 1920, Page 4

FINANCIAL STATEMENT

(Per Favour of the Government)

FINANCIAL REVIEAV

NEW PROPOSALS

WELINGI'OX, July 27. RESULTS OF YEAR’S OPERATIONS

Total revenue, £26,081,340; total expenditure, £23,781,924; surplus £2,299,416.

Total accumulated surplus at 31st March, 1920, £17,638,977. Public AVorks expenditure, £2,621,153.

Redemptions and renewals odected, £3,762,745.

District 'l’rensury Office opened i.t Auckland.

Customs revenue and excise, £5,185,-

727. Land and income fax receipts, £7.927- ; 668. i Total expenditure on mental hospitals j £303,755. I Influenza epidemic, £194,000. i Post and telegraph revenue, £2,096,- | 757. j Savings-bank deposits, £29,758,448. : Excess of deposits over withdrawals. ! £3,796,070. : Stamp revenue, £3,344,933. Land revenue, £1,452.352. i 201.897 acres, costing £2,352.452, < purchased during the year for settle- ; meat of discharged soldiers. 23,021 sub-division of land affecting 4,858,340 , aergs made during 8 years ended 31st March 1920. < Advances authorized to 12,415 dis- ; charged soldiers, £12,610,264. Total area proclaimed under Discharged Soldiers Act, 1915, to 31st March, 1920, 883,301 acres. Swamp land reclaimed, 3,700 acres. Total area of State forests, 5,021,280 acres. State Advances Office loans, £2,169,480. Advisory Air Roald and a Committee of Defence established. AVai; expenditure to 31st March. 1920, £76,956,826. ' War gratuities paid to 31st March, 1920. £l, 917,638. Retrospective allowances paid to 31 st. March, 1920, £706,804. Financial assistance to soldiers to 31st March. 1920, £261,218. Repatriation icxpendituje to 31st March, 1920. £1.041.366. Coal-production during the year decreased by 186,402 tons. Coal production in 1919 compared with 191 1 decreased by 500,0(H) tons. Coal imported during 1919, 45c, 191 tons. War pensions paid during 1919-20, £1.812,419. Expenditure by Education Department out of Consolidated Fund appropriations, £2,301,825; under Education Act, £130,066 and out of national endowment revenue, £78,988. Total payments made for supplies purchased on behalf of Imperial Government, £133,091.240. War loans raised to 31st March, 1920, £80,089,02.). Gross public debt at 31st March, 1920, £201,170,755. Sinking funds at 31st. March, 1920, £7,257,564. Net indebted nes per head, £165 3s. Net annual interest a.nd sinking fund chargee, £7,249,426. PROPOSALS. War-loan subscribers to be given option of- converting debentures into, inscribed stock. Estimated Customs revenue, £6,000.000. System of hospital subsidies to be revised. Maternity homes to be increased. I More nurses for country districts. ’ Telephone facilities in country districts to be extended. Trial aerial mail-services to be inaugurated. Closer settlement of fertile lands to be promoted. £5,000,000 additional for advances to discharged soldiers. £2,500,000 additional for purchase of land for settlement, (soldiers). Extension of operations of swampland drainage. Further reafforestation and planting of sand dunes. Legislation in regard to pure seeds and noxious weeks to be introduced. Establishment of Agricultural college in North Island. Establishment of Boys’ agricultural clubs. Establishment of State farm in South Island. AVheat-growing to be encouraged. Wool profits to 3lst March, 1919, £1,650,000, to be distributed. £600,000 provided for acquisition and development of New Zealand interests in Nauru and Ocean Islands. £260,000 to be provided for naval defence. : Assistance to mining industry. HOUSING.

H H

£1,000,000 to be provided. Supplies of building-material to e regulated.

Building operations to V restricted to facilitate erection 1 of homes. Limit for each house to be increased, and local bodies to be enabled to purchase land as well as build houses.

Measures limiting profits to bo strengthened. Aditional assistance to pensioners. , Military and miner pensioners to be allowed to draw' pensions notwithstanding temporary absence from the Dominion. Pensions Appeal Board to be established. Provision for speeding up completion of important railways. Light railways to be constructed. Tyro Tax to be imposed and utilised for upkeep of main roads. Additional amount of £3,050,000 to bo provided for public works and hy-dro-electric schemes. Further assistance to immigration, and Department to be reorganized. Increased expenditure to be provided for educational services. Welfare of children to be further provided by creation of bureau of infant welfare.

Extended programme for school buildings. Development of trade with Samoa and islands of the Pacific.

High Commissioner’s Office to he strengthened. • Wages and salaries of Government servants brought into line with cost of living.

Principle of non-political control of Public Service to be extended.

Finance committeo to consider bills dealing with adjustment of taxation, including Stamp and Death Duties, Land and Income Tax, etc.

Surplus to he utilized for assisting Consolidated Fund. Loan certificates for small amounts to bo available to tlio public.

! Total to be provided by loans, in- ■ eluding £10,000,000 for renewals, j £24,800,000. . Authority to be provided for com pill ■ sory levy for certain loans.

I Legislation relating to banking to bo ! introduced.

j Register for New Zealand Consolidnti cd Stock, 1877, domiciled in London, to

. be opened in New Zealand, j Shipping and mail services to bo im-

proved. | AVestport Harbour to bo taken over , by Government.

Scientific research to bo encouraged. Town-planning proposals. Estimated revenue, £27,712,700; estimated expenditure, £26,893,497. Economies to be effected in administration of all State activities. THE STATEMENT. , (Condensed.)

Rt. Hon AV. F. Massey, Minister of Finance, said : • I have pleasure in submitting the annual statement showing the financial position of the Dominion as at the 31st March, 1920, also my proposals for meeting the requirements of the current financial year.

Tito total revenues of the Consolidated Fund for the financial year, 1919-20 amounted to £26,081,340, whilst the expenditure for the same period totalled £23,781,924, the excess of revenue over expenditure thus being £2,299,416.

This result of the year’s operations is momently satisfactory, and furnishes ample evidence of a- sound financial position. Tlie effect of the distributing influences of the war has not been felt so severely in New ‘Zealand a.s in other countries. There is no lack of employment, trade is generally good, and prices for «mr staple products arc satisfactory. Although sea transport was restricted, the Government succeeded in making arrangements which permitted the export during the year of large quantites of our moat and other produce at remunerative rates, thus enabling the country to meet, without any great inconvenience, the additional taxation necesitated bv the war. REVENUE.

The revenue for the year was estimated at £22,919,166, but the amount collected was £26,081.340, being £3,162,175 in excess of the estimate, or £3,728 968 over the revenue of the previous financial year. EXPENDITURE. • The expenditure of the year, which was estimated at £22,441,057, reached £28,781,924, or £5,108,325 in excess of the expenditure of the financial year 1918-19. The annual charges for interest, sinking funds, and pensions have largely increased, whilst the expenditure of the departmental services is £2,938,114 above that of the preceding year. The increased cost of all classes ol labour and materials, as w«JI as the expansion of Departments in proportion to the ncrease in population, have combined io ' produce this result. Nevertheless, I i doom it my duty to direct the earnest | attention of honourable members to the ! growth in expenditure due to new services and increasing demands. AVliilst the wealth of the. Dominion is sufficient to support any reasonable burden, the immense cost of the war, j and the further expenditure that will ! be involved, render it imperative thateconomy should bo exercised in every Department of State, and that the sources of national wealth should be augmented by every.means possible. SURPLUS. The surplus for tile year - amounted to £2,299,415 and is arrived as follows : £ Revenue 26,081,340 Expenditure 23,781,924 2,G&9,410 Add accumulated surplus at the ®nd of the financial year 1918-19 ... 15,239,501 Total accumulated surplus 17,538,977 PUBLIC WORKS FUND

The expenditure upon public works amounted to £2,021,153, or £813,232 over the expenditure of the year 191819. The prosecution of several important works has been retarded owing to the fact that the supply o r labour and materials has not yet proved equal to the demand. The credit balance of he fund on March 31st., was £219,502.

redemptions and renewals. Apart from the liability to the Imperial Government for war expenditure, the total debt falling due during the year amounted to 04 ; 5; cud of this amount £3,530,245 was renewed, £232,100 was redeemed with funds borrowed from the Post Office, and £4OO was redeemed by the transfer from Consolidated Fund! of sinking funds, leaving a balance of £5,200 represented by unpresented debentures. CONVERSIONS.

During the year sixty-seven investors took advantage of the conversion scheme authorized by the New Zealand Inscribed Stock Act, 1917. The total sum of £169,250 was converted into inscribed stock, maturing 15tli November, 1938, and bearing interest at 4Ji per cent, free of income tax.

Seventy-seven investors converted 5-per-oent. Post Offiee war bonds to the value of £21,300 into 5-per-cent. Post Office war-loan inscribed stock maturing 15th November, 1927. LOANS FALLING DUE.

For the year loans to the amount of £10,105,457 fall due, tlio liability being principally in the Dominion. The redemption or renewal of the amount is being provided for, but with renewals at higher interest the permanent charges will be increased by £45.000 CUSTOMS. The Customs revenue realised £5,185,727. This is the first time in the history of the Dominion that the revenues of Customs and Excise have exceeded £5,000,0U). The increase may be attributed to two causes; first, tile replenishment of stocks and increased tonnage received, due to the free resumption of trade relations with all countries exoept late enemy countries; and, secondly to the greatly increased value of

goods subject to ad valorem duties. The cost of collection is 11 per cent.

The number of gallons of beer brewed totalled 14,550,070. 'This gives an average duty per gallon ol 5.86 d. The quantity brewed for the previous financial year was 11,189,920 gallons; average duty per gallon, 5.87 d.

The values of imports and exports I‘or the past four financial years are i s follows:

It should bo noted that the import 1 values are based upon the fair market 1 value in the country of exportation, 1 plus 10 per cent. This is the value for ad valorem and primage duties. The true landed aost is probably 20 per cent | in advance of the figures shown, owing ! to high freights. The export values arc the fo.b. values. j An analysis of the value of goods, re- j garded according to origin, shows that ' the proportion received from Great Britain is 37.5 per cent of the total, as against 35.9 per cent last year and 51.5 per cent in 1914. The United States has increased from 11.6 per cent in 1914 to 26.3 per cent in 1919 p and Japan has increased for the same periods from 1.1 per cent to 4.3 per cent. The estimated Customs duty for the year is £6,367,000. LAND TAX. The land tax receipts compared with those of 1918-19 show an increase yf £45,210.The comparison is as folows:— 1919-20 : £1,557,903 j 1918- 1,512,693 Increase of £45,210 This increase is attributed to the increased value of land in districts revised under the provisions of the A'aiuatiou of Lund Act, 1908, and would n > doubt have been greater but for the dispositions by way of sale in consequence of the strong demand for land. ; INCOME TAX. 1 The income lax receipts com pur* u with those of 1918-19 show an increase of £160,429. The comparison is as follows : 1919- £6,369,765 j 1918-19 6,219,336 Increase of £150,429 The increase is due to the increased incomes of taxpayers, and in part to the closer inspection of taxpayers’ returns made by the Department. PUBLIC HEALTH, HOSPITALS AND CHARITABLE All). Under the vote “ Public Health, Hospitals, and Charitable Aid” a decrease of over £200,000 in this year’s requirements as compared with the p ist war is anticipated. Charges due to ihe in(fluenzit epidemic amounted to a net Mim of £194,000. Further provision for about £I,OOO will he required for the current year to cover unsettled emiim, bit the amount so provided will >»'•■ considerably reduced by recoveries from sales of equipment. The provision for reli;f to epidemic widows and widowers and their dependants will be reduced to meet pensions and allowances accrued to the end of the last financial year only, as from the Ist April last the Pensions Department undertakes this relief. During the past year assistance was given to several institutions which are carrying out necessary relief, and whose finances were strained by war conditions. The calls for Government assistance are, however, becoming less frequent. HOSPITAL SUBSIDIES. With respect to the question of subsidies to Hospital Boards the Government is satisfied the present system presents anomalies. Legislation will therefore be introduced for the purpose of placing subsidies on a more satisfactory footing. In order to provide reasonable assistance to Hospital Boards it will be necessary this year to substantially incjeasc

During the past year assistance was ; given to several institutions which are carrying out necessary relief, and whose j finances were strained by war concli- j tioue. The calls for Government as- j sistance are, however, becoming less frequent. HOSPITAL SUBSIDIES. With respect to the question of subsidies to Hospital Boards the Government is satisfied the present system presents anomalies. Legislation will therefore he introduced for the purpose of placing subsidies on a more satisfactory footing. In order to provide reasonable assistance to Hospital Boards it will be necessaev tins year to substantially inejease the permanent appropriations. Probably in no other country do tire people make more use of the public hospitals than in New Zealand. Then increasing pop.ulo.riy throws heavici responsibilities upon the Government and hospital authorities. A further reason for increasing the subsidies is to be found in the fact that surgical and medical science have practically been revolutionised during the war period, and these great changes have created a need for the development of special departmnts in our hospitals which were never before contemplated. It is because our hospitals are being efficiently conducted for the treatment of disease that they aro so well patronized. This increasing expenditure is, however, receiving close supervision, and mainly for this purpose an Inspector of Hospitals has been appointed. MATERNITY HOMES. The important work of maternity homes is being greatly extended, and the establishment of additional hospitals under the St. Helens principle is contemplated. The value of this work in a country such as this, where it is so hard for expectant mothers to get necessary assistance, is incalculable. The popularity of these institutions is evidenced by the increasing demands foi admission, requiring an increase in the number of institutions catering for this important public want. It must be remembered that although the St Helens hospitals cater largely for the more congested districts, their influence is already felt in tlio backblocks. This is due to the large number of midwives who are being efficiently trained in these institutions and who are being sent to and stationed in the. back districts, where their services arc gladly availed of. No less than 1,022 maternity nurses are on the register, and over one hundred a year are being trained and leave the hospitals with certificates. There are already thirteen maternity training homes, and the number u ill shortly'bo increased. Maternity wards are also being established in connection with many of our public hospitals. It is being recognised all over the world that preventive medicine is to play the greatest part in any State treatment of the question of public health. Already the Department lias made a modest start in the shape of educative lectures and propaganda for the benefit of expectant mothers. Antenatal clinics have been established in many of the important centres and are being largely attended by married women, who receive tlio best scientific advice and guidance, and, if necessary, treatment. DISTRICT NURSES.

Further attention is being given to the necessities of the country districts

by increasing the establishment of district nurses. These highly trained and experienced women aro being stationed in central positions in the large hospital districts all over the Dominion. Ihe present conditions under which the nurses have to seek lodging in the backblocka are unsatisfactory, and it is proposed, wherever possible, to erect lor each nurse a small cottage as a residence with one or two rooms set apart for 'emergency cases pending their removal to hospital.

POSTAL.

Special attention has been paid during tho past year to the telephone nee<ls of bluckblock settlers, and a scheme has been worked out, and is already in action, for providing telephone-com-munication to such districts. Supply of material controls to a great extent the vigorous development of this most necessary essential. Where new sol- > dier settlements are being opened up the cost of telephoning tluisc settlements will lie included in the rentals, as is done for loading etc. At other settlements material for private lines can be obtained on a. deferred payment system at cost price, and where communication with tho outside world by telephone lines is needed the claims of soldier settlers are given special consideration. It is expected at an early date to establish aerial mail services, which will be developed as facilities for the landing, housing, and repairing of machines aro completed. Several experiments have already been carried out from Auckland with sufficient success to warrant the Department embarking on a more elaborate scheme, The use of motor vehicles for tho expeditious transport of mails has proved an unqualified success. It is intended to extend the use of motor vehicles as soon as cars are available. totalisator tax. 15)19-20 413,053 1918- 229,273 Increase 184,380 bank note tax. 1919- 212,020 1918- 188,003 Increase 24,65X5 amusement tax. 1919- 68,320 1918-19 40,290 Increase ••• 28,030 SWAMP-DR AINA GE DECLAMATION. During the past year it lias been possible to considerably accelerate operations in connection with several large reclamation schemes in hand. One new dredge was put into commission, while two others are being fitted out. Some 3,700 acres were reclaim ed and handed over for selection. It is anticipated that some 4,600 ii<■ res of the same area will be ready this year, and in addition drained areas at Kaitaia, Tokatoka, Reparon, and Orongo will ho available, j Active surveys are in progress m 1 connection with large areas in Soutli--1 land, Westland, and North Auckland, : and tenders arc being called for riverdiversion work in connection with the Hikurangi Swamp. ! The Chief Drainage Engineer is now in America, in acordanco with tho policy of the Government to purchase the mest modern and suitable machinery nocessary to cope with the fast-growing requirements of this important branch. WAR. EXPENDITURE. At the end of the financial year 1919- ! 20 the war expenditure for this Dominion, including gratuities and advances outstanding, was £76,956,826, full details of the various items of which will lie placed before you later. The payment of war gratuities at tho 31st March, 1920, absorbed £4,917,638 out of £5,552,000 provided for last session, leaving a ltalanco of £634,362 still be to paid.

Retrospective married, children’s, wid owed mothers’, ant other dependants’

allowances have absorbed the sum of £706,804. Liabilities in connection with sea transport of returning troops

arc estimated at £250,000. The medical treatment of returned soldiers constitutes a large item of estimated expenditure for the current year, but this expenditure is, however being gradually reduced. SOLDIERS* FINANCIAL ASSISTANCE BOARD.

Although the Soldiers’ Financial Assignee Board lias practically completed its operations, a few cases of hardship are still being brought under its notice.

During the year the Hoard considered 2,551 oases ,including 819 cases previously considered. Of this number 2,003 were declined or withdrawn, 30 deferred, and 518 grants authorized. The sum of £54,003 wae actually disbursed during the year ended 3lst March, 1020, while the total assistance granted to the same date was £261,218. REPATRIATION, Ip to the 31st March, 1920, the expenditure incurred by the Repatriation Department in re-establishing discharged soldiers in eivli life amounted to £1,041,366, of which sum £988,144 was actually paid to or on behalf of the soldier, the balance, £53,222, representing cost of administration. MINING. The value of minerals entered for exportation and of tlie coal produced in the Dominion during 1919 amounted to £4,424,689, as aginst £3688,168 during the previous year. Though an increase of £736,521 is shown, with the exception of mercury and kauri-gum a decline was experienced in the production of all minerals, attributed to shortage of labour, and to the lower grade of minerals

The State eolleries produced 167,595 tons during the preceding calendar year. The profit on winning coal at the mines, was £5,787, and the losses made by tlie depots was £5,766, thus leaving a credit lialance of £2l on the year’s transactions.

Tlie total output of coal from the mines of the Dominion for the year 1919 was 1,847,787 tons, a decrease of 186,402 tons as compared with the previous year. The decrease in coal output may be attributed to shertage of 'abour, industrial and other troubles. It is desired to promote the mining industry in every posible way, and considerable financial assistance has also been granted towards the expense* of boring for oil. With a view to encouraging prospecting for minerals, the Government re-

cently authorised a further 30 per cent, increase in the rates paid to prospectors. Tlie conditions under which the Government drills are hired have been improved, enabling the holders of mineral or coal rights to obtain the free use of a drill, and, in addition, the services of a qualified drill superintendent, whose salary and expenses are paid ny the Government. WAR LOANS.

At the ond of the financial year the Joans arranged by the Treasury on aecount of war expenditure amounted to

£80,089,025, of which £53,748,780 was raised in New Zealand, and £25,840,000 was advanced by the Mother-country mainly for the maintenance of our troops in the field. PUBLIC DEBT. At the 31at March 1914, the gross public debt stood at £99,<30,427, or a gross indebtedness per head of the European population of £9l 10s 2d. At the end of the financial year 1919-20 the gross debt amounted to £201,170,755, against which sinking funds amounting to £7,257564 were held, leaving a net indebtedness per. head of £165 3s. it is true that there has been a large increase in the amount of the public debt since the 31st March, 1914, hut we have the satisfaction of knowing that the greater proportion of the new money was raised in the Dominion, arid that consequently the interest thereon is circulated locally to the benefit of our own people. We owe the principle to ourselves, and it will be a good thing if in future the money which wo require for pubic purposes can be raised in the same way, even if we have to pay a slightly higher rate of interest. BANKING.

Imporant legislation in connection with the hanking business of the Dominion, and the intimate relations!] p ol the Government thereto, will he submitted this session for your consideration.

WESTPORT HARBOUR BOARD. The financial position of the Westport Harbour Board has occasioned the Government considerable anxiety. In addition to the advance of £30,495 provided for in the Appropriation Act of last session ,it has been found necessary to guarantee the Board’s overdraft to the extent of £15,000.

In 1920, the revenue of the Board had fallen to £39,000, whereas the annual charges for interest and sinking fund amounted to £44,000. This lall in revenue is due mainly to the large decrease in the output of coal, which in 1920 had dropped to 464,294 tons, as compared with 739,628 tons in 1914, si difference of 275,334 tons. The Board has reduced its staff and expenses to such an extent that the haibour is not being adequately maintained, and further assistance is called for.

is assured.

Some, years ago the Government, in view of the great importance of the Westport Harbour, decided to take-it over as a national undertaking, but in deference to the strong wish of the people of the district the proposal was dropped for the time being. Unfortunately, matters have gone from bad to worse, and the situation at present is such that the original intention must be given effect to, and legislation with that object will be submitted for your consideration during the present session.

TAXATION

I regret that I am unable to hold out any immediate prospect of an appreei : able reduction in taxation; indeed, it may have to continue on the higher basis for some time. The expenditure

arising out of the war and the increasing demands of every branch of the Public Service render it necessary to

conserve our revenues. For the lasttwo financial years the expenditure ci the Consolidated fund shows increases of £3,553,311 and £5,108,325 over the expenditure of the financial year immediately preoeding, but the revenue increases were only £2,146,150 and £3,728,968 respectively. The Government has given serious consideration to tlie problems of taxation, and measures of reform will be introduced having foi their object the distribution of taxation equitably and in accordance with the rapidly changng conditions of life and industry. A Finance Committee has been set up in the House of Representatives and the financial proposals of the Government, including Bills dealing with Stamp and Death Duties, Land and Income Tax and other- revenue producing legislations, • will be referred to this Committee for consideration and report,

Even though, as I have indicated, I may not be able to ask Parliament to reduce taxation or do without any of the aggregate amount of revenue collected at present, there are anomalies which require to be removed, and adjustments may be made which will relieve certain sections of the community who under present conditions feel they are being called upon to pay more than their share of taxation. ESTIMATED REVENUE.

For the year 1920-21 under the fiiain heads of each of the important Departments, I estimate the revenue at: £

Customs 6,000,000 Railways 6,000,000 Stamp and death duties 3,097,000 Post and telegraph 2,650,000 Land and Income tax ... 7,905,000 Beer duty 360,000 Registration, other fees 180,000 Amu sement-tax 68,000 Marine 68,500 Miscellaneous 1,070,700 Territorial revenue 179,300 ■Endowment revenue 124,200 Other receipts 10,000 £27,712,700 I estimate a surplus for the year 1920-21 of £819,203, which is available for the supplementary estimates, and is made up as follows: Estimated revenue, 1920- £ 2i 27,712,700 Estimated expenditure 26,893,497 Available -for supplementary estimates £819,203 CONCLUSION. I desire, in conclusion, to state that, owing to the unrest which at present obtains, and the demands that are being made for largely increased expenditure, I liave fully and plainly set out tlie financial position of the Dominion, wbieb I consider is satsfaetpry, if not altogether free from anxiety. Our responsibilities are great; nevertheless they axe not greater than this country, with its wonderful resources, can support, and, always provided that its finances are administered with pre-

dene© and economy, a prosperous future is assured. The margin between the annual increase in revenue and expenditure is diminishing to such an extent that increased expenditure in one direction must be met by a decrease in another-, or by the imposition of fresh charges. Honourable members will, I am sure, recognise that demands for concessions cannot be considered without regard to the financial consequences, and that claims for increased expenditure are v. not consistent with the demand for a v reduction in taxation. We cannot increase our expenditure if we diminish our resources, as there is no great reservoir of wealth which can be drawn upon at will. The heavy expenditure which was so cheerfuiy met during the war period cannot be continued on the same lavish scale, and there must be a tapering off, with due regard to reconstruction requirements and the urgent necessity for developing our resources; but economy, without parsimony, is essential. Anything approaching waste or extravagance must be eliminated from all State activities, so that full value may be ensured to the taxpayer in return for his expenditure. In this connection the Government will, without fear or favour, party motive, or personal interest, conscientiously discharge its duty to the community—not in the selffsli interests of any class, but for the god of all. What I have said with regard to the necessity for prudence and economy in the administration of the State applies equally to private finance and the possibility of over-speculation. In times of high prices people are credulous, and new schemes for the employment of capital are held out to subscribers in the hope of immense gain; but, as I have pointed out, our prosperity must of necessity largely depend upon a of production and increased individual effort. The happiness and prosperity of the people of this Dominion can best- be secured by furthering that spirit of selfreliance, industry, and thrift which has been characteristic of our people, who, notwithstanding any differences of opinion that may exist, are proud of their ' British citzenship, and are prepared to do their duty at all times in maintaining and supporting the principles of justice upon which it is based.

Imports. Exports. 1916-17 .. ... £26,162,706 £30,538,466 1917-18 .. ... 20,983,612 31,298,270 1918-19 .. ... 26,437,284 32,263,792 1919-20 .. .... 32,162,029 50,776,650