THE FINANCES OF NEW ZEALAND.

New Zealand Times, Volume XXX, Issue 4378, 1 April 1875, Page 2

THE FINANCES OF NEW ZEALAND.

[By the Premier op the Colonial Govern- . MENT.J j ■ - ' (From Magazine.) TO-THE EDITOR.

Sir,—ln your last month’s number an article appeared, signed “Charles Fellows,” in which the writer, to the best of his ability, said everything he could against the financial position and the Government of New Zealand, past, present, and future. In eccentric fashion he grouped a great variety of statements—some being merely his own assertions, others supported by scraps of speeches, and others, again, by reported conversations with persons whose names were not mentioned. Were the article to appear in New Zealand, with Mr. Fellows’s signature, very little, if any, notice would be taken of it; for he is known there as a person who (under the nom de plume of “ Master Humphrey”) wrote, for an Opposition newspaper, letters attacking the Government. Those letters at first excited surprise ; then their extravagance caused amusement; and at length people became weary of them. Mr. Fellows left New Zealand ; and I have heard that in Sydney he published a pamphlet attacking the New' Zealand Government, but I have not seen it. He has now chosen a larger theatre ; and his statements become of importance since they appear in your influential magazine. I crave permission to expose the misrepresentations, and the false deductions therefrom, in Mr. Fellows’s article. Some of the statements are wholly at variance with fact ; whilst others, with some substratum of truth, are twisted and distorted to serve the writer’s purpose of disparaging the financial condition of New Zealand. The statement on which the writer mainly relies, and round which he makes his other statements gyrate, is that the colony yearly manufactures surpluses by spending borrowed money on purposes which should be provided for out of ordinary revenue. He says that A large proportion of the sums borrowed and being borrowed is applied to maintain the regular establishment of Government, meet the interest of the already enormous debt, and provide for matters of ordinary expenditure properly chargeable against taxes only. The writer explains how, as he says, this was and is done : Some years ago, when financial affairs were well nigh desperate, and year after year the most enormous deficits had to be acknowledged, an expedient was devised for preventing their reappearance. Up to that time, current expenditure had been defrayed out of the Consolidated Fund, which, as its name implies, was the reservoir into which all taxes converged. But by the new system there was called into existence what was termed the Special Fund, to be maintained exclusively out of borrowed money; and to this Special Fund was transferred the bulk of military expenditure, besides other charges for miscellaneous xmrposes. Mr. Fellows then makes a short extract from the Colonial Treasurer’s Budget speech in 1870, iii which speech it was explained why it was proposed to charge the defence expenditure to loan ; but he artfully omits the reasons given for such a course, commencing his quotation thus : You will not be surprised, therefore, after what I have already stated on the subject of defence expenditure, to hear that the Government consider that the colony is not justified, even if it were able to dp so, in regarding the item of defence expenditure as one to be defrayed out of ordinary revenue. Mr. Fellows goes on to say : This proposal being carried into effect, a loan was issued for “ Defence and other purposes,” and, as might naturally be expected, this resource, when once called into existence, wasjfreely utilised for the other purposes," as well as to provide for the military establishment. I will state the facts, leaving your readers to realise how Mr. Fellows has distorted them or given to them false meanings. Some time- before the Defence and Other Purposes Loan Act was passed, and quite independently ot it, the New Zealand Legislature devised elaborate machinery for auditing and controlling the public expenditure. From time to time this legislation has been amended, as experience has shown the points which could be improved ; and there is now a thorough system of control and pre-audit. Part of the original plan, and which part still continues, was the division of the public funds into four branches, viz. : The Consolidated Revenue, the Land Revenue, the Special Fund, and the Trust Fund. The division was made to enable each fund to be separately kept. The Special Fund included all borrowed money. The object was to keep it distinct from the ordinary (or, as it was termed, Consolidated) Revenue, and to secure its devotion to the purposes for which it was borrowed. To insinuate, as Mr. Fellows does, that the Special Fund was formed in order to facilitate the improper expenditure of borrowed money, is unfounded misrepresentation. That fund was devised for the purpose of preventing any misapplication, intentional or unintentional, of such money. The system was not, in my opinion, very effectual at first; but year by year it has been improved ; and I believe it to be now impossible that money can be otherwise than legally expended. Now, as to deficits. There can be no question that until the last two years, the finance of New Zealand was very embarrassed. The expenditure for native and defence purposes was enormous, and quite beyond the power of a small population like that of New Zealand to bear out of current revenue. I will presently supply a statement showing the strain on the revenue and on borrowed funds, which was caused by the expenditure for native and defence purposes—in other words, purposes for which the neighboring Australian colonies have not had to provide. In 1863, a war loan of £3,000,000 was authorised, and, in addition, up to 1868, some £228,000 of Treasury bills were issued in aid of ordinary revenue. For the purposes of the years 1868 and 1869, Treasury bills to the amount of £300,000 were issued. If Mr. Fellows had stated that in years past Ne iv Zealand had to contend with great financial difficulties, he would have stated a truth—but a.truth of which every one with a knowledge of the colony is aware. Not the least injurious part of his disiugeuuousuess is, the creation of an impression that the difficulties of the past are not only difficulties of today, but that they are the consequences of the v,ery measures taken to remedy them. In 1869, the Imperial Government determined to take away the troops from New Zealand. The colony was then in a depressed state. The condition of native affairs caused great anxiety. A powerful section of the natives was in open hostility. The colony had a considerable force of friendly natives, but to maintain it a heavy expenditure was necessary. It was generally felt that the removal of Imperial troops was a grave and risky step, and one entailing on the colony serious responsibilities. Although opposed to the removal, the Colonial Government determined to do their beat, not to realise their own doubts, but to justify the prudence of the action decided on by the Imperial Government. It is, perhaps, a greater triumph to the Colonial Ministry to feel that they tided over the difficulties they feared, than it would have been could they have pointed to results as having justified such fears. When the Parliament, or, as it is called, the Assembly, met in 1870, and it was felt to be certain that, despite all remonstrances, the colony was to be deprived of Imperial troops, so that it was necessary to provide for defence expenditure during several years, it would have been worse than folly to have continued to nominally bear on the Consolidated Revenue charges which it could not support, and to provide for those charges by the issue of Treasury hills. If the Assembly had failed to make definite and legal provision for defence charges, it would not have loyally met the responsibilities which the sovereign pleasure of the Imperial Government devolved upon it. I may here mention that at the end of four years the Consolidated Revenue had sufficiently increased to allow the Assembly to relieve the loan expenditure by a contribution, from that revenue, of half the year’s cost for defence purposes. If you will indulge me by publishing the two following tables, I believe that no one who studies them will question that the colony has clone as much as it possibly could in the direction of defraying defence expenditure out of ordinary revenue. The tables were prepared in the Colonial Treasury, and their accuracy may be depended upon. The first shows the expenditure, year by year, out of revenue for native and defence purposes; and also the expenditure during the same years, for the same purposes, out of loan. I believe that, under the head of expenditure for native purposes-

out of loan, there are included sums spent for the extinguishment of native title to lands; Jfc may be argued that such expenditure is of a productive character; hut on the other hand, it is fairly to be stated as expenditure for which the neighboring colonies have not had to provide. The purchase of lands from natives is, no doubt, a more or less profitable operation; but the other colonies have acquired the waste lands of the Crown without purchasing them. Howaver, the amount is not very large. ' The second table shows the same items as the first, but including, in the charge on revenue, cumulative interest, at five per cent., on the amount expended out of loan. It will he seen from the tables that native and defence affairs have involved an expenditure of £4,208,000 out of loans, and £1,761,000 out of revenue; or that, adding five per cent, for cumulative Interest on the former amount, the charge for those purposes on ordinary revenue amounts to £3,628,000. When the small population of the colony is remembered, I would ask your impartial readers to judge whether New Zealand has not done the best it could be expected to do under the great burdens it has had to bear ? Later on, I shall ask you whether an examination of the present condition of affairs does not show that the colony's efforts to relieve itself have been successful ? Table I. Statement showing the Sums expended owt of Revenue and Loan respectively, during each Financial Year from 1852 to 1874, for Native and Defence Purposes.

C. T. Batkin, Paymaster-General. Treasury, Wellington, October 22, 1574. , Table 11. Statement showing the Sums expended out of Revenue and Loan respectively, during each Financial Year .from 1852 to 1874, for Native and Defence purposes, including, in the the Charge on Revenue, cumulative Interest at 5 per cent, on the Amount expended out of Loan :

C. T. Batkin-, Paymaster-General. Treasury, 'Wellington, October 22, 1574. Mr. Fellows insinuates that the “other purposes,” for which part of the Defence and Other Purposes Loan, 1870,- was authorised, were a convenient device for enabling the Government to apply borrowed moneys for objects which ought to have been provided for out of ordinary revenue. Indeed, he conveys the impression that the “ other purposes ” were not specified, and that, therefore, the money was open to general application. The Act authorised the raising of £1,000,000. The provisions made for defence were that an expenditure of £IBO,OOO was authorised during the first year, £160,000 during the second year, and £150,000 during each of the next three years. As to the provisions for “other purposes,” I give the words of the second schedule to the Act: To provide for a payment to be made by the province of Auckland to James Busby, Rsq., and for a payment to be made to the New Zealand Government under the Loan Allocation Act Repeal Act, 1807, a sum not exceeding £50,000. (Province to be charged, Auckland.) To provide for a payment to bo made by the province of Taranaki to the New Zealand Government under the Loan Act Repeal Act, 1807, a sum not exceeding £OOOO. (Province to be charged, Taranaki.) ’ To provide for a payment to be made by the province of Wellington to the New Zealand Government under the Loan Allocation Act Repeal Act, 1807, and for sums advanced for the erection of the Wanganui Bridge, a sum not exceeding £17,000. (Province to be charged, Wellington.) To provide for a payment to be made by the province of Otago to the New Zealand Government on account of the late province of Southland, and for other debts duo by that province, a sum not exceeding £50,000, and for the repayment of money borrowed under the Otago Dock Trust Ordinance, 1865, a sum not'fexcoeding £60,000. (Province to be charged United Province of Otago and Southland.) ’ The charge that borrowed money “ is applied to maintain the regular establishment of Government ” is quite untrue, unless by it is meant a reference to the fact that the cost of a considerable portion of the staff engaged in the Public Works Department is defrayed out of the loan. I presume, however, that it cannot be disputed that the cost of engineers, surveyors, draftsmen, and other officers engaged in labors connected with the construction of works authorised to be paid for out of loan, is fairly includable as part of the cost of such works. The salaries of officers of the Public Works Department who are engaged in

what may be called ordinary duties—such as those in charge of railways already constructed are not charged tolcan. The statement that borrowed money is used to pay interest on the public debt, is a scandalous perversion of fact. The only ground for it is, that authority was given by the Legislature to charge to borrowed money interest on the cost of railways during the course of construction. The legitimacy of including in the capital cost of a railway interest on the money expended during the time it is being constructed, does not, it seems to me, admit of question. A sum of .£300,000 in all has been authorised for the purpose—not a very large amount to cover interest on works to cost eight millions. But the revenue of the colony has so improved, that it was provided by the Assembly last year that loans should be relieved of the. interest on the cost of railways and works during construction, and the charge was devolved on the ordinary revenue. The statement that interest on the cost of immigration, or on any other part of the loan funds (except as before explained), is or has been paid out of borrowed money, is wholly untrue. Mr. Fellows asserts that one-half the immigrants who receive assisted or free passages to New Zealand leave the colony. He bases that conclusion upon an extract from a newspaper, the name of which he does not mention. In that extract, it is stated that during 1872, 10,725 persons arrived in the colony, and 5752 left it. The newspaper writer, however, expressly guards against the supposition that he was dealing only with immigrants, in the sense in which the term is used by Mr. Fellows ; for the writer, after applying to the 10,725 the words “ persons were introduced,” corrects himself by adding, “ or, perhaps, more properly speaking, arrived by sea.” It is not possible, therefore, that Mr. Fellows could otherwise than wilfully have assumed that the arrivals and departures spoken of in the news' paper extract were all of Government immigrants. The deduction he makes from the extract—and which he several times repeats—that one of every two immigrants introduced by the Government leaves the colony, is a false deduction, and it is difficult to see how he could be ignorant [that it was so. During the year 1872, there were 4808 immigrants introduced into the colony : therefore, adopting the figures given in the newspaper extract, the balance of arrivals over departures shows that there was a slight excess in favor of the colony, over and above the total . number of introduced immigrants, instead of one-half of the introduced immigrants having again left the colony—as Mr. Fellows, without the . shadow of a reason, states those figures to W prove.* Mr, Fellows impugns the legitimacy of expending borrowed money on immigration. His views will not be shared by many who have an acquaintance with the colonies ; for those who have such acquaintance know that population is the one great want. In the United States, I believe, every immigrant is held to be worth £2OO. It is generally considered in New Zealand that this is the reverse of an excessive estimate. Large as is the number already introduced into the colony, my latest advices urge the demand for more. Ido not wish it to be understood that every immigrant is successful, or is pleased that he has gone out : hut the instances of dissatisfaction are rare ; the opportunities enjoyed by laboring men of earning money, of establishing comfortable homes, and, above all, of educating their children, are out of all comparison with what the same men have enjoyed in their former homes. The success of the New Zealand immigration is attested by the evident way in which the immigrants arriving create, by their own wants, the demand for others to follow them. In the neighboring colonies, intelligent men look with envy on the comprehensiveness of the New Zealand immigration plan. Charging the cost of that plan against borrowed money is in reality leaving to the immigrants to repay to the State, in the course of time, the cost to which they have subjected it. I will now ask you to allow me to explain the Immigration and Public "Works policy. X have already stated that when it was proposed to remove the troops, the colony was in a very depressed condition. Works necessary for opening up the country, such as roads, bridges, and railways, were being carried on very sparingly in the Middle Island, and still more sparingly in the North Island. The public lands were in little demand ; private property was much depreciated in value ; it was 'considered throughout the Middle Island that the North Island was - ruining the colony, and, indeed, it was so, more or less, for colonisation was suspended in that island ; a mere fringe of it only was accessible to Europeans ; the greatest uncertainty prevailed as to the movements of the hostile natives, and, as I have before said, the determination to remove the troops excited great apprehension. The finance of the colony was very embarrassed, and large aids to revenue had to be sought in the issue of Treasury bills. Stagnation, if not retrogression, prevailed; and - stagnation in a new country is infinitely worse than stagnation in an old country. During the session of 1869, the feeling became general that something must be done—that the colony could not afford to continue spending money on war, and neglecting all means of developing the country’s resources. The unproductive burden could only be lessened by enlarging the productive resources. The North Island, a mere theatre of war, was a frightful drag on the colony ; but, on the other hand, the North Island settled would become able to bear its share of the misfortunes of the past, and to aid the progress of the future. Much to the credit of the Middle Island members, amidst all the difficulties which prevailed, and in which their own island shared, they at once recognised the vital necessity of opening up the North Island, and making it a reproductive estate, instead of one constantly draining the resources of the whole colony. Before the session of 1869 was closed. Parliament voted £30,000 for maldng roads in the North Island. An anxious recess followed; for on the Government devolved the necessity of submitting to the Assembly, in the next session, comprehensive plans for the future. Ministers were at no loss to understand that war expenditure must be discouraged, that the population must be increased, and that public works must be undertaken, so as to open the country for settlement. r lhe difficulty of proposing a plan which would find acceptance was much increased by the mode in which New Zealand had been colonised. As many of your readers know, New Zealand was divided into provinces, each representing a separate area of colonisation, each haying distinct interests, and each naturally disinclined to support any plaas in the benefits resulting from which it was not to share. Ido not condemn the diffusion of settlement which was a consequence of the provincial system. If it has added occasionally to the difficulty of colonial legislation,. it has been the means of largely increasing the settlement of the country, But it made it necessary that, in propounding a colonial system of public works, regard should be had to all the provinces ; and a plan applicable to the whole country had to be submitted. Such a plan was submitted ; and, . during the same session of 1870, it acquired the force of law. From the t( Official Handbook of New Zealand,” which has just been published, X submit an extract, showing briefly the nature of the policy adopted, and the operation of the Public Works Department :

Immigration ami public works, from IfoS when the present Constitution was first established to nearly the end of 1870, exclusively devolved on tho several provinces; and it may be said that, e*c«.pt to a limited extent in tl)B provinces of Otago and Canterbury, they had, from various causes almost ceased to exist for a number of years Previous to the latter date. Even if the provinces had generally been able to administer those two great departments of colonisation, It became evident that an administration ' conducted by independent local authorities, with distinct local interests and functions, would necessarily be disjointed and wanting In system and comprehensiveness. The term “public works is used hero in relation to works of a colonial character, and In whlcl more than one province is concerned. . . In 1870, the Immigration and Public Works Act * New Zealand has more frequent communication with Victoria than with any of the other Australian colonics, and to this point (Melbourne, Victoria; emigrants from New Zealand would bo most likely to go. But the Melbourne Argus of December 2 lost. In an article upon the sublect of immigration to that colony, contains the following paragraphs: < “ We can expect no reinforcement from the neighboring colonies/' “New Zealand is receiving'great accessions of population. . . . There has been no overflow of population from that colony to this."

and cognate Acts were passed, and the policy contained in them may be shortly described as follows: The colony was to incur a liability, spread over a course of years, amounting altogether, territorially and pecuniarily, to about nine millions, which were to be expended in specified proportions on the undermentioned subjects • 1. Immigration. 2. Main railways throughout each Island. 3. Roads through the interior of the North Island. 4. The purchase of native land in the North Island. 5. The supply of water on goldfields. 6. The extension of telegraph works. The administration of these services was vested in the General Government, and the responsibility, subject to some exceptions in which its action depended on the previous concurrence of provincial authorities, devolved on the General Government. These exceptions have been abolished by subsequent legislation. As soon as the session of 1870 closed, it became necessary to organise a department to undertake the special duties, and this department was supervised, as required by the Act, by a Minister of Public works. At first, while the organisation was in progress, and the practic'd work was in its early stage f> the Colonial Secretary acted as Minister of Immigration and Public works : but in the course of a year, when adequate funds were raised, and important works and immigration on a large scale had been begun throughout the whole colony, a special Minister was appointed, and shortly afterwards there was one for each Island: but in the latter part of 1802 the whole department was divided into two, namely, Public Works and Immigration, and each was placed separately in the charge of a Minister. This arrangement is still adhered to. and the large increase of the duties of each service, and consequently of the department in charge ®f that service, and the great importance of those duties, render such a division at present absolutely requisite. Since its organisation, the department has constructed in the North Island roads of various descriptions to the extent of 1150 miles, a large proportion being good traversable dray-roads ; also about 500 miles of bush tracks, which although only at present available for horse traffic, have been selected with great care as suitable routes for dray-roads hereafter. The expenditure on these roads and tracks has been about £300,000. There are now being constructed several hundred more miles of similar roads, which will bo the means of opening up nearly all parts of the North Island for settlement. In the South Island, similar roads have been completed on the west coast, to the extent of over sixty miles, and about the same length is now under contract or surveyed ready for contract. They have been laid out with the view of enabling the gold-digging community to get about with ease, and of opening up that part of the country for settlement. It may here be remarked that before the creation of the Public "Works Department of the General Government, many thousands of miles of good and substantial roads had been constructed by the various Provincial Governments throughout the colony. The construction of railways has been very vigorously proceeded with. The department has contracted for the completion of over 550 miles of railway throughout the country. In addition to this, Parliament has sanctioned a further length of 360 miles, for which surveys and plans are rapidly being prepared. The whole of the above railways are to cost, when completed with their equipments, about £5.500,000. Tt is estimated that there are now between 3000 and 4000 men constantly employed, and that a still greater number will be required during the next two years to complete the lines above mentioned as having been sanctioned by Parliament. In addition to the linos under contract, forty miles of railway constructed by the department afe now open and in full working order, as well as a further length of seventy miles constructed by the Provincial Governments of Canterbury and Otago, making a total throughout the colony of 1020 miles of railway either open or in various stages of progress. The department has likewise undertaken the construction of several large water-races on the gold diggings, which when completed, arc calculated to provide remunerative work for several thousand miners and others over a period of many years. For these races Parliament has voted £300,000. There are also several large coalfields now in process of rapid development. When these mines are in full work, they will afford permanent employment for many thousand persons of all classes.

On the whole. New Zealand may congratulate itself upon having as few examples of extravagant railway construction as are to bo found in any part of the world. The Government railways, when completed, will average a cost of from £SOOO to £6OOO a mile. As to their proving remunerative, cheap railways of the kind are to a new colony like metalled roads, the necessity of constructing which one recognises, because of the collateral advantages they supply, and -without a thought of their yielding interest on their cost. Indeed, tolls, if turnpikes are established, rarely yield sufficient for maintenance. But as an indication of the wisdom of constructing equipped roads, costing from£sooo to £6oooamile, in preference to ordinary metalled roads, X may say there is every reason to .rely on the New Zealand railways yielding a large revenue. A fragment of the railway which is to connect Christchurch with Dunedin has been for some time constructed, and it pays a considerable interest over working expenses. The Port Chalmers railway, to which Mr. Fellows refers, was. constructed tinder concession from the Provincial Government of Otago, before, the Colonial Government system of railways was adopted. It was on the line of the main trunk road through the Middle Island : therefore, it had to be acquired by the colony. The Government paid something under £200,000 for it, the concessionaires realising for their rights and interests a profit of about £60,000. Nevertheless, it was considered so good an investment that, after tile purchase, the Government were offered a nett rental of about 10 per cent, for the line. The railways throughout the colonies promise to at once relieve, to some extent, the charge for interest on the cost of their construction. It would be too much to expect that they should at once yield the whole interest on their cost.

Mr. Fellows mentions a railway at the south end of the Middle Island, which, he says, was extravagantly constructed. This, which was not “the first railway constructed in New Zealand” (as he states it to have been), is a work which was carried out some years ago by the Government of the then Province of Southland. Its cost was large, but at the time very hi"h prices prevailed. The Colonial Government had not, however, anything to do with its construction ; and, even in its fragmentary state, the line is yielding much more satisfactorily than Mr. Fellows would lead your readers to suppose. As to the alleged extravagance on public buildings and works, I am sorry to say that New Zealand is much behind the neighboring colonies in the character of its public buildings. The instances to which Mr. Fellows refers are mostly of buildings and works constructed by the Provincial Governments, and have, therefore, nothing to do with the charges against the Colonial Government. Xu every case, however, I believe an ample answer could be given; and because I do not enter into a number of comparatively trivial details, it must not be supposed that I admit the justice of Mr. Fellows’s strictures. The authorities of the province of Otago, to whom he chiefly refers, will no doubt say "they have excellent officers, who are much better able to judge of these matters than is Mr. Fellows. He refers to one colonial work, the building erected for a post-office in Dunedin, and his remarks about it are a fair example of the logic he employs. He ingeniously calculates that a similar expenditure in proportion to population would absorb for the post towns of England about £70,000,000. _ Similar calculations, of a more or less amusing kind, might be made with respect to any of ° the colonies. However sparingly they may be populated, they require certain services ; and until population increases, the cost of those services bears a large proportion to the number of persons benefited by them. For example, in the colonies, many stipendiary magistrates have charge of districts containing not more than 10,000 persons. In similar proportion. Great Britain would require some 3000 paid magistrates. There are .in New Zealand a Chief Justice and four puisne judges ; to equal that proportion to population, 500 judges in superior courts would be required in Great Britain. There are five bishops of the Church of England and three of the Koman Catholic Church in the colony. If the same proportion to population were maintained, 800 bishops would be needed in Great Britain.

Mr. Fellows uses very freely Mr. Stafford’s name, and quotes scraps of that gentleman’s speeches. Mr. Stafford was leader of the Opposition from 1869 to 1872, but in 1873 he voluntarily resigned his position. Notwithstanding that he was in opposition, he from the first supported the Immigration and Public Works policy, though he did not approve of many of its details. Mr. Stafford is a very able man. Friends and opponents alike recognise his public spirit and the love and devotion he has shown for the colony. It is certain that he is not one of those referred to by Mr. Fellows as prepared or preparing to leave New Zealand “ when the day of reckoning draws near,” for it is a notorious fact that he has of late largely increased his stake in the colony. The Immigration and Public Works policy received immense support, both in the Legislature and throughout the country, and it was warmly welcomed by many of the largest landholders. They did so knowing that they ran the risk, even in the case of modified success, of con-

’ siderable land taxation ; and they argued that if the value of their lands was increased by the opening up of means of communication, they could afford to pay for the benefit they received. But of course there was not unanimity, and the policy had many bitter and uncompromising foes. It is well know, however that a large the most influential of those have changed their views, and now support the Government whose boldness they at one time feared. Compelled to admit the large increase in the Consolidated Revenue, Mr. FeHovs terms it “an imaginary increase.” His explanation is not very clear.. He jumbles questions of exchange—such as introduced capital being represented by imports—with questions of labor, showing how very dangerous in some cases a little knowledge is. As far as can he understood, what he really means is, that the large employment of labor on public works increases the revenue on account of the. duty paid by the workmen on the goods they consume. This is no doubt true to a certain extent ; but it no more accounts for the large increase in the ordinary revenue than a single shower of rain accounts for a prolonged flood. It is one of the causes that has augmented the revenue ; hut those acquainted with New Zealand will bear me out in saying that amongst the most remarkable features of the last two or three years is the increased demand for private labor. The labor employed on Government contracts is a bagatelle compared with the labor demanded for private enterprises. In the extract I have already given from the" Official Hand-Book,” it will be observed that it was estimated last year that from 3000 to 4000 men were employed in railway construction, and that the number would probably be increased. Five thousand men employed on Government contracts is a very high estimate of what is actually the case in New Zealand, or is likely to be. It must be remembered that of a given sum yearly devoted to railways, a very large proportion is expended, not for human labor in the colony, but for machinery, plant, rolling stock, material, horses, carts &c. To suppose that the revenue has increased 50 per cent, because of 5,000 men being employed, is a patent absurdity, in face of the facts that during the last three or four years over 40,000 immigrants have arrived and settled in the country, and that, as I have said, the demand for more still exists. If the 5,000 men ceased to-morrow to he employed on Government contracts, the setting free of that amount of labor would have little effect, if other causes of depression were wanting. The province of Canterbury has some £600,000 to spend on public works. That sum is mainly an accumulation from land sales during the last year or two ; but the Provincial Government, I believe, hesitate to push works as fast as they might be pushed, dreading an undue increase of the demand for labor. If the discharge of the 5,000 men meant the suspension of railway works, the consequences would be very different. Upon the faith of the railways being made, settlement is everywhere progressing. Property has immensely risen in value. Ido not exaggerate when I say that the increase in the value of property, private and public, many times exceeds the cost of the railways. The rise is to be justified by unassailable calculations. Given the means of carrying to market the produce of land at a large reduction oh the previous cost of transport, and the land becomes more valuable because of the actual profits which can be obtained from it. Not only does land become more valuable because of the reduction in the cost of conveying its produce to market, but the same reduced rate of carriage enables machinery, implements, building materials, and supplies to be more readily and economically taken to the land. The means of working and improving it are thus enlarged, to say nothing of the great increase of comfort the settlers enjoy through cheaper supplies of articles of convenience and luxury. This is why property has become so valuable from one end of the colony to the other. I know numberless instances of new purchases of laud, and of large holders increasing their holdings. Ido not know of any disposition to realise and retire from the colony, and I challenge Mr. Fellows's statement to that effect. I am not able to follow Mr. Fellows’s calculations. Where he has correctly stated amounts, he has distorted the nature of the figures to which he refers. I will ask you to allow me to give a short r&sum6 of the financial results from 1869 to 1871. These results will show how Mr. Fellows has endeavored to make the difficulties of the past appear to be the difficulties of the present. The Consolidated Revenue has really so increased as to exceed the current requirements ; and nothing but a desire to extinguish past liabilities in the shape of Treasury bills, as well as a resolution to be prepared for any contingencies that might arise, prevented last session the revenue being reduced by a reduction of taxation. So large were the balances of the Consolidated Revenue, that the Legislature authorised advances to be made from it to the Public Works Fund ; and within the last few months the latter fund was indebted to the Consolidated Revenue for advances to the amount of a quarter of a million. These advances, it need scarcely be pointed out, are sometimes the means of effecting considerable savings of interest and exchange in the transfer of funds between England and the colony. The financial year in New Zealand ends on June 30.

Including the proceeds of £150,000 of Treasury bills, there remained at the close of the financial yearj 1868-9, after satisfying all liabilities for the year, a balance of £70,000 to pass to the credit of the following year. There was at the time, inclusive of the £150,000, a total of £378,000 of Treasury bills outstanding ; and there was also an outstanding overdraft, or Deficiency bill, of £60,000. The result of 1869-70, after satisfying all liabilities, but including the issue of £150,000 Treasury bills, was a credit balance of £76,77-1, with which to commence the following year. The Treasury. bills then outstanding amounted to £528,000, besides the £60,000 Deficiency bills. The year 1870-1 showed a debtor balance of £76,000,' besides the Deficiency bill for £60,000. The amount of Treasury bills outstanding was £520,000, or £BOOO less than at the close of the previous year. It was resolved by Parliament that the year’s deficit and the £60,000 bill, together £136,000, should be made chargeable on the revenue of the three following years. During 1871-2, £46,000 was to be paid off, and Treasury bills were to be issued at two and three years’ date, for £46,000 each, to cover the remainder of the £136,000. _ The result of 1871-2, after satisfying all liabilities, including the year’s portion of the previous year’s deficiency, but including as aid to the revenue the proceeds of a £IOO,OOO Deficiency bill, was a credit balance of £90,700. The Deficiency bill was made payable the following year. Had it been included in the year’s liabilities, there would have been a deficit of £9,700. As it remained outstanding, there was the credit balance I have mentioned, and the floating debt amounted to £610,000 Treasury bills and £IOO,OOO Deficiency bill. The end of 1372-3, after all liabilities had been satisfied, showed a deficiency of £2159. But during the year, besides that the Deficiency bill of £IOO,OOO was paid off, there was also extinguished £45,000 of Treasury bills, part of the deficit of 1870-71, and the amount of Treasury bills left outstanding was £565,000. The results of 1873-4 were a credit balance of £207,000 with which to commence the current year, besides that £65,000 of Treasury bills had been paid off, leaving £500,000 outstanding. The surplus of 1873-4, added to the estimated revenue- for 1874-5, enabled Parliament last session, in preference to reducing taxation, to provide for a further extinguishment of £IOO,OOO of Treasury bills, besides charging to the Consolidated Revenue £171,000 already authorised to be charged to loans. So that, instead of making the loans aid the revenue, the revenue was made to aid the loans. On November 1 last, the £IOO,OOO of Treasury bills was paid off. The floating debt, which on June 30, 1872, was £710,000, is now reduced to £400,000. The revenue is fully maintainiug the estimate, and is so abundant that, when I left the colony, a temporary advance had, as I have already stated, been made to the Public Works Fund, to the amount of a quarter of a million. During the time I have referred to—from June 30, 1869, to Juno 30, 1874 —some £300,000 was paid out of the Consolidated

Revenue to the accumulating Sinking Fund, for the extinguishment of the Colonial debt. I subjoin in tabular form the particulars I have narrated :

Referring to the revenue receipts of 1873-4, the Colonial Treasurer, in* his last financial statement, said : I announce with great pleasure that the revenue lias exceeded that of the preceding year by the sum of £300.814 Ss. 2d., and has exceeded the estimate I ventured to make by £239,710 17s. 3d. These results are enormous, when the proportion they bear to the whole revenue is taken *into consideration. A comparison of the revenue receipts during the last four years Is full of interest. Towards the close of 1870 the Immigration and Public Works policy was adopted, and during the financial year 1870-1 steps were taken to give it effect ; but, of course, much could not be done during the first few months. The ordinary revenue for the four years stands thus t £ s. d. 1870-71.. .. '.. .. 930,188 5 10 IS7I-72 1,031,082 18 7 1872- 1,119,904 3 4 1873- 1,420,210 17 3 The revenue of 1871-72 thus exceeded the revenue of the previous year showed an increase on its predecessor of B*o per cent.; and the year just passed showed an increase on the previous one of 20*8 per cent. The aggregate result is, however, the most striking. The revenue of 1873-74 exceeded the revenue of 1870-71 by 51*7 per cent. As so many figures were given by Mr. Fellows with the object of disparaging New Zealand, I must ask you to publish the following, which may perhaps create a different impression as to New Zealand’s position. The figures show the Land Revenue (exclusive of the receipts from gold) during the respective years ; ISG9-70 209,023 3 0 1870- 208,091 5 0 1871- 330.311 0 C 1872- 880,042 14 2 1873- 1,038,797 13 8 I am aware that Mr. Fellows ingeniously suggests that the larger the Laud Revenue the greater is the loss of capital. If the sales of land in any one year made a serious impression upon the total area available for sale, there might be some force in the suggestion. But hitherto the land sales in New Zealand have been such, year by year, that through the progress of settlement the unsold lands have acquired increased value more than compensating for the land parted with at cur-rent value. Not many months since, an estimate was made that, excluding all confiscated and native lands, and adopting the very low average price of only 7s. fid. per acre, the unsold land of the colony represented a value of £13,500,000. The value of imports into New Zealand is shown by the figures below ; a careful division being also made between consumable articles and those which, being non-consum-able, may fairly he regarded as more or less adding permanently to the wealth of thecolony :

As regards exports, the above table must be of interest. It shows, for the six years 1867 to 1872 inclusive, the average yearly value of the exports named, from the colonies of Victoria, New South Wales, and New Zealand, and also the rate per head of population in each case. The only preliminary explanation needed is, that for 1871 and 1872 the amount of gold coin produced in the Mint in Sydney, from gold received from other colonies, has been deducted from the total export of gold as shown in the export returns of New South Wales.

Mr. Fellows lays stress upon the debt of the colony increasing at a ratio sixfold that of the population. . To prove his case, he takes the debt at the end of 1802, and compares it with the debt at the end of 1871. Tho figures thus taken by Mr. Fellows are for the period from just before the commencement of the war of 1862, and inclusive of only one year of the immigration and public works debt. The proper deduction from those figures would be, not one against the Public Works policy, but that they show how very largely the indebtedness of the colony was increased under unproductive expenditure consequent upon native wars. The increase of tho public debt of New Zealand on account of immigration and public works, must be taken as , dating from early in 1871, and for only a small amount during that year ; whilst from the end of 1802 to the end of 1870, the increase was principally for war purposes and for provincial loans, tho proceeds of which were expended on provincial public works. A comparison between the two periods will be instructive, [as showing the effects on the public debt of the first three years and a half of immigration and public works expenditure. I give the results in tabular form ; hut I should remark that the total debt on June 30 last includes £1,500,000 which had recently been raised, and of which not more than half a million was expended :

These results do not compare unfavorably with that other period from 1862, when the debt was only £830,000, the amount per head £6 12s. 10d.. and the annual charge per head 9a, 7d. The increase to 1870 was much more •Tills amount includes tho £90,000 of Treasury bills issued to cover part of tho deficiency of the previous veer It also includes the £IOO,OOO Deficiency bill ; but 'it la otherwise £OO,OOO loss than the previous year’s amount, as the £OO,OOO Deficiency bill Included in that year’s amount was comprised in tho provision made for tho deficiency of 1870-71. t Estimated balance before providing for Supplementary Estimates, but including provision of £IOO 000 for extinguishment of Treasury bills, and £171,600 in relief of loans, for items otherwise chargeable to loans. | raid off in November last. •

serious ; and, considering the increase of debt from 1870 to 1874, with the large increase of revenue per head to meet it, I am reminded of a well-knewn anecdote.'” An Irishman, after selecting something in a store in the United States, asked- the price. “ A dollar,” was the reply. “ A dollar," said he ; “ could have bought it for sixpence in Ireland.” But, after a moment’spause, and pulling out a handful of money, he added, ” Never mind; I hadn’t the sixpence there, and I have dollars here.” The people of New Zealand can better afford now to pay, in taxation, £4 than they could in 1870 to pay £2. Some months since an exhaustive analysis was made of the public debt of the colony. I will ask you to publish a short abstract of that analysis, which appears in the “Official HandBook of New Zealand Now Zealand has, apparently, when tested by its population, a heavy public debt : but when tried by the only true test, the burden which the debt bears to the earnings of the people, it compares favorably with older and more settled countries, although the public debt of the colony includes works, such as railways, water-works, roads, and bridges, which in other countries are either the results of joint-stock enterprise, or of local taxation, or of loans not included in the general indebtedness. Again, in the colony, against the public debt there is to be placed an immense and valuable estate in the land which still belongs to the Crown. The charge per head upon the population, on account of New Zealand’s public debt, taken as a whole was some months since computed to be £1 17s 4d per annum. That total was thus composed On account of colonial indebtness, exclusive of Public Works and Provincial, ISs: per head ; on account of Public Works. Cs. Bd.; on account of Provincial Loans, 12s. Bd. : making together £1 17s. 4d. But taking the test of the average earnings of the population, the charge per head on account of New Zealand s total indebtedness is computed to be 2*4 per cent, on the average earnings, while in the United Kingdom it has been computed at 2*B, and in the United States at 27 per cent. In the former, the cost of railways and of other public works which are here regarded as “ colonial ’’ is not included ; in the latter the State debts are Included. Exclusive of provincial indebtedness, the colonial debt; including that for railways and some other public works, is computed to be equal to an annual charge per head of about I*o per cent, on the average earnings of the population. The provincial indebtedness is secured on the Crown lands, and these, at a moderate estimate, are worth at least four times the amount of the provincial debts.

The references I have made to the Imperial Government demand some explanation. Otherwise, it might seem that I somewhat harshly reflect on the removal of the troops, and that I imply that the prosperity of New Zealand is a consequence of the Imperial Government leaving the colony to itself. I never approved the removal of the troops, and I feared that dangerous results might arise from it; but it is right I should say that many public men in the colony had expressed an opinion in favor of the removal, believing that whilst the troops remained the evils of double government and divided responsibility would continue. At one time Parliament supported this view, but not at the time when the removal took place. It was then generally recognised that the increasing diifieulties with the Maoris made the removal at least inopportune. I should be sorry to convey the impression that the colonists believe they have done that which the Imperial Government were unable, or would have been unable to effect, and that any blame attached to the troops. The Colonial Government had at their command means which were not placed at the disposal of the Imperial generals. As a military operation, nothing could have been more complete than Sir 1). Cameron's conquest of the Waikato districts. The natives have sometimes expressed a desire for the return of the Waikato lands, but they have never questioned the thoroughness of the conquest. As a military operation, that conquest was a groat one. Later still, the colony rang noth admiration at the march through from Wellington to New Plymouth, successfully completed by General Chute, at the head of a mixed force of Imperial and colonial soldiers, and accompanied, as a volunteer, by the present Agent-General of New Zealand, Mr. Featherston. At the time (some nine years ago) this was regarded as a most important feat, and a very skilful and brave one. It was unquestionably all that was said of it. It was most important to show that, in defiance of the natives, troops could penetrate from Wellington to New Plymouth ; and it was not only a dangerous operation, but one requiring great skill. For the Maories are not contemptible warriors ; they are born soldiers, and with their skill, trees become fortresses, forests impenetrable defences. But I am quite sure that if Sir D. Cameron and Sir Trevor Chute were asked, they would not only willingly do justice to the assistance the colonial troops rendered them, but would also allow that they would gladly have had at command other weapons than fire and sword. The Imperial Government could spend money on warlike operations, but not on colonising pursuits. New Zealand was a Constitutional colony ; had it been a Crown colony, things might have been different. As it was, the Colonial Government could devote themselves to colonising, and could replace the sword and the gun by the axe and the pick. It was with these instruments at his command that Sir Donald McLean, the Minister to whose special charge native affairs were confided, was ably to apply, with consummate skill, his knowledge of the natives in making them contented, instead of discontented, with European rule. Two or three times each week coaches convey passengers and mails through the country in which General Chute performed that dangerous march. Coaches run from ’Wellington and from Baugitikei to Napier ; from Napier to Taupo Lake, always deemed the central strategic point of the North Island ; and from Taupo to Tauranga. The very heart of the North Island is open. It is as safe now to travel from Auckland to Wellington as from London to Edinburgh. Tlie Immigration and Public Works policy, which Mr; Fellows bo industriously slanders, has been the bridge between the dangers of General Chute’s great march and the safety and security of the present day. If the Imperial Government could have adopted similar. colonising measures had money been available for peaceful as well as for warlike purposes —they might have done asmuch as has been done. It was a generous and highspirited act of the North Island to accept the position of a Constitutional colony. Had it remained like others in which military movements have been carried on, a Crown colony, New Zealand would have been some millions less in debt. Do not blame the colony because it roused itself to the task of improving its means to bear its liability for unproductive expenditure on native purposes. If I have pressed hardly on Mr. Fellows, it has not been from a desire to do so. Whenever I have had to use a harsh expression, I have earnestly sought for the least offensive word that would do justice to my meaning. _ I cannot acquit Mr. Fellows of intentional misrepresentation concerning the immigrants. Hundred of thousands of people in the United Kingdom are eauerly looldng for information as to those who have emigrated to New Zealand. It is cruel in the extreme to tell them that their friends and relatives have cast themselves upon a country from which onehalf of them will find it necessary to depart. Passing over this misstatement, I willingly think that Mr. Fellows is not without earnest belief in that which he writes. He is one of those persons, of whom France produces so many, who find it impossible to bo contented with any Government under which they live. When he first arrived in New Zealand from Vancouver Island, he was equally prolific of complaints against the colony from which he then came. That, according to him, was a glorious country, but the Government was intolerably bad, and he had left in consequence. I do not think there is any colony the Government of which he would approve. I have answered Mr. Fellows under circumstances of difficulty. I received your number, containing his article, at Florence, several days after it was published ; and my reply has been written amidst the weariness attending a slow recovery from serious illness, and with but few hooks and documents accessible. I should have liked to do more justice to New Zealand. Tho colony is as prosperous now as any country in the world. It has immense resources, and is sure of a great future. But not only on its resources does it depend. As a comparatively recent colonist, I may, without egotism, say that, far above climate, soil, and mineral and other capabilities, the strength of New Zealand depends on its people. _ A country may support population even in spite of original sterility—as witness Utah, not to mention many spots in Europe. Upon its people depends a country’s success; and the colonists of

New. Zealand have those virtues of frugality, faith, industry, and energy which ensure success and happiness to their possessors. _ln the New England States,, the grand qualities of the early Puritan founders show themselves in their remote descendants. Generations will live and die in New Zealand, and still the homely virtues of its pilgrim fathers will be reproduced, and will earn for the land a great place amongst the dependencies of the empire to which I believe they will, like their ancestor's, glory to belong. To the people of New Zealand, who have won their way to success through so many difficulties, that happy phrase, “ the heroic work of colonisation,” is peculiarly applicable.—■l am, &0., Julius Vogel. Paris, January 17, 1875.

Financial Year. Expenditure out of Revenue. Expenditure out of Loan. Total. Native. Defence. Total. Native. Defence. • Total. 1853 17,870 15 1 17,870 15 1 8,920 2 7 3,920 2 7 21,700 17 8 1853-4 42,594 9 7 42.594 9 7 1,941 4 2 1,941 4 2 44.535 13 fi 1854-5 46,775 0 c 44 0 c ■ 40,819 0 6 381 8 4 $81 8 4 47,200 8 10 1855-6 21,367 6 £ 19 0 0 21,386 G 3 706 17 C 706 17 0 22,093 3 3 185C-7 12,643 19 1C 44 0 0 12,092 19 10 20,662 4 8 26,662 4 8 39,355 4 6 1857-3 15,288 11 11 3,103 17 £ 18,392 0 7 48,069 16 f, 48,069 16 5 66.462 0 0 1858-9 16,895 19 4 4,571 1 C 21,467 0 4 11,096 18 2 11,098 18 2 32.563 18 6 1869-60 12,783 4 4 8,939 15 C 21,722 19 4 10,472 16 6 21,209 9 9 31,772 6 3 53.t95 5 7 1860-61 21,835 4 7 13,083 18 10 34.919 3 6 9,301 19 3 82,931 11 1 92,233 10 4 127,152 13 9 1831-2 31,722 3 7 14,650 1 1 40,372 4 8 10,015 2 2 40,698 17 0 62,713 19 £ ’ 109,086 4 4 1862-3 63,800 13 X 27,667 8 2 91,474 1 3 7,679 12 (J 193,247 9 5 200,827 1 11 202,301 3 2 1S63-4 60,213 3 2 84,264 17 1 144,478 0 3 16,585 19 ii 801,307 1 3 817,893 1 C 902,371 1 3 1804-5 07,935 0 S 126,576 4 8 194,511 11 6 600 3 1 803,700 12 7 804,300 15 £ . 998.812 7 1 1865-6 50,405 11 1 147,345 1 9 203,750 12 10 2,524 16 6 417,374 5 a 419,899 1 & 623,649 14 7 1808-7 41,934 7 (J 244,542 19 7 280,477 7 1 G44 19 C 235,996 11 -2 236,641 10 2 523,118 17 3 18G7-3 32,118 3 (3 177,682 4 10 209,800 8 4 480,234 0 3 486,234 6 3 696.034 14 7 180S-9 45,925 13 Hi 385,932 9 2 431,858 3 0 80,967 1 C 80,967 1 C 512,825 4 0 1869-70 47,287 18 S 465,427 11 7 512,715 10 4 19.001 11 7 19,001 11 7 631.717 1 11 1870-71 69,471 12 7 250,799 G 7 316,270 19 2 230 0 C 173.097 14 10 173,327 14 1C 489.693 14 0 1871-2 68,928 19 3 216,185 14 V 275,114 13 10 49,484 a 6 160,000 0 0 209,434 6 6 484,549 0 4 1872-3 07,901 4 4 ' 220,750 10 5 288,657 14 9 60,067 5 7 161,650 7 7 222,317 13 ? 610,975 7 11 1673-4 71,060 3 C 218,405 0 4 289,405 3 10 91,385 14 7 160,735 8 0 258,121 2 7 547,580 0 5 Totals £912,770 12 4 £2,016,041 2 4 £3,623,811 14 8 £357,839 18 5 £3,850,623 15 7 £4,208,403 14 0 £7,737,275 8 8

Financial Year Expenditure out of Revenue Expenditure out of Loan. Total Native Defence Total Native Defence Total 1853 17,674 15 1 17,674 16 1 3,920 2 7 3,920 2 7 21,594 17 8 1853-4 42,301 9 7 42,301 9 7 1,941 4 2 1,941 4 2 44,242 13 1854-5 46,482 0 0 25 0 0 46,507 0 6 381 8 4 381 8 4 46,888 8 10 1855-6 21,039 6 3 21,039 6 3 700 17 0 706 17 0 21,746 1856-7 10,987 19 10 25 0 0 11,012 19 10 26,662 4 a 26,662 4 8 37,075 1857-8 11,224 11 11 3,084 17 8 14,309 9 7 ' 48,009 16 5 48,069 16 5 62,379 0 1S5S-9 12,276 19 4 4,552 1 0 16,829 0 4 11,096 18 2 11,096 18 2 27,025 1859-60 7,641 4 4 7.854 15 0 15,495 19 4 10,472 10 6 21,299 9 9 31,772 6 3 47,268 5 7 1860-61 16,228 4 7 7.848 18 10 24,077 3 5 9,301 19 3 82,931 11 1 92,233 10 4 116,310 13 6 1801-2 25,315 3 7 7,080 1 1 32,395 4 8 16,015 2 2 48,098 17 6 02,713 10 8 95,109 4 1862-3 57,021 13 1 10,434 18' 2 67,466 11 3 7,579 12 0 193,247 9 5 200,827 1 11 268,283 13 2 1863-4 62,599 3 2 20,967 7 1 79,566 10 3 16,585 19 9 801,307 1 « 817,893 1 0 897,459 11 3 1864-5 00,291 0 0 29,093 14 8 89.385 1 5 600 3 1 803,700 12 7 804,300 15 8 893,085 17 1 1865-6 48,035 11 1 28,992 U <) 77,628 2 10 2,524 10 0 417,374 5 3 419,899 1 9 497,527 4 7 1866-7 34.132 7 6 114.390 9 7 148,022 17 1 044 19 0 235,990 11 2 236,041 10 2 385,164 7 3 1867-8 24,310 3 0 23.217 4 10 47,533 8 4 486,234 6 3 486,234 6 3 533,767 14 7 1868-9 33,123 13 10 227,417 9 2 265,641 3 0 80,967 1 0 80,967 1 0 340,508 4 0 1869-70 39,485 18 9 305,962 11 7 345,448 10 4 19,001 11 7 19,001 11 7 364,450 1 11 1870-71 61,658 12 7 88,684 6 7 140,342 19 2 230 0 0 173,097 14 10 173,327 U 10 313,670 14 0 1871-2 48,643 19 3 40,070 14 7 88.714 13 10 49,434 6 6 160,000 0 0 209,434 0 6 298,149 0 4 1872-3 ■54,581 4 4 30,657 10 6 91,138 14 0 00,667 5 7 101,650 7 7 222,317 13 2 313,456 ■7 11 1873-4 63.170 3 G 25,873 0 4 79,043 3 10 91,385 14 7 166,735 8 0 258,121 2 7 337,164 6 5 Totals £773,831 12 4 £988,132 12 4 £1,701,904 4 £357,839 18 5 £3,850,023 16 7 £4,208,403 14 0 £5,870,427 18 8

End ol current year. Balance at end of year. Treasury Bills and Deficiency Bills issued in aid of Revenue during the Year. Treasury Bills & Deficiency Bills. Dr. Cr. Paid off. Outstanding. £ £ £ £ £ 18C3-9 - 76,000 150,000 10GD-70 76,774 150,000 58S.000 1870-1 76,000 8,000 680,000 1871-2 90,700 100,000 *710.000 1872-3 2,159 145,000 665,000 1873-4 207,000 05,000 500,000 1874-5 too,000 + 100,000 •100,000

B Total Value of Imports, Value of Consumable Articles. Value of NonConsumable Articles. £ £ £ 1807 5,344,007 4,178,515 1,160,002 1808 4,985,748 3,719,048 1,208,100 1809 4,076,120 3,901,378 1,074,748 1870 4,039,015 3,479.805 1,159,210 1871 4,078,193 3,081,525 990,COS . 1872 5,142,951 * 3,701.071 1,441,280 1873 0,464,687 4,330,520 2,125,158

Exports Victoria New South Wales New Zealand Average Value Hate Average Value Rate per Head Average Value Rate per Head Gold .. £ 5,448,686 £ s. 7 13 d. 0 £ 386,031 £s. d. 0 15 8 £ 2,373,643 £ s. d. 9 15 5 Wool .. 3,853,432 5 S 0 2,930.966 5 17 2 1,719,399 6 2 0 Agricultural 1 Produce j 109,408 0 3 1 198,847 0 8 1 150,029 0 11 10 Timber 4,631 0 0 1 23,296 0 11 20,045 0 17 Flax .. 03,372 0 4 11 Totals .. £9,416,157 £13 4 11 £3,544,140 £7 2 0 £4,326,488 £16 16 3

.•d % § *3 k» a § Amount per Hoad of. Total D< Colonial Provinc P'c'53 § 1 o* £h Gross Debt. Annual Charge. (§ Yr. ending Dec. 31,70 £ £ s. A. £ a. d. £ s. d. 7,841,819 7,384,505 248,400 31 11 4J 2 0 5 3 IS 11 Jne 30, 74 £ 14,411,730 12,500,000 t 30S,000 ■13 10 10| 2 10 6 4 12 2J