FINANCIAL STATEMENT.

New Zealand Times, Volume XXXII, Issue 5123, 24 August 1877, Page 6

FINANCIAL STATEMENT.

The House went into Committee of Supply, and

The Hon. Major ATKINSON delivered the

Financial Statement as follows :

Hr. O’Rorke, —It is true, as is generally bei lieved, that we have reached that point in our ' scheme of Public "Works and Immigration ■ when the revenue is suffering to the greatest extent possible from the large unproductive expenditure upon: railways in course of ; .construction. It is also true that there

■is abroad a considerable feeling of unn.easiness, amounting in some quarters to anxiety, arising from the belief that the services of the year cannot be satisfactorily provided for except by the imposition of increased > taxation. I have therefore, knowing the strong ■ desire for early information upon this important subject, taken the first opportunity afforded by the ■ rules of the House to place before the Committee the financial policy of the Government. I trust the Committee will ; approve, of the course I have taken, in this matter, and that honorable members will believe that in submitting for their consideration the statement and proposals which I am about to make I am fully conscious of the magnitude ■ and responsibilities of the trust'which tins House has seen fit to repose in me; and I hope • : that, looking at the very exceptional circumstances against which the Government, have had to contend, the Committee will extend to mo its consideration and indulgence. -I shall,'sir, to-night endeavor to' direct * the attention of the Committee, to the broad features of our finance, avoiding as far as possible ! all mere details, which'honorable members will find very fully set out in the usual returns and tables which will be in their hands immediately. I propose, as on previous occasions, to consider, first, the Loans and Public Works Account, and then our Expenditure and Revenue. . LOANS. —PUBLIC WORKS " ACCOUNT.. 1 The Public Works Account, as honorable ’ members are aware, consists of the balance of the General Purposes Loan, the Immigration and Public Works Loans of 1370, 1873, and 1874, certain contributions from the Canter- ' bury Land Eund and the Confiscated Lands, £750,000 of the New Zealand Loan of 1876, and of one moiety of the Stamp Dulies collected up to 31st December, 1876. Put before considering this account, it is desirable that I should .slate shortly what action has been taken under the New Zealand Loan Act, 1.876. That Act gave, authority to raise .£1,000,000 for the following purposes:— £350,000 additional Ways and Means required for Public Works to the 30th of June last ; £400,000 for such expenditure as the • House might direct between the close of last year and the date at which further! funds could be provided during this session for the continuance of our Public Works; and , £250,000 to provide for probable contracts, and other liabilities of the .Provinces requiring to be met before the end of the financial year. ■ ; When authority was asked to. raise this£l,ooo,ooo, I stated that we had grounds for . believing .that we could get the money in the colonies, and that if this should prove to’be the case we should gladly avoid going upon the London market for another year at least. ; Our expectations in this respect were realised, • and .we have succeeded in obtaining the required amount upon the following terms:— Prom the Bank of New South Wales, my colleague,. Mr. G. McLean, obtained an advance • of £500,000, secured upon short-dated debentures, bearing 5 per cent.-interest; payable half-yearly in Wellington, and one half per cent, commission. The principal is repayable in London in three equal instalments, at inter- ' vals of one month ;' the first instalment falls due on Ist December, 1878. Prom the Bank of NewM Zealand we . have also obtained - £500,000,-- secured upon short-dated. deben- ■' tures, bearing five per cent, interest, payable half-yearly in Wellington. The principal is repayable id'London upon the 15th February, 1879- We have also entered into a further arrangement with the Bank of Ne w Zealand - by which, under the bank agreement, ave,can obtain an advance of £400,000 upon femittable securities, instead of £300,000,- making the total advance we are entitled to under that arrangement £500,000, and fixing the 15th February, 1879, for the repayment of all suck advances. I shall presently explain the object of this arrangement. Papers, relating to these transactions will be laid upon the table. ‘ ' ' ; The House during the last session’made very liberal provision for Immigration and Public Works, the total sum voted for these services beihg £2,032,286 6a. 3d. Of this large sum £1,480,617 19s. 2d. has been actually expended; the balance being £551,668 7s. Id., which represents ■ a saving to that amount ■ upon the year’s expenditure. The Committee will remember, that in asking for these votes, I said 1 regretted having to ask for so large a sum, and that my honorable friend the Minister for • Public Works would : restrain the’Expenditure as far as was compatible with prudence. That is, we pledged ourselves to the House to . reduce the expenditure under these votes, if in our .opinion it.could be done without injury to the Public Service. I wish.to call the attention of the Committee to this fact, because the Government have been very unjustly blamed for not' having expended the whole of each vote. If any particular district has been unfairly neglected the Government are clearly blameable.' But, sir, I have no doubt my honorable friend the Minister for Public Works will be able to give a good reason, to the satisfaction of the House, . not only for what has been done, but.also for what has been left undone. If .1 . understand the feeling of the House upon this point,, it was this; that the works were to be steadily pushed forward as rapidly as might be, hut always bearing in mind that our expenditure must be largely reduced and brought within more manageable limits. , ■ ■ I will how state the position of the Public Works Account, as a whole, on the 30th June last. ' Public Works Account. Ways and Means.

■ £11,840,020 17 7 From this it appears that the unexpended balance is £980,189 18s. Id., but of this sum £045,957 will be required for works ’ already under contract or authorised. My colleague, the Minister for Public Works, will/ submit estimates in detail of the ■ work -which it is proposed to continue and to enter upon; and it will be for the House to consider how far it is desirable to sanction them. We propose to ask for appropriations to the extent of about £1,274,676. If the committee should see fit to grant this amount, additional Ways and Means will be required for the year of £940,443 6s. lid.

The Imperial Guaranteed Debentures have been used during the ; year as security I for advances made from time to time by the Bank of England. I propose to /continue to : use them iii this way, as we are thereby enabled to keep a - working balance always in hand, regulating, it according to our requirements, and thereby saving 1 interest; and I shall presently submit to the Committee proposals which will enable us to adopt that course. It will he remembered that power was given in the Appropriation Act of last year to make advances, to the amount of £IIO,OOO, to the Provincial Districts of Auckland, Wellington, and Westland, and tor obtain the required funds by the issue of Treasury hills to that amount. These hills have been issued and the proceeds applied as authorised. , Of the New Zealand Loan, 1876, £850,000 was set apart to meet Provincial Liabilities coming in for payment between Ist January and 30th June, 1877. The sums transferred from the loan to the several Provincial Liabilities Accounts to provide for these charges amounted on the 30th June to - £237,500 . leaving an available balance of £12,500 (subject to the cost of raising the loan) to meet liabilities yet outstanding.. The actual receipts and payments on account of Provincial Liabilities .up to the 30th June were as follows : : - i '

Particulars of, the receipts and expenditure pn’ each account, as classified by the Provincial Auditors, will he laid .before, you, so sopn'as they shall have been received. , v ; ’ The expenditure on these accounts will include certain disbursements which, except in so far as they may have been sanctioned by. sections 16 and 35 of the ■ Financial Arrange-' ments Act, must he held to, be unauthorised, and as it has been .thought proper to include under that head the-amount/ disbursed is compensation to Provincial officers whose aer- - . vices have been dispensed with, instead of charging it on the Consolidated Revenue. In many instances, payment .of compensation on dismissal was a liability of the Provincial Government, fixed by agreement with, the officer concerned, and .in all cases it must he admitted, that the compensation paid was a recognition of services'rendered, .to .the Provincial Governments, and was, properly a Provincial liability. In that shape the expenditure will he submitted, and,the House will be asked to cover it by a vote.,,, ■ . . ... i ; I propose to lay before the Committee esti-. mates of the Provincial liabilities yet to he provided for, and to include therein the amount' of such appropriations for necessary works as jet remain unexercised,; and which would otherwise lapse. The Government considers that it is due to the districts in ..which these works were proposed to /be . executed that the matter should be submitted to the - House, and that it should he asked to determine to what extent, and in what instances, these un-, exercised appropriations should be, renewed. ; Amonst the liabilities yet outstanding, will be found the hank overdrafts, of the late Provincial Governments of Taranaki, Wellington," Westland, and Otago., These, overdrafts amount in the whole to £106,269 3s. ,7d. ( ; and though they remain undischarged.they have heen.sub-, ject to no charge for interest since, the 15th February, the Government having,, arranged with the bank oh that date to forego, interest on a corresponding portion of , the balance at credit of the Public Account. , ; , | , “ DEFENCE LOAN. ! The balance to the: credit, of this- loan on the 30th June last was £-35,416 18s. 9d. after providing for the service'the House placed upon -it-* last-year- - We propose to -ask-for-an appropriation of, £12,000. thisyear for roads in native districts. ."(, . ‘ .. . . „ i . " TOTAL PUBLIC-DEBT, INCLUDING TREASURY * BILLS. ’ ■; Before concluding /this part of my subject, the Committee will;- perhaps, allow me to say a few words about-our. Public' Debt.- : • The gross Public Debt of the Colony, General And Provincial, including Treasury bills, when the balances of all loans now authorised are raised, will he £20,895,311.: -As against this debt, we had a balance of £980,189 13s. Id. at credit of the Public Works‘Account on ‘3oth June, £35(416 18s. 9d. at credit of the Defence Loan: Account, and accrued Sinking Funds amounting to £1,353,562 2s. lOd, /‘ Our total revenue last year was £3,061,594' 144. 6d., and—excluding land 5a1e5—£3,171,059 155., that 1 is, after setting apart' that portion of our income derived from the sale of, land, which in most colonies is’called revenue, onr, net public debt is eight and a half times bur revenue; or, if we include our income from land sales, our public debt is. equal to six "times oui'revenue, while the public debt of Great Britain is more, than ten times the amount of, her revenue. This seems to me a far fairer/why of comparing our indebtedness than' at so much per head of the population; It should, moreover, he reihemhered that the public debt of England has been incurred for war purposes, while that of New Zealand has mainly been" incurred for reproductive works. ; :

It may, perhaps, he interesting to state the purposes , for which the se’veral loans, General and Provincial, which constitute our national debt, have heen raised, and the amount applied to, each. I have ascertained, 1 by an examina-; tioh of the several Loan Acts,‘ that those piir- 1 poses and amounts may be classified thus s About £8,300,000 has been spent upon railways; £3,500,000 oh immigration;'£4,4oo,ooo on harbors, lighthouses,'public buildings, roads, bridges, and other public works for opening up the country; £1,300,000 .in, the purchase;of Native lands, including . the. payment ' of the debt to the New Zealand Company; £2,000,000 in the suppression of the Native.outbreak; and the remaining £500,000 on miscellaneous purposes. . ' CONSOLIDATED FUND. r I will now invite the attention of the Committee to the Expenditure and Revenue of the past year. f • Expenditure of the Year 1876 : 77. ; ( The expenditure "for" the year, as finally authorised by Parliament, exclusive of that for Railways, to which I shall refep presently, amounted to £1,858,467 2s. The actual expenditure made was £1,681,682 17s. lid., 1 as will be seen by the following table

It will bo aeon that, in one case only hive the appropriations been exceeded, and.l am confident the House will approve of that excess when I state that it has arisen on .the-item Native Schools. The net total savings on the votes of the year amount to £194,084 Is. lOd. Included in this total, and; under the head of Interest and Sinking -Fund,; there is an unexpended balance- of £73,323 6s. Bd., iowin-g partly to an actual saving of interest in the case of the guaranteed .debentures, and- partly to my having estimated for a year’s interest on the £1,250,000 negotiated at this time last year, whereas we have had to provide only for a half-yearly payment. There was some im-

certainty as to the precise date", from which interest would he payable, and I! thought it best to provide for a whole year. • Apart, however,, from.this item, in respect to which ahputione half o| the saving • represents, rather a necessarily excessive estimate than.a diminished ex--(penditure, the Committee will; no doubt;regard with satisfaction the large sayings, . to £123,566 17b. 4d„ which Kaye been made in i the other classes of expenditure.!' /Particulars .of the amount appropriated and of; (the expenditure made under each vote will be found in; the Table D, and it will he; seen that in almost (every instance, the Government has been able, •to effect a 1 saving oh the sum, voted.;’ ’/ 1 The amalgamation of the Armed Constabu--. (lary. with, the (Police Forfce of the Colony has.enabled a 'considerahle reduction to be(made. ■in the cost of those services,; hut,‘owing; to the necessity of paying , a bonus to the men dis-* charged, the saving for the six months amounts. only to about £10,000.; ’ T ‘ . ’ ' 1 j / ■ With' reference ’to (the Railways, I need, 'scarcely say that our Estimates, both of expen- ’ diture.. and- revenue, were-necessarily contim, gent on the progress of construction, and for - this reason ! omit’the item in my comparisons of , the estimated with the actual expenditure and -.revenue. , Owing .to certain, extensions i of . the'lines not being opened .foritraffic.sb qajrly as was anticipated, there 'has. been a.diminu-; tion, as compared with pur .estimates,; both! in., the expenditure and.in the revenue..; I.qalcu-; late en obtaining ,a profit of £34,000, estimating the receipts at £345,000, and the expendi, turn.at £260,758 6s. Bd.„,.The. actual.receipts. were £316,220 7s. 3d., the expenditure £228,295 19s. lOd.; and the net "profit, £87,924 7s. 6d. The Steady progress which this item of bur income exhibits,Js a circumstance on which the, Colony may well congratulate itself. ! Revenue "of the Year 1876-77. : 1 I now'come; to the Consolidated Revenue for the year 1876-77.' I’estimated' in my last 1 year’s. Statement, that, after taking credit for realisable 1 assets amounting to £19j228' 15s.‘ 2d., and deducting outstanding liabilities amounting to £90,410 125.; 2d., jye shquld ( l?egin the financial year "-1870-7.7 1 , with 1 ,.* i,'. ‘surplus) of, £50,052 16s( ; 2d.; the •'assets 'have realised ■ £27,083-ss. sdi, and the liahllities have' turned 'but to be £87,290 15s. 2d., so ! that t(>e real surplus with "which we" began' the, year was ■ £61,027.35. sd, ~ , r ;rr The table/which s I now submit sets forth,., under" classified heads, 1 the Revenue' of the year 1876-77, estimated and actual:— :•

It will be necessary rforgmeCUo trouble the" Committee with - a few - remarks - upon ;one or. two items of revenue as' shoWn • in thef table/ As compared with - the sum estimated,’ the ’ Customs Kevenue 1 stows-’ 'a-deficiency of £40,621 ; but looking to the disturbance of trade throughout the world/ aid tb-’the' uncei--, tainty l of the 'wool the 1 ipast 1 year,-the Government,' and probably the also, were prepared to find the decrease larger. The decrease in the Postal l Be venue is only apparent; postages'to the amount of £15,923, yet to be received : froin the 'lmperial and the’ • Australian 1 • Governments -On account-, of J tlfe, past-year,; will-‘ultimately;’ Convert- 1 this -defi-' cieiicy into ah excess of £6471/ 11 • - f : The item- Incidental Receipts also appears considerably' short of the Estimate; The re-ceipts'under-this head arb 'of a somewhat uncertain character; and it is 'difficult toesti-’ mate'-them 1 with- more than-'ah approach to accuracy.' - 1 ‘ " .' ' ■'* - As regards the item Miscellaneous Provincial Revenue 1 estimated'to yield £13,333 —but as to which'the actual receipts are set down as nil—l may State .that, under ffihe , legislation pf last session, most'of the sums‘which, itfwas estimated to receive under that head -'were made over and have been paid to the various Ideal bodies,' while the remainder, have/beenpassed to, credit/of the several Trbvihcial I^ia- - bihties Accounts./ ‘ ~,,.'/■'//,//’/ i ' To'the, sum-of £1,614,582 lbs.’ 3d, ahoye' rei ferred to, I add, first, the, profits on the. Railways, as already stated/ £87,92,4 7s. ,5d.;/ the £IO,OOO tnmsferred from "the State I 'Forests' Account; the , 2 ,per. cent recovered from the l Laud Fund under the Financial ArrangementsAct, amounting to £71,997,85. j§,d.;, the surplus' with which we began’thp year), £(51,027 3s. 5d.; .and. the assets yet .‘to .realise//£3i5,717 185..3d. ! This makes -up. a total of 4)1,882,249 Bs. ■ »• The total Revenue for the year,’as' esti-' mated, amounted, to £2,14.8,902, 165. ; 2d., or; exclusive of/Railways, to £],,801,902 16s. 2d.,' to which m,ust be added the estimated profit on the Railways,£B4,244- 13s, ,-4d.,/ making, as estimated receipts for the year,.',a sum pt £1,880,141- 95.!,6d., while‘the actual receipts were £1,882,249 Bs., being £3895 Is. 6d. less" than the amount estimated gr-fiif 02 ! ~The, .transactions. of ...theJ.past year, may be shortly summarised thus > the actual expenditure, including’’liabilities,!Was £2,024,572 ?s. Bd. ; the actual revenue, including realisable assets, was £2,172,792 14s. Id. Subtracting the expenditure from ther revenue, we. j have a balance of . £148;220 Bs. r 3d., jwhich is the surplus with which we begin,the year 1877-78. , 1 subjoin a statement of the Consolidated and Laud Revenue (exclusive of Goldfields 1 Revenue) received-during the eight -years ’commencing 1869-70; and I have combined this information in one table in order to remove the misconception 1 which exists outside the Colony as to the amount of our. income.

In concluding ray remarks upon the Revenue,'! lay before the Committee a table showing ;the. Consolidated Revenue of ,the year 1876-77 (excluding Laud Revenue) as'compared with that of-1875-76 : —,, ~r„, !

It will bo perceived that, as compared .with the previous year, the falling off in the Customs Revenue was but small;; that, with three exceptions, therg was an increase in every other item ; and that, notwithstanding the decrease on the items referred to, the revenue of

the .Consolidated Fund,, including 1 the Kevenue. assets ofthe year outstanding, shows an increase,of ,£238,276 6s. 2d-,: as compared- with the,year.preceding. , , ,<

- .- . i The receipts of Land Fund for last year (exclusive of G-old Duty) were £1,039,242 As. Bd., or £419,003 15s. Sd. more than; the „ average, for, the ( pr.eoeding seven years. -Sincethe Ist January," ( when the - Financial • Arrangements Act, came into force, the -receipt?; haye-been £541,454 6s. 9d.,; the estimate was, £322,610, so'.thatithe estimate was exceeded by £221,884; "hut I; regret- to say, that",although, .there is; a tvery large.-increase on the, whole,,, the .deficiency is larger , than was provided for by the Financial Arrangements Act. , The;sales" in, Canterbury-.show, an, enormous excess, while thosje sales ,in: Auckland; j Taranaki, Hawke’s Bay," ;Nelson, and Otago, have proved to be : less by £83,0.00' than ' the , sum; estimated. ;In consequence of this, the whole of the Treasury, bills, authorised under , the, Financial Arrangements Act, amounting to .£150,000, have been Issued, and an/additional sum ,of £5.3,005.195. 9d. has :had to be .adyanpedifrom the Oonsolidated Fund in aid; of , the Land Fund.

... THE .POBIIO-TODST,,FOND.. , ) ... The business dope;,Try the Post; Office Savings Bank has been satisfactory,; the number of i depositors Increasing yearly., The. opera-; tions of. the calendar year are, fully set forth) in, the annual;return already in the hands of the Committee;- -;On the" 30th June- last (the total •deposits,.;amounted ,to , £720;120 ,9s. . 4., (as, jagainst £715j693 10s. 3d. 0n,.30th June, 1876.... With regard to the: Government Insurance,: Account, as I fpropose to bring in a Bill to establish; a Board of Management .instead )of, leaving ! the direction in the hands of - a Com-, miasiouer, I ,naed not; now trouble the.Gom- , mittee, with > any remarks - except to say, that 1 the year's .transactions;; huveo been -JttfiSfe satis--factory. and reflect great,;credit upon all con--neotedwiththe, department.;; , aj • , The' rest of the Trust Funds do not require to./he-specially brought nnder;the notice ;of the .Committee! -ad;! .- ;/ j ...

■ , Expenditure'Fern the .Year: 1877-78.' : ■ I now .coine to the, consideration- of the Ex-, Ipenditurelfor the,present financial' year. vWe. have,.; through. am:dgamatic>n.jand,:simpl|ficar tiou,!reduced the -cost, ofx most of the ;dopart--1 meats;- although.in many cases the. work has nearly-. doubled. : Iregret-to.aay, it has been found, -impossible to do:more:ih-; this direction -than-hae-been done," owing to :want;of time fn cpnsequbnee,.<of the-enormous, amount of whieh.'has -fallen .upon thp,, Government, through I the constitutional , changes; whjoh,- it haa ' hepn iQUr-bneshess ,to inaugurate! during-the, recess.; j ~ ... ~ ...BsTiMATib.Expbxditube,'’,lß.77-78. ; ! ~

iConspUdated-Pund— ■?. ~' i • Civil List' .. £29,750 0; O’ Permanent Charges. ,£1;151,137 10 7 ( . j •' Less'interest'charg- u .x’!' .< «.> = ■.. • i /-• . . able on land (und .; ~363,380 . 4 3.. ; ; —, ’787,757 5 {ll Class ; *X—Public Departments ‘. 105,144 2i 0 i and Justice 137,535 13 11: ~ : Hl;—Postal and Telegraphic 230,910 0!0 „ , IV.—Customs .. ... > ,76,711 1; 6, , V,—Education * * »»'■ '135,000 0! 0 Yl._Native d32;463 19!7 ‘ VIIL .and. Co- . . / i tingohtDefence ... ... 138,625 10 < 0 j " XI. I —Public and 1 ■ -j v - 1 Buildings‘i’.. 1 :J ... .. v28,131...4 (Ox . ,• ,X.—Always 1 ... •*.. r 434,143 ,0 I 0,. i •'*XlL—Counties, Boroughs, and J < ■,.! t 'Eoidßdafda v. 130,000 0 i 0 .TotalElqienditTO.Consolidatedfund £2,394,540 12 19- •" GoinUeveniie— '■ " , ‘ | ' Amount payable to Natives .. -4,500 0 !0 ; : Amount'oayable r? .to \ Counties andi • V<' . : 1} o Boroughs j * r 0 !0 V Goldfields ‘ ■*’*£72,ooo 0 -0 -‘BaM * • j !■<>-'• -s:-• : ; Crown Lands Department . '>V., r< .22*348 13 jQ, .Surveys.- •• •r* •■■ • • ■>• 160,.009 3t4 Miscellaneous ’ .. 16,150, 0 |0 Grants to Counties, Road and River 1 ,m 'Boards.. 1 !: Iu ''Bo,ooo. 0 Jo' ; 'lnterestSinking. , , • f ; . Purid bn Provincial > and Permanent debts £193.220 4 8 i ’ llnterestat-2.perlcent. • . ,i.- -,.j ... ;i. i.v, onamountexpendod ; i t ( on.Railwaya . 171,420 ,0 0 r . ' t .f v . > '564,640 4 !8’

Total Expenditure,-Land Fund-'.. £643,208 0 10

Total ExpendUiiro,-. 1877-78 '. i £3;109,754 12 -9 The increase - in -e the Permanent Charges arises from Your ha.ving'borroyeaymoreihonqy' during tlic year, arid from the’transference of the Cbst 1 of 1 ithe' Canterbury dud Otago- Proved-, dial Railways, which have: been s taken over by; the' Colony,'from the Xiarid Fund l of'those disfricts tO'-the'Consolidated Find.' ul.' ;

' the head hf" Class I.—Public 'Dp-',. partm'ents,”''a sum'of 1 £89}009 Uses 'vided 1 for Hospitals 'and Charitable "Aid. n This ia'to pWvide thtf subsidies which-will probablji be "payable under l the OhaHtable'lnstitutions ' Act;-'I’ 1 < I ,; ths(y f also'; say ‘ that I' shalh'jwk l Ipr authority tff'deduct 'from' the'subsidies'granted to Counties, f> Boroughs,' and 'Rbad' Boards; |a_ sufficient "'aumrtb' maintain Hospitals ahd'Gha- ;: ritable r Aid ih”districts’ wherethe Charitable 'lnstitutions' Act • is ’ ! Sulhcient.' !r, ' , '' f h‘ l ‘''.-‘ r fi’w ' .-!i» yHo.d.- , L ’< H Thh'HoUse hilfi already been inforrbedihy my" honorable <' Colleague', the 1 Minister' for? Jußticie, r ithat 1 it’iS but ■'•purpose t'o prqvide'hut bf'the' 1 'Consolidated ; Blind j fot- the i of Educp-, tion asnm of £135,000; r which 'araouht,;togethfer "with • the rate, the rents of reserves, ■ and 1 'of mtfie*"Education',’ BbardSy estimated to l yield £45,080 ih ! Ml,'■will,' 'itis ! bdlieV ed; <' be a Sufficient !pro Vision' for the ; year’s 1 Olitlay."-' ’h" ! h'-e-".’ Uhov diui.v ioJ [ By the amalgamation' ’of the Police and Armed ’Constabulary ( a .saying, 9/ J a ’year has ijeen ; but I regret to' say. that a; large increase, amounting to, £1.0,989 ()s., 4d., has°beeii found necessary in the'-vote for', Militia This,'however, iis chiefly oil account,of, stores, and ammunition, wliioil 1 have become, very lowland musthe replenished, hnd for .capitation provided I‘fer |.a; larger number of Volunteers;, ’ v; .. j The diarge for SurveysriS,yary large, but," as hqn. members know, the. Purveys are 1 ini a backwarjl condition districts,- Jjhe control Is. holy'thqhahds ]of a thoroughly competent and'fecdnomical officer, and Pane siire 'the jldngiud^ingly. sanction! whatever expenditure may be r,e'-' quired foroso important fan'object as placing our upon a-proper!footing! fer fqturh, iandj keeping' themgeyen. iyith the requirements of settlement.,,.' r. ,*■ ,i>- j . .Itswill be observed'that,'so/far, I have relieved! the':'Land Bnnd;*ftqm;!%n;', tlje .'diwict charges. to, which for' ; years,; past ft! .hap been, subject,"except interest. onf.Provinoial Debts, the c&sthf !Land 'Administration and } Surveys, and the aubsidies to RoM Boards.! " : | !! ii r‘y 'Wats.andV!! J"!,, As* EhaVe just shewn,’!we have to provide for ah aggregate expenditure of £31109,754 12s. 9d. far the-year. 0f,itbi5.£2,894, 646 12s 9d, is chargeable upon the Consolidated Bund; bn the Gold 'Revenrfe, ! ;;£72;opPlJ!:hhd , £643,2()B, Upon’the Lhhd Euhd, ,h'eihg; ( snfch charges only as each fund should support." ;Now, if all the, charges'fplaoed- upon; the ;, liand| , Eund Of each district could bh recovered/ ;*thq Consolidated Eund would be in a position to bear jtMegitimate burdens' Without difficulty .vi As . a .matter jof fact,'however, I-do not think tliat moro than £56q,08'0 of that sum tyillkbti re-, coverable,;.the, Land' Bundlin' certain, ,districts being insufficient to 1, me’et ' ity liabilities. o It will .therefore be- nec6ssaryjejther . to,supplement the Consolidated Revenue, or ;to , relieve it of some of the charges I have pro-. posed| ft! shall bear. I dismiss, sir/ as alto- 1 getbejr undesirable, the plan,of .'charging,' suchservices; as. Police and Education ■ upon the Land Bund-of those districts which aye ’able ,tp'. beaythlpm!- They,are, charges hyhiolj, in the Opinion of, the! Government, ishould,, be borne| upon* the Consolidated Bund, 1 aided, if ' beeps-' sary.'hy!lqbal rates..• lf/the!Committee agree withomo that ft ’would be unwise to charge against'the " Land Bund any ojfythe. serviced I have'pi’dposed to place upon’thb Cohsqlidaijed! Bund, it follows that the .'only ppenjtp ns is) to increase that fund'up'to'our.requiremeats, ' I Say that it fellows' that for the present "year in the onlyhbufsehpen to iis, because I h?ve!! satisfied', 1 , myself Wjit t -|it is impossible So to. reduce departmental oxpen li-/ ture *W > t6‘ bring our expenditure' within cur inoome unless we are prepared to relinqu ah; some of the luxuries we enjoy in’ tbe.way of Telegraphs,' Postal Services, and Resident Magistracies, which are Spread broadcast over the laud, and which, as far aS my experience goes, it is hopeless to attempt to reduce.

I take it for granted, then; that we must, .at any rate.,’temporarily,, aid the Consolidated .Fund, and the; question is, How. is this to be done ? I know, air, that many persona whose opinions are : entitled to great weight,. , from their position and their,knowledge of;the Co-, lony and, its requirements, think that the time has arrived for levying a Property,and Income Tax; and, if we were now in a position to deal with the question of the re-adjustment of taxation, much, might be said .in support of such, a tax. -For my own part I am very loth to -open the question;of,taxation at present, pur liabilities being what they are, the .subject of taxation is not lightly to be touched. It is one which requires,!the most, careful thought —it must be considered, as a whole, and it would;be quite impossible to deal with it satisfactorily; during the present, session. When our Trunk Hallways are approaching completion, when we have time to consolidate and settle down, and;are able to determine our real requirements, then the whole; incidence of tax- , ation must bo considered ; but to deal with it now; in a fragmentary way, would, I’think, be a serious mistake. . , ~ ... . i

For-the reasons, just stated, and because we think.our requirements,for the year can be ,met in a way , which will bo far, more satisfactory; to the country, and which is fair' and reasonable, I shall not propose additional taxation this year. ~ And I venture, :l to "hope .that additional taxation may he altogether avoided if.we obtain from our. railways .that income which seems now, assured, and if we are successful in,the Inscription,of, our.Stopk. ‘ , But, hpre; siy, it is necessary that I should recall the attention, of .honorable: members to twq principles,which have been clearly .recog,-, nised as underlying all our legislation relating; to Waste. Lands,.:»nd. to Immigration and Public Works. These two„ . principles; , are— First, That the .Land Fund shall be localised ;; second, .that the cost,; pf; Immigration, .Hoads, and.llailways is a,..proper charge ;,agaipst .the, Land Fund. ■ These principles, have . been con-, stantly ( recognised,j Aud.though -,it is.. true rth'ati.they ! ,haye hot bean. (Continuously acted, .upon, yet the recognition of, them crops up in ,our legislation,at airport .every.turn. I By the Provincial, Governments , and,. Legislatures, which have hitherto had the practical "control of,,the Land Revenue, the,.second of these principles has always been acted upon ; but in this .House expenditure,- upon; /Immigration, Hoads, and Hallways has been, from time to time, charged against the. Consolidated ;Fund, as that fund,has, been '.fpqhd able to, bear, it ; , but these two important principles have never •been abandoned, or-lost sight of, by, Parliament ,or the .ppputry.r.,.,, .. . ; . With reference to the localisation of the Land 'Fund,' it is necessary that we, should ; distinotly)defihe in onf own minds- the meaning of the term,'. , The , meaning,-, sir, which I attach., to .’the term localisation of the; Land Fund, is'that themqheyFrwelved for the sale of the Crown,, lands within a defined district should ‘he, spent, in, .opening ,up and peopling ' Ihat .district. -V-' ‘ ,' lam hotsir, now going into the question of whatis)a district : that would . open up far too-wide a" field altogether. For the purposes of my argument, ! shall accept the districts as they are ; Although,) it should, ; be noted; that Parliament,has', .fdvptys claimed' and. exercised ‘the‘right of) altering .the, boundaries of these di^Q^.{rpm r Most,honorable members, will go with' 'me' so • far,—at any :faj;e thoae vvill who. like myaelf, think,that.the proceedsVof the land should , be, applied ( to)the land, —that thp'se, who pay the, most. should' receive 1 the greatest facilities ( fof occupation, and that to treat’ Land ■.Fnnd , as ordinary ‘revenue is thoroughly) bad in principle. .Some few will probably desire to go : even, further,, but,sir,' fUrthef thanthis in Ipoalisatibn I, am. not prepared to go,'for when the money has .been spent in opening aridpeppMrig.tlre))distriet the, object' of ,’locailsatipn is ,'aqcomplished,; ohr duty to,-the land .is, fulfilled,, and; there, -in -my opinion, 'localisationends. . t '„ Fj.',', 1

Holdiugj.tHen,as I do,the opinion, that with the'proceeds.of the land it'is the, duty of the State to open and settle the Hand, it seems to me not 'only no violation -of the principle of localisation, but, merely an, extension of it, to say, that if the State, finds the money.beforehand , for. these purposes, such an expenditure should .be made a, charge against, the .Land , Fund, ‘ and - that 1 itT is in accordance with the principle ,of localisation to charge against the Land Fund' breach' district any sum not exceeding the amount expended, within that districtin' ariy "way!which Parliament may'deter’mineis the most cohyenient.j j " ' .Now, there has been'raised for Railways and Immigration - a sum, in ( round numbers, of £9,500,000,' the whole of. which is fairly- a liability of the Land. Fund,. The annual charge ,'on this' sum, for Interest and. Sinking! Fund is about £485;000. Out"'o£, this .sum there. hud been ',expended, up' tb V the , Slst, p'ecember,, 1876, the day on which'! the,-accounts of the late provinces were' closed, .iti, -net ,sumi of '£7,188!245 ; and theColoriy had paid interest thereon to 1 the amount of ,£§25!482, but has’, only recovered from'the Provinces £100,343: so that, in aid dfLa,nd,Fund, the Consolidated Fund has actually paid £655,139. '..!;" j " ' It 'will be seen ' that' the .advantages which the Land Fund has pnjoyed been, great though hot proportionate! but into that, question', I, do not how propose to go. , 1,-have shown thV extent to .which the' Consolidated Fund has been burdened by! the payment of Interest/and/ Sinking I ,Fund bn / moneys,/ex-\ ’pended 1 in performing the'!work’ for which the ■ Land Fund was localised,'viz., the opening up- . arid settlement 1 , of the country,' and, applying the arguments I have just used, I, shall ask the House to'feYaffirm the' prihcipVo that moneys expended bn these, purposes/are..properly chargeable.upon the Land Fund., ‘ ,We recog-, nise that'at thp present,moment' the refund of these - charges!’iri,beyond; tli'e injihediate power,’ of the less wealthy districts!;' .but,, as respects the Provincial'! Districts of Canterbury Otago, no such argument can be urged, and, ye propose'to charge.the Land Fund of Canterbury with li sum 6fi'£s?,opo, and that of Otago with a'sum 0f,,£109,000, , being in, each/oase, one moiety 'of the 'amount by" which the Laud Fimd of '.those -districts has . been aided. With the exception, of a small permanent ;deljt, the'charge of : 2 per .cent, for Railways, the subsidies payable to Counties arid Road Boards, and the .coat of Survey and, Administration, the Land Revenue, of Canterbury da absolutely free. And, in view of.the.fact.that a sum of £250,000 of surplus. Land Fund has been distributed within,the district during the past six months, and that a further sum of £IOO,OOO is now ready for distribution, we propose to deduct her contribution from the sum in hand. ' The case of Otago is somewhat different. The district * has . a very , large estate, though it is burdened now with leases just expiring, and. which it would bb a,waste of public" money to . cancel. We , propose! therefore, to raise the amount required to meet its contribution, together with! the sum of £36,000' advanced last, year in aid bfithe! District Land F : und, .treating. the ,dej?t ; as' a provincial liability, and making the Interest-, and Sinking. Fund, a permanent chayge .upon, its future Land Fund. . The whole Laud Fimd, of the Otago District for, the .year will then be free, excepting,only the, 2 per cent, under .the, Financial Arrangements Act,; the interest on, its Provincial Debentures,: the cost of Surveys, arid Laud Administration. , ,

JCaL piUUUVD M ,yii. KiiW ow.k**. *'• £170,000. , .: Customs .. .. £1,226,000 0 0 Stamp Duties .. 1 • - 124,000 .0 0 ’Postal ; 1 * - : ' *107,000 0 0 Telegraphic. •• ■ ... • 70,000 00. Judicial . ... .. .. . 43,000 0 0 Native Lands Courts—Fees, &c. .. 10,000 0 0 Fees—Registration of Land •• 13,250 0 0 ,> Registration of Deeds *. .16,250 00, • Registration of Births, &c. .. 5,200 0 0 • ~ Crown Grants ... .. 6,060, 0 0 „ and Fines', Sheep Inspection .. 11,000 0 0 • ~ Miscellaneous: .. .. .. 8,950 0 0 Railways -r 600,450: 0 0 Incidental Receipts .’ . . •.. •• .27,000 0 0 Total Consolidated Revenue . .. 2,263,160' 0 0 Ref andson account of moneys raised for Railways and Immigration— From Land Fund of Canterbury.. 58,000 0 0 From Land Fund of Otago • • .. 109,000 0 0 Goldfields Revenue .. . . 38,000 0 .0; ■Gold.Duty. , .. ... ■ .. 34,000 0 0- , Land Sales 743,000 0 0 Licenses, Rents, &c. ~ ‘ .. * 147,525. 0 0 :Totalßevenue, 1877-78- .. .£3,392,685 , 0 0,

The relief to the Land Fund under the proposals of this .Government' very, considerable., .In the Southern 'Provinces, Education was 'iilmost; entirely 'borne upon" the.'Land Fund , under the provincial system and, considering that the whole cost for, building and'mainten-. ahce of of police, of gahls, of limatio :a,Syjutns is now borne upon the' Consolidated Fund, I do not'think, that the inhabitants ;of Canterbury and Otago will consider the pi’b-, position 1' have .made unreasonable. And I it didst further. be borne in,mind .that when,'the i Colony has incurred a large’expenditure', for ' .public .works and immigration, whichls yearly., .improving the public estate, at a time when. ' the burden of the expenditure on uncompleted, wbrlts is most severely felt, the ' only possible ; means of maintaining the broad, principle;of localising the Land Fund is by taking care that all. rightful charges, upon it are fairly and justly met ... ' • Estimated Revenue, 1877-7 S. I. will now state the estimated Consolidated Revenue for the year, and, in doing so, .1 will merely remark fliat I have set down the Customs Revenue at the amount which it pro-

duced last year ; in other items of revenue I have estimated for a slight increase. The receipts from Railways, I have estimated, after careful consideration, at £604,143, against an estimated expenditure of . £431,143. In other ■words, I estimate that our.RaUways will next year produce a profit .oh . the work done of

' Tlie total revenue from aU sources ; for the .year will .amount to ™3,392,685, to ; which X add the surplus of £148,220 Bs. 5d., with which we began'the'year. • X deduct, .from the total, of. £3,540, 905- Bs. 5d., the estimated ex- 1 , penditure amounting to £3,109,754 12s: 9d., leavinga surplus of £431,150 15s, Bd, of which £329j369 9shi.lod. is .distributable among the -.counties as surplus Land Fund,:and, we haye a balance of £101,781; ss.' 10d‘ . available' to meet possible,deficiences of the Laud Fund in certain districts. ; .. i ( .. ; ; IMMIGBATION AND.BDBLIC WOUKS. . ; j ; , •r In making my - financial, proposals, last year., I said, “ I shall,- next session, ..submit for the" consideration, of . the .House: a_ scheme _ baaed upon carefully-prepared professional'estimates, showing definitely and,, in,'detail what , works are [required?, to complete. our. railway .system, aud the .cost,-of.. such , completion and . shall then ask the to, consider the arrangements necessary for completing the schema. ; I shall propose .to. spread oyer.a series, of years the raising aud expenditure of- the moneys" required, and thus to. keep the,annual charge, for 1 interest op the debt, within the compass jof our growing; income.V,. -.1 regret to; say that we .have 'found it impossible, to give effect to this intention.’ .The, preparation .of such a scheme could npt;, we believe,; have ■ been, satisfactorily .accomplished , during the past recess, because of the smallness ofthe staff: as compared with' the large extent: of works .in hand, and because of, the time necessarily occupied, in taking dyer the Southern; Railways ; and we felt that, as a: hurriedly;!devised" plan, would, probably be imperfect, it would ,be better under the cir.cumstances.. to .submit to. .some delay. "We shall, "therefore, ask/, this. session/ only. for! a ,sutn sufficient tp unite-, the., already .completed sections of the trunk line of 500 miles from’ Amberley to Kingston, and for extensions Of the ,main lines in other parts of .1 the Colony, particulars of which l will be .stated .to the; House by. the Minister for, Public Works. . i % have stated that, should the House direct that, the works which my'honorable friend; the Minister ffor . Public’forks ' yvill recommend h e ‘ executed .during , the current year, additional Ways, and iVle.-ms to-the amount of £940,443' ,6s..rid:wul.berequired.:,'. ~ The. tptal proposed expenditure for the year’ bn' Public Works ivill,,amount, to £1,796,45,1, We h'ave’also tb.rhaksiprqydsion for,the Immigration . Services,. ’of the ■. year, ) . .estimated at £124,182; '.and do .provide for paying off.'the Provincial liabilities, amounting to ,£259,556. These ..several, sums ,' make, up a t ;total, of £2,180,189': which, after ; aUowing; for 'the balance now. at credit of the rPuhlio/ Works Recount, wfUifeave, a ,sum of £1,200,000,.fpf which ; Ways .and Means,. will have to he provided., i,. . ! ‘•As honorable /members are .aware .the £BOO,OOO oflniperial’guaranteed debentures have, in, estimating our. Ways, and Means,-been " treated, as f cash . applicable to public works. We propose.to ask. for;authority i.to raise ia' suffjpieat sum to free , those debentures, so as to keep them, as an, available security,, against. whichiwe'.can obtain advances from time to' time,; at a low rate of interest. ~ Should these several proposals “meet /the .apprpyal,, of , the House, I shall, Kaye to ask for,‘authority, to raise a loan of £2,000,000:. This sum. could, of course, he reduced fp i6i,200,00p, -if the ( lfbuse should think it desirable .to sell the guaranteed debeptures;/but the Government are of opinion that;. until 'the “cprupletion of our' railway ' system, those; debentures should not he sold,', but should :be used as: they 'have .constantly ’been Since their creation... , It is also possible to further, reduce the ampunt of the. proposed' loan, should the House determine that some of the works , which will .be recommended by my bohorable cplleague, v ;the Minister for,/Public' iffVprks,’,, shall 'nptqbe exec-nted ffyithin the .rent,year;/ but considering that most ofthote works are connecting links .on tualalme.s whi ch are already returning a r very ffdr per r centage on..their! cost," I ’think ; the House ,wili;hardTy. 'consider■ | if; fipsix-able,, ia, postpone their execu-; ,tidn. ,/If, ho^ypyer/tffe House should determine ,to:,reduce the . expenditure upon public works by, say prie-halfj then the, arrangement. :recefitlj made ayith the Bank of New Zealand—- ; which{;mpdifies’the’ .agreement,subsisting with 'that. bant,, !( sp,, ps.vto provide for .increased advances- upon, .certain, cpndltions;. and which 'fixesithe.tipae within which yepaynrent of such /afivauces .shall hot hpprequired—would probably enable, , the Government. to do . without going upon the London market for ..another ;pigh teen, i months; and next,sessiph a.cdmplete .seberfie; of works' could, no doubt," be submitted to the.-,House.; But;this;,as, I have sufficiently .explained, ip,;a,.course which the Goyerumept apanoot.-reeommend the Souse to. adopt, ..1,,, | ~ ~ Tliese, then, are the proposals, of the Government. ;We shall ask,.authority to raise;a,loan ,pf £2,00,0, fipfi, ;of which £940,414 will be required for.,completing the trunk line of railway jn the hftddle. Island from, Amberley to Kings- , ton,"; for making, .some . extensions of .the .main liue in the Nprth Island, and for other necessary public works .’.and £BOO,OOO for releasing ; the guaranteed .debentures ; the balance to defray, Rroyinciailiabilities. With regard to the Consolidated Revenue, I have...shown to the .Committee .that,; it ..can V e a r charges without haying recourse to fresh taxa-. tion, .if the. Land |'nnd„of - those .Provincial Districts. able to -bear it, is charged with a small refund, in aid of the interest on , the.cost of public.works which has been paid; out of, the ordinary revenue ; and 1., think;, the. Ppnjmittee, will agree with me that this is a satisfactoryresult ... , Before concluding, I desire, sir, to direct attention, tp. some matters, which ,I. regard, as, having anjimppitant bearing,upon our-finan-cial position,, and, consideration of which is r essential in dealing with the proposals I have .had the honor to .make: . For some, years-past it has , been evident to, all,of us, that, radical change in the Constitution was necessary/ dYe hayp differed fuudameu-, itally as to,,what the ipatmre ,of.. that, changeshould; be, but we. have agreed that important: rnodifleations ,o£ some ■ kind must be made, j Consequently men’s .minds have been unsettled; the .political; horizon has -been overcast, and threatening. Before 1870 , .there < had been' several years, of depression throughout.the colony. - A restoration of : confidence and ; of ■ activity was essential:;,and, to,secure it, bold steps, were taken to open-up and people the country. Since that time we have had for several yearp. political anxiety and unrest; com-,, raercially; and socially, we haveghad a tion of, .unexampled prosperity. Our great prosy, parity has been-undoubtedly fine in part to,’the success off the Immigration and Public Works Policy, ,to carry out; which, our, loans were raised; but it was also due in part to the high prices ahnoat uninterruptedly obtained .for our,, !chief; article- of export, wool.. . During, this,, period pi .prosperity, the Honae, audthe ootm-, try have,become accustomed to ;the belief .that the desjre.of the,people.of a, district to a railway or other, important work constructed, afforded sufficient reason .for demanding that such work, should be immediately undertaken. The . idea, has; .been prevalent that onr powers, of .borrowing were unlimited, and, though we were not ignorant of the experience of, other 'countries, many of ns have seemed to think it was impossible we could go too far or too fast in raising money for works of a reproductive character. During the last year, the political

crisis culminated in the Abolition of the Pro * vinces. As a consequence, the County system was inaugurated; and I am sure it is scarcely necessary to suggest to hon. members that the labor and the anxiety involved in that inauguration are' not' measurable by the apparent ease with which the transition to the new -state of things has been effected.. During the last year, alsoj the financial position of the Colony had to be .considered in ifs. broadest senset As Colonial .Treasurer, I have had a promise to redeem, as well as proposals to develop. : Two years ago, when firstT had the honor of addressing the House' as Treasurer, I said that it was the’intention of the Government to.'spread over, two‘years the .expenditure of loans then .authorised. ; and . that has been more than accomplished, because, up to the ,30th of June last, the expenditure out of loans has been 1 ' £200,000-'less: than ' the 'amount of loans authprised “at the time I spoke. . . I trust, sir,', to have, the concurrence of the Committee iu iny, suggestion^that the .result just stated,‘and the statistics' as! to the financial results'of the' past year" which : X have submitted,‘justify 1 the Conclusion 'that the Government'have‘fairly realised , the difficulties of the. position and have successfully grappled with them'. „ ;' For the: immediate future,' the Government believe' that- the need of the .'country is political iiSst;*/;’ Time is heeded 'forthe'completion and. development of our public works ; quiet ‘is heeded for the consolidation, of the social results without which, a scheme of immigration' and; railways' in any oonutry'would' be a failure j time' and rest 'will; co-operate in enabling us' to" satisfythose " outside the Colony who l are concerned as to. ’ its' fate, ‘that our confidence iff the wisdom of the.work we commenced in 1870 was justified, and that though" its 'cost 'has been Very great, - , its benefits have been commensurate.,'' • ‘ The - , Governmenti 'sar,-l’taking .this yiejv of thb position,'believp that the'present is. a time when the country should not be troubled with questions as* to the incidence, or , the specific character of our taxation. '' Further taxation 1 will'not be necessary this year, if our proposals are accepted. Before long, when our new institutions are, consolidated, 'and'our rail-way-system has been developed, we' shall be able to. face the question 1 of .new taxes, if any are needed,'br to discuss calmly the principles on which 'taxation should. be' raised; and the manner' in which such 'principles should be practically carried out. ' ‘ ‘ ■ I thank the Committee for the'attention with which’ they have listened to me ; ’and I trust that: the" questions with which I’have dealt may receive ■ that early 1 and careful consideration tb'which their importance entitles them. ' ■

Progress was reported, and leave obtained to ait again. 1 ' The Hon.’ Major ATKINSON then moved, that this House do'now adjourn,' which was carried, and the House adjourned accordingly

Immigration and Public Works Loan. 1870 .'J ... £4,000,000. 0 0 Immigration and Public "Works Loan. 1873 2,000,000 0 0 Immigration and Public Works Loan,'1874 4,000,000 0 0 General Purposes Loan, 1873 ... 750,000 u 0 New Zealand Loan, 1870 .. .... . 750,000 0 0 [Receipts in Aid— Contribution of Canterbury for Railways .. .. 56,000 0 0 Stamp Duties to 81st December, 1870 .. 204,657 16 4 Transfer from ConflscatedLands Liabilities Account 19,963 1 3 £11,840,620 17 7 Expenditure. Class I.—Immigration, including location .£1,517,809 8 10 II.— Departmental, PublicVVorks 99,101 18 4 III.—Railways .. .. 6,129,920 3 5 IV.—Koails 894,571 4 7 V.—Land Purchases, North Island 533,580 9 5 VI.—Water Supply on Goldfields 405,003 8 10 VII, Coal Mining 10,260 8 8 VIII.—Telegraph Extension 266.469 17 8 IX.—Public Buildings 178,467 18 4 X.—Lighthouses 53,362 7 4 XI.—Charges raising Loans 498.532 0 9 XII.—Advances to < dago .. 64,791 13 4 Interest and Sinking Ennd .. 218,500 0 0 £10,860,431 4 6 Balance on 30th June, 1877— Cash in the Public Account—Public Works Account .. .. .. 619,548 0 5 Cash in the Public Account—New Zealand Loan, 1870, Account 50,000 0 0 Advances in the hands of officers of the Government r •133.441 12 8 Balance of amount of Debentures ..! . guaranteed by Imperial Governmeni 275,000 0 0 Debentures of loan of 1870, unsold .. 2,200 0 0

Provincial District. Receipts to June 30, 1877 Expenditure to June30,77 Balances on June 30, 77. £ s. d. . £ s. d. ■£,. ad. 47,529 9 1 40.803 14 S 005 14 5 Taranaki 27,412 6 2 26,082 13 1C 429 11 4 Wellington.. . 77.200 12 5 61,285 10 C 16,055 1 11 Hawke’s Hay 10,774 19 0 7,420 9 4 3,354 9 8 Nelson 51.840 8 5 40,181 10 C 11.604 Hill Marlborough 10,273 7 8 9.092 0 7 281 7' 1 Canterbury.. 231,250 19 11 229,592 8 4 1,66411: 7 Westland ~ 34,819 19 8 30,867-9 7 3,952 10 1 Otago 129,747 3 9 121.920 18 1 7,820 5 8 Totals 020,951 5 1 575,063 'I 5 45,888 3j 8

Heads of Expenditure.' Appropriation. rNefc Expenditr’e ' £ £i Civil List .. .. 29,750 27,573 Interest and SlnklngFund , 738,385 803,002 Under Acts of the Legislature ... 38,084 34,858 Appropriations— ; Class I.—Public Departments; . . 09,058 88,929 II.—Law and Justice ... . 184,335 145,280 III.— Postal and Telegraphic 229,424 217,472 IV.—Customs.. .. 1 !• .. • t 74,941 61,383 V.—Miscellaneous ..... .. 72,844 Co;832 VI.—Native 34,010 37,417 VET.—Militia, Volunteers, and \ • • Armed Constabulary ’ .. 78,340 •’ 6o;315 VIII.—Public Domains and Build,,,28,381 , 24;727 X.- -Grants to Municipalities, &c. ,75,000 B3H57 Capitation and Special Allowances '150,000 ' 148;811 Moiety of Stamp ’Duties 28;750 ■ 28;012 Services not provided for .. / . > I'cf. i, ■ 12,931 Refunds of Revenue : .. 4;308 Totals .. .. ■■■’;.. 1,858,467 1,681^682 Appropriations— Class IX.—Railways .« ». 203,380 ■ 220>722

Heads of Receipt. , Revenue as Estimated.. Actual Re- ( venue ! 1876-77. [ ■’ Customs — Duties,: . -Rents, ’£ i •'! '■■'({£/ ’S. 'd.<. Seizures, &c, . .. , ■ . . 1,210,000 1,199,378 15 t 0 Bonded Stores * Fees, Marine Act, and 5,600 5,536 19 | 2 ■: tight Dues - , i. . J. 17,850 15,808 3 l0, Pilotage Rates, HarborDuea, &c (6 months) .. Stamp Duties V.' - .. :. *. 6,667 4.940 2 I 9 •115,000 122,670 18 | 9; Postal 96,000 86,547 14 j 0 Telegraphic : .. .. ‘67,000 : 63,983 IS ; 1. Judicial ; .. * 38,000 41,982 13 ! 3 Fees—Registration of Land ’12,500 13,646 15 j 5 .! Registration of Deeds 2 15,500 16,482 12 6 Registration of Births , ; 6,500 4,757-3 9 Crown Grants.. Fees .and Fines, .Inspection 6,000 i . 4,053 14 9 ■ of Sheep (0 months) ‘‘5,000 ' '3,548 8 6 Fees—Miscellaneous 2,500 . 3,694 15 3 Incidental Receipts .. ’ ■ 46,000 it 27,652 0 3 Miscellaneous Revenue— > 13,833 • Provincial, 0 months TT 1,691,850 1,614,582 10 i3 Profit on Railways ,„J4,241 ,„.,87.924..7 6

Fina'c’l Year. Consolidated Revenue. Land .* Revenue. Total. | £" s., a. £ 3. d. £ a. ! d. 1809-70 1,048(175 0 7 200.623 3 0 1,257,708 ! 4 1 1870-71 030,188 5 10 .208,091 6:0 1.144,270:10 10 1871-72 1,031,082,18 7 336,311 ,.0.6 1,307,393 19 I' 1872-73 1,119,904 3 4 889,642 14 1 2,009,540 175 1873-74 1,420,210 17 3 1,060.744 3 2,486,961 4! 6 1874-76 1,605,002 16 5 773,265 17 - £ 2,378,208^14 2 1875-76 1,703.190 ; -3 11 857,990118 •] 2,501,181' a 0 1870-77 1,951,726 11 7 1,039,242, 4 ; 8 2,900,908 10 3

' Hetiils of Receipt. Revenue , of Year ; 1876-70. :rrT~ Revenue of Year 1876-77. Customs—Duties', bents, Seiz- , • • ures, &c. .. '! .. - . . i. • Bonded Stores Fees, Marino Act, Right Dues, &c... Pilotage Rates, Harbor Dues, &c. (6months):. .. V. Stamp Duties .. . . .. Postal .. .. .. Telegraphic .. Judicial .. Fees—Registration of Land .. „ Deeds .. „ , : Births .. i Crown grants .. Fees and Fines, Seeep Inspection (C months) .. . Fees, Miscellaneous .. . .IncidentalReceipts . & ,i 1,225,700 5,343 10,691 114,429 80,050 ■ ■ 63,970 88,726 12.478 15,732 4,000 , ,i 4,447 if.--3415 61,677 j 1,190,378 5,530 ; " 16,800 •i.dio . 122.070 86,547 ; 63,983 , 1-41,082 13,040 10,482 14,767 4,053 3,548 3,094 . 27,052 Railways (Provincial lines—0 - months only) ... .. v. 1,037,901 ' 03,939, 1,614,582 285,220 Revenue Assets .. .. 1,701,843 ! •■11,600 1,899,802 51,023 , . Total Consolidated Revenue 1,713,450 1,961,7,26 Net increase .. 238,276