THE FINANCIAL STATEMENT.

South Canterbury Times, Issue 2879, 17 June 1882, Page 2

THE FINANCIAL STATEMENT.

[By Telegraph.]

Wellington, June 16.

The Financial Statement was delivered this evening by the Hon Major Atkinson. The following is a condensation of it with the exception of the important parts, which are given in full: —

After the usual apologies for the dryness of the details submitted, the Major stated that the expenditure of the ordinary revenue was estimated at £1,570,919, including £1,499,318 for interest and sinking fund ; while the amount voted for departmental services was £1,757,660. The total estimated expenditure sanctioned by Parliament was therefore £3,328,579. The actual expenditure was £3,278,820, being £49,759 less than the estimated amount. The outstanding liabilities on March 31, 1882, amounted to £164,394, and at the close of the past financial year they amounted to £165,514. The loan of 1870 amounting to £1,000,000 which is guaranteed by the Imperial Government, had been provided for by forming a sinking fund against it. The estimated revenue of the year, exclusive of the revenue derived from sales of land, was £3,297,650. The actual amount paid into the Public Account was £3,488,170, being£l9o,s2o in excess of the Estimates. Hon. members will find on reference to the comparative return which will be appended to this Statement that wo are indebted to the Customs revenue for the larger portion of this excess, £125,107 having been received from that source. The revenue from stamp duties was £11,115 in excess of the Estimates. Miscellaneous receipts were also in excess by £34,243, while from depasturing licenses, rents, &c., we obtained £46,852 more than we anticipated. On the other hand the amount derived from the property tax fell short of the estimate by £19,025. Of this sum £9270 has yet to come in. £2200 represents the amount estimated to be received from Building Societies, which were afterwards rendered exempt, and £7556 is an over-estimate. The revenue from railways proved to ba £25,266 less than the gross estimate,but hon. members will gladly learn that the net receipts from the railways, which were estimated- at £364,744, amounted to £368,927, or £4183 more than estimated. The receipts from land sales during the year amounted to £317,063. The expenditure against this sum was £338,076, including £136,861 for subsidies paid to local bodies. The balance to credit of land fund account last year was £32,373, and the present balance was £11,360. PUBLIC WORKS FUND. The total appropriations for public works for the year ending March 31 last amounted to £1,892,554, and the actual expenditure was £977,886. The liabilities outstanding at the close of the year amounted to £880,276. The balance at the credit of the fund on March 31,1881,* was £1,860,373, and on March 31, 1882, it was £924,865. The extent to which it was diminished during tho year was therefore £935,508. Hon. members would observe that there was sufficient money in hand on March 31, 1882, to carry on public works until about the end of next February at the same rate which they have been -prosecuted during the last year. Included in the liabilities of the Public Works Fund at the end of last year is the sum of £338,876 for the purchase <of native lands. A sum of £IOO,OOO would probably be .[required this year for the purchase of native lands. .THE PUBLIC DEBT.. On the 31st March, 1882, tho debt was £29,946,711, and the sinking fund had increased 1 to £2,266,418: the not debt being thus £27,680,293, _ or £572,024 more than it was the previous year. Tho debt had been increased by taking up Treasury Bills and by making further advances, amounting to £364,700, obtained in London on the security of debentures of tho loan of 1870, guaranteed by tho Imperial Government. The net increase in the total amount of the debt was £572,024. SAVINGS BANKS AND GOVERNMENT INSURANCE DEPARTMENT. A few facts in sonnoction with tho Government Savings Banks and Life Insurance Department by way of illustrating tho steady progress of the colony, the rapid advance of those institutions, and the growth of habits of prudence among the people during the last ton years, would not be out of place. In 1871, with a population of 260,980, tho amount standing at tho credit of open accounts in tho Government Savings Banks was £357,654. These accounts were 10,549 in number, dnd tho average amount at tho credit of each was £33 18s Id in tho Savings

Banks established under the “ Savings Banks Act 1858.” The total amount at tho credit of depositors on December 31, 1871, was £97,312, distributed over 3726

accounts, the average amount at credit being £26 2s sd. There was thus a total sum of £454,969 in the Savings Banks in 1871 at the credit of 14,275. persons, the average amount of each being £3l I7s sd. On December 31, 1881, the population of the colony was 500,910, There were 51,008 open accounts in tho Government Savings Banks,aggregating in amount £1,232,788 or an average of £24 3s 4d at the credit of each. In other Savings Banks there were on the same date 10,046 open accounts, the total amount of credit being £316,727, or an average of £3l 17s Id for each account. The total amount of deposits in tho Savings Banks in the colony at the end of the year 1881 was therefore £1,549,515 belonging to 61,054 depositors with an average of £25 7s 7d at the credit of each, as against £454,966 in 1871, and 14,275 depositors with an average of £3l 17s sd, tho population during the ten years intervening having increased from 266,986 to 600,910. These figures are well worth the, consideration of Iron, members. They show the remarkable extent to which advantage of : the Savings Banka is being taken by tho people for whose benefit they were established. The population has barely doubled itself since 1871, while the number of depositors has increased fivefold. Intimately connected with the subject of the prudential savings of the community are the questions of life assurance and the growth of the Government, Insurance department, established in 1870, at a time when public confidence in many English Assurance companies was severely shaken and with'the avowed objects of giving the assured the absolute security, of the colony. The Department has since exhibited a progressive advancement which warrants, the statement that the experiment sanctioned by the Legislature twelve years ago has now been proved a complete success. This scheme may he justly described as the only successful institution of the kind set on foot by any Government, and has attracted the attention of the various other colonial Governments. The premiums were from the first fixed at what were deemed their lowest rates commensurate with a prudent regard to safety and without any idea of profit or bonuses. .But notwithstanding these low charges, careful management, together with the favorable influence of a healthy climate and comfortable social conditions, have produced results more satisfactory, than was expected. The business of the Department in the first ten years ;of its existence produced a profit of £77,000, as shown by the valuation report of the London actuaries, which was laid before Parliament last session. The business done has increased from 460 polices issued up to June 1871, insuring £206,000, to a total of 16,900 policies issued during the eleven years ending Juno 1881, insuring upwards of £5,800,000, being equal to an annual average of 1500 policies insuring fully half a million each year during that period. The business of the year now approaching its close will, I am informed considerably exceed that average and probably reach £600,000. The growth of the assurance fund is not less satisfactory than has been the progress of the annual business. From a sum of £SOOO in hand in June 1871, the accumulated fund by June 1881 had expanded to over £557,000, and now it has reached nearly £650,000. Agreeably to the wishes of Parliament as expressed .last session, an industrial branch, enabling persons to insure their lives for sums ranging from £3 upwards by means of weekly payments, was opened in the early part of March last, and during the 13 weeks which have since ’• elapsed 2100 industrial policies have been issued. The average amount insured for all ages is about £25 per policy, and for adults’ lives about £55. As in the ordinary branch of the Department, so also in the indnstrial branch, any surplus profits which may arise will be divided among the assured, a provision which is quite a novel feature in what is termed industrial assurance. To facilitate: the payment of small quarterly premiums, there will be provided cards on which postage stamps can be affixed until the amount of the quarterly premium is reached, and the cards can then be deposited in a post office, where credit will bo givenfor the premium they represent. Arrangements are also being completed by which the Post Office Savings Bank depositors may make payment of premiums out of their deposits by means of an instruction to Postmasters for that purpose, thus saving trouble and securing the maintenance of the policy. These facts and statistics show the remarkable growth and still increasing progress of the Department, which is evidently supplying a great public want, and is now so far advanced that the Government, as I have on former occasions mentioned to the House, have decided to ask Parliament to place it under the conduct of a Board. A Bill to carry this object into effect has been prepared and placed before members. Before leaving the subject of life insurance, I may offer a few additional figures showing further the remarkable stimulus given to that form of family provision since the establishment of the Government scheme in 1870. The number of life policies in force , in New Zealand that year has been estimated at 2000, insuring about £1,000,000. Last year there were in force in round, numbers 24,000 policies, insuring £8,300,080, of which more than one half is insured in the Government Department. This gives an increase for the period, of 22,000 policies and £7,300,000 in the amount assured, or eleven times the number of persons, and more than seven times the sum insured in the colony' eleven years ago. LOCAL FINANCE. The question •of local finance has been carefully considered during the recess, and the Government have issued a circular to local bodies, asking for their opinion on this subject, and also upon some important questions relating to the constitution of tho County Councils and Load Boards. I shall shortly ask leave to introduce Bills to give effect to such alterations as the Government think necessary in the constitution of those highly useful local bodies, and also to make sufficient provision for their financial requirements. Tho principles which the Government have taken for their guidance in preparing those measures are, first, that the local bodies should he left as free as possible from central control; second, that they should have conferred upon them all powers which can he advantageously exorcised by such bodies ; third, that their finances should bo _as distinct as possible from colonial finances, and that theirrevenues should be sufficient. ESTIMATED EXPENDITURE PROM ORDINARY REVENUE, 1882-83.

Tho estimated expenditure of tho ordinary revenue for tho current year may bo conveniently divided into two parts,—the permanent charges and the annual appropriations. The permanent charges amounting to £1,627,512, include pensions, payments under the

Civil List and other Acts, and the large j item of interest and sinking fund, which this year will amount to £1,554,848. Included in this, however, is the sum of £24,000, due for arrears of sinking fond upon the Imperial guaranteed loan of £1,000,000 of 1870, to which I have already referred. The total present annual charge upon our debt is therefore £1,530,848. The estimated annual appropriation for this year amounts to £1,851,127. This shows an apparent increase upon last year’s vote of £93,468. Hon members will find on referring to the Public Accounts that the votes for militia and volunteers and for police and constabulary for the last year, charged against the consolidation fund, were £142,015, whereas they are this year £214,009, a difference of £71,994, which previously was paid out of loan. This £71,994 then, is not an increase of proposed expenditure, but really the transfer of a charge, from loan to consolidated revenue, of what I regret to say is for the present necessary expenditure, although happily, the cause for much of it is, as we believe, fast passing away. This transfer I am sure the Committee will approve, as it is very desirable to pay for such services out of revenue whenever the revenue will bear 'them, as is |now the case. £IO,OOO is to be appropriated for an abatement of the rabbit nuisance. The Government are anxious that a watchful eye should be kept upon any proposals for increased expenditure, which should not be premitted unless shown to be absolutely required in the interests of good government; for it is certain, unless we exercise great care in this matter, the return of prosperity will again lead us to extravagant expenditure. ESTIMATED REVENUE FOR THE YEAR 1882-83. I anticipate, if taxation is to remain unaltered, with the property tax at one half-penny in the £, that wo shall receive a total ordinary revenue of £3,393,500, exclusive pf land sales. It is, possible .that the revenue may exceed my estimate, but, considering the circumstances of the colony, I think it better not to speculate upon increases which, although possible, may never arise. To my estimate must be added the balance of £203,683 which stood to our credit on the 31st March, and we then have the sum of £3,597,183 as the total amount available for the services of the year. Now, if from this we take £3,478,639, the estimated expenditure, there will remain a balance of £118,644 at the end Of the current financial year We are now brought face to face with a problem by no means easy of solution: How can this surplus be dealt with to the greatest advantage to the community ? What relief, if any, can bo given to the taxpayers of the colony ? But before these questions can bo answered satisfactorily, it will be necessary for me to revert to the question of hospitals and charitable aid. The- total public and known private expenditure upon hospitals and_ in charity last year was, in round numbers, £BB,OOO. and for practical purposes wo may assume that an equal amount will bo required this year. The sum was made up by contributions from the consolidated fund of £29,000 ; stoppages from subsidies from local boards, and from the public, £22,000. The present system —or want of system, we ought rather to say—of providing the necessary funds is irritating and unfair to most, if not all, parties concerned in the charitable administration of the colony, and it is, I think, clear that the time has come when this important subject will have to be dealt with upon some comprehensive principles. It may be taken for granted that the indigent and the sick poor must bo fed and clothed, and properly looked after by the community. Should private charity fail to make proper provision—-and that private charity will fail to make a sufficient provision I fear is only too evident-:-the State then will have to undertake this business in some form. This being so, it would seem that there are practically only three courses open for us to follow. Tha indigent and the sick poor will have to be maintained by a poor rate, supplemented by private benevolence, or by large grants from the consolidated fund supplemented by private benevolence,or by a system of national assistance. It may be impossible to deal with this large question during the present session ; but as there is a great, and I believe a very general repugnance to a poor rate, in which I strongly sympathise, and as grants from the consolidated revenue are, to say the least, very undesirable, I propose to submit a scheme of national assurance for the consideration of the House, which I believe to be thoroughly practicable, within the means of our people and which would make the necessary provision for the sick, the widow and orphan, and the aged. It is possible that my enthusiasm has carried me too far on this subject, and has made me too hopeful ; but I have given the question much thought, and am convinced that;the-scheme which I shall at an early day submit to the House is within the bounds of practical politics for us in this colony. The Government propose, pending further consideration of this subject, to take tne whole cost of hospitals upon the consolidated fund and for this, purpose I shall* have to ask for a vote r of £50,000 for their maintenance. Should this be granted, we shall ask the continued assistance of the local Boards in their management, for without careful local supervision abuses of a serious nature are sure to creep in. With regard to charitable aid, now costing about £40,000 a year, I shall ask for a vote of £20,000, and propose that this relief should be given as far as practicable through local institutions, tho Government granting pound for pound to the taxpayers of the colony. We have now a surplus of £88,544 as a margin after making the, temporary provision for the services of tho year.; With such a surplus we might, if wo did not intend as we do to go upon the money market early nest year for a further loan to continue our public works scheme, safely reduce taxation by at least £50,000, but taking all circumstances into consideration, X do not think it would be prudent to reduce taxation at present, If it be determined to borrow more money to enable us to complete our main lines of railway, it will obviously be necessary to continue taxation at such a rate as will insure an ample margin of revenue to pay tho interest on the money borrowed. INCIDENCE OF TAXATION. Does our present taxation press unfairly upon a particular class, and especially upon that class which is tho least able to boar it, because if so, although wo might not be able to reduce the- total amount, wo might bo called upon to shift tho burden from the weak to other and stronger shoulders.* I have been looking into this question and I shall state broadly tho results of my inquiries. The results of my inquiries seem to mo to show that taxation is, upon tho whole, fairly distributed over tho community, although what is fair in such a case is a proper subject for discussion, and a question upon which there may bo a great diversity of opinion. For tho purpose of compan son I have divided tho population into

three classes which for the object I have in view, may be considered a natural division: —First, the wage earning class, which I shall hereafter for convenience call the industrial class, consisting of 312,436 souls, exclusive of 11,903 domestic female servants ; second, the intermediate class numbering 96,260 souls, .this class is composed of all those who are known by the census as not belonging to the industrial class, and who do not pay the property tax; and, third, the class which pays the property tax, consisting of 68,445 souls. The total taxation upon which my calculations are based for what we term taxation proper, as distinguished from what is paid for services rendered, is £1,717,748. This was made up as follows Customs, £1,276,199; stamps (notincluding postage stamps),£l26,l4B; property tax, £257,600, From the Customs duties deduct the duties paid on wines, spirits, foreign beer, and tobacco and sugar used in, brewing {£3493) and the amount (£5512) estimated to bo paid by the Maoris on general customs, and also the duty paid on cotton piece goods, which are now free ; these amount in all to £683,794. I make these deductions because, with the present information at my disposal, it is impossible to apportion each class the expenditure under the heads of wine spirits and tobacco with any accuracy and because the other articles enumerated do not come within the scope of the enquiry. But I have no doubt that if we could make now a true distribution of the amount paid under the heads of wine, spirits and tobacco, we should find that the intermediate and property classes pay a large share, and that the relative proportion betweem the three classes which I am about to give, would be but little if at all changed. I assume, of course, a moderate use of these articles. If used in excess, it is impossible to say which class may pay moat, but I think it will be generally admitted, or at any rate ought to bo admitted, that those whose' spirits or tobacco, or any other article, are in excess, to whatever class they belong, are fair subjects for heavy taxation. Now, I have received from sixteen of the chief towns in the colony trustworthy information as to the actual expenditure of a large • number of mechanics and laborers, I have compared the expenditure so obtained with the expenditure of the same classes in England, and find only such difference as the change of circumstances would lead one to expect. I think, therefore, we may take these returns as approximately accurate for practical purposes. I believe that further information which I am collecting will generally bear out the results now given, and that any error which may be found in my estimates will be in the direction of a slight over-estimate of the amount paid by the industrial class. The returns to which I have alluded show that the average amount paid to the State by families of, the industrial class average 16s 6d per member, or a total of £214,522 for the various families. This estimate is made from the actual expenditure of 56 typical families resident in all parts of the colony ; but to this amount we must add the duty, £51,246, paid by 49,355 single men, equal to £1 Os 9d per head, and the duty, £3983, paid by single women over 18 having occupations, equal to 19s per head. The aggregate of these amounts is £269,751, thus giving an average over the whole ckss of 17s 3d per head. But to this amount we must add £10,311, being the duty paid by the 11,903 domestic female servants for drapery at 17s 3d, equal to 9d per head, thus giving a sum of £280,062 as the total taxation paid by the industrial class, exclusive of course of the'duties on spirits, wines, etc., tobacco and colonial beer, I have included all the domestic male servants and the married couples at service as paying in the industrial class,. although probably the chief part of their consumption ought to be credited to the intermediate and property classes. This, I need hardly remark, makes no difference as to the average rate per head, but only in the total paid by the class. I have, following the best authorities bn this subject, included the duty payable upon articles consumed by domestic female servants, except wearing apparel, in the amount paid by the intermediate, and property classes. I have said that the total amount paid by the industrial class is £280,062 and that this amount is ascertained by means of the actual expenditure made by fiftyeix families in various parts of the colony, and that these returns have been carefully checked by comparison with the expenditura of the same class in England,.proper allowance being made for the difference in circumstances of the two populations and also by due consideration of what it is possible for this class to spend ondutiable goods, after providing from their , earnings for the other necessaries of life and for house rent. If now we deduct £280,062, the amount paid by the industrial class from the total duties which we are now considering, we get £312,343 as the Customs duties paid by the intermediate and propertied classes. This amount, after careful consideration, I have divided at an equal rate per head between, the.-two classes last named. This will give per head for each of the classes £1 Is lid. The total revenue collected for stamps (exclusive _ of postage stamps) is £126.148. This I have also divided at au equal rate per head between the intermediate and propertied classes. It gives for each member of the intermediate arid propertied classes 15s 4d per head. I think that there can be no doubt that the stamp duties are paid by. these classes. It is possible that a small amount may be paid by the industrial class, but it is so small that it could not appreciably affect the results as between the various classes. Wo find then, that the stamp duties paid per head by the intermediate class is 15s 4d, and the customs duties £1 17s Hd. This gives £2 13s 3d as the total sum per head .paid by the intermediate class, and a total for the class of £56,272. The property class, I have assumed, pay an equal amount per head with the intermediate class for Stamps and Customs. They, however, paid with the property tax at a penny in the £ (which it was at the time to which my calculations relate), £3 15s 3d per head for that tux, making a total per head of £6 9s 6d, or a total for the class of £439,819. With the property tax, however, at one halfpenny in the £, tho amount paid per head by the property class would only £4 10s lOid, or a total for tho class £319,719. To summarise them, wo find that the industrial class, consisting of 312,43 b souls,exclusive of 11903 female servants, oays £369,751, being at the rate of 1/s 3d per head, or including tho diapeiy duties paid by those domestic soivnuts, £280,062; the intermediate class, consisting of 68,405 spuls, pays £439,819, being at the rate ot £6 8s 6d per head—that is, with tho property tax at ono penny ; but if wo take that tax at ono halfpenny, they pay £310,719, or at tho rate of £4 10s 10-g-d per bead. These amounts are, as I have already said, exclusive of the duties on spirits, wine, tobacco, and colonial beer, and do not include, for obvious reasons, that part of our so-called taxation which

is paid for by each class in proportion to use for services rendered by the State such as Post Office, Telegraph, Court fees, &c. lion, members will, I hope, understand that in speaking of the expenditure at per head I only use a form of expression so far as tho intermediate and property classes are conernsd, individual expenditure being widely different according to means and habits, but with the industrial class the difference is not so wide with taxation. It is, of course, impossible to meetindividual cases. In apportioning the taxation of the community, we must take a wider view and deal with classes by considering their circumstances and numbers. It is difficult to exaggerate the importance of this subject, for badly adjusted taxation means undue exaction from some class or classes which cannot fail to bo detrimental to . the community as a whole ; while on ’ the other hand fairly adjusted taxation means that the public burdens are borne with as much ease as their extent will admit, and I will express the hope that this question will receive the careful attention of hon members, and of all interested in the public welfare throughout the colony, so that when our financial position permits, wo may deal with the subject on broad and intelligible principles. PROPOSED LOAN. I have now, Mr Hamlin, only one more subject to deal with, but although last, it is -by no means least in importance. I refer of course to the question of a now loan. Wo have first to consider whether a new loan is advisable this year ; and secondly, if tho first question is answered in the affirmative, how much will it be desirable to borrow? Now with regard to the first question, we must, in order ta arrive at a reasonable conclusion, consider the state of the Public Works Fund, and the amount we can prudently expend per annum, I have already said the balance in the Public Works Fund on the 31st March last was £924,865, with outstanding liabilities at that date of £541,400, exclusive of liabilities on the Land Purchase Account, for which wo must add at least £IOO,OOO ; so that in addition to the £541,400 which is in course of expenditure under existing contracts and authorities, there only remained in hand at tho beginning of the financial year about; £283,465 for continuation of tho works already begun, and for new works, for which liabilities have not been incurred or appropriations made. We thus see . that if no authority for another loan is granted this year, our spending power on public works for one year and threequarters, after paying for the outstanding contracts and engagements to which I have referred, will only amount, to £283,465, because if a Loan Bill were passed next session, tho money could not be raised before about December, 1883, and the Government are quite determined not to enter into engagements in anticipation of raising money at a particular date. The question then narrows itself to this —Is it prudent at this present time, and under the present circumstances of the colony, to borrow again ; or ought we to be satisfied with a total expenditure of £924,865 in the twenty-ono months commencing with the current financial year? Sir, the Government are fully aware of the responsibility they incur in placing before the Committee their answer to tho question, They recognise clearly the principle that before the public debt is increased the gain to the colony shall be seen to be more than commensurate with the increased liability, and they believe that a case within this rule has now arisen. They think that our ordinary finance being restored to a satisfactory condition, and our main trunk lines of railway being still incomplete, it is now prudent to jraise a fresh loan for the purpose of completing these railways, or carrying them a stage nearer to completion, and for certain definite and important public works. In this opinion the Government arc strengthened by the fset that the railways already made are now paying practically four per cent annually on the amount expended on their construction, and that, they are steadily improving in this respect. The Government, therefore, Sir, recommend that a loan should be raised, but only if the money can be borrowed at a reasonable rate of interest, and the authority of Parliament will be usked to empower the Government, if necessary, by postponing works so to arrange the expenditure a’s to enable them to wait for a favorable market. We have now to consider what amount should be raised, and this must be decided by two considerations—-(1) The amount which can be profitably expended on necessary or directly reproductive public works ; (2) the amount upon ’ which we can afford to pay interest without placing undue burdens upon the people of tho colony. Now I am afraid that there are so many necessary or directly reproductive public works only waiting to be done for want of cash to do them, that we shall find no practical limit in that direction, and this fact was no doubt tho cause of our far too lavish expenditure in the past. From the past we should take warning, and proceed at a very much more moderate pace than we have been doing upon the average for the last ton years. We must confine ourselves for the future in the expenditure of borrowed money to works of necessity or to works which are directly reproductive, and strictly limit the amount spent yearly upon such works by our' capacity to pay the interest with tolerable ease. It is, in the opinion of the Government, of great importance that the colony: should steadily pursue a progressive policy, and that our main trunk fine should bo pushed on as vigorously as is compatible with the means at our disposal.- Tho Government then, taking into consideration all the circumstances of tho colony, and acting upon tho principles winch 1 have just laid down, have determined, Sir, to propose to Parliament a loan of £3,000,000 to bo raised and expended at a rate not exceeding £1,000,000 per annum. My honorable colleague, tho Minister for Public Works, when ho makes tho Public Works Statement, will inform tlio Committee in detail of the items of the proposed expenditure, and of the mode by which we hope to confine the expenditure to specific works determined upon by Parliament before tho money is borrowed. The Government attach great importance to this provision of the proposals. It is, I think, clear, looking at tho experience of the past that if our|futuro borrowing is to be governed by the prudence which is essential, we must carefully consider what works wo are justified in constructing, at what rate of speed they should be constructed, and at what cost to tho State. When we have determined these conditions wo are then in a position to decide upon the amount to bo borrowed. Upon these rules of conduct in this matter, which I am sure will meet with the hearty approval of tho Committee, the Government have acted in arriving at the. amount which they propose shall be borrowed. CONCLUSION. I have now done. The Committee I am sure, will not be disappointed at the shortness of my Statement when it remembers that this is tho natural and appropriate result of the in

keeping the colonial accounts which we have been enabled to adopt. I will only add one word. In 1879 I stated to the Committee fully and fairly the position of the colony, neither concealing nor exaggerating the grave difficulties which bad then to be met, and I pointed out the obvious remedies. That Statement has often been characterised, especially by those who had taken the least trouble to master it, as too darkly shaded and as giving, too gloomy a view of things. Though it has been attempted to disprove the facts, and the figures which I. then adduced; Sir, I venture to say that except so far as the gloom was in the facts themselves, it never had any existence. It certainly was not of my importing. It was prudence not folly, to look our, difficulties fully in the face. It would have been 'folly, and not prudence, to doubt that we could overcome them. The Government and this House had full confidence not only in the vitality and vast resources of the colony, but (which was no less important) in. the willingness of the colonists to make the necessary sacrifices, and that confidence has been amply justified by the facts I have just had the honor to lay before the Committee. As prudence and economy and cautious and wellcogsidered advance in public works as funds became available was our rule then, and has been since, so it should be now and in the future. I have full confidence, Sir, that by following that rule faithfully we shall, not only maintain, but as the resources of the country become developed we shall steadily increase the present satisfactory condition of our finance.