THE FINANCIAL STATEMENT.

Taranaki Daily News, Volume XXXXII, Issue 191, 18 August 1900, Page 2

THE FINANCIAL STATEMENT.

A RECORD SUHI'LUS QK £C05,:«1. REDUCTION 01" CUSTOMS DU'liEfcS. I'ENNYI'OSTAGB TO UK ESTABLISHED. A MILLION LOAN FOR I'ULLIC WORKS. £150,000 FOR ROADS IN HACK BLOCKS. CENTRAL LINE TO BE ADHERED TO [By 'J'Ki.i;<utAi'ii.] Wellington', Aegust 17.

In tho Hoa><-of t.veuing, thu Financial btiit-ment was delivered by (ho CVoiii.d Treasurer i (the lit. Hon. 11. J. fckddsn) us follows : Mb. Guinxkss, —It is with confidence and paidonablo pride that I submit, my fifth Financial Siat< mint since holding tho position of Colonial Troiusmer, r.nd in if, as iu these preceding if, » very satisfactory condition of affairs is demonstrated. Tho result of las'; yuar's operations shows that tho elasticity of our finances was under-estimated, and tho record surplus of £G05j351 exceeded tho expectations of tho most optimistic of our colonists, which was both to them and mo a most agrocatb surprise Tho phenomenal return* from our railways and Customs clearly establish the merfasceTepeuding of the people, whilst increases from land and incomes provo the increased v.duo ef rail estate. Thoy also show that salaii. s havo incioiecd, and that thoso whoso incomes aro derived from trade, commerce, ar.d tho professions havo prospered dining tho year. Tho savings through uudar-expor.dituro oi moneys appropriated in tho various accounts go to provo that there lias boon c;>rcful administrative supervision, and it is quite eonsittmt with good government that whcicv.T, owing to altered conditions, expenditure of public moneys from the Consolidated Fund can be avoided without injury to the public service a real and tangible saving is directed. I may as well state, at this point, that an Increased amount will b: required from tho Consolidated Fund which will, perhaps, striko members an being unusually large, but this should not take them by surprise. It must bireroemberid that increased and now charges—such as old ago pensions £200,000, payment cf our contingents, harbour defences, and defenco forces .£258,000, contribution to Ottawa nnd India, £IO,OOO, public health 15000, lands and turvoys £140,000 —havt to be met, and that such increased expenditure is desirable and in the best interests of the colony For orphanages and inobriata homes ] >in also providing a now item of £15,000. I am pleasod to .announce that, notwithstanding tho tlisturbeo' conditions in Chiua and tho war iii Smth. Africa, our revenues aro more ilian equal to nn-jt the strain of the [iricroi-Sid expenditure, and membor* .vill bo ghd to hear that after making duo provision fur the increased chaige 1 havo just enumerated, i si omy uaj ■'o fulfil tho j'lidgo given that thou■should bo a reduction made by the rumistdon of customs duties on the necessaries of life. It must b j clearly underitocd that I de not favour piling up a huge public debt and trusting to posterity to pay. Indiscriminate borrowii g loads to cquir.dering and inflation, ant; booms caused by large expenditure o! public moneys end in disaster. Thi.ocessity fir more expi.di!i)u?l\ prosecuting tho construction of the North Island Main Trunk and othci main linis of railway, with (ho view ol developing tourist traffic, land settlement and industries, anc connecting largo centres of population, is admitted, and domads our immoiliat< consideration. The completion if mail roads, and construction tf reads in back blocks during nexteummer is an esson(hi of paramount importance in ordoi to encourage tho close settlement! of lands, Therefera the borrowing pro pjsals herein submitted, compared with fchosa of provious years, are not unreasonable, and, after cordful consider.! tion, are fouud to be absolutely neces-1 sury to meet urgent requirements. There will be some disappointment that t.ho amount proposed to be borrowed if j not largor, but wo must not overlook the condition of tho money market and i that moneys could only be raised now at considerable discount; in fact, it would be unwise to place a large loan on tho market under the existing conditions, and prudonco demands that wo should only ask for sufficient authority to meet pressing demand*. Che fact of taking power this session to borrow largely would havo i< depressing effect. on our existing stocks, nnd would at the same 'imo prejudicially affect tho raising of tho money absolutely required this year to give effect to what J have herein foreshadowed. 1 regret to have to mention that there has been no favour ible opportunity up to tho present to float the loan authoris.-d last session. Temporary arrangements havo born made under which moneys have been obtained with which to carry on our public works, to meet tho requirements of the Advances to Settlers Office, and to complete the purchase of lands under | the Land for Settlements Act. The anticipated speedy termination of the war in South Africa brightened the outlook in the money market, but the unexpected trouble iu China has given things a sot back, and it seems impossible to gauge tho time when wo

can witli advantage place our new loans with reasonable prospect of sueco-s. Under these circumstances, J trust members will concur with mo in agreeing this year to the moderate proposals submitted. FINANCE OF ISW-HIOO. As a lilting close to tho Jinances of the nineteeath century, so far as they relate to this colon)', 1 am, as previously. stated, able to congratulate the country! upon tho record credit balance at the end of our last financial year. This balance- amounts to no less than J00r>,351, and emphatically demonstrates tho magnificent progress this colony has made in developing its internal resources. Tho revenue for tho year amounted to £5,580,:58G, to which £1 1 ( .),20'2 of other receipts wore added, making a total on tho revenue side of JS,(W<J,UIS. Tho expenditure 'amounted to leaving a Mnplus on. the >eu's tiaiisactions ol £•15)1,-1'JO, to which add tho balanc. b.ti..,!,,, iji,\ud it.mi the pie id.i u >i a .CI ~>\,'t » t, '.i ,S ' , Xljl \u tUtsL-.u. .- 1.1... x n....

Fund), and wo arrive at the record b.ilance of £G05,3D0 which I have jtut mentioned. v UKVKBV& Tin* revenue last year was estimated :it £f>,24!),<iUO, while tho receipts amounted to £5,580,386, or £330,786 in excess of the estimate, and also c:!!):i,957 in excess of the preceding year's revenue. All heads of revenue, except the," miscellaneous," exceeded tho estimate—customs by £127,500, railways by £140,(500, stamps by £G 1,200, territorial by £24,200, and othcis by smaller amounts. The estimated expenditure upon all services l'or last year was set down as £5,203,7^11 whereas the actual sums ...pent totalled £5,140,128, or £63,573 less than tho amount estimated, Im teresfc and Sinking Fund is underexpended by nearly £19,600, piineipaUy aiding from interest provided {or oar IS per cent, inscribed stock not being required up to the close of the yew. The department under tho control of the Minister of Education shows a. saving of some £23,000.

'I'HK PUBLIC VVOKKB FUND. Tlio year 1898-99 closed with a credit balance of £70,856, and during the financial year 1899-1900 the fund mi augmented by receipts consisting of £3 10,000 of oM loan moneys, and •£300,000 of advances made against the million loan authorised last session; £450,000 wasalso transferred from the Consolidated Fund; and soma miscellaneous receipts, amounting in all to £2l Hi, wore added, making a total of £1,002,110, by which the moneys in the fund wore supplemented. The expenditure during the yeir amounted to £1)93,223, and the balance in cash and advances at the close of last year was £139,749. Very satisfactory u* rangeinenU have been made with our bankers where'y advances are being obtained so as to provide funds for the monthly requirements of the Publio Works Fund. LAND FOll SKITLBMENTS ACCOUNT.

Largo ureas of land wore acquired last year lor settlement purposes, and the outlay, including expenses, totalled £374,14)4. Besides this, the account was charged with £95,182 for interact paid by the Consolidated Fund upon debentures issued to provide funds for the purchase of estates. To meet the whole of this expenditure dobenturtl amounting to £448,090 were created aud sold, and with £46,355 derived from rents, £223 from small recoveries, and £28,141 of a balance brought over from the preceding year, the receipts amounted to £522,71!), and the expenditure, a£ above, being £469,330, tboitt rumaiued available a balance of £53,889 to bosfin tho current year with. LOANS TO LOCAL BOMBS ACOOUHT; The balance in hand to the credit of this account at tho commencement of last year was £4350. Itofuuds of unspent balances of loans were received amounting to £B7O, and £115,000 worth of debentures was created and issued during the year. Those sums, amounting to a total of £120,726, have ouabled payments on account of loans to be mode during the year—to local bodies £(18,770 find towards opening up blocks of lanj_ for .settlement £3l,363;lelvffigat ywt . balance of £20.593 to the oredit of the account. Up to 31st March last the total amount of debentures created and issued and carried into this account was £1,354,900, and tho total disbursements have been: To local authorities, £999,042; to Lands and Survey De« partmeat towards opening up blocks of land for settlement, £214,965; and Public Works Fund, £89,800 in exchange for debentures under "The Koads and Bridges Construction Act, 1882."

LAND TAX AND INCOME TAX. I u my Last Budget I anticipated that, from causes which I specified, I would lose Land Tax to the amouut of £BSOO a year. This loss was, however, in part made up by the enhanced valuatJocs ;'a esrtain districts and the ttdjustedassessj meats consequent thereon, the receipts being £294,200 and the estimate £290,000. When the extended authority, for which I mean to ask this session in an amended Valuation Bill, is granted by Parliament under which any valuations which are too low can be raised, 1 do not anticipate Any fur* ?ier decrease in the proceeds of the iml Tax. The continued increase in the Income Tax is satisfactory, and is a further indisputable proof that the country is doing sound business and that its merchants, as well as fanners, arc in a prosperous condition.

THE PUBLIC DEBT. The gross public debt on 31st March, 181)9, was £46,938,006 on the 3Ut March, 1900 it was 4147,874,452, or an iucreasoof £936,446 for the y«ar. The not public debt ou 31st March last mi X' 40,030,076, or £849,849, in anew [ of tho nut iebt of the preceding yew. An incieiisc during tlieyearof thegra» debt was caused by the issue of interest- . ariiiiig debentures to the amount of £019,002; by the issue of debentures tor £300,000 in anticipation of the miliieu loan authorised by the Act of last sossion, loss £85,000 repaid on ■tccouot of the loans of 189698; by £'50,400 if debentures for Sinking Funds accretions, and £51,984 additional 3 pcrc>nt. inscribed stock in coiisnjuoaco of tbe various conversion. opinions. These items make up the iucruiKo of £930,446 already mentioned, lu cjiui(.ctiuu with this increase of debt it is ii;'ht to mint ion that no less than £IIB,OOO was cius.d by the issue of duoumut-ca for tho purchaseof lands for o!u»o settlement. Hjtne veiy valuiblo bkckd of laud have been secured and opDutd up, imd tho interest payable npjH tiiu ban will bi more than mooupsd tu the Treasury, 1115 MISSION i.-K CUSTOMS DUTIRB. - Tho oft-roprated doin&nd for ndaoion iu iudirect taxation omnot longer pass unheard, and it will be uwfuflQ compare the results of the two systems of iudirect and direct taxation. Lut year the contributions from the two principal sources were:—From Customs (indirect), £2,107,507; Lind and Income Tax (direct), £422,450. There can bo no doubt, therefore, tint there is considerable weight in the argumert , that tbe wago-earning cUssss are entitled to relief by way of reduction <n tho necessaries ot iif-, and such thcr commodities as are essential 0 thuir daily wants and requirement^ 1 |u. pjs", aud that with pleasure, to ako til tho whole of thedu'iat oafcero...iic, vii'->, silt .colko.imd c.cw, miiiirg .. A..V.J. ii :v.i'..'n:\;i m-ciiiw:y| a.,:.;/ iouo:.iu»iy. Uia-jU^afihiujirv,

engines j*d boilers for miniug and and portable and traction Njflgines. Furthei 1 ,1 propose to remit half the duty on tea (other than that in Small packages), half the duty on currants and raisins, half the duty od candles, half the duty on wax matches, leaving the duty thereafter equivalent to an average of, say, 30 per ccnb. on the value;. and that the duty on patent medicines of 40 percent. ■hall be reduced to 15 per cent.; that he present duty on drngs aad drugists sundries, and chemicals shall be reduced from 20 per cent, to 15 per cent. The remissions on these beads amount to about £157,000. I had hoped to have granted a remission on other articles, but the abnormal expenditure this year under several headings does not permit me doing eo. It has ever been the policy of the present Administration to maintain strong finance, and as the colony has prospered thereunder it is well to be prudent, and I do not wish my name as Colonial Treasurer to be identified with a deficit. The remissions on Customs duties, as stated previously, together with concessions on railways and penny postage, are estimated to reach over£3oo,ooo per annum, To this, after the 31st March next, must be added the reduction in the mortgage tax, which will amount to over £25,000 per annum.

SEDUCTION OF MORTGAGE TAX. For some considerable time interest on mortgages has steadily decreased. During the past ten years, interest on mortgages has fallen one-fourth. This makes the Id in the pound "on the capital value a very heavy charge. The colony has conceded conditionally | per cent on mortgages under the Advances to Settlers Act and | per cent to local bodies on loans under the Government Loans to Local Bodies Act. It is also proposed to grant conditionally a rebate of one-tenth on the half-yearly payments of rents from our Crown tenants, equal to J per cent, and it follows therefore, as a matter of abstract justice, that there should be some relief given by reduction on the Mortgage Tax, I intend to submit proposals later on in the session that from and after 31st March next, the Mortgage T.ix shall be reduced by jd in the pound.

PENNY POSTAGE. Parliament during tbe session of 1891 passed an Act under which a penny postage within the colony could be established. From that time until the present, owing to the demand npan our funds, we have not been able to give to the public the boon such a cheap rate of postage wou'd confer. It is pleasing to be able to announce that on and after Ist day of Jauuary, 1901. a penny postage system »ill be established within and without the colony. This colony will therefore be the first in Australasia to have universal penny postage. I estimate that the loss of revenue by so doing will be about £BO,OOO per annum, but this will only be of a temporary nature, for there will be an increase in the correspondence which will in time bring up the revenue to the old level. The loss to the revenue during the unexpired portion of the present financial year will be about £20,000. FINANCIAL YEAE 19C0-01. I have already mentioned shat members must not be surprised to hoar that the Estimates I shall have the pleasure

to place before them have increased in volume and amount, but I can assure ix them they have been carefully scrutinised and the botes asked for, although large, are required to meet necessary expenditure. The total estimated expenditure out of the Consolidated Fund amounts to £5,441,523, as against the actual cost of last year, which reached

£5,140,128. Last year the appropriations, including the amounts votea in the supplementary estimates .totalled t3 £5,203,701. Our figures for t'ais year are, therefore, £301,31)5 in excess of the actual expenditure and £237,822 in excess of the estimates of last year. The principal items of increase were: Old age pensions, £200,000; contingents for South Africa, £95,000; harbour defences, £14,000; defence forces, £149,141 ; Ottawa and India contributions, £10,134 ; public health, £5300 ; education, general and technical, £462,643; land and surveys, £140,659. In addition, however, there are interest and sinking fund (£22,591) and the natural increases arising from an increasing • papulation and in the endeavour of the Government to provide greater comforts and facilities for our colonists, such as are given by the Education Department at an increased cost of £26,339 and the Postal and Telegraph Department £18,696. The increase of population is also, unfortunately, primarily responsible for an increase of £5643 in the Justice Department, £20,624 in the Lunacy and Charitable Aid Department, and £3157 in the " Police Department. Turning now toj the revenue side, and notwithstanding the reductions I am recommending should be made in the Customs tariff, and the concessions by the Working Eailways Department, and the loss by alopting the penny postage, I am informed by the several Departnunts that we can look forward to a total revenue of £5,463,000. la my last Budget, apropos of the adjustment of taxation, J said:—" The form of such adjustment will depend upon the result of the investigation that is to be made, and it will be for the next Parliament to determine whether any material alteration in the system and reduction of taxation is to be effected." Good faith has been kept. Inquiry has been instituted and comparisons made, and by remissions aud reductions in taxation and by large concessions the very considerable eum of £3oo,ooo'las been conceded to the] people of the colony. The oft-repoated ■ fallacy that by under-estimating receipts and over-estimating expenditure the Colonial Treasurer creates a surplus h of course, pure nonsense, for the surplus is simply the difference between the actual .receipts and the actuil expenditure, added to any credit balance brought forward; and at the closa tf i this year, 'as in every year since ths > present Government took office, I oxpxfc a surplus, but so far as I can foreCist it will be the smallest we havt ever had. ,Tne estimated expenditure biing £5,441,523 and the revenue £5,463,0C0, wo have an excess of revenue over .txp nditure of £21,477 We ccrc...e :cai t..a year with a balance •A £005,c51, of whi?h amc* it we pro-

pose to transfer £500,000 to the Public Works Fund, leaving £105,351 available in the Consolidated Fund. This amount, added to the surplus of £21,477, will provide £126,828 for the Supplementary Estimates, and unforeseen contingencies for the more vigorous prosecution of our public works, Our proposed expenditure will ba considerably in excess of tho amount spent last year, which reached very nearly a million. This year a larger expenditure is necessary. I am of opinion that it will be necessary to ask for authority to raise a loan of one million so as to carry on our public works policy successfully. The inequalities and anomalies in the salaries of public school teachers have been for some time past little short of a grave injustice, and call strongiy for redress. From causes which it would be out of place to discuss here, the total number of children attending the schools in many of the districts show little or no increase. The number of schools to be maintainsd is, however, greater than ever it was before. On this account, and in consequence of increased irregularity of attendance and of the large proportion of small schools in those parts of the colony where population is sparse, and especially where settlement is spreading, the strain on the finances of Education Boards is so great that they are unable with present grants to do justice to country schools or to teaching staffs. We propose, therefore, to increase the total annual grant by about £28,000, which is equivalent to as per head for the number in average attendance in all schools of the colony, and to deal with it in such a" way as to remove inequalities and anomalies.

TECHNICAL EDUCATION. Substantial financial assistance will be given to tbe existing technical schools and for extension of technical education into all parts of the colony, including hand and eye training for pupils in our schools, and the special technical training required for manufacturing, agricultural, mining and commercial pursuits. The circumstances which arose in connection with equipping our contingents for South Africa compel me to ask for larger supplies of stores, and to take care that munitions of war aud necessaries for the field should be obtained and stored so as to be ready for use in the colony ■it any moment. It is essential that we should have 30,000 riiles, and that they should be of the same pattern and alibre. One of the four field batteries has arrived in the colony, and this must be properly equipped. Last ' ear our appropriations were for the capitation and equipment of 8000 volunteers. Since then 3000 hav.s been enrolled, and applications are now in for ninety additional corps. A large number will not be able to earn capitacion money this year, so the amount isked will be sufficent to meet requirements. Appropriations are also rendered.necessary in connection with the formation of rifle clubs and cadet corps.

TRADE WITH THE ISLANDS, It is well-known that the residents ' of the Fiji Islands are no longer content to remain a crown colony, they are favourable and have moved in the direction of annexation to New Zealand. Large questions are involved, valuab'e interests require attentiun, and the .reator care and examination must be exercised seeing that important interests are involved in connection with ■a ltrge and powerful native people, whose well-being must be considered and safe-guarded. The British Government, in May last, wisely, and in the interestsof the islanders, established a protectorate over the Tongas and Savage Islands. At the beginning of this year the Cook Islands Government •ind Arikis requested annexation t.' Great Britain. On my visit the majority of the European inhabitants presented a petition to me asking for annexation to this colony. This in due course was forwarded to His Excellency the Governor, and there the matter it present rests. We are doing i considerable trade with the Islands, aud we have for years been.paying the 3ilary of the resident agent; yet no advantage, commercial or otherwise, has be9n sought or obtained. New Zealand his no tropical country of its own, and we must look to these islands as ono if thß markets for our piojuce, aud in)

return wa shall take their fiuils, cofftie, copra, cosoa, etc. We are at the present time subsidising a mail steamtrto carry the mail to tha Islands, but what is required is a vessel to act as a tender to collect the fruit at the various sinaA! islands, to bring it to Ituratonga, anij then to ship it on board tho largt steamers, The Islands would take our Hour, butter, preserved and salt meats, tinned milk, and biscuits, On my late visit to the Islands, I leirntd with regrei that the merchants and importers of this colony had been somewhat indifferent in executing orders sent, and seeing that the crders were as good as cash transactions, such indifference is incomprehensible.

THE SAN FRANCESCO MAIL SERVICE. Id will by in the recollection of members that the House oF Representatives authorised the Government to extend the San Francisco service for twelve months from the Ist day of April, 1900, ton the terms and conditions then obtaining. The House further empowered the Government to enter into negotiations for a sixteen or seventeen days' service once every four weeks, and an alternative service for every two or three weeks, also stipulating that at least one British-owned vessel should be emplojei in either service. Tun result if the negotiations was to be sutmitted to the House for confirmation this session and not to have elt'tct until approved of by the House. Fi-oni this it was clear that the members intended tint no contr.ict should be iinaily competed without first being authorised by tho House. The potion at present is that, the contract for the ronewal of tho 'Frisco service which was entered" inti in 1898 and expired on ■ tho 31st March of this year has to ba renewed with tho Union Steamship > Company of Xew Zealand until the ■ 31stMwh,1901. Tho Oceanic Steam- ■ ship Company (bjtter known as the J. ; D. Spreclctlj Company) has been asso- . ciated with the Union Steamship Com- ! pany in carrying out the contract. Iht Ocaanic Steamship Company has now se:ured from the 'h i States Govorn- ; rnsnt; a ten years' re: vast for a service ■ | between, S.-a E'r - > wA A ; t' : a,

j It is staged, though not officially, that the subsidy to be paid is £50,000 » yoar. The steameis mora than conap y with the conditions set down by the House of Representatives, being of 6000 tons and specially built for the service. Messrs. Spn-ckks and Co. have offered to perform a seventeen days' service between Auckland and San Francisco and a twenty days' service between Sydney and 'Frisco every three weeks each way for the payment of £30,000 "per annum from Australia and New Zealand, an essential condition being that the sorvice should be performed exclusively by vessels registered in tho United States. This being tho case, the oiler could not be dealt with, setiug that it conflicts with the resolution passed by the House, which provided that at least ono Britishowned steamor should be employed in the service. At the present time the net cost in carrying our mails by weight is about £II,OOO a year. 1 understand that the Australian Governments have not yot agreed to accept the terms offered by the Oceanic S.S, Company, What proportion of the £30,000 per annum asked by the company was to be paid by this colony was not defined. Later on, when the Government is in a position to better define the situation, proposals will b8 submitted by my colleague the Postmaster-General to meet such circumstances as may arise.

PACIFIC CABLE. ! The position of this great Imperial and colonial workNis not of an altogether satisfactory character. The prospects, however, are much more favourable than they were some little time ago, for it looked as though Victoria and New South Wales were prepared to accept the offer made by the Eastern Extension Company, which would have prejudiced the construction of the Pacific cable. lam glad to say that these Governments are again in line with Great Britain, Canada, Queensland, and New Zealand. This being the case, there is every reason to anticipate that the construction of the work will soon be put in hand. From what 1 can gather, tenders will soon be called for the manufacture and laying of the cable.

PUBLIC .HEALTH. Itis a. matter for sincere congratulation that this colony, so far, has virtua'ly escaped a visit from that dreadful scourgo the bubonic plague. To the less fortuoate colonies in winch the plague has appeared, and more particularly to the relatives of those who have succumbed to the dread disease, our utmost sympathy is heartily extended. Legislation and administration of a somewhat drastic nature became a necessity, and both the local »utho;ities and the General Government have been called upon to expend considerable sums of public moneys. It is proposed to bring into existence a health department, with full pjwers and responsibilities, and it will follow in natural sequence that a slight increased charge- must fall upon the taxpayers, but it is better to bear with this than to have plague, diseases, death and sorrow.

MIDLAND RAILWAY. Tin's long-pending dispute has, so far I is the law respecting the same is con- j earned, been finally settled, the Judicial tJijmmittea cf »hol\ivy Couucil having dicidod in favour cf tho colony. The litigation has bien tedious and costly, bus that is cotupjnsatod for in the full vindication cl the honor of the colony. A Bill will bo subuii.ted for th=f purpose of djing justica to occupiers who ti.tve made improvements on tha land within tho Midland Railway area, in order that they imy bo satisfactorily JealS with. A large number of applioa'.iocs have been holdover pending .ho result of tha litigation. I advise taut special powers should be given to the (Jommissioners of Grown Lands in Cintarbury, NelsoD, and Westland. The vigorous prosecution of the Midland Trunk Line, and the settlement of the lands within the area, and the removal of the embargo on the timber i industry will bo welcomed by the residents of the districts specially affected and the colony generally.

OLD AGE TENSIONS. The amount asked for old age pensions—namely, £200,000 —may appear large and more than was anticipated by some. The number of pensioners of the Maori raue is a factor not contemplated, and was not ascertainable at the time the Act was passed. It has been urged, and with great force, that there are a great number of aged aliens in the colony who have in the past neglected their opportunities to become naturalised, but who are in every respect deserving colonists, and who fully I comply with the other conditions entitling them to the pensions. According to the present law they must be naturalised for live jeans before they can claim the pension. A Hill was introduced last session reducing the term of naturalisation to one year prior to I making tho claim for the pension. A Bill will be introduced this session for the purpose of making the Act permanent. Experience in working the Act has pioved that a number of deserving colonist?, some of whom have been in

the colony for thirty and even forty years, have been prevented from obtaining pensions owing to the fact thatj they have been absent from the colony during a total period of more than two [years. I propose to submit an ameiidjmeut of the law removing this disability, provided the persons concerned have not teen absent from the colony for a total period of more than four years and have been in the colony at least four years prior to the passing of the Old Age Pensions Ac!;.

15ACK IiLOCKS ANJJ Ui'liEU KOADS. The expenditure for constructing roads to give access to lands occupied by Crown tenants in what are known as the back blocks has been very large, but not at all in excess of the necessities of the settlers who labour under great difficulties and struggle on with a bravery and determination beyond all praisd. They endure hardships that those in the more favoured portions of the colony fail to realise or ooniprehene. As many of the farms are more suitable fur dairying than for any other purpose, proptrly completed roads to enable creameries and factories to be established areofparamountimportance. Out of the million loan this year i propose to allocate, as was done last year, £150,000. MAIN TKUNK LINE OF JUILWAY. The North Island Main Trunk Line M Ks Iway totes the pride tf plw, go

i far as public attention is concerned Deputations have waited upon the Minister, meetings have been held, and petitions received. To this I take no objection, but when all sorts of threats are held out that unless the Government pledges itself to perform the impossible, then I draw the line, preferring to do what is just to all parts of the colony and not to rush into reckless and lavish expenditure. The colony has prospered and is prospering, Why, then, should there be a reversal necessitating the floating of large loans, and that at a time when we have, rather than float a loan at a sacrifice, to make temporary arrangements with our bankers ? There are two points of interest, the one being the speedy completion of the work and the other the route. The Government have come to the conclusion that the route for the most expeditious construction of the railway is the Central one. Parliament has authorised this, and the surveys of it are the most advanced. It is the shortest, and presents the fewest difficulties in the way of speedy construction. After full enquiry the Government see no reason for differing from the decision previously arrived at. This year we propose to allocate <£SOO,QOO. S'IRATFORD-KAWAKAWA JUNCTION i (AUCKLAND RAILWAY). . Iu finally deciding that the Central route shall be the route in so far as the Nor;h Island Trunk Kailway is-con-cerned, the necessity for connecting Taranaki with the Auckland railway service has not been overlooked. The settlement along this route, the coal deposits, and timber available render it imperative that necessary surveys should be authorised, and provision made for requisite funds. Along the East Road there are forty miles, almost without metal. This is one of the best dairying districts in the colony, but the condition of the roads renders it almost hopeless for settlers, most of whom are Orown tenants, to carry on successful operations. A narrow-gauge railway should be constructed to remove these disadvantages. It could be constructed expeditious.y and cheaply, and as a means of carrying gravel for roads, returning with produce, coal, and timber, it would pay and fully justify the experiment. Surveys should be at once uudertaktn, and an engineer with experience in this class of railways should be given charge • thereof. There ai e other parts of the colony where narrowgauge railways would prove a success

LAND FOR SETTLEMENTS. 'I he simi expended in the .purchase of private lands last year (including expenses) was £374,148—a sum far too small as compared with tho demand there i-s for close settlement. In order to encouiMge the punctual payment of rent it is proposed to obtain the authority of Parliament to grant a rebate of one-tenth of each half-yearly instalment of rent equal to h per cent, provided the tenant pays within a limited period after the rent falls due.

OUK BUYS AT THE FRONT. It will bo in the recollection of lion, members that last jear Parliament allocated £35,000 to defray the cost of sending a contingent to South Africa, there to uphold our Mother Country's honour, justice and equity. Subsequent events and developments caused the people of this colony to tender further assistance. Voluntary equipping of corps on the part of parents and people demonstrated a patriotism solid, sincere, and unparalleled in the history of our Empire. [Heferer.ce was made to tliß bravery of the New Zealanders, and to the criticism of Field-Marshal Roberts and other officers.] It falls to my lot as Colonial Treasurer to place before you .the amount required to meet our engagements.

INDUSTRIES AND LABOUR. The position of our industries is of a most satisfactory character, and investors have every reason to be satisfied that the disaster which it was said was to follow on the passing of our progressive labour laws is as far off as ever. The wage-earners of the colony are better oft' than in any other part of the Empire; and the increase in savings bank deposits is tangible proof that thrift exists and that a living wage obtains—work is plentiful, both skilled and unskiDed ; in fact, as to the latter, in many parts land owners and farmers complain, and allege that it is not obtainable, and with more expeditious prosecution of our railways, etc., the position will become more acuta. There is just the possibility that the sending of our men to Africa may in some districts have'bad a bearing on ihe subject, This session, I hope, Parliament will place on the Statute Book a Workmen's Compensation Act. RAILWAYS.—IMPROVEMENT AND ADDITIONS TO OPEN LINES.

During the past five years the revenue of the Railway Department has increased, notwithstanding large reductions in rates and charges, from £1, 150,851 'to £1,623,891. Xhis enormous increase necessitates very large additions to our rolling stock, and immediate provision must be made in this direction by placing more locomotives, more carriages, and more waggons on the line. The work of re-laying the principal lines with heavier rails, additions and improvements to railway stations, re-building and strengthening many of out bridges, the enlargement of our railway workshops, besides the provision of signals, satety appliances, and improved brake power, demands our immediate at.entiou. It is proposed to prosecute this work in a vigorous maimer, and for tiiis purpose to ask for authority to spend £ouO,UOO per annum during the ensuing five years.

RAILWAY CONCESSIONS. Conce-sions made in ordinary passenger fares tliis year amount, approximately, to £75,200 per annum. The total reductions in rates made since Government assumed control of the railways amount to na less than .£339,430. \\ e propose to commence the century by giving a universal penny post which will suitably mark the occasion and redound to tho credit of the enterprising people of this the most progressive colony m tho Empire to which we belong. To the present Postmaster-General and to this colony \ belongs tho honour of taking the legislative initiative in respect to universal penny postage. CONCLUSION. No one can deny that our colony is prospering, and this prosperity is in a great measure due to the energy and of our sturdy colonists.

assisted as they have been by just and progressive laws, which invigorated and did not, as in years gone by, cripple their efforts. We here in this fair land have a bounteous natural wealth in our scenery, splendid land, beautiful climate, together with vast mineral deposits, equalled only by those of our Motherland; and it is not boasting when I say that New Zealand will be the largest supplier of coal and manufacturer of iron and steel south of the Line, whilst in respect to the precious metals we shall ever hold a prominont plane. Members here in a pronounced degree represent the aspiiations and ideals of the people, and seeing there is on these benches a stable Government composed of men whose only desire is to serve the people faithfully and well, who shall wonder that our country is prosperous and its inhabitants happy and contented ?