FINANCIAL STATEMENT.

Taranaki Daily News, Volume XXIII, Issue 186, 19 August 1901, Page 2

FINANCIAL STATEMENT.

<» (Continued from Saturday). REDUCTION OF MORTGAGE TAX. During the p.'SC tea years interest on mortgages h i fallen about one fourth, making tl e penny in the pound ou capita! a very heavy tax; and I still consider that Kome relief should be •riven. To do bo this soesion would be imprudent uclcss the loss of rsvenuo oc. sioned thereby is recouped, ! FINANCE 1901-2. Expenditure. After careful examination and pruning I am able to submit estimates of expenditure which, although large in the aggregate, have been kept down to the lowest limits, taking into consideration the abnormal and non-recurrent expenditure they contain. The estimates for 1901-1902 are set down at L 5,763,814, a proposed increase over last year of L 284,111. The expenditure causing this large excess is due to the following causes: — Interest on loans recently raised, L 7000; old age pansions, L 18.000; the Royal visit, L 50.000; census, LIB,OOO. The increase in the Postil and Telegraph Departments has necessitated additional clerical assistance and with the ordinary increases has added L 15,000 to the estimates; L7OOO for contribution to the San Francisco service. In the Department of Agriculture a good many more skilled officers bave been engaged, consequently extra expense is incurred, but againßt this there are fees for services rendered. The increases in o'her departme&tsara small. Of the L 284.000 increase (of which L 210,000 balongs to the annual appropriations) fully L 120,000 arises from exceptional and noncurring items to which we must add L 90,000 f< rin • creasfld cost of postal and telegraph and educational servxes; thus tha excessive expenditure disappears. REVEHUE. The estimates of revenue are set down nt L 5,839,000, together with L 57,000 from sale of deb.nturee for sinking fundaccretioDS, auestima'ed falling ft of L 9506. I have no di-sire to be pessimistic, but one cannot be too cautious while framing the estimates for the year. It is only necessary to look around to see the solid evidence of prosperity which meets the eye. At the same time extraordinary events, oot ikely ti recur, took place during the lash financial yiar, which undoubt ed'y had t!>eir effect in augmenting our reyenue. On the other hand, we must <\r.t 1 89 dgbt of the effort of the remissions which wore made in the tariff in August las l . Had it noo baen for the increased consumption of dutiable ffcodn, noticeable for some years past, »nd for the exlnordioary expenditure connected with the R >yal visit, there wou'd have been a loss of revenue to the rxtent of L 130.000, and I must still reckon for a )o=s ■ of Customs revente of at least LIOO,OOO for the current year ; but as some portion will be made good by increased consumption of other articles, the estimated Ouato-ns revenue is set down at L 2,110,000, or L 70,862 less than last year's receipts. 3 As to railways, returns bo far show that the sp'endid revenue of last year is being not only maintained, but even r excecoJ, and I feel justified in anticipating the receipts reaching i L 1.760,000, or L 39.359 in excess of t last year. The stamp revenue remains - substantially the same, L 903,500, 1 Last year I anticipated a loss of ] LBO,OOO by the adoption of the p mny - postage, but this year I don't anticipate a greater loss than L24,000.j ■ Recent legislation abolished stamp! duty on native lands, entailing a loss

; of L 4000; on ths other hand the large ' increase in tbe telegraph branch and | increasing revenue fiom other sourceb will quite counter-balance any loss s sustained by the penny postage. Coin- ' owed with last year's rrsults there is an | stitnated increase of sme L 10,400 to the land tax, and LI2OO to the income tax.' Other increases and deceases are I so small as not toe ill for remark. The total estimated ravenue is L 5,896,000, I ind expenditure T/5,763,814, leaving a balance of L 132.186, and adding the • L 32,564, of last year's fcurplus, : affer allowing for the L 500,000 trans- ' ferra-J to the public works fund, there 1 is a balance of L 164.750, subjtcc to the . provision for tha supplementary es i- , mat??. CBOWN LANDS EEBATB OF KENT. The Rebate of OrowD Tenanig Kent Act has not proved satisfactory or equit--1 able in its incidence, and an amend- '. ment is neeessary. It is quite clear i that a person taking up bush land and > having little or no capital cannot pay ' rent until the land yields a return. \ Under these circumstances it is much . better that we should insist upon tbe , improvement conditions being strictly complied with, and allow the ten- ) ant to sit rent free for the first four or five years, and after that ' time the tenant would be in a po ! sition to p»y rant, and the anxijiy and worry caused under the condition . now existing would bo avoideJ. Most ■ of the lard available for set'lement wl inaccessible, and situated a long w-y i from centres of population, and not of ! extra goad quality, therefore some ioJ ducaments are necessary, and if givurt, will tend to promo'e settlement, a d , ovoid the hardships which fall t) . the lot of the pioneer or bick-bljck settler. HELP TO FARMERS AND PRODUCERS. The impnrtHWie and disirableaess if I helping tlioe located on,, and living di- ', i-ectly from tho products of the soil is : idmit'ed by all. Haw this can not be accomplished is worthy of our I est efforts. Establishing new markets will I [ issist, and it is<sspntisl that produce) exports should be carried at minimum rates on our railways, and the cost ef sea transit should bu reduced to the i lowest limit. With this, tovever, storage supervision is required at tha J distributing end to avoid forcing products upon already glutted marke l s. A trade expert has been appointed and proceeds to South Africa next

week. Daring the recess the Government called tfnde's from steamship owners for service betwaen the colony and South Africa, but the subsidy demanded was4oo high, and the fctle of freighf s unsatisfactory. As the Shaw Swill.?, New Zealand Shipping, and Vyser Line Companies decided to establish a six-weekly service as an exprri-

ment, it waa decided to await resuls, which, I regret to state, promises little or no improvement in the condition of affairs. Small producers and traders I have no chance whatever, as the freights compired with those from Australia are veiy high, and there is no regularity. We have, therefore, come to the conclusion that it is essential that the line steamers trading 'o South Africa should not go beyond S >uth African ports, but return to New Zealand. The authority of the House will be asked to provide the necessary subsidy, to authorise a contract being entered into for a period of not less than three years, and to invite public offers therefore. > REDDENED TROOPBBB. : It will be seen that there is a largo

reduction this year under the bead of " contingent." The cost of the first, second and third contingents was borne by the New Zealand Government, except the amount paid them out of Imperial rates whilst serving in South Africa. The fourth and fifth continpents were wholly paid by the Iraporial Government. At the prei>eut time we have two contingents in South Afri.a, the sixth and seventh. BBITISH MAIL SERVICES. Nothing funb>r has been done respecting the 'Frisco service and wean, us arranged, paying for actual weight of mail matter carried, amounting last year to about LI 7,000. The Oceanic Company are anxious for a contract for a specified period, but the subsidy asked is much higher than would be reasonable for the colony to pay. PACIFIC CABLE. « Preparations for laying the Pacific cible are now being proceeded with and the site for a cable station has been selected at Doubtless Bay. By the completion of this cable our colony and Australia will have an independent service. PUBLIC WOKKS EXPENDITUKE. We estimate there will be an expenditure of about L 1,950,000, that on railways and roads being about the same as last year. The assets being L 1,5,32.515, it will be necessary to ask ' for authority for a further loan. The greatest care and economy require to be exercised to keep the public works expenditure within ways and means, and we shall ba aided in this endeavour if hon. members will restrict their demands with respect to requirements in their districts. It is therefore unwise to ask fur more than a million. WATS ASD MEANS. The balance brought forward is L 232,515, the balance of loan of last s ssioa LBoo.ooo,.transfer of consolidated fund L 500.000, new loan L 1,000,000, tot-1 1.2,532,515; estimated expenditure LI 95,000, balance L 582.515. GREATER NEW ZEALAND. The action of the Imperial Government in agreeing to the extension of the boundary of the colony so as to include Cook and otb*r Island* has given general satisfaction. Colonel Gudgeon, 0.M.G., has bean appointed resident agent for New Zealand, and the well-being of the inhabitants of the islands will be our first care, and nothing will be done which will tend to disturb tbe harmony now existing iu respect to revenues, customs, postal, etc. The present revenues enable the islands to be self supporting. Seeing that goods from New Zetland will ultimately be admitted into the islands free of duty there will, of course, be a lo=s of revenue, but this will b3 more than compensated for by collateral advaotages. Mr. Percy 1 Smith has very generously undertaken to go to the Islands of Niue for a period of thrae months and introduce the new order of things, which, we hope, will bn to the beutfit alike of the natives and of the people of this colony. On several of the islands, particularly Fenrhyn, a resident agent will require to be locited. SUMMARY. In summarising tbe financial statemen 1 -, the P.emier said that with regard to the current year's finances there was nothing to warrant the alarm and pessimistic views which some persons had taken, and it was resonab'e to expect there would be a fur surplus. Assuming that the Public Works expenditure will be fairly up to the estimate; tbe balance left in the Public Works Fund is likely to be less on tbe 31st March next than it has been for some years past. It was better that this should be so and that there should be a tapering off rather than an increased borrowing. The difficulty and expense of raising money in London rendered it advisable to soma extent to raise our money locally at 3£ per cent. From what I can gather, after making careful inquiries, it is my opinion that next yeir .financial matters will have reached a normal condition in the Ctuntry and that th°re will be a plethort c f money eanly obtainable at 3 per cnt. The elasticity of finance for which our colony is noted s'ill continues. The Customs revenue is the barometer of the spending power of tie people, and also of our prosperity, and the indicator points bitwe n "fair" and "set fair" while the financial meteorolgist announc s a b'ue and cloudless sky, In regard to the railways, since the Government took charge of in 1895, concessions have been given to the extent of £420,000. Unless unforseen circumstances arise, the estimated receipts from railways will be fully realised. In respect to gold mining, steady progress is being made, science has ceme to the rescue as to quartz mining, whilst alluvial mining by dredging has assumed large proportions. The yield of gold will, I under* tand, show a considerable increase over th'it of last year. There is every reison to believe ! the result of a Stite owned coal-mine will, us ii many other ventures oF a pr character, prove successful. In respect to industries, the horizon is I somewha f . cl mded, but in ash »t time, this clo'id will pss away, Employers' and employees shou'd shrke hands and , iwork together for mutual benefit. J What will hfllp out industries more than anything eke will bo complete and manual ios*nict ; oti for

theyounoof our col.ny This education is bein? afforded and the ountry I will b) recouped fo." this expenditure a (thousand Md. Du ing the last few years the increase ia our public debt j any appear out. of proportion to the increase in our population and trade, but when it is borne ia mi ad that a very large proportion of this indebtedness is for advancing money to settlers, far the purchase of land for settlements, for loans to lrcd bid.es, for land improvement, and for other purposes of a directly reproductive chiractsr there can bo no question taut Kp'endid security, has beei given. ("on*rast the weal*!", of the colony per betd of population with the increased indebteduess and the most pessimistic icdividual must admit the policy pursued has been in the best intei ests of New Z.»la»d.' The completion at an early date of the North Island Main Trunk R ilway, coupling together Auckland and Wellington by a band of s'eel, is of grout importance. This work is national in character and in respect to railway construction should take first place We hopa to grant such conc-B'ioos as ' will bring down the net earn ; ng« on! our railways to 3 per cent. The large amount asked for defence is only a premium on an insurar.ee to preserve p> ac. Our sons should be drilled at school so as to become efficie t members of cadet corps and ultimately volunteers, and when required prove' themselves valiant soldiers. I CONCLUSION. In conclusion let me say I am sansible of the continued confidence of members. 1 hope they will do me the credit of believing that tbe conclusions j have not been arrived at hastily, that i

tbe positiou has been, accurately gaugod, and that time will prove the finances of this colony to ba sound and secured. I advise in good faith that at the present lime the geod steamer " finance " should be studied, and that " slow " and not " full speed ahead " should be the order on tbe dial. Reasonable care will insure tbe good ship riding buoyantly and safely in calm wators. I trust that hon. members will arrive at the conclusion tha r our fair colony is prosperous, that there is a bright future before its people, that progress is assured, and that a.s at present so in the future this colony will hold a foremost position as a British dependency.