Financial Statement.

Taranaki Daily News, Volume XXXXV, Issue 189, 12 August 1903, Page 2

Financial Statement.

Tuesday, 11th August. ECONOMY NECESSARY. SOUND STATK OF THE COLONY. SURPLUS OF £303,905. NET DEBT £53,585,780. PUBLIC WORKS EXPENDITURE TO BIS • CURTAILED. INCREASED INTEREST ON LOANS TO LOCAL BODIES. j INOREASELi ABSENTEE TAX. CONTROL OF HOSPITAL ANB CHARITABLE AID BOARDS. i FARMS FOR SOCIAL OUTOASTB. AIDS TO HIGHEST EDUCATION. In Committee of Supply, the Colonial Traasuier, the Right lion. R. J. Seddor, brought before tho Committee the Budget for the year. He said he did this with confidence, believing that members would acc?pt the assurance ihit consistently with meeting the requirements of tho coloay strict economy has qeen observed, la pro >f of this the to'al increase on the annual appropriations was only £31,000, and this, in the faoe of the new depa'tments, increasing population, greater conreniences, and extensive development. He estimated a considerable increase of revenue, and that there would be a substantial balance to the good. The financial position of the colony was sound and satisfactory. There is, said Mr Seddon, a buoyancy

in the revenue from the Customs and railways, barometers that never fail to Faithfully mark the prosperity of the people. Prudent administration is essential, and we must not, merely ba-

cause we hwe an increasing revenue, deem it proper on that account to increase our expenditure. Quite the rtverse, as the surest protection against sdversity is to practise economy during prosperity. Every year since the Liberal Party came into office the Government, by their prudent administration in maintaining a strong finance and increasing and ensuriog the spend-

in? powers of the people, have been able to announce a surplus on the year's transactions. This year is no exception to the rule, and as members ' are already aware from the pub'ic accounts which are already before them, we closed the past year with a credit balance of £303,905, and for the current year a substantial surplus will be shown. Members must, like myself, feel disappointed at the the price of our Stock on the London markets, and considering our ability not only to meet our engagements, but after doing so to devote annually to development purposes large sums of money, the situation is the more unezplainable. The best way to improve our position is to keep the public works expenditure within reasonable limis, practise the strictest economy, prove ourselves selfcontained, and seek as little money outside [the colony as possible. The collateral and other advantages if raising the money in the colony and keeping the prinoipal and interest within ourselves are strikingly apparent, and the lesson for the moment will prove of lasting good. It is much better better that the time for the completion of some of our railways should be extended, the erection of public works postponed, and conveniences stand over, than to receiva £9l 15a net for every £IOO debenture, aaoßiPrs fob 1902-3.

As regards the reedpts of the past year it was estimated thit the revnnue proper would produaa ' £6,026,000. Toe actuil figures rea"hgd: £6,306,609, or £360,609 ia excess of the estimates. Of 'his excea?, Customs yielded £115,643, railways £107,551, stamps £80,393, other f increases total-1 ling £62,014, while only hnd tax and ,beer duty fell short of the est'mata by £5538, The customs revenue was estja)|ted at £2,220,000, nearly £19,000 in excess of the previous year while the actial receipts were £2,335,643, railways produced £1,982,551, stamps £978,939. Land tax fell short by £3938. The income tax produced £15,684 mo-e than the estimate, the two heads together exceeding expectation by £11,746. The territorial revenue s.-t down at £230,000 produoed £252,277 or £22,277 in exoas». Comp iring the ! actuaj reoe : pts with those of the preceding year it will ba f mnd that the revenue of the year just closed ia better by the sum of £333,539, made up as follows: —Customs £134,527, Railways £113,062, s'amp3 £70,268, land and income tax £4513, beer duty £166, registration acd other fees £7,389, marine £1512, and territorial £2659. In addition to the above £57,500 was received as proofed* of debentures issued against the Sinking Fund accretions, ant} a recovery, of £3326 on account of expenditure of the previous ye us, making the total i reoeipts for the year £6,447,435. SXPBNDITUHK 1902 3.

The expenditure out of ordinary revenue amounted to £6,214,019. The charges authorised by the permanent appropriations show, as compared with the fs'imates, an exosss of £65,192. Of this Hospitals and Charitable institutions are responsible for £20,274, subsidies to hoal bodies £4049, "thirds" and "fourths" for £Ol6l, and endowments for £2056, while the payment of two years contribution towards the Australian naval defence within tho year is answerable for £21,493. Ooaaiog to the departmental expenditure, thi amount shown as underspent is £78,323, but of thiß ( railways are credited with £52,689, balance unspent after the exosss of revenue, as allowed by law, was added to the appiopriation. By eliminating r-si!ways we have a direot saving of £23,634 on our departmantal votes, RESULTS FOR THE YEiR.

The results of transitions witbin [the ordinary revenue account for the iyeir may bs sat fjrlh as ua-ier: £. Balance 31/3/02 ... 270,489 Less transfdt to Public Works ... 380,000 Leaving ._ „. ~. 70,483 Receipts 1902-3 6,447,435 6.517,924 Expenditure ISO 2-3 6,214,019 Sotpks.- ... 303,905 POBLIO DEBT. The gro?s public debt on 31st March last the yeir of £2,932,572. OF this £1,759,000 was raised for ptfb'ic works and land settlement under the Act of last BPGsbn, Advances to settlers ioiused the raising of £450,000 (incluling £200,000 obtained on short dated debentures and sinoa paid off) and for <he acquisition of land for okne settlement, ■ We alio raised £338,709,

xramn to loc.u autnoriues required < £278,000 under the Act of 1901, and \ or purchasing and managing coal nines £52,000 had to be borrowed inder the Aofc of 1901. £4233 of th« New Zealand consols were inEcribed, md £57,500 debentures for a;oretions 3f fciuking funds w«re created under the Consolidated S.ock Act 1884, The operations for the year were very few, the increase to the deb!; tiereby being £12,240. On the oth ht>nd a small pared of debe • tures (£10,100) under " The Lanrt for Settlements Act 1897" fall- - ing due on Ist April, 1902, wab paid off. Of the increase at letst the following items may be set down as of a directly reproductive character:—Land for settlements £338,700, advanc a to settlors £450,000, loams to local bodies £278,000, New Z-:*hnd console depasits £4242, c.;al minus £52,000; total .£!,122,932. Duving the year £250,000 debentures unde<- the " Land for Settlements Act, 1897," fell due,

and were renewed by prooaeds of eale of a like amount at a ginall premium above par. On 31st March, 1902, the net debt was Rhown as £51,837,631, and on 31st March, 1903, it was as £53,585,780. In addition to the customary deduction | for sinking funds accrued, I have this year included the accrued sinking fund of the Advances to Settlors Ac*, an item heretofore not shown in the table. I have also further reduced the g<-oss debt by taking off the amount of Government securities in which the New Zealand consols deposits are invested, as bath amounts appear in the table of the public debt. For the same reason I have taken off £500,000 held by the Publio Trustee in trust for payment at maturity of the.stock for purchase of the preferred shares of the

Bank of New Zealand represented by f debentures of a like amount issued > under the " Publio Works and Lwd 1 Settlement Act, 1890." t PUBLIC WORKS FOND. ' Turning to the Public Works Fund, ' £189,334 came to credit in respect of < tho loan of the previous year, also ' £750,00 proceeds of debentures issued : in the colony, besidrg instalments ; amounting to £260,000 on account of 1 the million loan recently raised in ' London. To these add £200,000 trans-

ferred from revenue, and £1616, which with balanoa of £454,059 brought forward made a total of £1,853,009. Out of this £1,426,264 was spent on railways, roads, and other public works, and £BB,IBO for expenses of raising loans, leaving a balance to be carried forward this year of £338,565. The amount reoeived in respect of the new loan has fortunately not been trenched on, and is available for this year's expenditure. Expenditure on railways, roads, and especially publio buildings must be curtailed, notwithstanding that our ability to meet intereet charges is much better than in years gone by, when much larger sums were borrowed. In the curtailment a discriminating for such works as the North Island Trunk Railway should be made, and in respect to the other railways, roads, and other works, the decreased expenditure should be spread evenly throughout the colony. LAND PURCHASE FUND. BEOiSIPT3. £ Balance .„ ... ... 382.692 Debentures sold ... ... 828.700 Kents and Fees ... ... 109 820 Interest (Investment account) 10.335 Miscellaneous ... ~, 810 EXPENDITURE. Purchase of Estates ... 353,462 Roadin?, Surreys, etc. ... 15,521 Consolidated Fund... ... 93,699 A parcel of £260,100 debentures fell due en Ist April, 1903, £IO,IOO, being naid off from cash in hand, and the balance of £250,000 was revenue from proceeds of a like amount of new debentures create i arid sold for £250,065. The balance curied forward this year was £366,075. The Cheviot Estate receipts were £14,609, which added to balance £16,861 from lrst year makes a total of £31,470, of which £9039 was expended in other charges leaving £22,433 at the dose of the year. A small parcel of 6 per cent, debentures under the Canterbury Loan, 1862, came in for conversion, and £IO4O stock was issued in exchange. OONIfERSIOH ACCOUNT.

The transactions of this account last ymv were not numerous, .£230,040 of £3 per cent stock having been inscribed of which .£229,000 were sold and the proceeds used to redeem £52,000 £5 per cent 1867 debentures, and pay off an advance of £165,000 obtained on the security of short dated debentures. SBOBIPT3, £ Balance, 81/8/02 2,770 Debentures issued ... ... 278,000 Refunds Unspent Balances ... 1,836 £282,606 ESPBNDITUBB. Loans ... ... .„ 231,870 Opening Land for Settlement ... 18,678 Balance ... ... „, 29,168 £282,608

WANS TO LOOAL BODIES. Up to the 31st Mareh last the total debentures issued for this account amounted to £2,020,100. The total disbursements to local bodies being £11,581,898, for openiog up land £332,913 and for public works £89,800 in exchange for debentures under the " Roads and Bridges Construction Act 1882." The payments for loans to local authorities last year were the largest since the passing of the Act in 1886. Applications for loans forabbattoirs, and for drainage and sanitary works are oonstantly being received, this, no doubt, being attributable to the fact that looal authorities are compelled to borrow for the above purposes. These grants while proving of great benefit to the publio health tend very materially to swell borrowing by the Treasury. The debt of the local bodies amounts to £1,669,480, and the following figures will indicate the extent local authorities hive availed themselves of the reduced rates of interest, At4| percent £965,361. At 4 par cent £30,430. At 3| par cent £674,659. j

Now that the rate of interest is higher than whan the Acts were passed fixing the rate at 3i percent it may become necessary to raise the interest chargeable. The payments of interest on thes9 loans continues to b9 fully and punctually made, NEW ZEALAND CONSOLS.

The deposits received during the J year were the smallest since the account was opened, namely, £4,232, the reason probably being that a better rate is 'obtained by purchasing other Government s°cutities. The total now | inscribed is 4472,500, which has been invested in Government and other securities, yielding interest of about 31 percent. ' j QOYEBNMBST INSUEAKOB. During the 20 years to 31st December, 1902, this department has made great progress, and. the new policies

s-uad during the period were 66,375 r. presenting a sum assured of £14,561,581, The bu-i;:ess has increased from jC6,176,517 at the beginning to £9,896,471, representing a | net increase of £4,720,355. The premium income during the 20 years i amounted to £4,841,651, while that from interest was £1,995,565. The amount of claims paid was £3,054,773, and the amouut added to the fund was £2,677,928, while the total atcumu'*tiou of funds at the end of the 20 years was £3,382,817.

PUBLIC TRUST OFFICE. This institution has outgrown the ;roubles of infancy, and reached a rigorous manhood. By comparing the inures of thj years 1882 and 1902, it* rapid growth on ba seen. The puwers if the Public Trustee have bteo from time to time enlarged, with much benefit to bis clients, in dealing with the prop rty of lunatics, winding up estates, applying iucotaa or c*pit.i

to the m «infenance, or advancement in life of infants, and in many other wayn, The management of native lands, »apeoially uader the W<:st Coast settlement Reserves Act, 1892, by the oBL« has been very successful. The incre»s» in land values, owing to th« rise of t.hu dairy industry, h*s no doubt contributed to this, but the granting by a public officer of simple inexpensiwi leases with security for improvement and right to renewal has been a gre.it aid to the settlement of these lands. The total area of reserves vested in the offioe under the Aot is 186,489 acres, of which 128,176 aorea are leased, 18,952 acres are held by native owners under occupation licenses which require them to fenoe boundaries, and pay rent to other natives who have interests in | the land, etc. The sum of £23,001 la

6d was last year paid from rants to the native owners after deducting all expanses. The office has been very fortunate in its investments. Prior to 1891 about £4OOO had been lost. The amount is small, and the losses were of course met out of profits. There have been no losses during the last twelve years. The office assurance and reserve fund now amounts to £10,279 12s 3d, probibly sufficient to meet any future losses. Last year a substantial reduction was made in the scale of charges, and as the business grows there will be further reductions. The State guarantee as a security for the aots of the Public Trustee should gain for the office the confidence of the most timid

possessors of property. It is satis factory to note that wills, by which thi Public Trustee is executor, have nearly doubled during the past three years The accumulated profits, apart fron the assurance and reserve fund amoun to £30,954 3s 7d. no portion of whicl has been paid to the consolidated f un< since 1888. At the proper time tbi reserve fund could be expended ii building a suitable office in Welling ton,

CUSTOMS, The buoyancy in the revenue from Customs duties will be seen by the following figures :—1899-1900,£2,107-566; 1902-1903, £2,335,043. As compared with the previous yeae, there is a uniform increase in nearly all the p inoipal i'ems, a slight decrease being shown in tobacco and Australian wine. Tho increase in goods liable to ad valorem duty suoh as apparel, textiles, boots, fancy goods, and hardware amounts to £74,579, 17.8 per cent., md in goods charged by weight £26,491, or 9'l per cent. These increases are greater than that in spirirs, viz., £12,753, or 27 par cent. Cigarettes showed an increase of £9,152, while tei remains at the same 1. vel. In sugar tin increase was £8,366. This result is in keeping with the known genera) prosperity of the colony. The customs per head of population was, ten years ago, £2 7s lOd, it was in 1902 £2 13s 9| . Spirits, tobacc", eigir?-, and bei-r tcecu Mi for an increase of 4s 8J per he id, a voluntary taxation on luxuri s. fhe increase in ten years, if no remissions on the necessaries of life hid been grunted, would have been 7s 11|J per head, but the revenue per head for the necessaries of life has been reduced by nearly 2s,

■ LAND AND INCOME TAX. f The receipts under this head fell short of the estimate by £,4000, but the Income Tax produced in excess of estimate, so that the two together exoeeded expectations by £12,000. The receipts from Income T<x for the current year I place at £210,000, a sum slightly less than last year's reoeipts, but a substantial sum compared with the £68,000 received ten years ago when the tax was first j imposed. |

ABSENTEE LAUD TAX, The colony has the name of imposing a graduated absentee land tax, but without the gain. For 1902-03 this tax amounted to £922 12s 2d. When impos d, the tax was intended to be something substantia', and rightly so, as those absent from the colony do not contribute by indireot taxation or otherwise to the revenue, and it is not unreasonable to ask them to bear a fairer share of the burdens of the State. The present mthod of levying the tax is not fair in its inoideooe, and ;the following table explains clearly the position: -Taxpayer A pays a ' graduated tax on £9980, the amount a* Is 8d being £5 4s Od ; taxpayer B, £IO,OIO at 3* Bd, £198; taxpayer O, £49,927 at 7s Bd, £lßl 6a; taxpayer D, £50,173 at L 'B< 81,'£209 Is Id; taxpayer •'s, £187,836 at 14s B<, £1369 13a 2d ; taxpayer F, £f 97,329 at 15s 81, £1541 12s BJ, These are actual cases, and it is intended to ask Parliament to amend the law so tb.it the increase io the scali of graduation shall bear more evenly, and in doing so care will be exorcieed to tee there is no decrease in the revenue from this source.

I Y ALU AT [ON DEPARTMTCT. Du-ing the pist yeir the valuations of the four l>rge ei'ie-t and smaller boroughs have been revise!, The capital valus of these h»s been i»- : creased by .£6,250,000, and 'he unim- ■ proved valus by ,£4,000,000. Owing j ts rating on uuiinprovad values having ' been adopted iu V7f llington and Chri'tchurch and tome of the other borough?, much keener interest has teen taken in tha proceedings cf the Assessment, Courts than hitherto. The couutry districts will, it is expected, after >he Assessment 0 mr's are over, also show ; considerable increase of values, as well ;as equalising those which were pre viously uneven. During the coming summer it is intended to revise at many as possible of the districts which have not been valued under the Act of 1900. •" ADVANCES TO SBTOBBS. The business of this office continues on much tbe same lines aa previously. The amoint at credit in the public I trust office of sinking fund account on ; the 31st March was £125,867 7s lOd, and of assurance fund account £67,911 16a 83. The success of this office is a matter fop sincere congratulation,

DB'JJBTHINT OF LABOCB. The wages of mile workers in New Zealand hire tiien considerably during the last 20 years, as have the wages of women workers duriig the last five years in manufactories. The overage male worker (including youths) received about £6 loi per annum mora than in 1892, and the worn in worker (including girls) about £2 15s mora ttan in 1895. This gives the large sum ,f £1,118,325 as being gained by the male factory workers in the last ten years above the amount they would have received hid the wage rate remaned at (hat of ten years ago, and it leaves the amount gained by women and girls out of notice. The Department has to* at piessnt the menus to coileci statistics showing the wag™ of persona workiog outsHe factories, such ss cupentiTS, plumbers, engine-re, painter?, carters, sailors, miners, and agricultural labturere. s ptatiDgg«neriiliy, bj-vever, there has a considerable line in wages, thus masots, who in 1892 received from 8< to 10s a day now got from 10, i lo 14s, pLeterers who received 8s now get from 10s to 14h, farm lauouers formerly 15s per week got from 15s to 255, ploughmen who were at 20s get from 20a to 255, mxnied couples (servants) formerly from LSO to L7O now get from L6O to L9O. This will give some idea as to the general rise in the earnings of the workiog classes, but commodities suoh" as meat have also risen. The actual gain in w»gea is by no meani the only improvement in the condition of the industrial classes as, owing to awards, agreements, etc., in many trades the hours of labour have been considerably shortened, and holiday! allowed for overtime also (whioh has not been computed in the advances , above spoken of). The improved sanitation in workshops is insuring better health to the inmates and also ( adds to their earning capacity. The , life cf the worker has thereupon been > sensibly brightened during the last ten , ye**"-

PUBLIC ■liiTH. la view of the outbreak of amUl-poz in lasmania, elaborate and careful supervision of all passengers from the Australian Commonwealth has again been instituted, in addition to a measure of quarantine against vessels coming direct from Tasmania. The cost of this inspection, by an arrangement between the shippers and the Health Department, is defrayed by the shipding companies, The oolony is to be congratulated upon the fact that, although isolated oases of plague have occurred, the disease has not been permitted to spread. The occurrence of two oases of small-pox upon a (Up within our waters points to the necessity of a more stringent enforcement of the law as to vaccination, as well as the expenditure of a considerable sum upon our sanitary defenoa hospitals and charitable aid, The oolony last year granted by way of subsidies £100,274 to Hospitals and Charitable Aid institutions, and yet had no aay whatever with respect to the expenditure. The Inspector-General's power of control ia nil, and the position is almost faroioal. Members review and oritioixs the expenditure of those departments directly controlled by the State, bat in which to all intents and purpoees is a department ef the State neither the House nor the Government has any voice in the administration and cost, although providing by far the largest share of the money. The local bodies who find, next to the Government, the largest share of the money, have a little say in the management, seeing they nominate members to the Charitable Aid Boards and Hospital Trustees. A change is necessary, and the moneys r. quired should be annaally voted. The Government should have a responsibility, and the Inxpea; tor-General and other Inspectors should wiMie they see administration deftotive, p»ti«ntn -iot medically or etherwise properly trusted, where parsons are refused admission, or improperly , admitted and reuiaed, or where waste | or extravagance obtain, and where, la \ case of charitable aid, the expenditure i is excessive, have power to call upon the Board or hospital trustees to effect reiorms ana improvements, and should , this not ba done, the Government . should be empowered to stop further payments to tho Boards ana trustee! ' until effect be given to the reoom- ' mendatioDS of the Inspectors, The law in this rap,ok, and in ratpeotto . the constitution ef the Boards and ' trustees requires amendment, and cither the representation of the 1 Government and the local bodies should be on the basis of the moneys contributed, or the oontrolling bodies should be wholly elected by the persona in the distriot who are on the electoral roll. HOSPITAL rOB XBHXAIXT LTtLlOttD.

This question was brought btfort the House some time ago, and then it nothing further to add beyond stating that ample provision will be made to fully meet the pressing requirements of the case. The ersc tioQ of one or more hospitals for Aral treatment on the lines or the Bethlem Hospital, London, deserves earnest ; attention. As soon as the acoommodUU i tion is provided classification of ihe Inmates is another essential. On com* mitment to our hospitals persons should be jealously guarded, Patients art seni to the hospitals for the intuit who should, for a time at least, be tent to ordinary Lospi'aJs. There are, it it alleged, hundreds of persons in our hospitals for mental diseases suffering only from senile decay. During tht last five years ho lets than T. 86,000 «as spent in erecting buildings «nd furnishing. Last year the salaries and cost of maintenance, etc., amounted to L 74.799, and this year ycu will be asked to provide L 75.855 firm tht Consolidated Fund for the tame purpose, also a large sum for buildings* ■•t.c, out of the publio works fund.

FARMS FOB SOCIAL OUTOISTS, Year by year large turns of money are tpent in the nuintenanoe of persona in our gaols who are really not criminals iu the full acceptance of the term, but are 6iiupiy derelict* sf society. Dunk, evil companions, old age, physical ine.pabii'.y, and lick of mental strength So resist temp lotion to do wrong all conduce to a breaking of the law. Tber must live, and when not in gaol they prey upon soaiery. The time hu Arrived when the colony should have, as in Germany and other countries, farms to which these outcas s could be committed. If these farms were on bush land th*y could clear the bu*h, stump and grub, and culivate food for 'liem-k'lvos, and the surplus oold be uiil'gfd to supply other State institu ions. Tuey would thus ha self airpporting, and'an ever visible eyekor|a would be remoted from our midst which does not do credit to our boassed civilisation. To send these persons to g»ol is a mistake, as tber are'not really criminals, Though some hava the taint, may It not thai have aritl« from the first oaataot with the |eo^

Iher • are men ar>d wotLen who aie unable to look after thtms»lvee, but given a home, work, and food, they would be quite barpy and contented.; The initial coat would be the only one, ''. and it ie worth incurrir.g if only to pre rent the undue swelling of the criminal records of oar colony with the attendant unmerited reflection on the people. TOURIST DEPABTHBHT. ] This department has completed its second year of life, and has completely justified its existence. Never in the records of the colony has each a large number of tourists reached our shores as during the pist year. The Te Aroba hot springs heretofore administered by a Domain Board is now brought under the control of this depar'ment. The revenue received from resorts under the control of the department fer the year was £B4OI as against £5491 for the previous yerr. TOST OFFICE SAVINGS BANK. The progress and laigo accumulation of deposits may be accepteJ as evidence of continued prosperity. The excise of deposits ov*r withdrawals in 1902 was £360,847, an increase equal to 534 per cent over the excess of 1892. During the decennial period 1892-1902 the number of de positors increased 102 per cent, deposits 120 per cent, amount to credit of depositors by over 140 par cant, amount deposited by 170 per cent, and the average amount at credit of each depositor increased from £25 9s to £3O 5s 8d or 19 per cent. The total amount to credit of depositors on 31st December last was £6,883,787, compared with £6,350,013 last year. OLD AG! PENSIONS. The estimate las' year was £215,000, the sum paid £209,156 5s sd. It is estimated £215,000 will be sufficient this year. The system is working smoothly. WOBKOra RAILWAYS. The traffic last year showed a v ry marked increase over that of any frevious year. The gross revenue was 1,974,038, an increase of L 99.452 The railways gave employment to 8875 men and paid L 3 6s Id per cent on the capital cast L 19,081,735. The value of concessions on fares and freights made since the Government resumed the control amounted to L 588.000. EDUCATION. The past year has been marked by great advance in the work of education in the colony in regard to the number of schools and to the extension of the field of operations. Classes increased from 425 at work at the end of 1901 to 911 at the end of 1902. Of tbe latter 66 are classes for manual work, 279 technical, 64 continuation classes, the tetal of classes being 1629. Tbe number of pinwry schools increased from 1715 to 1754. It is evident that owing tq the spread of education and the rapid growth of settlement the nun voted last year for new school buildings will not suffice for the current year, and it will be necessary to take a more liberal vote. A new departure has been made in the direction of providing free secondary and technical education to boys and girl*, and steps were taken to include granting free tuition in secondary sonools, and free scholarships at technical ewh.ols. The Government scheme ol free secondary education was accepted by 16 ou' of 25 secondary schools, Parliament will be asked to meet the contingency. Ere the year ends, it is hoped all the secondary schools will open their d->ors to qualified pupi's. District High Schools bow number nearly 60, as against 15 two years ago. It is the intention of the Government not to stop here, but to g> on until the way was open for any boy or girl to receive the highest education tbe colony could give, l The Governmegt had determined to provide a house allowance for one year to two pupils in the fif'h standard in etch educational district, 26 in all, who are specially gifted, and have received the highest number of marks; also to establish 24 National Scholarships, toe object of which will be to enable the holders to so f.nm ««.».—• school to secondary schools, and thence to the TTniversJ'j, full provision beifng made M the cost "cf tuition and maintenance/ One' important need in the educational system cannot be overlooked, namaly, that in order to obtain the greatest possible value for the large sum spent, it will be necessary, in the near future, to make move couplets provision for the thorough training of our teachers. FARMING ISDUSTRIBS. There is a considerable increase in wool exported, and tte prices realised are better than for the previous year. Tallow and sheepskins show satisfac tory advances. Tbe expjrt of frozen meat exhibits a large increase, the figures being 2,454,000 cwt. as against 1,871,000 owt. for 1901-2. The total values of the expert had increased from £2,232,000 to £3,229,000. The total value of cheese exported shows a decrease, but this is counterbalancad by the great increase in butter exported. The area under grain, oats, and wheat was larger than last season, an! the yield per acre' was the most abundant for some yeais. Hemp showe a satisfactory increase in exports, and prices remained at the right figure. The fruit and poultry industries are making rapid strides and will soon assume important dimensions, The cultivation of the vines at Wairanga has given excellent results, and a great future for the wine industry ol New Zoahnd is predicted, An un doubted outbreak of anthrax has giver grave cause for anxiety, and every eff.ri is bring made to stamp it out. The cause undoubtedly came with boneclus 1 from India, and tbe only safe pre nation is for the Government to erec sterilising works, and this haa beei authorised, experts hive been appoin' e« and the erection of works at the Bluf and Auckland will soon be in hand. A LANS FOB SETTLEMENT. AJont 150 properties were offered fo sale to the Government, 23 b. ing ac quired, the aggregate ar^abeing 150,15? acres valued at £560,927. The to*a Bum paid to the end of 1 'St year wa £2,598,112 for 122 estates, eggregatini 539,374 acres On 115 estates tner are 2335 selectors, who have alread; built 1758 residences. The accumu lated arrears and unpail ren's are lethan ten per cent of the actual celiac tions. Since the inauguration of th policy of acquiring freehold estates fo close setdem ?\ ] s] properties bav been secartd, gating 475,22' acre r, upon which tbe Government hav settled 2335 tenants, who oor.tribut rentals to the amount of £116,972 The Cheviot estate of 84,000 acres wa acquired in 1893 at a cos*; of £324,908 though the market value now was con siderably in excess of the cost. Th number of selectors thereon is 334, an the annual rental £14,434, which, at per cent represents a capital value o £388,693, exoluiive of £37,355 re Hived on aocount of oash and o'.h<

sales. The p-pu!aticn cf the settlemen! is 1026. FRUIT CINNING. [ i The ancu< 1 waste of fruit is little less than scandalous, and for the colony to be importing drif.d and tinned fruits to the valne of thousands of pounds' annually is a reflection upon someone. ' . Where the fault lies it is hard to say, ■ hut common serwe dictates tome that 'it is of little use havirg pomolegists ■ here to encourage fruit growing if the ' fruit whin grown is not to be used. I cocsider the State should assist the * fruit growers by establishing factories . at given centres, and by advancing on I t, ;fe couditicas the moneys to erect the c lU'lditgs and obtain the necessary s machinery and appli-ices. There ' should be ins'ructo s in the art of i preserving, drying, and tinning, who \ should £0 rouod the country and in- i struct fruit groww. At the Oo'k 1 Exhibition I w-is euvprised to see what * : could ba doEe in -his direction, and ' how, Kith the aid of machinery, every 1 farmer's wife could preserve and tin \ fruit from her own orchard. Ths i Agent-Gee eral has been instructed to I engage an exper', but it was found that ' his services had been previously I secured by the Agricultural Depart- 1 ment of Ireland. This will be adding J aome'vhnt to our adtninistratiue ex- J penses, but the direct and collateral 1 advantages will much more than com- > p»nsate, therefore I h pa the present ] waste will cease and good profits be ] secured to th? fruit growers. 1 CONSBKVATION OF FOBESTS. J Special attention has been given to ] the conservation of the indigenous - forests of the colony, and to the die- - posal of milling timber and other i products. Additional areas of forest lands have bean selected by the Commissioners of Orown Lands in various land districts to be duly reserved, as i soon as the necessary alterations and ] surveys are sufficiently advanced. During the year 18,046 acres were ! gazetted bringing the total area set i apart to 2,570,113 acres. The gross revenue from the sale of timber and other products amounted to £15,916 6s lOd, of which £12,045 12s was transfered to territorial account. The sum ' now standing to the credit of the State forests account is over £31,000. The ' total expenditure en S'ste fores'B and ' nurseries and tbe various services ' rendered to other Departments and local bodies amounted to £ll,Olß, A considerable increase in expenditure is ' proposed to defray the cost, of freehold lands acquired for extension of nurseries and planting operations in the Rotorua, Whangarei, Durgarea, BUnmer, atid Tapanui districts, where areas are being fenced and prepared for planting with selected trees suitable for replacing in some measure the waning indigenous timber supplies of ' the colony. GOLD MINING. j This indus'ry is steadily increasing. The returns from the quartz mines : show a considerable increased yield, while those from alluvial mining and ' gold dredgiog also continue to increase. : The total export of gold for 1902 was ' 507,8580z>, valued at L 1.951,426, the highest since 1873, From th« figures for the seven months cf 1903 it is fair to assume that the twelve months ex- ' port will exceed ! 2,000,000, ?. position ' not reached sitice 1871. At a foic.d sale bv the law o >ui s the Gov :rnnv ut purchased the machinery arid pumping plant belonging to the Thames H«Utaki GoWfields (Limied), and had this plant not been so acquired in all probability the dispersal of the plant would . h*ve resuiti-d in operations for pro. - ' pecting for gold at the lower levuls at ' rhe Thames being for a", time abandoned, ' STATE COAL MINES. The development of the Seddanville State coil mine and the mine at Ooal ' , Oreek is rapidly approaching comple- , tion, and by the end of the year it is , anticipated that coal will be put on tbe market. The outlook is very cheeriDg, . and the quality of the coal exceedingly . good, whilst the quantity, especially at '. Ooal Oreek, far anticipations, , and tne easy and inexpensive method " wnr . J.Hg n'm enable, if thought de--9 trirable, the coil to be sold at much j Kss than the prices now ruliDg. 1 A matter that requires to be cona sidered is the transit by steamers to tin several markets, and unless, private ( enterprise provides steamer freight at , low rates tbe Government may be , compelled to have their own steamers. , Pressing inquiries are already made for f coal from our mine. The development, «ven to meet our own State requirements, will not bs a day too sr;oo. a CONSBRVATION OF WATER POWER. I The conservation of the natural ,_ power in our livers and waterfal's is a matter of grave importrnce, and I fear a we have not done our duty hitherto in B conserving to the people those right? t which nature in her bouuty has enI dowed us with Beyond the AoS of B 1896 Parliament has done nothing. t \ Recently some loc*l authorities applied i. to the Government for expert assistv acc, acd a preliminary report was |_ obtained on the natural motive powers oi X the Waimakariri and Rakaia riversj e the Huka P«l's, and other rivers. I' i. was subsequently decided that experts r B should be asked to report on 3( the question. As a resuln of negotiaL t tions by the Agent-Goneral, I am ~ happy to say that arrangements are II almost for Mr Hancock, one lt I of the best American experts, to visit [. the colony. It was he who installed a the system from the West County ,f to San frrarjcisco, and more recently he x h*s engaged on the ai 10 he Niag<r>i F Us A report from him ft can therefore h* -afelv relied upon, and ie be of the best advantage to tha cilony. | 9 t In the meantim', the Bu.rve.yora- Ganeral has obtain*d from the chief c t suivayors in each district the names, m the powers, and approximate falls of j(j the various rivers in the coloriy, and an iff -fflcer has be?n t-ld off to prepare •letail?, fo that when Mr Hancock arrives we shall be able to place before him valuable information respecting 5r the volume and fall of the different 0- rivers. Nature h»s been bountiful in rtsp o ct to r*w products and natuvol motive powers, ad has destined this aft cun'ry to bo a solf-suataining one. 3 ? We have iron, copper, tin,' •'ruber, coal, re wool, and every • ssentul Co the well- ' 7 baing of an industrial worli by utilising u ' the natural mo'ive power in our river* 11-8 which may be developad with enormou o IC " tesults for the good of the country. h j - There is no other country more naturor Mly adapted for industries than Sew »e Zeilaud. J 3 MANUFACTURES Vh Turning to New Zealand has te made for her own U9e (that is goods iD 9- the manufacture of whiph several ab aitides are employed in combination'. 8i as well as by the great primary indus Q - tries, the census of 1885 (the B * census at which information wai 0( i obtoined) sh r ws a total value ol & £7,436,649 of manufactures proiucec °f in the previous year, Rnd in 1901 f ■8- total amounting to £17,141,140. Thii w iaoludea &sti freezing, butter sA»kj»g

i- S.AX ai.d tin.ber millii g, which all go .to swell cm <xpoits. The following 'short tatle will giv(;an idea of the vast a strides indusirits and manufactures y have made during the last 16 years, s 1885 1900: 9! Increase.—Meat-freezing, preserving, i, ard boiling-down works £553,878, , £3,834,891, £3,291,013; taenirg, fellfc mongerinp, and wool scouring £634 915' 3 £1,888,107, £1,253,192; butter and a cheese facrories £43,094, £1,535,150, [ £1,492,056; sawmlls and sash-and-1 3 factories £1,177,713, £1,268,689, i £90,776; iron and brass founders.i boiler making, machinists etc. (not in- j' i eluding Grvernment railway work-i ■ shops) £368,919, £924,171, £55,525 ;[■ i cloctiing, and hoot anri shoe factories ; , : £514,506, £858,280, £343,774 ,i , printing and (nut| , mclndinsf Gov ircmenc Pointing Office),' L 273,88 6; L 704.285, 1.430,399 ; brew- : tries and rualthousos L 421.197, •' .1-659,298, L 238.101 ; woolie-i mills' ■ L 194.311, L 359.382, L 165,071; ga«f , works L 194,653, L 290.567, L95,914;| i furniture andcabioet-making LI 62,275, , L 241.024, L 78.639; coach'uiHing i works L 128.336, L 216.076, L 87.731 ; flaxmillß L 20.059, L 203.392, LI 83,433; biscuit factories L 47.784, LI 97,989, r L 150.205; chaff-cutting work L 54.440, L 169.313, L 114.873; bacon curing . L 58.799, L 159.564, L 100.765; soap . and candle works L 130.745, L 158.649, ; L 27,901; aera,',od water factories > L 94.098, L 151.811, L 57.713 ; agricultural implement factories LI 11,823, L 138.094, L 26.271; brick tile and ' > pottery works L 91.797, L 122.230, i L 30.433; spouting and ridging works L 25.478, L 112.691, L 87.213; tinware ■ : faotories LBSOO, L 98.587,190,087. t (Tq be continued.) i Mr delivered the Statement » at 7.30, and the reading oocupied 2 I hours 45 minutes. In reply to Sir W. Russell," Mr ' Seddon said ho proposed to commence t the financial debate on Friday night.