Financial Statement.

Taranaki Daily News, Volume XXV, Issue 180, 13 August 1903, Page 2

Financial Statement.

Tuesday, 11th Augcst.

(Continued). A NEW ZEALAND EXPOSITION. PREFERENTIAL TRADE QU2STION. AN INTERESTING COMPARISON, MILLION LOAN TO BE ASKED FOR. INTEKCOLONIAN FAIR. It is nearly 20 years since tha colony promoted a national exhibition, though in several large centres Industrial Exhibitions have baen sueces fully helJ, and this is a gool augury for holding a f.iir, <md on a scale unprecedented souta of the line. This ks rcquisi oif f ill justice is to be done to the Battlemeat and duveltpment of the colony. Next year the St. Louis Exposi'hn, to which we propose to send exhibit! 1 , and an exhibition is el so to be held at Gipetown. To hold an intercolonial fair in New Zealand in 1905 6 would be most opportune. It is hoped that by that time railway connection between Auckland and WelUnglon may be effected, and that Christchuaoh may have complete connection by railway with Ohtviot. The selection of the place at which the exhibition should be held has givan the Governmeut much concern, but finally we corns to the conclusion that Hagley Park, Christchurcb, is the most fitting place. Space is availably the lake and river Avon lerd themselves to gondolas, waterchute, and switchback, and with the ehcrical installation of the city, and electric city trams, the means of transit are provided.

PACIFIC CABLE, The oompletfoa of the Pacific Cable, on 31st October last, was a matter of extreme satisfaction on account of 'he widely separated members of the Empire being partners, and because the cable has been the direct means of largely reducing the cost of oversei telegraphing. The lowering of ratts has brought about a conaiderabla increase in messages, bus the failure cf the Board at the outset to counteract the strong efforts of the rival cable to secure business by the appointment of canvassers has resulted in the loss of business, which otherwise would have been secured, This is now being remedied, bub a disturbing feature which has given much concern to the Government is the determination of the Commonwealth Government to conclude an agreement for a iocg term with the Eistern Telegraph Company, which secures advantages ibat mili :ate against t,ha State owned cabb. The share of 'he loss to ba m».de good by New Zealand on *be working of the fo. th j yi ar will be between £9OOO as d £IO,OOO, which is much in excess of anticipation, Tha reduction of rates means an annual saving of about £50,000 on New Z'jiland business to jthe us-jrs nf the cables.

OCEAN MAIL SERVICES. The (ighteen mon'hs renewal of the San Francisco eorviee expired in May, and a temporary extension was arranged until thy House has had an opportunity of considering the question of crmtinuince. It has not been practicable up to the present to arrange for inclusion of a New Zealand part as a calling phce f )r tbe Vancouver service. SOUTH AFRICAN TRADE, The deve'opment of this trade has been such that the contract made with the New Zealand and African Steam--1 ship Company has been more than justified, the lasi three or four steamers being crammed with cargo and decks full of live stock. Tbe opening up of the Sou'h African market has relieved the c -locy cf imnaensa q-ian'itirs of frozen m at, for which there wis no demand in tha Heme market. Butter is going forward in large quantities, while poultry is at top figures. Seve ral shipments of frczen fish have been sent, with the result; that large orders are on the way. In oita no lees tha*. 175,969 sacks were sent, and 12 750 zbe <p, besides horses have been flapped there up to date. The value of shipments to Sjuth Africa were;

Frozen cargo .. .. 834,226 General cirgo .. ~ 78,340 Live stock .. .. ~ 9,922 To Western Australia .. 8,533 IMMIGRATION. I am of opiuion that communici'io-j should ba opened with the principal military stations in India, as I am satisfied there are many who would be o. ly too glad to make New Zealand their lime, very few settlers of the agricultural class from Engknd find their way to the colony. What: is rjally wanted is to have agents in England, Ireland, and Scotland, farmers and pas'.oralists who are personally acquainted with our lands and land laws and the assistance given hero to settler?, who ould give detailed information that would a tract intending immigrants of the forming cl-it-s Theso agents ahou'd be New Zealacdtsrs who had returned and settled in the Mother Country, Ti eir remuneration would nominal,: tie h'hour of th« posi ion and r- cogni'ion hy the colony would be h.-ld a sufficient reward. Again something might be done in th j . way of lessening the cost of p issages. j BANK OF NEW ZEALAND.

The bilai ce sheet submitted to tb shareholders mu;{ be sHisfictory, ar d especially to those who with myself bad tbe g'ave responsibility of bringing th& colony to tht rescue of the Bank some years ago. It was not then anticipit'ed tiiat at the close of the ten years for which the gua'antee was given the B ink would be ia a position to dispense with it. Proposa's will shortly bs submitted to the House providing for a further guarantee f. r a spec'fiod period, but for a lo:*s amount than that previously given. It has been sugges'ed th it the guarau .ee should be uivan 011 tho same t< rma as before, and it has a'so hesu strongly urged that the Bsuk should be converted into a Sta'e Bank. The Government consider the wisest course would be to establish as bitweeri th) Bwikaad the colony a limited partnership fo.' a stated puiod, which would be to the advantage of both, and leais'ation giving effect to that proposal will be submitted in due oourso. The adminis'ra'ion of the Ass. ts- R-.ialisUion Boird has been advoreely criticise! by those who are not fully acquainted with the facts. It is no*, geuutally known that among these estates were a number of shetp runs and pastoral propsrlies which [ being unsuitable for close settlement and small pastoral runs have remained in the h'indj of the B mrd, and I am h ippy to s iy tlv-y have beoa worked at uonsider<ibhi profit. The whole of the real i staves iiavo b en ofl'ared to tha Gjverummt and have always been <>pe» to pr'v.ito put'chis rs, an ! wh n -ot-< pi ivjfely h ,v) ul.vaya brought I cuntiilwably more thau tue Govern-j meat's oiler. x

MIDLAND RAILWAY, In regard to the authority, given la=t session, to pay the debenture holders and shareholders £150,000, nothing hag yet been done. The debenture holders claimed that they were entitled to £\50,000 in cash, and at a 'Meeting a strong protest was made Against acceptance of payment Jin debentures, but at another mating they agreed under protest to accept debenture?. As the amount they were to uceive was fixed at £150,000, as mentioned in the Act, beifg the eum which at a meeting in London I promised to recommend Parliament to provide for it, 11 m constrained to advise that an (amendment of the Act should be made, and that st ck should be sold sufficient to realise £\ 50,000. I em advised that stock bwirii-g the u u*l rate of 3| per cent", interest would be an undesirable iur ovation, und in order to relieve imtition and to remove all grounds for grievanc, I strongly recommend the course ind'eated

EXPANSION OP TEADK. In my Financial Statement of 1897 I drew attention to the necessity f®r extending our trade eastwards and t6 the Paoific Islands. I called attention to the action of the United States in proposing to annex the Hawaiin Inlands, That annexation haa taken place. I aleo called attention that the United States was anxious to withdraw from the triple control of Samoa, America is further enoroaching upon cur trade owing to an arrangement between the French Government and the Oceanic Steamship Gomp my for a steamship service frcm San Francisco to Tahiti, and from this centre goods are distributed to the various islands. The coastwise laws will soon apply to the Phillipines, and there can be little doubt* as things are going, but that President Roosevelt's statement that America would dominate the trade of the Pacific may, unless some change takes place, be much nearer than ii anticipated. We have subsidised a steamer service to the Cook Islands and to Fiji, and a further extension has been deened advisable, and the manager of tbe Union Steamship Co. has intimated his Company is prepared to give a steam service between the colony and Noumsa for j£2400 a year.. As this service would be of mateiial advantage to the French Government and the colony, correspondence h*a taken place, and the Government of Franca has been asked to contribute or 1 grant concessions by admitting the products of New Zealand on as favourable terms as those copueded to other ooun--1 tries.

EASTERN SERVICE. The question of enteiiog into nego* ti itiors for encouraging and opening up di< ect trade ana passenger traffia with Queensland, Tha Netbe:l*uds, Indies, Stiaita Settlements, Burmah, a- d India was referred to at lengtb< Oj-itinuing, the Colonial Treasurer 1 Slidl h.vtt no hesitation in saying that New Zealand would be benefitted, for there are great possibilities by going off the beaten track and entering com* mercial regions whicb, properly exploited, may result in opening up fresh markets for our pro'luc;. Since calling attention to this question in 1897, time bas proved tha accuracy of the views then expressed, and the necessity for something being done. We may naturally look forward in time to there being no increase in our export trade toSjuth Africa and Australia and for our increased product which must inetitably follow increased settlement and development, it is to the E>st and to the Mother Country and Canada we must look as our surest and best markets. PREFERENTIAL TRADE,

The revenue r< quired by the various colonies render free trade as between Great Britain and her colonies impossibly but preferential trade given to the Mother cuntry by the dominions over the eeis wou'd help her trade and industries and might lead to reciprocity later on. Sou'h Africa has declared for and Canada has already given preference, and this colony, I anticipate, will not hesitate to do the same. Uare must; be taken not to injure onr own local industries, but by making a carefully selected list of articles and imposing on thtm a (•übstantial duty when of foieign manufacture preference may ba given to the Home trade without injuty to our own industries. The concession prop ped is on a broad basis and without 'scif ultting for any direct return from the Mother country, but leaving it to her to respond as she hinks fit. It is for the coloniee to give the preference now proposed as an earnest of more to fol ow, and prove to our kindred that we are acting unselfishly, and, as we honestly believe, in the best interests of the Empire. Should, howtver, the mother country respond it will then be necessary for ua to recast our scheme and give her something more substantial. I do not anticipate that the preference proposed will either increase or decrease our revenue matemlly. As to the me*hod, I should prefer the lines adopted by "anadrt, namely, to raise the total and then give a rebate to thi British minuf.ic'urer' In this country we feel she danger to the Empire to be >nueh greater thin any reverse that could hive happened in respect to the war in Sou'h Afrioa.

IMPERIAL CONFEIIENOT. Members are now tully conversant wi.h the. result of thn recent conference snd of the far reaching end important chare cter of the matters discussed, The periodical conference which Ift has now been decided shall take place not Iftter than every four years will lead ultimately to the establishment of an Impnrinl Council in which the oversea d> ns the Empire will he represented and at which they can bring to beir their local knowledge on matters of importarce to the Empire* At the conclusion of the canferenoe it was understood the nex" conference should t ike place in New Zealand. The 'Colonial Treasurer thrsw out the suggestion that Mr Chamberlain should be invited to attend and preside. E i has a thorough knowledge of South Africa and this would give him the opportunity of making himself nqaain v «d with Canada, Australia, and New Zealand.

CONSOLS, Considerable fpaca was devoted to a review dealing with the reduced prices of Consu's and stocks of different nations cs pu>; forth in an article in the National Review by Sir Edgar Vincent who interprets the figures aa indicating that thu fall in Consols was the result of flooding the market with high cl isi British securities to such an extent that the capacity for abeot ption of the British public has been overtasked, municipal issues being a contributing causo. Last session nuthority was obtained to raise £ 1,750,000 f r puMio worki under " the Aid Public Work* and Land S't<Lment Ac", 1902." A. m.lion of lom io authors. ), together

with a quarter of a million authorised I by "the Government Advances to Settlers Extension Act, 1902," was 1 placed upon the London money market v la February last, the price of is«ue c feing fixed at £94 10?, or 10s better than the loan of the previous year. £ Unfortunately an unexpected slump in g colonial stocks set in immediately after [ oar arrangements for floating bad been I - completed, asd spoilt the market. This 1 nu cau*ed chiefly by a virulent but g unwarranted attack by one of the Lac don daily papers on the financial i system of several Australian States, the I effect of which was not manifest till it; * was too late for us to dG anything, as to withdraw the loan would have involved a blow to our credit far heavier ] tfitn any effect of small eubecriptiocs. ] 1 do not regard the loan as by any means the failure which some of our tppwinti have thought fit to call it. Tcere is no reason to an icipite tbat the cost of raising the loan will be any greater than that of the previous issue, ud the net reeultto the two accounts i ihould bs about £9l 153 per cent., a 1 veiy aatisfaetorv result, Tbe over counter sales of the 4 per cent, short dated debentures in tbe colony have v now become a very popular investment, ever a million having been thus taken up last year. Purchasers had the • option of having principal made payable either in the colony, Australia, or London. Oat of the 243 parcels sold, £546,500 were made payable in the colony, £386,500 in Australia, and <155,700 in London. A larger demand for thn class of security may be looked for. PBOGBfiB. A lengthy review of the progrea of the colony during the past 20 years was given, of which the following is a summary: - I*B2 1902 £ £ Beoeipta ... 3,805,233 6,162,839 Expenditure ... 3.616,896 6.196,914 Public Debt 28,479,111 62,966.477 Jnterent chmrge*, Sinking Fund _ 1600,9(9 1.803,939 Imparts ... 6,943,066 113?6,723 Exports... ... 9.365,868 13,498,599 Sapoiitain Banks 13.687.062 17,231,767 „ 8* mg» jjanks ... 3,680,054 7,876,877 Shipping Tom Tons Imwwd". ... 675,223 1,089,179 Outwards ... 656,103 1,018,770 Bail way (State) Milei Miles opm IMS 2291 BaUway Beoupte £l,l M,522 £1,974,038 Telegraph Revenue ... £103,813 £222,495 Land Holdings (No.) 42,768 65,034 land in Cultivation (acres) ... 9,713,745 13,357,700 Hones 211,040 986 955 (Utt'e 831.831 1,460 603 Sheep 18,570.752 20,342,727 Income Tax ... £67,367 £200,684 Population (European) 650,433 807,929 80HI or OUB ASSETS. £ BaDways ... .» ... 27,00 ! >,n00 Crows lands occupied ... 8,459,975 Crown Lands unoccnpied (excla aire of minerals) ... 50.000,000 Tost Officer and Telegraphs ... 4.323,850 Jtablic BuildiDgi 25,053.840 Harbour Defences 30,000 Ligh&ou?e! and Land . ... 129.505 The total value of the private lands of the colony is set down as on the 31st March, 1902, at L 120,981,559. of which amouna L 70,524.604 is the unimproved value and L 50,456,995 represents the value of improvements. During the past financial year these totals increased considerably. The private wealth of the colony is 1240,000,000. UD TO PUBLIC WORKS. As previously stated there was a credit to the Public Works Fund on 31st March last of L 323,000, of which L 260,000 part of the million obtained under the million quarter loan received last year fortunately remained intact. As circumstances transpired it was a good thing for the colony that the public works expenditure was less than appropriations. The cause of this arose from the fact that the appropriations were passed late in the year, and during the summer months employment was very plentiful. A moderate rate of public works expenditure has since been maintained, and we are now in a position to carry on the public works for some months to come without further aid other than to transfer . a portion of last year's surplus to the Public Works Fund., It will be necessary, however, to take the requisite powers to raise sufficient to carry on public works after 31st March next, and you will be asked to give the necessary power to raise a million for the purpose. Ido not think, hewever, from present appearances that although taking authority now there will be any necessity to raise the money till after the end of this year. Ido not anticipate we shall require to go outside the colony to raise the sum as it is in the best interests of the colony that we should refrain from going to the London market, and I do not expect there will be any necessity for so doing. There is a collateral advantage of raising within the colony even though we pay a higher rate, for we get the fult amount of the debentures issued, and the less interest we have to send out of the colony the stronger is oar financial position. KSTIMiTED BXPtHDITURE. The expenditure for the present year is estimated at £6,255,857, representing an iicrease of £41,838 on the ex pendi'nre the previous year. Permanent charges are estimated to rxeeed actual payments lrst year by £19,579, while departmental appropriations ■how an increase of £31,286 of permacent charges; interest on public debt is answerable for an additional sum of £39,672, but this may be reasonably accounted for, provision having to be made for interest on the recent million loan as well as on monies borrowed for lending local authorities under special Acts. The greater por tion of Increase asked for nnder annual appropriation is absorbed by no lftf than six departments as under department industries and commerce and > tourists depirtmant estimate 1903-4, £43,377; aetual 1902-3, £18,680; in cresse £24,697; Post and Tele gr p v Department £524,670, £485,860 £38,810; Education Department £565,440, £526,820, £28,620; Work i >g Railway's D partment £1,360,000 £1,354,151, £5848 ; Police Dspart m-nt £127,433, £123,699, £3731 Linda and Survey Department £169,410, £129,443, £3!\967. Hon ouralle members will admit tbat ihest are departments which cannot ba allowed to snffer for want of funds Other classes show a reduction of ex pecditure to the extent of £131,396 There would be a reduction in defer.ct ' expenditare of £56,992, while tL< CMonial Secretary's class shows a ra d action of £65,825. ISriIUTKD BBVESUE 1903-4. I have set down our receipts from revenue proper as £6,468,000. In ad dition revenue will be added £60,600 being proceeds of debentures issued ir respect of accretions ef sinking fund* for current yeas, thus making the total available for ways acd maara receip' frcm all sources L 6,528,600 oi

L.84,491 nnre than received last year. The estimated revenue account for 1903-4 compared wi'h the actual re- , venue of 1902 3 with estimated increases or decreases ara as fcllaws: - 1903-4 1902-3 Increase Customs 2,400,C00 2,335,643 64,357 Railways 2,000,001 1,982,551 17,449 Stamps 9-3.0.0 978,939 408] Land Tax 300,000 luco.ue Tax 210,000 200,684 9318 Registration, etc. 84,000 83,000 119 Sinking Fund 60,600 57,500 3100 1 Deoreas Beer Duty 89,000 90,400 1403 Marine 32.0C0 32,968 968 ] Miscellaneous 130,000 133.203 3203 Territorial 240,000 252.278 12,278 j SUMMARY. J Estimated Revenue .. £6,528,6001 Estimated Expenditure .. £6,255,857 j Surplus .. £272,743 ■ Add balance 1902 -3 .. £303,905; £576,648 This is ample for tho supplementary estimates, and for a handsome amount to be transferred to the Public Workr Fund. CONCLUSION, Mr Seddon said he considered he had proved the colony's position to ba sound and strong, acd he poioted out that the assets, public and private, gave £6 for every £1 we owed, and that the indebtednes pßr head is more likely to decrease thin increase. He estimated the value of the auriferous and argentiferous lands of the calony is fifty millions. He referred with much gratification to there being available from the Consolidated Fund over half a million sterling after providing for everything on the Estimate?, and to having a million sterling on the 31st March last available for public works, thus obviating tbe necessity for going on the London market for a considerable time. He enjoined economy in departmental expenditure, a moderate expenditure on public works, strenuous efforts to increase population by attracting those who will lessen our responsibility, promote settlement, and bask in that sunshine of ideal progress, contentment, happiness, and prosperity wo now enjoy. New Zealand justly merited being termed "The Paradise of the Great British Empire," acd in the language of the poet Bracken "God's o*n Country." The remarkable increase io our exports was attributable to the spread of settlement and development and the industry of our colony, but the vast increaee in manufacturing, and of those employed, are factors which bear evidence tbat out industries are flourishing, and employment is plentiful with good wages obtaining.