THE BUDGET.

Taranaki Daily News, Volume XLVI, Issue 162, 13 July 1904, Page 2

THE BUDGET.

ANOTHER BIG BURPLUB. Nearly Three Quarters of a Million. MR SKBDON'S NINTH STATEMENT. IN COMMITTOR OF SUPPLY, JULY 12th, 1904. Jn the House of Representatives last evoning tlte Financial Statement was delivered by tlte Colonial Treasurer, the Right Hon. It. .1. Seddon, P.C., LL.D., as follows :

There is every wish on the part of hon. members to have the Financial Statement as early as possible", aud the desire is commendable when it is incited with a view of obtaining information as to the finances and general progress made during the year, and not for party purposes. Believing that it would be pleasing to all I have been enabled to bring down the Statement within fourteen days of the opening of Parliament, and forty-three days earlier than last session. It should not be forgotten that over three weeks were spent lust session in debating the Address-Jn-Reply. It has fallen to the lot of few men to be continuously at the head of a Government the length of time it has pleased Parliament and people to maintain me in that position, and it is n privilege and pleasure to deliver the ninth Budget since I have been Colonial Treasurer, and in the same to inform hon. members of the results of the past year's financial business, and of the substantial progress the colony is making in every aspect. I The process of EMPIRE MAKING must be by the formation and building up of the Empire's! dependencies, and as these flourish and increase so will the Empire's solidity and greatness continue to be maintained and expanded'. It has been my honoured privilege to be Prime Minister of our important and lovely colony for the past eloven years, and I have not been a passive spectator of the building up of Empire during that period. I Indeed 1 may say without egotism that so far as my abilities went and opportunities afforded I have missed no opportunity of keeping our interesting, unique, and bounteously endowed islands and thoir resources before our kindred in the United Kingdom, other self-governing colonies and nations, as a distinctly valuable integral part of the British possesions, and I think wo con confidently congratulate ourselves upon being one of the strong links binding the Empire together.

The dry-as-diisl figures forming the summary of transactions for the past year have already been given through the Gazette, and tlience through the columns of the press of the colony but at the risk of wearying you it 'is my duty to announce the oft ro-iter-atcd statement that wc found on closing our books for 1903-4 that we had a VEUY LARGE SURPLUS. This time the figures reached over throe-quarters of a million. I therefore decided to have * further mm of £125,000 tra- Jtorred to me Public Works Fui'd, making u total ioi the year to that fund of £350,000 and eoouling us to shut down with a handsome balance in the Consolidate ed FU"d of £649,740, and the country must be congratulated upon sucii a resiult-double the balance at the close of the preceding year, In my lust Budget I strongly advised that wo should "keep tho public works expenditure within reasonable limits, practise tho strictest economy, and prove ourselves self-contained and seek as little money outsido tho colony as possible." So far us could' reasonably bo dono tho courso Indicated lias been followed. There hap been a gradual reduction in public works expenditure, and a further reduction Is proposed'.

In 1892, when 1 was Minister for Public Works, uho total expenditure was £391,612 ; last year the total 'was £1,020,377, tho expenditure on railway construction alone being £828,703, or more than double the total for 1892; whilst the expenditure on roads last year, £361,044, was greater than tho total on public works for 1890-91, which whs £335,151.

With the back blocks unroaded, the main trunk lines" of railway incomplete, and the necessity for "developing tho mineral wealth, industries, and igoneral resources, it will be impossible to bring the public works expenditure down to what it was thirteen years ago, There should, however, bo a reduction whenever possible, and to that «ad member* should lend themselves aad not continue a course many have followed, of vailing at tho increase of th« public debt In one breath and In the next freely and scathingly denouncing the Govomment for not providing sufficient moneys for roads, bridges etc., m their districts.

1-ho millenlum of ft Colonial Treasurer will arrive when members prove their patriotism and consistency by refraining from demamding large public expenditure, and allow the completion of railways, construction of roads, erection of post offices, and public buildings to extend over a longer period and as far as possible have the cost of public works defrayed out of the surplus frow the consolidated fund. RECEIPTS OF 1903-4. The revenue for the year exceeded seven millions, and was considerably in excess of any previous record. Tho actual amount was £7,021,385, or £634,776 moro than tho preceding year, and £553,385 over the estimittto, Receipts outside of rcvenuo were £108,730, including £60,600 as proceeds of sinking fund debentures. The Increases under tho several heads of revenue over tho sums received In the preceding year established two new records—that of tho railway revenue which for the first, time exceeded two millions, and tho stamp rovenuo, which readied over ono million. Tho principal increases were Customs *265,082, stamps £100,345, land a«d incomo tax £59,017, railways £185,442. All other heads of revenue excoodod tho previous year's recoipts except territorial revenue, which fell off to £4,435

Comparing actual with estimated rovniuo, increases took placo under all heads. Customs was exceeded by £201,825, railway by £167,992, stamps by £90,284, land and income tax by £45,882, territorial £7,842, and all other heads by £33,578, leaving out shillings and 'pence. Of miscellaneous receipts outside revenue proper £47,741 was recovered in connection with expenditure that had been charged In accounts of the previous year against the cost of the South African contingents. EXPENDITURE OF 1903-4. The expenditure for Uve year under permanent charges and votes reached £0,d34,281, or £220,263 in excess of the previous year but £150,793 less than estimated. REQUIREMENTS. Amongst the permanent charges interest and sinking fund shows an increase of £57,000 over the previous year, arising from the payment of interest on new loans Usual. Taking the increased expenditure of last year under annual appropriations as compared with similar expenditure made during the preceding year, departments such as the Postal, Telegraph, Education, Working Railways, and Departments of Land and Survey show increases totalling £187,945. An t>ho country becomes more closely sottled the requirements of colonists must bo attended to, and this means increased expenditure for the departments of the l'ostniastcr-tteneral and the working railway. It must be remembered that the railways contributed additional revenue of over £185,000 against increased expenditure of £98,000. Again, *s population lncroases so must expenditure (increase to keep pace with the requiromcats of free education, and

£20,000 extra had to be provided for tin's.

The efforts of my Government in the direction of placing people upon the Crown lands and cutting up large estates for, closer settlement necessitated a largely increased expenditure u lion surveys, and the cost of the Lauds and Survey Department exceeded that of the provious year by £;>1,000. A lessened expenditure took place in the departments of the Colonial Secretary, Old Age Pensions, Minister for Justice and Minister for Defence, TRANSFERS, during the year 1902-3 we transerred a sum of £200,000 as a contribution to the Public Works Fund Ihm year I was ve.y pleased to be nolo to pay over £850,000 to supplement its ways and means.

RESULTS FOR 1903-4. th l * naZ ouly , remiana t0 summarise Urn poet year's working so far as S"T r " VOW, ° actount "» concerned. The revenue for the year amounted to £7,180.116 10s id and to £6,784,281 saTc? SHS-ST Webref S total of £649,740 17b ii ~„ a t9^ n f^Vo ci t sofi9o2 rurtrr"' 1903 - "Sr t wTrXtit 2 * f^r M Sdon £BSO 000 Wer °, also cr «iited ans

tures amounting to £465,000 were P*.d off and a payment o £l5O OTO was mad* to the Midland ifcW bond-holders, The tota , ™*«» at viie commencement of the vear n??h .* , J^ WMds ways <">« Ws oltlie fund for the the current year I '" ay ., urtnor mention tl.at of the hal -million left of the loan authorised last session up to March iflst hurt, the 'ireasurery had sold £83,JoU, leaving a sum of £416,050 which I have little doubt will oc gradually sold to investors during the current year. 1 say "gradually as i have no dcß i,. e to U i stu)lb/ Ww local money market, which might happen were I to ask for subscriptions to a definite emitted loan.

Taking therefore the available balance of ways and means at £809,852, and at least a similar contribution from the Consolidated Fund to that made ln«t year, £350,000 I |h s vc_ «a aioured linanco to onablo me to carry on our public works with a prudent and at the samo time satisfactory expenditure. LAND, FOR SETTLEMENTS ACCOUNT.

Recommendations to pureltaso tw«»lf-Ave estates were made by the Ehud Purchase- Commissioners, and I transactions wero completed oin'bracis<g ten properties containing 87,141) acres, and the purchase , mo»oy ran into large figures, totalling £468,015. The exponses charged to tlio account amounted to £39,564, aod interest on money borrow,ed was recouped' to the Consolidated Fund to tho extent of £115,088. The total charges during the year amounted to £622,268 10s sd. To meet these charges sales of debentures were made to the value of £511,350, and from rents wo received £150,40018s 3d. The interest derived from investments of moneys belonging to the account yiolded £13,608 lis 3d, and other small receipts were £486 19s 9d, besides which wo brought forward a balance of cash advances and investments amounting to £360,074 19s 9d. Deducting the expenditure of £023,1 268 10b 5d the account leaves off on March 31st with a credit balauet of £418,658 18s 9d.

THE EARTH HUNGER ■ is still unappeased, and I have nrB ranged for the purchase of several 3 large estates, the settlement of > which will absorb fairly largo sums l " during the current year. I shall • liavo Homo remarks to luaks shout - closer settlement later on. I LOANS TO LOCAL BODIES ACs COUNTS. Up to March 31et last the total amount of debentures to credit and and issued, and carried into this account, was £2,227,100, and the fco- , tal disbursements have been —To ; local bodies, £1,777,550 \ to Lands . and Suryey Department, towards _ opening up blocks of land for sett tlemont, £858,600 ; and to the ! I'ublic Works Fund, £89,080 In cxt change for - debentures' under the j Roads and Drldges Construction Act, 1882. My section 8 of the Local Hodies Loans Amendment Act, 1903 the low" rate of Interest of 3J per cent, per annum was abolished, and was increased toy one-half i>er cent, so that the lowest rate at which i loans are now available is 4 per cent per annum, having a currency of i of forty-one years. Of the total amount of debts In- ; scribed to February Ist last tho following figures will indicate the proportions of the various rates at which tho loans wero made :—Loans at 44 per cent rato, £1,005,880 ; at 4 per cent, £42,067 ; at 3J por cent, £809,205 ; total, £1,857,152. Tho balance at credit of the Loans to Local Bodies Account was £29,157 14b lOd. Debentures for £2os!000 wero created and issued during the past year, and refunds of unexpended balances of grants amounting to £665 3s Id were received. Payments 0* account of loans ware made dusl»g On yoar to local bodies of £193,653, ««d towards opening up blocks 0/ land for settlement £25,758Jtaoinjr a balance of £13,418 to creffllfc rt« tho transactions within this account h u vo been large and numerous, but more especially on account of tho present stringency of the money market, it Ims been deemed oxpodient to curtail expenditure under the various Acts through which loans to local bodies can be obtained. In consequence of this applications for loans amounting to £26,400 were refused up to March 31st, and sinco then Boverul morn applications have had to bo declined. Doubtless this wil'l causo disappointment to the applicant local bodies, but until the money market is oasler it is best to conservo our resources so as to ibo able to meet the roquh*omonts of the most necessitous local authorities who aro ondoavourlng to provide roads In the baekhlocks, and thus assist strug'g-limj pioneer settlers, HALF MILLION LOAN OF 1903. The London market was unfavourable to colonial borrowing, except at prohibition rales. 1 had therefore to endeavour to raiso tile money required in the colony and Australia. A 4 pi>r coat rate w n s fixed upon, with an alternative currency of five or twenty years, in the option of the Government, and on November 25th, 1903, wo Invited tenders from Australia and this colony f () r a loan of £500,000 under the authority of the Aid to Public Works and Land Settlement Act, 1903. Tenders were to close an December 23rd, 1903, and tho conditions 0/ payment were a deposit of 5 per cent on application, 45 per cent on January 4th, .and 50 percent on February Ist, 1904. Interest commenced to run from January 4th, 1904. Fifty-two teawiers wero received, representing applications

amounting to £702,350. The minimum price of iswie w tt s £IOO pel' i jcent, mid in only one tender was u small premium offered. Out of the fifty-two tenders forty-five were for sums ranging between £IOO and £7500, mid seven for sums uf £2-i,lioo and over. 'ldlis, 1 think, proves that tlie bona ilde investors and thrifty colonics were anxious to avail themselves of tho opportunity of olytuininp; a remunerative investment. .Seven tenders were received from 'investors in the Australian States. The expenses connected with the issue of this loan amounted to only £2llß Bs, or under J |>or cent. THE PUBLIC DEBT.

'lho gross debt on March 31st, 1903, was £55,89»,019, and the nett debt £53,585,780.

Un March 81st, 1054, nett debts were £57,522,215 and £55,084,328 respectively. This inoroase of the public debt is undoubtedly large, but I venture to assert that upon b u analysis of the pu** poses lor which loan moneys wera obtained lion, members will not to .nclined to find fault with myself and my colleagues. I proposo to classify;lloaiiß into two claßses > \iiiaiiiely, reproductive (1.e., interest bear- I ing), and «ou-n|pjrodui:tivo (Lc., not immediately interest bearing), Under Uie first there were raited £923071), including £130,000 for payment to the Midland Hallway bond-hold-ers, and under the second class £758,020, or a totul of £1,681,090. On the other 'hand wo redeemed £55,000 of the Consolidated Loan Act, 1867, bonds at the annual drawing, a nd £2OOO of debentures created for the Uovemment accident insuraaco debt were writen oil. 1 have no desiro to advocate, nor even to defend, a large borrowing, policy ; but I must toe pardoned if I look back with pride to the immense amount of good which has been done to hard working and struggling settlers by Judicious borrowing, which has enabled large areas of lands to be purchased at a fair price and be cut up for close settlement. As I have said, however, I &m not going to advocate a 'largv borrowing jtoHcy, Quite the reverse. I am going to worn hon. members, that although in some directions the { London money market is In an easier condition than when I last delivered my statement I am quite observant i taough to appreciate the fact that the purse strings are, so far as colonial loans are concerned, still tightly i drawn and will only relax when we prove ourselves self-contained. It will therefore be necessary for the Government to proceed only with the most urgent public works, and endeavour to make our available ways and means last as long as we can, and I hope hon, members on both sides of the House will assist me. Comment is often made upon the largt dimensions of our public debt compared with our population. 1 do not think a proper consideration of the subject has beeu given It by Ih'drvP" duals who ought to know better, i Tho subject is of sufficient importance to delay you a few minutes while 1 endeavour to place before you a few figures and resulta which may surprise you and cause hon. members to agree with me that tho volujjm of our debt is RD t.Bc w> ia,«b"for a young and progressive colony. In the first pluce it must be re membered that in the early days we were often at war with the Maori populate, and to provide the sinews of war.several millions naa to be raised. In JB7 O a progressive «r public works policy was Wmraied ment of the colony by leans ««,t bounds. To carry out making railways, opohlng up roods win. 1. old, „„,„„" J h °";"T 'can-it*! £ f u J cni eot, by borrowinc swlerably increased, but are w mongers prepared to «Zt ?nat X aro™, thlß Way ? C«'tainly the, indood I am told all round that i I „,l r hun « er is B "» so frreat «* of wha°t°the P u a bir re dr Urßt< ounts to I have had !L ** am " od wherein t , * tobl ° Preparterm the normal debt per head W decreased nearly Ui P Jr cen? 189 *~from £3(l 9s 7d to £32 V.TSu

STATEMENT OP YEARLY DEOT

J'ER HEAD OF POPULATE SINCE 1892. At March 31st, 1893, the gro* public debt (exclusive of reproductive loons) was £23,938,420. indebtedness per head of population (cxclu sive of reproductive loans) £36 97d, balance of public debt (roproduc" live loans) £15,319,420, Indebtedness per head of population (reproductive loans) £23 7s. l-'or the year 1894 tho figures an respectively—£2B,697,6lß, £BS 4d, £16,128,802, £23 16s 8d Year 1895-£23,523,460, £B4 9, 6d, £16,863,504, £24 9s. Year 1896—£24,078,392. £B4 4« lOd, £18,072,488, £26 19s 7d Year 1897-£24,475,655, £34 2h ,?d. £19,890,963, £27 14s 4d Year 1898-£24,450,770, £33 8s 4d, £20,152,654, £2B 0s 8d Year 1899-£25,412,539, £34 n> Bd, £21,525.467, £2B 16» 7d Year 1900-£24,930,112. £32 17 ( 3d, £22,044.840, £3O 4s lid Year 1901-£25.630,126, £33 3s ad, £23,961,119. £3l 0s 2d Yoar 1902-£20.735,310, £33 in. 10d, £26,231,131, £B3 4. Id Year 190i!-£27,735,376, £34 0. od, £28,163,643, £34 lis 3d Year 1904-£27,170.406, £32 It--Bd, £30,351,719, £B6 3s 7d.

CONTRIBUTIONS FROM CONSOLIDATED TO I'UBIJC WORKS FUNDS.

In aid of ways and means lor (he past thirteen years transfers of mow eys from tile Consolidated Fund to assist the J'ublic Works Fund luivi haul regularly made. These make a total of £3,755,000, which has on ablod the completion of many public works which under other circumstances It might, have beon found necoss ury to hold over. If wo had borrowed in tho London market inane) oquivalont to the sums transferred and wore paying intorost on the loans at current rates our cltargei would have beou increased by £liy - 800 annually, This ami has been saved, and nt tho same time many miles of railway U nd roads have been constructed and other Important works carried out.

STATEMENT OF TRANSFERS. Year. £ 1891-5! 30,000 1892-3 200,000 1893-4 250,000 1894-5 250,000 at 8 J lan . „ P er cent, £5530 1805-8 150,000 1896-7 150,000 1897-8 300,000 1898-0 425,000 1809-0 450,000 1900-1 500,000 ieoi-2 fioo.ooo 1902-3 200,000 at 8 1903-4 350,000 at 4 per cent, £14,000 Total Amount £3,755,000 Saving per annum £119,800,

OLD AGE As a result of the intixxludMaMy a new scheme of red to lust year, and which NfMBMB made to apply to all petuaoMjt '£39 rendy on the books in additio* - new claimants, there has beea'»*4S§| eided drop in the number of iW-MnP aious on the rolls and eotmeq'mtiSsSr in the expenditure under the jfio"' The new grants totalled 1068. gainst 1886 in the previous y*UU«. The pensions cancelled numbered MC& which with BUS deaths reduced tie? totul to 11,020, a decrease of 6S«L£ The actual amount paid in was £203,164, or £6976 less iiti'i lost year, Deducting recoveries "paid *"< to the credit of the Act (£2820) the netfc expenditure for the year was £200,844, represer ting a saving of close upon £IO,OO. t. The cost of Administration was £8055, against £3805 the previous year, It Is aatU . muted that a sum equal to that pror vidwl last year, £215,000, will meet " all claims this year. . t A sum exceeding £IO,OOO was. paidduring the year to the various hospitals and charitable homes in tU) eoleny for Uie maintenance of pension* FRIENDLY SOCIETIBB. Itoturiis have been received foe IW2 from thirty-ilvo central bodies of the affiliated type. The nwulw of members u t the end ol UK» was 48,408, and the total vaiuTl,/ Z assets was £856,815, equal to *T» ulll I T' l ,nowlw - *»unia> from thirteen isolated friendly socletw ties and branches on the registeVfiS ' made returns it is l*llov*dthVto*2 value of assets wouUl to*. close oh a million. r** LAND AND INCOME TAX, Receipts under the head of Wi creased valuations. h£ '■' again produced a hove expectations, teShT £*&' VALUATION OF LAND DEPART. MENT, .. : ' ] - The operations of tW. *»e>t»ent ' have brought the wvlsioToTS; " lands oi the colony to a potat which etoß^t^td^«w^h y j*"\ U " le or none will bo left unr*" vised. So rapid have °£ Uie changes n many t>art« «f>w! districts have been twice revised since the passing of • «?*?*& ?U wld " ls .l»Bsible Umtin «.£' a third rev Con WU 3&£'» Mad « **l S. 2^ GOVERNMENT ADVUSMw"TO SETTLEKS OFMOp. • . '.' Owing to «ie unfavdurioii cbbhi ' «ons for JESgCt' tortnined applications f« iLw Pubiie T^ h in the h«»«is of X I übllc Trustee were .--For the i*F in* fund account, £IBB 500 ' assuranui r„„,i *' xoo ' oul '; tor the ■ The 0^ mamount* to tss&fc 'jEffi " applicants, returning t?' " Actto ßlßtMal , h S^ M O,