THE FINANCIAL STATEMENT.

Temuka Leader, Issue 9419, 20 June 1882, Page 3

THE FINANCIAL STATEMENT.

Major Atkinson delivered his financial statement last Friday night, EXPENDITURE. He said that the total expenditure . sanctioned by Parliament last session was " £3,328,579, but of that a balance of £49,759 remained unexpended. The outstanding liabilities on 31st of March last were £164,394, of which £24,000 was for a sinking fund of £BOO,OOO unsold deben tures of the loan of 1870, guaranteed by the Imperial Parliament. REVENUE. The estimated revenue for the past year was £3,397,650, but it exceeded that by £190,520, of which £125,107 was contributed by the Customs, £11,115 by •'stamps, £34,243 from miscellaneous "''"sources, and £56,852 from depasturing licenses. The Property Tax did not reach within £l9 of the estimate, and the revenue from railways was £25,266 less than anticipated. THE LAND FUND. -'•'■• The land fund showed a balance to - credit of £11,360. PUBLIC WORKS. The appropriations on this account were £1,892,554, but only £997,886 of -, that sum was expended. There was a credit balance of £924,865, but the out" standing liabilities were £880,276. About £IOO 000 would be required next year to buy native lands. THE NATIONAL DEBT. ..; ; The debt of the colony had increased "i .by £572,024 during the last twelve moHths, and was now £27,680,293, the .increase being caused by £431,300 treasury bills, which formed a portion of the Public Works fund being ssld, and by £364,700 being obtained' on security of tha debentures of the loan of IS7O. Practically the debt had been reduced by ' £209,176 being added to the accumulating sinking fund. SAVINGS BANK. In 1871 there were 10,549 accounts in the savings bank, averaging £32 18s Id each, or a total of £357,454. In 1881 there were* 51,008 accounts, areraging £24 3s 4d each, or a total of £1,232,788. The population had in the meantime increased from 266,986 to 500,910. INSURANCE DEPARTMENT. This department was making rapid progress. "When started 12 years ago there was no intention of making a profit out of it, but it had yielded to the colony duriDg the first ten. years £77,000 profit. The business had increased during those ten years from 460 policies, insuring £106,000, to 16,900 policies, insuring £5,800,000, being equal to half a million yearly, and he was assured that this year

it would increase to £OOO,OOO. The assurance fund had iucrcased from £SOOO in 1871 to £557,000 in 1881. FINANCIAL YEAlt* The total moneys paid into the public account during the year was L 3.805,233, and the total expenditure L3,61C,895, the receipts being in excess of the expenditure by L 188,335, to which the surplus of last year. 1,26,766, must be added, making a credit balance of L 215,044. lOC AT. FINANCE.

The Government proposed to take the whole of the cost of hospitals upon the consolidated fund, and would ask for a vote of L 50,000 for this purpose. He would ask for a vote of L 20,000 for charitable aid, to be distributed through local institutions, the Government giving pound for pound. If this were agreed to he would have to increase the L 40,000 for hospitals and charitable aid to L 70.000, which would absorb L 30,000 of the surplus, and the credit balance would thus be reduced to LBS 544. With this credit balance taxation might be reduced by L 50,000, but he did not think that step would be prudent at present. What the country demanded was progressive works, and while these were going on taxation could not be reduced. EEVENUK FRO.AI LAND SALES. He estimated that a sum of L 170,050 would be realised from land sales during the coming year, after paying all expenses, but how to dispose of that, must for the present remain, in abeyance, until the House had determined how they would deal with the local bodies. LOCAL LOAN.

He proposed to raise a loan of L 250,000 in the colony, which should be issued in the form of inscribed stock bonds of LlO and upwards, which could at any moment be converted into cash. This as soon as understood would find favor with the public, as it would provide for them a safe means of investment for their money. INCIDENCE OF TAXATION.

I He next went on to discuss as to whether the taxation as at present levied was fair, and concluded that it was fairly distributed over the community He divided the population into three classes, as follows :—The wages or industrial class, consisting of 312,436 souls, exclusive of 11,903 domestic female servants; the intermediate, or the class who do not pay Property Tax, 96,260 souls ; the property tax paying class of 68,445 souls. Taxation proper amounted to L1,727,748 j raised as follows :—Customs, L 1,276,199 ; stamps (not including postage), L 126,145; Property Tax, L 257,600. From the Customs he deducted duties paid on wine, spirits, foreign beer, tobacco, and sugar used in brewing, L 5512 ; amount paid by Maories, L 3493 ; and including duties on cotton piece goods they all reached L 68,794. These deductions he made because he could not apportion to each class its share of these duties. From trustworthy information he found that the industrial class families paid 16s 6d per head to the State or a total of L 214.522 for the various families, to which he added L 51,246, paid by 49,253 siDgle men, or LI Os 9d per head, and 19s lid paid by single women over 18 years, having oWP pations, a total of L 3983, making in all L 269,751, thus giving an averags of a tax of 17s 3d per head to the whol3 of the working classes. To this he added L 10,311 paid by domestic servants as a duty on drapery, making the contribution of the industrial class to the revenue exclusive of the duties on wines, spirits and tobacco, L 280,062. Deducting this amount from the Customs Revenue, a sum of L 312,342 was to be paid by the second and third classes, or LI 17s per head of botli classes, and to this must be added 15s 4d per head for stamps (not for he concluded these two classes paid the stamp daties. Ho found then that the second class paid LI 17s lid customs duties and 15s 4d stamp duty, making altogether L2 13s 3d per head, and concluded that the property tax class paid a similar amount, and with a property tax at Id in the L the amount the latter class would pay was L 6 9s 6d per head, This did not include the revenue derivable rom wines, spirits, beer and tobacco. PROPOSED LOAN.

As regards another loan the first question was whether it was desirable, and the second how much would be necessary. He had already pointed out that after paying outstanding liabilities they would have only L 283,468 to continue carrying on works already begun. It was plain, therefore, that money should be raised, or public works stopped, and the Government had come to the conclusion that the first course would be preferable, because the gain to the colony would more than compensate for the increased liability. He would, therefore, propose the raising of a loan of L3,000.000,t0 be expended at a rate not exceeding L 1,000,000 per annum. The Minister for Public Works would name the works on which this money was to be expended. In conclusion he defended the gloomy view he took of matters in 1879, and urged it was prudence, not folly, that made him look the difficulty in the face.