THE FINANCIAL STATEMENT.

Temuka Leader, Issue 1909, 27 June 1889, Page 2

THE FINANCIAL STATEMENT.

The financial statement nas delivered by Sir Harry Atkinson last Tuesday evening. He commenced by stating that our trade is reviving, our foreign markets have much improved, our industries, large and small, with hardly an exception, show increased activity and steady progrer:. The policy of retrenchment had produced a surplus, but they must be doubly carefyk, lest, with return of increased prosperity there should he any return to unwise or unnecessary expenditure. CONSOLIDATED FUND. The estimated expenditure for the year 1 888-9, including the votes taken upon the Supplementary Estimates, and charges under special Acts, amounted to £4.084,054. The actual expenditure was £3,977,265. There was, therefore, uut expended of the amount authorised €106,789, The non-payment of any balance of subsidy due to. local bodies, arose fropa their neglecting to make application according to law, and the total liability of £25,677 outstanding on the 31st Marcl) last, was not unusual in amount. The amount for Public Schools, had been exceeded by nearly £6,000, aud an under-issue of nearly £7,000 had occurred on other votes, but chiefly on the vote for school buildings. THE REVENUE.

1 The total revenue estimated was I £4,162,400; the actual amount received wag £4,055,034, or £107,366 less than the estimate. The Customs duties yio ! ded less than the estimate fay about £55,392. The railways also yielded less than the estimate by £38,865; but this was counterbalanced by a reduction in the expenditure, so that the not revenue received was £360,016, instead of £338,162, as estimated. Stamps yielded less than estimated by £14,329. Registration and other fees fell short of tho estimate by £8273. The only item of revenue in the receipts of tho year which could bo ceptional is a sum of £IB,OOO, . jiiofit earned by tho Public Trust Office. This by law is made revenue, but for some reason tho amount had been allowed to

accumulate in the office, and had not been paid into the Public Account year by year as it should have been. They had to pay a sum nearly as large, namely, £14,914 paid on account of abolition of offices in carrying out retrenchment. LAND TUiN’D EXPENDITURE AMD REVENUE. The estimated expenditure of the JUand Fund was £127,423. The actual expenditure proved to be £119,496, or £7937 less than the estimate. Of the expenditure £23,336 was paid to local bodies as contributions in respect of roceipta from deferred payment and perpetual lease land, and £15,497 for rates on. Crown lands, The estimated revenue of the Land Fund £119,000. The actual rece’pts ware £108,007, being £10,993 less than estimated. The amount received for lands sold for cash was £II,OOB more than estimated, while the amount received for deferred payment land was £22,001 under the estimate. There was outstanding on the 31st March last a sum of £46,516, due on deferred-payment instalments, and perpetual lease, and other rents—£3l,7Bs on the former, and £14,741 on the later. Thera had been 55,188 acres of land taken up ou the deferred payment system by 335 selectors, 204,642 acres on perpetual lease by 765 selectors, and 70,987 acres by 653 cash purchasers. The expenditure of the Land Fund having been £119,496, and the revenue £108,007, there was a deficiency of £11,489 on the year’s transactions. FINANCIAL RESULTS. Ths total ordinary revenue received was £4,055,030, and the total expenditure amounted to £3,977,265. There was therefore a surplus for the year of £77,769. This surplus included the primage duty amounting to £46,132, and he had paid off £50,000 of deficiency bills, being part of the bills for £128,600 issued last year to hneet the balance of the deficiency on the >Slst March, 1888, which was not provided for by the debentures issued in March, 1888. The statement of liabilities shows that the total amount on the 31st March lost, including those of the Land Fond Account, was £152,541, while on the Slst March, 1888, the amount was £144,936, a difference of about £7600. Such were the results of the year, and he ventured to think they were satisfactory, especially when it was remembered that all this had been accomplished with a large decrease in public works expenditure (excluding charges and expenses of raising loans), which had been for the last four years respectively : 1885- £1,239,528 1886- £1,166,374 1887- £906,711 Of these amotmts there was spent within this colony in 1885 86, £1,013,338; in 1886-87, £1,060,474; in 1887-88, £802,711; and last year £450,353. THE PUBLIC DEBT.

The gross public debt on the 31st March, 1888, was £36,758,437. On the 31et March, 1889, it was £38,875,050, but deducting tho sinking fund accrued, now amounting to £1,395,389, the net debt was £36,979.661. Taking account of old loans paid off and new loans raised the resnlt of the year’s operation of the loan account was an addition to the permanent debt of £1,616,613. But on the other hand It ia material to note that by far the greater part of this sum, though borrowed was not spent, bat in hand to amount of £1,357,696 on the 31st March last. He refered first to the loans paid off. Debentures for £25,000 of the New Zealand Loan of 1885 86, due Ist October, 1888, and £25,000, due let January, 18S9, were redeemed by the Trustees of the Sinking Fund of that loan, Debentures for £40,900 of the consolidated loan of 1886-7, drawn for redemption in 1888, were redeemed out of the sinking fund provided for that purpose. Debentures fer £131,600, issued under the Consolidated Stock Act, 1884, for increasesof the sinking funds, wore redeemed with cash received by the Treasury from the Crown Agents after the drawing of 1888. Advances to the amount of £500,000 obtained on the security of debentures of the North Island Main Trunk Railway Loan were repaid oat of the proceeds of that loan. An odd sum of £B7 under the District Railways Purchasing Act, 1885, was paid off out of the Consolidated Fund. The total amount of debt paid off was therefore £722,587. The loans raised were the North Island Main Trunk Loan, £1,600,000; the loan authorised in 1888, £1,000,000; debentures created for increases of sinking fund in 1888-89, £263,200; for Government loans to local bodies, £75,000; and for state forests, £IOOO. These new loans amount to £2,349,200, and they deducted the amount paid off, £722,587. they got £1,616,613 as above shown. In his Financial Statement \ of the 29th May, 1888, attentioo was drawn to £25,000 falling due on the Ist November, 1888, under the Colonial Inscribed Stock Act, 1882, and £19,500 on the 15th December fol-. lowing, under the General Purposes I Loan Act, 1873, and remarked that it would be necessary to obtain ♦.he authority of Parliament to renew Ttbese loans. Subsequently it was found that they could be dealt with under the Consolidated Stock Act, 1884. Accordingly short-dated debentures for £299,500 • were issued under that Act, pending the creation of stock, and the securities under the old Acts were surrendered and cancelled. THE PUBLIC WORKS EUND. Honorable members were aware that, for reasons mentioned in his last Financial Statement, and which it was unnecessary further to refer to, the Public Works Fund now consisted of three separate and independent accounts. No. 1 Account—The balance at credit of this account on the 31st March, 1888, was £100,391, including £150,000 temporarily raised under the Loan Act of 1887, io anticipation of the £500,009 authorised by that Aot. The loan was floated last year, and the amount credited with £500,000. With other credits, and the balance at the beginning of the year, amounting to £722,817, subject to the repaymentof the temporary advance of £150,000 received in 1887-88, the amount was £572,827. The expenditure during the year amounted to £240,258 for public works and £28,758 for charges and expenses of raising loans, including discount, making together £269,016, and leaving an unexpended balance of £303,801 at credit of this account on the 81st March last. No. 2 Account—The North Island Main Trunk Railway Loan of £1,000,000, iauthorised in 1882, was raised last year. anticipation of tho raising of the loan ""there hod been expended up to tho 31st March, 1888, £478,000, leaving a balance of £522,000 unexpended. Last year there was expended £86,184, including

£51,788 for charges and expenses of raising the loan, including discount, leaving an unexpended balance of £335,818, subject to outs'andingjiabilities amounting to £38,972. No, 3 Account—At the 31st March, 1888, the balance at credit of this account was £544,334, including £150,000 lem* porarily raised; £500,000 raised by loin brought the available for expenditure up to £898,224. The expenditure during the year was—railways £251,801, departmental £12,000, expenses of raising the loan (including discounts) £24.366, thus making the total charges £278,160, leaving an unexpended balance of £618,000, subject to liabilities outstanding amounting to £164,394. The balance ef the Public Works Fund amounted to £1,968,635, augmented by £3OOO under the District, Railways Purchasing Act, and £19,426 recoveries on account of expenditure of previous years, making a total of £1,991,061. The expenditure on public works nmoanted to £528,453, but including expenses of raising the loans, including discount £104,912, the total charge amounted to £633,365. The balance left at credit on the 31st March, 1889, was therefore £1,357,096, to which must be added the asset of £89,974 in No. 1 account, making altogether £1,445,670, subject to £368,639 of liabilities. The unexpended balance consisted of cash in the Public Account £575,083 ; £515,550 on fixed deposit in London ; £230,000 temporary investments ; debentures of the loan of 1870 guaranteed by the Imperial Government, £476,000; debentures under the Government Loans to Local Bodies Act, £25,000 ; Westport harbor loan debentures, £35,000; in the hands of the officers of'the Government, £56,606 ; total, £1,357,696 ; available under section 12 of the Government Loans to Local Bodies Act, 1886, £87,974; total, £1,474,670.

GOVERNMENT LOANS TO LOCAL BODIES, In last year’s Financial Statement ho stated that £125,000 had been borrowed to make loans to local bodisa, and that there had been paid over to local bodies £108,841. He also stated that applications to the amount of £78,330 had come in, nearly all of which had been provisionally granted. During the past year a further sum of £75,000 was borrowed by the Treasurer to make these loans bring up tho total amounts borrowed to £200,00(1, and further sums to the amount of £83,475 were handed over to local bodies, making a total of £192,316. During the year £940 was refunded, being moneys borrowed in excess of the sum required to complete any public work ll , and the bilanoe at credit of the account was therefore £80,624. ESTIMATED EXPENDITURE FOB THE YEAR 1889-90. The estimated ordinary total expenditure is £4,447,311. Of this £1,613,105 is for interest. Honourable members would bear in mind that of the £1,888,405 which appears as interest and sinking fund under the permanent Acts, about £275,200 although charged against revenue is recouped to the Consolidated Fund by the issue of debentures under the Consolidated Stock Act of 1884, The Education Vote necessarily increased because of tho increases in children of the school age. The estimates also include £25,500 for school buildings. He must, however, point out that although they had increased the salaries of officers receiving less than £2OO a year by a total of £41,522, and of officers of higher grades to rectify inequalities which he last session announced should be inquired into by £1605, and have also increased the expenses of the Native Lands Court by £3900 ; to enable the court to cope with the large increase of work coming before it; he said that, notwithstanding these increases, the proposed expenditure under the thirteen classes annually voted was £30,033 less than the amount granted last year. He hoped that this fact will reconcile the Committee to the increases which he had thought it fair to propose. Provision was also made for the continuation of tho subsidies to the local bodies at the same rate as was paid last year. Land Fund—The estimated expenditure chargeable against the Land Fund was £122,000. There was a small increase upon the expenditure of last which was £119,496. This increase, however, arose from the management of roads haviner been transferred to the Survey Department from the Public Works Department, The total estimated expenditure was, therefore, £4,239,321, being £4,117,331 chargeable against Ordinary Revenue, and £122,000 against the Land Fund. ESTIMATED REVENUE EOR THE YEAR 1889-90. Assuming the present Education Act to remain unaltered, he estimated that we should obtain for the year 1889-99 a return of £4,187,800. He estimated the receipts from the Customs at £1,550,000. He expected they would reach that amount, as stocks were in hand to be cleared before tho increased duties come into force. With reference to the railway estimates, honorable members would see that an increase to the revenue is anticipated to the extent of about £280,800, but as the expenditure is estimated at about £28,000 more than last year, tho net revenue receivable is only increased from £360,000 to £370,000. It would be aeon that there was a satisfactory increase of £33,683 under the heading of “ Depasturing Licenses and Rents.” This arose from the increase in the rate of pastoral rents and from tho large area taken np on the perpetual leasing system, a system which was becoming popular, and which, as honorable members were aware, gave the lessee the right to purchase within 30 years. He wonid presently make a few remarks shout the property tax, which it was estimated would yield under tho new valuations £16,000 less a year upon the present rate than under the valuation of 1886. He should also say a few welds upon the subject of the tariff of 1888. The Land Fund was estimated to produce £136,100 for the year 1889-90, particulars of which would be found in tables attached to the statement, estimated results eor tub year 1889-90. From what he had just said honourable members would see that he estimated to receive a total revenue of £4,323,900 against a total expenditure of £4,239,350, but excluding the Land Fund from both sides of the account, they got a revenue ot £4,187.800 against an expenditure of £4,317,331. thus showing a balance of £70,409 at the end of the year 1889-90, if his anticipations were realised. But to this amount ho added what was left of last year's surplus of £77,609, after paying off £50,000 of the deficit of the year before, namely

£277,690, *nd got a surplus of £98,238, of which about £5500 would be applied to the further reduction of the floating debt, leaving'« sum of £33,238 at the end of the current year, which was certainly nottoo large a margin to work upon, especially if the proposal the Government would make for the continuance of the Otago Central Railway should # be adopted. Bat they trusted that with careful management it would prove sufficient. PROPERTY TAX, At the rate of one penny in the £ the tax would yield about £16,000 a year less than under the old valuation. This arose from the falling off in the reputed value of real property, more or leas, throughout the colony. There hud been a fair increase in the value of personal property. There had been a considerable fall in the reputed value of real property. This fall would be an advantage to the colony at large, for the price of land ruling throughout most parts of the colony was for a long time, and to a considerable extent, its speculative value rather than its value for use. The result of the consideration of the property tax was to propose certain modifications, which would require legislation to give them effect. Without going into unnecessary particulars, he would state that they proposed, amongst other things, to exempt from the tax all machinery, which, however, would be strictly defined, and to allow any owner, or the Property Tax Commissioner, to have properties revalued under reasonable restrictions, without awaiting the triennial period. These remissions and the fall in the new valuation would cause an estimated loss to the revenue of about £20,000 as compared with the amount received frem the property ta? last year, but Government did not propose to ask for any new tax to meet this falling off, hoping that there would prove to be sufficient elasticity in the general revenue to make it good. MISCELLANEOUS. A bill to extend the Otago Central Railway would be introduced ; the Midland Railway Company were pushing on their work ; village settlements had proved useful to farmers in giving them workmen, but an extension of it needed consideration, and the Minister of Public Works would tell them what would be done with regard to raiways north of Auckland. PROSPECTS OF THE COLONY.

Sir Harry Atkinson next proceeded to speak at groat length of th« future of the colony. The colony had lost by emigration during the last two years 9580 people; that is to say 9580 more people left than arrived in New Zealand. Of these, 4476 were males above fourteen years of age. The Government had no remedy for this only to extend public works. Taking merely the expenditure within the colony itself, our expenditure out of the loan for work done during the year 1886-87, was in round numbers £1,040,000, and for the year 1888-89, £423,000, so that they had been spending during last year at the rate of £737,000 per annum less than they were spending two years ago. This, be took it, would in itself far more than account for the wages of 4476 males who had left us. But in addition to this there had been considerably decreased expenditure on public works by local bodies, The discovery of gold and prosperity of Victoria had induced the people to go away. Their loss was inevitable, and was compensated for by tho saving effected. Lst them now see what their permanent industrial population was doing. It would be seen that the export of grain had increased from 8,630,843 bushels to 5.584,488 bushels, grass seed from 364,550 bushels to u 74,772 bushels, frozen meat from 49,363,3781 b to 63,003,4721, butter had increased from 2,272,620:6 to 3,631,3761b5, cheese from 3,381,6161 b to 3,731,849,6, and sawn timber from 33,791,992 feet to 44,219,840 feet, flax 1812 tons to 5603 tons, and it is still rapidly increasing every month. But besides the increased quantity of our exports there has been also in the main items a marked increase in value. The value of tho excess of exports, exclusive of wool, last year over those of the year before may be taken at no tese than £992,000, it is also satisfactory to know that the quantity of wool locally consumed in our mills has increased in our mills has increased from 2,000,1551bs in 1887-88 to 4,795,300!bs in 1888-89, and this increase must be set off against any decrease of exports. The total exports for the year 1887 88 were of the value of £6,415,745, while those for the year 1888-89 were £7,345,185. The figures of our woollen manufactures would show the magnitude, while the quality of the products would do credit to any country in the world. MINING. The mining industry is in a more hopeful condition than it has been in for years. The yield of gold for the year ending 81st March last was 208,902t-ZB, as against 191,9610zs for the previous year, being an increase of 16,9580z5. Special machinery and appliances are being constructed, and by hydraulic sluicing, low-lying ground tormerly unproductive and drifts considered valueless, are now worked at a profit, and it ia hoped that the improvements which are being made in machinery and appliances for the reduction and treatment of ores will aolv© the question of treating successtully the refractory ores of the North Island. Our coal mines are being gradually developed. The output last year was 613,895 tons, as against 548,620 tons for the previous year. Recent discoveries in Stewart Island show that tin ore is distributed over a large extent ot country both in the alluvial soil and in lodes, and it ia inferred that rich deposits will be discovered there.

SAVINGS. That portion of the thrift of the colony which is represented by the assets of friendly societies is steadily increasing year by year. According to the last compiled tables there were at the end of 1.887 24,929 members of registered friendly societies, and the value of their accumulated fund was £383,515. Without allowing for any increase it was fair to value them at £400,000, Societies registered under the Trade Unions Act had assets of £IO,OOO and £3OOO. In the savings banks of the colony, on the 31st December, 1886, the amount held in deposit was £2,433,780 ; in 1887 it vne £2,407,775 ; and in 1888 £2,691,692. In 1886 the depositors numbered 91,296 ; in 1887 the number was 97,496 ; and in 1888 it was 103,046. The average amount at the credit of each depositor was in 1886 £23 3s ; in 1887 £24 6s; and in 1888 £26 Is. Between 1886 and 1888 the amount of deposits increased by nearly £558,000, and the number of depositors by 11,750. Of a total number of 84,880

depositor* in the Post-office Savings Bank 62.831 persons, or nemly three-fourth# of the whole, had sums not exceeding £2O at their credit. The number of persons having deposits in the Post Office Saving Banks not exceeding £2O increased from 57,368 in 1886 to 60,043 in 1887, «ud to 62.831 in 1889. During the pa»t year new Government life assurances amounted to nearly £BOO,OOO, showing an increase on lhaaverage of recent years,and approaching in amount the whole of the new business effected by fareign life office# having branches in New Zealand. It is instructive to compare the total ordinary life assurance of New Zealand with that of other countries. The population of New Zealand possess £24 of life assurance per head, whilst in Australia this average is£l9 per head, ia the United States £B, Canada £9, and in the United Kingdom £l2 per head. Eighteen months ago their 4 per cent stock was selling rather heavily at 96£ ; it is now worth from £lO5 to £lO6, with an active market. They would see a further rise when their true position was really known. He concluded by congratulating the colony on its improved state, and urging the necessity for great care in future.