FINANCIAL STATEMENT.

Tuapeka Times, Volume VII, Issue 377, 29 July 1874, Page 4

FINANCIAL STATEMENT.

Mr Vog-;1 made his Financial Statement in the House of Assembly on the 21st July. The following is an abstract of it. The amounts are stated in round numbers.

Mr Yogel said that the ftateraunt would not only be shorter than usual, but it would ba unprecedented on account of the prosperity which it evidenced. The Statement wa3 made at an earlier period than had been customary, a result for which he was indebted 1 to the untiring exertions of the Treasury officials in preparing the accounts last year. It was anticipated that the' actual remits of 1872-73 wonld leave a surplus, of L 3.800 with which to begin the year, but it proved that there was a difference of L 6.000 as compared with what was anticipated. This krose partly through under-estimating the outstanding liabilities, and partly from some assets not being realised, the result being that instead of a surplus of L 3,800 there was a deficiency ef between L 2,100 and L 2,200. As to thn loan, it would be remembured that during the last session an announcement was made that five per cent. debentures to the amount of half-a-million had been sold at L 2 10s premium. In January last the loan agents invited tenders for L 1.000.000 at 44 per cent. He had been favorable to the change to 4 per cent., bat he approved of the action of the agents since they had inserted a condition that the debentnres might be retired at any time after five years. The half -million borrowed at 44 per cent, interest realised J#$ } making ultow.

anco for redeeming the discount. This was tantamount to horrowin i at the rate of L 4 12s 0(1 per cent. It was originally calculated that money for tbo Immigration and Public Works policy would have to be borrowed at 54 per ci j nt. It was prat fying, therefore, to know that the average rate of interest on the loans for those purposes yet negotiated, including the allowance for recovering discount, amount <d only to L 4 14s lid j.er cent. It was right that he should sty that the market for Coloniil loans w;is not so favorable last year as seemed to be tho" promised. There was now no demand for such debentures in the Colonies. This arose through th© demand for capital for local enterprise, but it had to be borne in mind in considering the question of the borrowing poweis of the Colony. The aggregate amount of the public debt, after deducing sinking fund accrued, was 1.12 500,0' !0 ; and the annual charge was L777.00J, of wh eh L 554.000 had to be paid by the Colony, aud L223,0'.'0 by the Provinces. After explainin? foe position of the various loin accounts, Mr Yogel referred to tho land fund. This, he said, showed a remarkably progressive increase. "During the year 1869-70, the receipts, excluaivo of gold revenue, were L 209 000 ; 1870 71, I 208,000 ; 1871-72, 1326 000; 1872 73, L 389.642; 1873-74, L 1.03-,000. The Post Office Savings Bank I account showed an increase ef deposits of I ('137,000, the total deposits in those banks being nnw L 682 ,00 \ The revenue of the past ypar exceeded that of 1872-73 by 1.300,000, and exceeded the esimated amount by L 239.000. The result was very large when the proportion it bore to the whole amount of the revenue was considered. He cou!d not statt- accurately theincreaso that hid resulted trom the substitution of ad valorem for measurement duties, a3 there had not yet been sufficient time to classify the" returns, but there could be no doubt that the new duties produced more largely than tke measurement dutif s. He was gl-ul of this, both on account of the result aud on account of the testimony it bore to the honor aud truthfulness 1 of the comweruil classes of the country. He emphatically ex- rossed the opinion that taxation had not pressed heavily on the bulk of the people, and that under the new system the duticsiad bet j n more evenly distributed over articles of luxury than was the case formerly. fter deducing expenditur' and liabilities, al'owing L 20.000 for liabilities yet to come in, and paying off L 45.0 0 of Tieasury Bids, there was a b.ilancn at the end of 1873-74 available for the services of the carrenc year amounting to L 207.000. After explaining at some lenj» f h the position of the railways, Mr Yogel said that the revenue of tho country was merely iifing so much simultaneons'y with the introduction of immigrants aiid the prosecution of public works ; that there could no longer be any doubt as to tbe success of the policy, and tbe Colony wonld bo quite safe in taking over the main trunk lines of railway whenever it might be found convenient to do so, and in relieving the Provinces trom all liability on accouut of those lines, apart from the revenue which it was now certain would be derived from t.-.o railways, in excess of working expenses. 'I he cons dilated revenue of the Colony had, during the L<st two years, increased by L 412.000, or within a few thousind pounds of the total annual charge which the railways, when completed from one end of the Cokny to the o'jbcr, would entail. It must be pointed out, however, that fuither authority' for borrowing to complete t- c railway- would have to be giveu. However successful the Immigration and Public Works policy might be, it must be remembered that it is necessary to meet tha Colonial requirements before straining the credit of the Colony for other purposes Consideration of tbe f*ct of the railways being pushed on more quickly than was 'originally intended, and of thn fact that it was not desirable to encourage too largely construction of other works, impelled the Government to decide not ta renew thrir proposals of last year as to Provincial borrowing. The Government were prepared to aliow a limited amount ef assistance to Provinces, butiich as-sis^ance was to be rendered through thn Co onial Government, and to be charged either a»ainst the amount for settlement of imn i^rants or upon the Consolidated Fund, but with power to the Government to issue Treasury bills, if found neees-ary, to meet ib. As bo ihe assistance to b« j^iven to separate Provinces, Mr Yogel said, first, in regard to Auckland, the Governme'jfc during the recess were undtr- - stood to a*k Parliament to allow the Province to raise L 50,000, to be advanced from time to time cxt nding over a period of about three yeara, for -works upon the Thames goHfielels. The security in this case, besides that- of the Province, i 3 of a specfic aud large nature, and tho importance of tbe object to be gained is not to be denied. The Government besides agreed, subject to the approval of Parliament, to advance to Auckland, on the security of one-balf of its laud revenue, to be impounded for the purpose, L 40,000, iv SUIII3 of L 6,000 every three months. The Government propose to Parliament to carry out their arrangements. We do not propose to ask for Auckland, any further loan beyond the pawer to devote some part of the immigration fuuds to objects directly promotive of the settlement of immigrants Taranaki, with its splendid lands, offars a fluid for the location of immigrants second to none in the Colony ; and we shall a9k for power to advance money to aid so cssent'al a work, similarly we propose to devote some funds to Westland and to Nelson... In respect to these four Provinces it is to be remembered that they have not as yet enjoyed so much ot tbe direct benefit from the expenditure on immigration as they might be supposed to have the li^ht to claim. Still for money expended on works we propose condition? for repayment, and may add also that, whilst we shall require the approval o? tho Provincial Governments to any work undertaken, we propose that the works shall be carried out under the control or wi'h the approval of the Public Works l.'epartment. What 1 have said of these other Provinces respecting immigration applies equally to Marlborough. We shall propose, for work in connection with the location of immigrants advances extending over two years, besides a loan of L 4,000 to .bridge the Clarence River. In regard to Wellington, hon. members will n» doubt have observed from the correspondence that tbe Government, during the recess, endeavored to induce the Provincial Government to reduce the amount of borrowed money they desired. We agreed to submit, for the approval of the Assembly, a proposition to allow Wellington to obtain an advance of L 66,000 on 80,000 acres of land, to be opened to selection by small settlers. We shall ask that this plan be carried out. I may also mention incidentally that wo propose to ask authority to construct proper Government buildings in Wellington. The Ntilaon case 's tbe most difficult to deal with. That Provinoo has long lagged behind in the race that other Provinces have ! inn. It requires useful works, of which it is singularly destitute, and we propose to lend to it, »>n specific security, L 50,000, for worki of which the Publio Works department approve. From Otago also the cry for borrowed money has come. We cannot see our way to at present sanction the sum that Provinct) asks for, unless by way of parchase of the Winton and Bluff line. If the Provincial Government is willing, ire shall be prepared to propose to the Assembly to purchase that railway at a valuation, the payments to be made, in four equal instalments, , on Ist February next, and the Ist February of tbe tbree following years, the; money $q

be devoted to tho construction of branch I railways. Otherwise, i,i respect to t'ta-40, uid ill respect to Canterbury and Uawkts's • ay, i Lave o.ily to s.xy we propose to continue their trunk railways, aid to aid them in locking the immi grants they 8) wonderfully absorb. The Government propose 1 not to undertake any further goldfields works until some of those airody begun had b^en completed. They proposed to appropriate an additi. nai L6O,(K)t) for roads in the North Islmd, a>.d to continue to the same plan as formerly, by a'locating to the Middle Islani Provinces a like amount. Out of the aums that would thus become payable to Canterbury and Westland, it was proposed to put the road bstwien Christchurch and flekitika iuto good order. Aa to the Provinces, Mr Yogel said the case of the Provinces is n»t to be dtalt with by merely exceptional advances for public works. There are thrlea Provinces which labor under the great disadvantage of contributing largely to the 'Jolimial revenue, for, whilst they make the contributions, they enjoy out of their own revenue local expenditure ; bat the case of some Provinces jb fciunply con»taut contributions — a constant disheartening tendency to the result so familiarly explained by the slaughter of the bird tvhich lays tf»e golden eggs. Asjnere matter of policy, if it is wise, in the midst of the immense increase of the Colonial revenue, to specially remember some of the t-'roviu.jes which contribute it, and which are at pres^nt-at great disa Wantage as compared with other Provinces, it is not 'wise to Jet some warts »f the Colony languish under a sen-se of wrong ; to allow them to feel they are still bev-almed, whilst the favoring breeze removes from their sight other vessels, generally becalmed with tht<m. The con lition of the three Provinces of Auckland, Westlaud, and Nelson, as compared with the other Provinces, is lamentable, aud requires from the surplus lof the consolidated revenue the atteution of the Legislature. Auckland's case is far the worst : it will take that Province some years to work itse f round, and to enjoy the future which I tiruily believe i 3 stiil before it. Westland deserves great sympathy. Weighted with a great public debi, its Goverumenfc, eagerly anxious to deve op it, fiaii tliemselves hampered iv every direction. West laud has proved a mine of wealth to the Colony ;it is folly to desorfc it Tha we 4 coast of Nelson is somewhat similarly placed. Nelson will, however, now have the means, as it appears its rul-.rs have the inclination co use those means, to become a prosperous Province. Tbes? considerations impel us to recommend that, out of the year's surplus, a special allowance, in addition to that already provided by the scale of capitation allowances, be made to Auckland, Westland, and JNe'son, at tho rate of L25,000t0 / the first, LI O,OOO to the sesond. ami L5.00U to the third. When hon. members study the whole of the circumstance, they will n t, I think, grudge tbe protjos'ed aid. Pas-iug on to the expeaditure- for the current year, 1874 75, he said that the essential principle of the Budget was d'fferant from that of any previous o»ie, its great objoct being to^ prevent the Government recruiting its revenues by resort to b irrowed moneys. , In fact, the preseut Budget bad for its object to relieve loans at the expense of the consolidated revenue. He proposed thij year to take over, and to charge upon consolidated revenue, all the cost of interest, inclusive of interest upon works in coarse of construction, for which other provision had been made. He proposed, also, to bear on the consolidated revenue halt of the defence expenditure, pud half the amount to be paid as subsidies to Hoad Boards. Further, he propoed to pay off an additional L;60,0G0 of Ireasury bills. Taking into consideration the number of officers of tho Civil .-crvice who were inclined to leave the service on account of opportunities to btnetit themselves, and the hardships to which they woro subjected through the increased cos>t of living, the (Joverninent had decided to recommend, as a matter of expediency no less thau of justice, that a special allowance should this y-ar be made of 10 per cent, to all officers whose salaries did n«'t exceed Ll5O a year ; of 74 per cent, to all officers whase salaries exceeded Ll5O, but did not exceed L 30 0; and of five per cent, to ail tbose whoso salaries exceeded L3OO, but did not exceed 000. To do t' is would absorb L15.0U0 of the surplns. Adding these various items to the amount of the capitation grant, the special allowances to the Provinces, as well as the ordinary expenditure on permanent charges, the total expenditure for the current year would be L 1,630,600., 630,600. This would include L 271 00) to be devoted to the reduction of Treasury oills current, and to the payment of amounts which might, undet existing authorities, have been charged on loans, thus justifying the statement he had made that the maiu feature of the Budget was to relieve loans at the expense of the consolidated revenue. He wouid explain; when he made his Immigration Statement, the further votes that would b« required for immigration and for railway purposes. His colleague, ths Minister for Public Works, wouhl in a day or two explain tbe various circumstances respecting tbe construction of the main trunk lines. He must, however, state that what he meant to include, when h.3 spoke of main trunk lines which the Colony would be justified in accepting as Colonial lines, were inose lines which had been already authorised, together with such other lines as would complete existing gaps between Kaipara and Auckland, Isew Plymouth, Na, ier, and Wellington, as well as those necessary to complete through communication between Pickton, Nelson, Hokitika, North Canterbury, and the Westt Coast. The total revenue for tho year, estimated with moderation, would be L1.495>,000. Adding to this the surplus with which this year was commenced, there would be a total of 1.1.704,000, and deducting tbe total expenditure there would be a surplus of L 66,000. It imist be remembeied, however, that that swrplus was hasle to be largely trenched upon by supplementary estimates. In conclusion, Mr Yogel urged thas, while the country was confidently pursuing its policy of progress, they should wisely husbaud its strength, and have not larger recourse to borrowing than was absolutely necessary for carry ing out the policy which the House and tke people had adopted.