FINANCIAL STATEMENT.

Wairarapa Daily Times, Volume XVI, Issue 5091, 31 July 1895, Page 2

FINANCIAL STATEMENT.

ThoFinancialStntementwasdelirered last nigbt by the Hon. J. G. Ward. In congratulating tlicHouso upon the satisfactory results of the year's fmaiico, tlio Treasurer slated that, bearing iu mind the low prices obtained for our staple products, and the great reduction in the spending power of the people, it is cheering to find that, financially, the colony 1 occupies a strong position, Several changes have been made in the form of the public accounts, with the view of enabling the public tomorc cloarly understand the finances of the colony, and to avert tliOadvirso criticism, which'the Treasurer states has undoubtedly tended in the past, to injure the slate of the Colony, THE ESTIMATE of revenue for the year was placed al £4,235,000, exclusive of £11,780 to be received lo provide for the accretions of sinking funds, payable during the year. The actual receipts came to £4,281,995, or £40,!)!I5 in excess of |he estimate. This estimate had been pre-': parod iu view of a falling revenue, and had accordingly been reduced by £133,538 below the actual receipts of the preceding year, yet tlio revenue had exceeded the Treasurer's forecast to the cxkit of £86,503, A deficiency of over £55,(1C0 had been allowed for in the customs receipts; this, however, had been exceeded by £30,215, due, no doubt, to the caution and the hesitation exhibited by importers, who narrowed their orders down to the smallest possible. This was only natural in the face of an adjustment of the tariff in the uear future, to say nothing of the very low and unremuneratc prices for produce which regulated business transactions in most parts of the Colony. The Treasurer accounts for the falling oltof £17,251 in the railway receipts,chiefly by a great reduction in tiie grain trallic, the export of grain having been two million bushels less than that of the previous year, and in the damage done to the railway lines by floods. There were, however, items of revenue on which there was a considerable increase over the esiinatc, notably from the sale of stamps (which showed an increase of £'3!l,000), Land mid Income Tux (which showed an increase of £20,000), and territorial receipts (which showed an increase of £20,000 over the estimate). As compared with the estimates, the total amount underspent on tiie year's transactions, was £83,000, the principal savings being effected in interest and sinking fund charges, £27,000; postal and telegraph. £14,000; Lands and Survey, £15,111);); Treasury—miscellaneous for stamp duty, £fl,o:)D. On tlio other hand, C' 4,592 was overexpended in respect of subsidies under the Hospital and Cliaritablelnstitutious.

RESULTS OF THE VKAII 1891-95. On the 31st March, 1891, the books were closed with a not surplus of £290,238, to which adding the receipts for the past year amounting lo £1,'130,515, inside a total of £4,090,753, ulul deducting therefrom the ordinaly expenditure, amounting to £1,200,729, there remained a balance of £ll!0,021, out of which (lie amount of £250, M) was applied in aid of the L'ublic Works Fund, leaving a net surplus of £180,021 al the close ot' the linaucial year, a result which must be gratifying to members, and must add renewed stability to the country, The Treasurer stated that as the money for expenditure on Public Works was now contributed by the Consolidated Fund, he had under consideration (lie question whether part I of the Public Works Fund should be retained as a ,separate account or not. £250,0 had, (luring last year, been provided. While revenue and other receipts amounted to £03,019, the expenditure on Public Works amounted to £308,182. Adding the receipts (£313,0111) to the balance (£203,058) at the commencement of the year, and deducting £308,182 of expenditure there remained a balance of £2ii5,525 on the 31st llarch last against which £229,070 of liabilities were outstanding. QIXVEKSIOX AWJI'XT. The conversion operations of last year resulted in the further issue of £787,258 10s, of 3J per cent, inscribed stoek, which, towards the close of the year began lo sell at even par. The inscription of this stock enabled £398,900 of various debentures lo be converted and £283,300 of loans to be redeemed, leaving (after paying oxpenses) a bnlnncc of £13,193, which will he used to complete the operations.

I.OA.VS TO LOCAL lining, Up to the 31st March last, the amount raised for granting loans to local bodies wits £018,082, and for grants for roading ■CIIO,BIB, the amounts with the slim of Jt89,8C3 due to public works, amounted to a total of £BS'I,BQ, Experience had shown that owing to absentees; to the indifference of ratepayers; and to other causes; the existing law exhibited defects r.nd dillicultics which would be removed, and during the present session an attempt will be made to consolidate and amend t?io existing Acts. The principal feature of the proposal will be that the machinery to carry out all the steps required to obtain a loan will bo found embodied in the Hill. In this way would bo done away with the different, *nd at times conflicting, processes which the various local authorities have to consider and carry out.

C'o.\'!iOl,s ACCOUNT, There hd been twenty deposits inscribed amounting to the sum of £158,025 of which £158,0Q bad been invested in securities yielding a 1 per'cent, interest, Of this sum £150,000 was inscribed by the Bank of New Zealand as a special investment of n portion ot the second guarantee million. By arrangement with the Bank in the event of the public desiring to make deposits in excess of the limit fixed by law, the arrangement provided that that the £150,000 referred to, or any portion thereof, should be transferred to the investing public, At the time the investment was made the Bank of New Zealand was desirous ol linding suitable investments in New Zealand, Government securities for the balance of tlm guaranteed million, in order that they might be held with coin, as a reserve against liabilities in accordance with law.

imn,' urn. The public drbt win increased during tlieyear by the sum of £560,549, It lion - stood at :i total 0f'£40,381!,064. Of the increase over £400,000 was for the purpose of making advances to local bodies; improvement of land; purchase of native land and land for settlement. The interest which the Treasury had to pay upon these loans was considerably exceeded by the receipts derived from the transactions leading to the raising of the loans. 'The net debit 011 the 31st March was £39,635,032, or an increase of £7ti0,541 as against the previous year.

INDUSTRIES AND COMMERCE to assist the industries of the Colony, the. Government have been making enquiries as to markets for our surplus pro'duets. An expert was sent to London to push the timber trade, and by (lie reports received from the Agent-General, there i} no doubt tliat a considerable trade can be opened up in New Zealand woods for street paving and (jiirriage building, furniture making and other uses. Trial shipments have been sent to Loudon from Auckland and the West Coast, of the South Island, and 1 shipment is now being despatched to the Cape of Good Hope. It is confidently expected tliat these may prove forerunners of large orders. J,AND AND INCOME TA* The reveuue collected during the year was £370,003, being £2O,OCD in excess of the estimate.' The amount'of Land lay outstanding on 31st March, 1895, was £472,'a1l of vr]iic]i was made up' of sums forvariousreaso'nsiiotinim'idiately recoverable. In order to remedy the defect in the law relating to the taxing of Native Lands occupied by European tenants, the Government hayc determined lo bring'in an amendment' of the Act! Forme? Colonial Treasurers, in past years, 'collected taxes'at dates' lo suit tho" requirements' of the Colony, and this without Jho adverse and extraordiuairy criticism to which i«y action

Inst year was subjected. However, as . ' unexpected animadversions calculated' to seriously affect the financial position of tlio country, were made against tbo ( ? tlo ? an ?H Ie date of the collection "'I ant l Tax last year, I deem it essential to take steps to prevent the possibility of such adverse criticism ?f , ' n "® ,n R possible from similar causes. UuaeUhesocirciimstant'eslliaredeemei. it advisable in the best interests of'flHk '' l country, to prepare a measure to manently (ut the date ior collecting this * DEPARTMENT OF AGRICULTURE.

Though prices obtained during last year for all produce had been lower than ' for many years, yet the impetus that is now being given to the dairy industry ► by cool storage and a proper system of grading, promise to produce far better results. During the coming year (ho Government will start dairy schools with the view of further improving the industry. Shipping live stock and chilled meat had now been successfully demonstrated, POST OFFICE SAVIXGB IIAXK. During the year withdrawals had exceeded (he deposits by £15,702 Is sd. There was an increase of deposits during tin first quarter of this year, largely duo to tlio reduced rate of interest paid by the jnrious financial institutions. r fiOVKRXKXT IXSUIiAXCH. The condition of the Department continues to afford oyery satisfaction. The funds at present date amount to, £2,300,000, The new business for (''•, i year amounted to £720,013. rilllMC TRUST OFFICE. 1 be best index to the public confidence ill the Office, is iu the iiiercaso in tlio number and value of the estates placed in the Ollice by wills or instruments of trust, and these properties—at the closo of the financial year—had increased in number from 371 to 31)2, and in value from £543,238 to £580,813. By Act, the functions of this important Office are specially defined, and the powers of the Public Trustee so enlarged as to render . the Office capable of affording services of a wider scope and of being more attractive for the purpose for which it is mainly designed. ADVANCES TO SETTI.EItS, The total applications totbe3oth June, dealt with by the Hoard, were 1,552 for £559,855, and of these 905 were granted for loans amounted to £354,907. « JllXlXli. With the view of affording encouragefor ilxe expenditure of capital on mining in outlying districts, it is proposed to introduce a Bill to provide for granting ureas for a limited term to persons with sufficient capital to enable them to carry on prospecting operations on a large scale. It is also proposed toinereaso the subsidy payable to individual pwk pcctors under tlio existing in order to encourage mining associations and local bodies to send out prospecting , parties in their respective districts. I.AXD FOK SETTMiJIENTS.

The total territorial revenue for the year on current and new transactions was £316,100 lis 9d, an increase on that . for the previous year, of £3,107 Is lOd. There is an increase in the arrears due to the Crown, of £3,788 5s lid, which is due no doubt to the low prices for stock and produce which have prevailed during the past year. During the coming year, the Government will offer for selection, some very good lands in the Awarua Block, and others in other parts of the Colony, for which many people arc waiting. It is eipected that some of the recent acquisitions in what is known as the " King Country," will bo sulliciently advanced as to survey and reading, to bo thrown open. Up lo the present date eighteen farm settlements iuiye been formed, the area set aside being 21,202 acres, which will be allotted lo 193 settlers, but up to the 31st March the actual allotment of 9,730 acres to 107 settlers only had been The area already felled is 4,018 a«A and the area grassed is J-169 acres, IlS® amount advanced to settlers up to the 31st March was £5098 4s lid, and the value of the improvements on the laud (including the advances) was £0,904 19s 3d. It is intended to introduce tho halftime system into all these settlements, so soon as it can be arranged. Several arc " already under'it, and it is hoped by this means to find snilleicnt employment for the settlers lo keep them going whilst at the same time to allow them time to improve their farms. It is believed that the system just started will offer to llioso who are not in a position lo secure land otherwise, a chance of obtaining a homo and at the same time relieve the labour market from congestion. Under tho. Land for Settlements Act the estates purchased and arranged to be purchased, number 18, with a total area of 53,701 acres at an estimated cost of £195,5012s •Id plus whatever additional cost tliero may bo for surveys and a little roading. At the present time there are sovcral desirable estates under offer, with which the land Purchase Hoard will very soon proceed to deal. IIKCIPWJCITY. The Government, believing that tho true policy for this country is to assist the settlers to find fresh markets, subject to the ratification by Parliamcw entered into reciprocal tariffs with Soutß, Australia and Canada, under which interchange can be effected with them of some ol our products. An agreement had been mado with South Australia,by which that Colony would accept, free of duty, barley, oats, horses, and hops, and Mew Zealand agree to accept frco from South Australia, wine, olive oil, dried and fresh fruits, and salt. There understanding that the admission of wine to this country will cease should ■Prohibition at any time be the law of the land. The main features of the treaty with Canada, arc there will be a free market between Canada and New Zealand for wool and .woollen manufactures, blankets, flannels, tweed, rues, live stock, frozen and fresh meat, bacon and hams, fish, hides, condoused or preserved milk, llax, barley, oats, wheat, wheat Hour, seeds, binder-twine, coal, kerosene, oil, safes, organs and m'auofortes, tallow, lumber and limber. In addition to the articles on 1 the frco list named above, concessions in farorof jthe following are made, should a duty be placed iu New Zealand, upon agricultural implements, they arc to bo admitted free from Canada, and a eoncession of 21 per cent, below the general tariff rates is also provided upon twine of all kinds, ropes'and'cordage, jk ICanada is' a large manufactitfi land exporter of binder-twine, ropes aflT cordage, the' competition' wliicli will ensue in this country in that industry! will remove any friction that may havq existed, aud insure at least a fair value upon this article. There will' be "a deduction equal to'ten per cent, off this Customs tariff ppon 'leajher, and 5 percent, upon boots and shoes, harness aud saddlery, as between (lie two countries. ■ The Treasurer pstimafed that ho ttoul'4 not havo to provide, during; the current year, for more than a sum of £II,OOO to make up for any deficiency that might ariso as the result of these concessions,

PROPOSED EXPENDITURE, It must be remembered thnf. (lierp are several services (lie expenditure on which, as tho Colony advances in settlement and increases in population, require to be augmented from year to year, notably the Post and Telegraph services, and the expenditure on free education. These services show an increase of £36,251 and £20,580 severally. Then again "as extra mileage on our railways is thrown open tlie' 'oxperiditjivo on that'service' must necessiufe increase, tuid this accounts for the pK . £13,685 showp tinder'this hcai Hraq other departmental increases arp small and do not call for auy special commeni. I have been able to n)ako a material reduction over the amount paid last y'eiif for'our interest' charges, 'amounting m : all to £22,284, Tib total estimated expenditure is set down at" £4,331,843| which is £65,131 in oiccssof last year's actual payment's, £18,357 less than'last year's estimate. '• ■ ' " THE ESTIMATED REVENUE. . Excluding the aid fo revenue ffom [the proceeds of debentures issued 9s

sot-ofE against sinking fund accretions, I liavo estimated tlicrcvenuc at £'1,195,800, wliich is £86,196 less than the actual receipts of last year. Tlio Customs revenue is set down at £9781 less; the revenuo from stamps at £32,925 less. The latter item is large, but tlio receipts from deatli duties tiro an element the amount of which cannot be foreseen, *last year increased our revenue by irds of £35,000, Willi regard to tho land and income tax, 1 have not considered it safe to estimate our receipts from this source, at more than £<150,000, the same sum whtck I placed in my last Budget,

ItKSUI.TS AT 31sr MARCH, 1896 lam not ablo on this occasion to prognosticate such a favourable balance at the close of the year as I have been able to predict on former occasions; still I am able to show that our revenue will be more than sullicirnt to meet our expenditure requirements for this year, thus Estimated revenue., ~ £1,311,200 Estimated expenditure .. 4,331,843 Excess ot revenue over expenditure ~ .. 9,357 Balancoto begin tho year with 180,021

Total gross surplus at end ot year .. .. £189,381 From this amount weinlend to deduct £loo,oCo as a contribution to the Public Works Fund in aid of the settlement of the country by road making and other Public Works, leaving a balance of \gJBl, out of which tho usual suppleestimates will bo provided for.