FINANCIAL STATEMENT. (By Telegraph)

Waikato Times, Volume IV, Issue 191, 31 July 1873, Page 2

FINANCIAL STATEMENT. (By Telegraph )

Wk have to acknowledge trom the Government the following digest of the Financial Statement. The Colonial Treasurer (hon J. Vogel) made his financial statement on Tuesday e\ening. The following is but a brief outline ot it :— The Colonial Treisuier said he had pleasure in being able to communicate to P.uhament in >rmation winch would prove that New Zealand had ne\ i been in a more prosperous condition than at present. The result ot the financial operations of IS7I had proved to be within 8,300/ of what was estimated w hen lie made his statement last year. The new system intioduced in connection with the Tieasury and Audit was woi king exceedingly ■well. The Comptroller General and the Auditor General were associated as Commissioners of Audit ; and there was really a pie-audit as to all expenditure. In ouler that the accounts in the Treasury and those m the Audit Office might be made identical, he had •'!. \ i, '''taken into account not the actual receipts during ru 'i 'i !''»t onl> so much as was received at the Treasury I m Wt-IL. feloji up to f.!u 30th June Hitherto the Trea-ury i.M niV- 1..i I been kept open alter I'lO end ol the linancial Mjiir, - • 111 .{ a'i j.i iint- uu^bl In in. l. id d LJ\ ■ 'u- course now adopted OI.oOU of the ••e\iP l ie iv ive.l 1 111.17 1872 3 would not Iv mi "!,!<' imi tin _it ,v->-> .ii , i).("!s i i,c I'm win were for thi>» _u if - )nipi-t'-< 10-ei- tv I'ntt ■'i it , hut biieii ti ti ij«x W'inltl l 1!' i"i;*pi n t hi- ".ic '.111 > jiru'tioal gain fi'j.ii ill* 1 iii'\ ■-• -It iv would hi iv j^u'il hi!'. The present t.''id iii leliM din s- dI tlic colony for Col >n ill loans was C,SBI,JO'/ , I in' in U-blo hn»3 ot provinces for Pr.>vinloan« win 3,1-18, Iv.")/. Tin* colony wu- contingently li ible for the latter, u'ld it wns.no doubt open to those who desired to exaggerate coio'i'iil hibditics to treat this contingent liability as one requrcd to be met out of eoloniil revenue ; but the pro\ mciul loans were primarily charges on provincial ordinary revenues, including the bind revenue, and there was no room to anticipate any difficulty in recovering the amounts. The risk of tlie colony as far as the provincial loans were concerned could certainly be underwritten forn very small sum. From the colonial liability of 6,881,201/ had to be deducted 415,352/ for sinking fund accrued, leavim; a nett liability of 6,465,908/. During the past, year 4">,(>00/ of Treasury bills, on account of the deficit from 18(J V > 7< l , had been paid off; this was the second instalment, an 1 .is it was proposed to pay off another 45.000/ during the «'ir • out year, the deficit would be made good without any ad.li. on being made to the permanent debt. He proposed to p.iy oil 1 also 20,000/ of Treasury bills issued on account of confiscated lands ; there would then remain a balance of 509,000/ of Treasury bills outstanding. These the Government thought could be paid oil" during a short term of years, and therefore it was proposed to renew them temporarily initcad of making them part of the permanent debt of the colony. It was estimated that several thousand pounds per year of interest might be saved by this course. One matter which ho considered of great importance to the colony was the bold and determined attempt that had been made to reduce the rate of interest ; nil the colonies had in fact gone in the same direction New Zealand had issued certain amounts of 4 per cent, debentures, the price was fixed at 90/ 10s. Of the parcel of 250,000/ offered by New Zealand, nearly the whole had been taken up by the Trust Fund Commissioners in Australia. About 150,000/ of the New Zealand loan had been sold ; the operations compared favourably with what had been done by other colonies, and especially by Queensland ; that colony issued 4 per cent, debentures at 76, and the re-ult was really a splendid one as compared with previous loans of higher rates of interest. After he had called for tenders for these 4 per cent, debentures in Australia he was glad to receive a telegram from the Loan Agents in London pronouncing their recommendation that in futuro the rate of interest should be made 4 or 4£, and that linking or drawing funds should be abolished. The agents expressed their preference for a i\ per cent rate ; they have, now been instructed to use their discretion in the matter, but he (the Colonial Treasurer) had expressed his preference for I per cent, instead of 4i. The confiscated lands had yielded well during the year, and had enabled a considerable amount advanced with respect to thorn to be paid off; indeed, the iv»eiiit* during the present moi. l Ii vould diso.ha.rgo nearly the wnole of the liabilities, excepting the 20,000/ of treasury bill- which would bo paid oft' during the year. The receipts for the year 1872-3, exclusive of the 450,000/ , whic'i ha?, a* already explained, not been brought to account at the end of t e year, showed a total of 1,119,402/., being an excess of 43,402/. over that estimated of 111,987/. over the receipts during the year 1871-2. The Custom* revenue showed an increase of 32,1 U/. over the estimates, and of 76,960/. over the actual receipts of the previous year. After meeting and providing for all the liabilities of the year, there was a balance of 3,835/. loft with which tocommenco the ourrentyear 1873-4. One of the most important mutters to be submitted to the Committee was the question of Provincial Loans for Public Works. The Government were determined to recommend to Parliament to allow the provinces to borrow money for certain publio works in a manner similar to that in which the Metropolitan Board of Works and certain other local bodies in England were permitted to borrow. The proposal would bethat the provinces should borrow onlyon specified securities, and that it should bo plainly provided that neither the colony nor the provinces concerned should be liable beyond the special security given ; as far as those specified seenrities were concerned, however, the security of a lender wou'd be absolute, and thero would be >i power of law to enforeo it. The works for which it was proposed that provincial borrow >ng should bu allowed were roads, bridges, harbour works, reclamation, buildings for education, nnd in some ei«es charitable purpos.es, goldfields works, and light branch ridwavs and tramways. The colony would not be cipable to execute main arterial works which it has in ch -into if it was to be liable to borrow also for local work"; th.it these works were much wanted, was in no degiee questioned, although, it was said provinces could better appreciate what was needed, and should \v il'ovved to hoiroVfor themselves. It was proposed tLitithc spi'uh" .'VLiuitii 1 " 'ii I" 1 alluwi'd for works nieni tinned, xi mid i<o m -ii ,i in 1 1!'., .nil with the app'ovil lof tliu i.i'u.Jut „iU ot .us.* diiiii.!, i'i\n oli ■', t!..i' ,iu'il i iates should also be 1." led , .u I'l'Cid le Immtion, the sc'iiiitj \ iiild be o\u the jnoei ( X >l \,'>sl,-, a'ul is u liiiildiii 1^ foi t'lhu'ituin il in ch.i'K li'l pin pox x, t!i n nit' M«ndl'i'o\< M M 'in ti'im • ri.'mvt mints It \\ i , IniP.'t j.iu ( )u . 1 tht u tli \-- )p')U should in some c.m 1 -. 'How Im.ui-. in In i■-< ' i^'i.- sp 'c.il blocks of luiil, tih! th it I" [M • < !)♦ o, In. -\\iinlt land revenue be p lid into tl' • pidviii' .' 1 in ii(.init, and should afford security f<n the co-,1 ot I last wotks. The bill which it was prnpoM-i] to ml ro line into the Assembly would itimjjently provide t'l.it neither o dinar? revenue of | roviii'r3 concerned, nor those, of the colony, wiM-e to be liable for any one of these specially authorised 10-ms ; in fact, it would be no more liability on the part of the colony than thero was on the part of the Imperial Government for loans raised in England by local i Boards on land which would be purchased. In the North

Inland, two-thirds of the whole would be reserved for cost of railways, and one-third be handed to the provinces interested, but out of the proceeds of the two-thirds retained for railway construction, 15 per cent should be paiil to provincial loins iKvount, or to separate account in aid of public works within the pirn ince. The pro^res-s of the public w orks of Hie colony mi to the present time has fully answ ered e\ poet it ions held out Wlien the policy was originally announced money was being borrowed at a less rate than in 1870. It was expected that before the end of the current financial year 123 miles of railway would be opened, in addition to 31 miles that had been opened in Canterbury, and exclusive of the Port Chalmers line. Land was now sold in largo quantities at what appeared to be less than its value; indeed, the absolute value of land had very much increased lately. It would not be right to construct further railways without retaining land aa security for their cost ; Government had, in fact, come to the conclusion that they will not construct any other railways than those already authorised, except coal lines, without security in land of nominal value of twice the estimated cost in each case. As in the North Island, land security could not be provided in same manner, and it being desirable that this island should not be shut out from the benefit of railway construction, it would be proposed that two-thirds of all lands purchased from Maoris be set apart for railway reserves, a« already described as necessary. A firm stand should be made this year in presence of tho immense demand for local works, and the large sales of land that ore taking place, and for that reason Government had come down with their present proposal. The Government would indicate additional railways for which they meant to ask authority. With one exception, it was not intended to hurry on those lines of railways, as those already in course of construction afforded sufficient occupation for availablo labor in the colony. The Government propose to take authority to fill up the three gaps in trunk lines between Canterbury and Bluff, and nsk authority to spend a further sum of 110,000/ on line between Nevr Plymouth and Wanganui, the expenditure to be carried on slowly, «o that works might progress concurrently with settlement. The House would be asked to sanction tho continuation of the line from Mercer to the frontier, and from the frontier south, m whatever direction might bo found best suited for connection w ith main trunk line through North Island. At present the surveys for these lines bad not been extended beyond Ngaruawahia, but Ibis railway it was considered desirable for public reasons to hurry on, especially as it would enable to bo massed on the frontier a number of men whose presence would afford the best possible guarfivteo against wanton outrages such as that which lately occurred. He would propose that 80,0001 of debentures should bo in-cludt-d in loan already authorised ; that amount out of the one million guaranteed by the Imperial Government should be kept at home as reserve to be available in case of need ; but that, if necessary, those debentures should be borrowed against pending sales of unguaranteed debentures ; thiswould neccssit ite at present further authority to borrow. By the original scheme it was intended to construct railways by guarantee and by payments in land, but it will of course be clear that the whole weight has fallen on cash payments, and that original provision by way of loan would not be sufficient for present purposes. It was, however, considered that sufficient provision would be made for some time to come if authority was now given to borrow 1.000,0002 for railway purposes, and half a million for purchase of native lands in North Island. A separate loan bill would be proposed, authorising the borrowing of 300,000/ to cover cost of interest on works during construction including the restoration of Public Works Ix>an. The amount taken from tho lo.in for this purpose would included 240, 000/ for the pin pose of subsidising road boards, including restoration to Public Works Loan of 120,000/, taken from that loan for subsidies. Further, there would in this loan be included 15,000/ foi public buildings, 430,000/ for lighthouses, 50,000/ for telegraph extension. During the recess there had been much correspondence, and in several instances, respecting a line between Foxhill and Brunner, and it had been proposed 4o give certain land as security for the cost ot the work. In other provinces land which was proposed to be set apart had been examined, and, unless from mineral resources, it did not afford adequate security. In order that advantage might be taken of the mineral resources, more must be known of them and of their general position, so that a railway might follow such a course ns best suited to develop the resource?. Apart from th se resources, however, it would be a necessary question to connect Nelson and Wellington with mam trunk system. Tie Mi '.die Island should be considered ; for the present it would be proposed that the survoy of tho line should be proceeded with between Foxhill and West Coast coalfiolds, though investigation of mineral resources of the district would also be proposed — to examine the best route for the connection of the East and West Coast. Further, to ascertain whether it. would be practicable to connect the Marlborough hni with the main trunk system. Respecting coal railways Government fully recognised, as they had done throughout, that those lines did not come under tho category of either main or branch, but thnt their conduction ought to be looked upon by tho Assembly as Colonial works. Further sums would be asked towards the Mount Eochfort line and Harbor works, and an additional sum would be required to complete harbor works connected with Brunner and Plymouth railway. Lands taken for railway reserves were to be subjected to the ordinary land laws of tho province in whioh they were nituated, except, w'th the consent of the Superintendent, they might be liberally employed for purpases of settlement. The Government would be willing that even land should be given under a homestead Inw to people who would actually occupy it, and they proposed to introduce a measure by which immigrants who paid their own passages to the colony should receive free grants of land, subject to occupancy conditions The Government fully recognise how desirable it was that when tho demand for labor connected with public works decreased, that laboring men of the colony who had saved up money should be induced to become settlers upon land ; this object would be promoted in every way. There was at present a very large necessity for public buildings in different parts of the provinces. Any loan for such purposes should obviously bo made repayable within a not very long term of years, and it was intended bo to provide in the Loan Act which was to be introduced. Coming to the finances, the estimated expenditure for the year 1873-71 amounts to 1,131,088/; included in thisisthepaymentof 718,000/outof the consolidated revenue towards the interest and sinking funds. For the purposes of immigration and public works 56,000/ more is appropriated than was paid from that loan for like purposes last year. It includes also the capitation and all advances to provinces on the same basis as last year ; and, taking tho Registrar-General's estimate of population, the total capitation payments to provinces, including special allowances as last year, would amount to 217,961/, or an increase of 9,000/ as compared with the payments for 1872-3. The expenditure include also 45,000/ for the last instalment of Treasury bills representing the deficit of 1869-70, which was to be taken up during the year He was jrlad to say that there were no deficiency bills now outstanding to be taken up. During the last year not only 403.000/ of Tieasnry bills had been taken up, but 100,000/ of deficiency bills had been paid off. It was proposed that during the current year 50-,OOOZ should be again divided amongst road boards. It was intended to pioposc to alter the tariff, not because additional revenue was desired, but because Government dutios were very unfair in their operations } those duties were intioduced here, as well as in Tasmania, by Governor Gore Browne, and the only other colony in which they existed, io far as the Government were aware, was St Helena, whence Governor Browne came to this part of the globe. It was desirable to substitute ad valorem duties, not only because they were less objectionable, but because something like uniformity was necessary. In the case of the powers of inter-colonial reciprocity, which had now been concluded, these duties would enable a thoroughly liberal system of drawbacks to be established. The new dutieti, with some inconsiderable exceptions, would be much less than those in force in Victoria, and the tew exceptions made were for the purpose of securing uniformity. The total estimated Customs duty for 1873-4 would, under the new duties, amount to 90,0000/, being only 480,000/ over the receipts of 1872-3, and if the system of duties had not been altered the same amount would hiive boon estimated as natural increase during the current yenr. The total of the estimated revenue for 1873-4 was 1,180,500/, to which must be added the estimated surplus of 52,600/, with which the year has commenced ; but there would n*«urodly be demands upon that surplus for supplementary eitunates nnd authorised expenditure. In conclusion, he might say it was the fifth occasion on which he had made an annual financial statement. On previous occasions lie had urged the colonists to the work of colonisation, and bought to stimulate them to n «eii=e of the resources of the colony. It was now his duty to urge caution. The settlers were showing their faith in the colony by industrial enterpi i--es of nil de-eript ons They were determined to develop eoiil, tho iron, tin flu\, the timber, tlir mineral oil, and other resources of the colony ; they worn ready to nd\ anco their money for banking, insurance, building of steamships, nnd other enterprises ; nnd they hnd with greiit courage and defrnni' i'mn l>i»k«ndr>wn tho shippim; monopoly which bud «o Inn" o\ pr«hndow f>d the colony. The loading feaatures oi t e lindsref were that the colon y should confine its attention to tlio "rout nrterml means of commuuicatirn, leaving to P o> incuil (rn\ernmont-< the control of neccs«ary loral works. P oenutinns upre proposed to keep the colonial credit intact, and tio restriction of lands for tie settlement of the people had boon suggested m addition. A more convenient, but certainly not a more oppressive, tariff was proposed to bo substituted for thnt which had been in. existence. Tim groat aim of the colonists, as well as of the Government, should be to make the home of a large, contented, and prosperous population. It was with that aim that thov proposals h«d been made, and he hoped they would receive from the Assembly and the Colony earnest, yet kindly consideration Tho delivery of the Statement occupied over three hours and three-quarter*