FINANCIAL STATEMENT.

Waikato Times, Volume XX, Issue 1713, 28 June 1883, Page 2

FINANCIAL STATEMENT.

At the evening sitting, in Committee of Supply, the lion, the Treasurer lead the following Financial Statement : — Mr Hamlix, —It will be u-ithin the recollection of the Committee that one of the objects which Parliament had inwew in 1879 in making the financial year terminate on the 3lst March, instead of the 30th June in each year, was to enable the Financial Statement and the Estimates for the year to be prepared and placed before Parliament as soon after its meeting as the convenience of the membeis would permit. In accoi dance, therefore, with the spirit of that arrangement, I have selected tnis evening as most convenient for deltvciingtho annual Budget and placing in the hands of lion, members the Estimates for the year. In submitting the Budget thus oaily, 1 ventiue to leiteiate a hope that the House will consent to the appointment of an early day for the discussion of the important question of finance, Government being desirous that the subject should receive the early attention ot the House, in order that it may bo tally and freely discussed while lion, membeis aie free and vigorous. Last year I hid the pleasure ot announcing a very substantial suiplus upon the financial transactions of the year, and although I am not in a position this year to show «o large .1 surplus, for reasons which I will presently explain, the financial net results of the yoar li.ive been butisfaetory, the surplus, although small, fully justifying the action of the House in reducing taxation for the financial year which ended on the 31st March last. It will not be necessary, I am liap2?y to say, to trouble lion, members on the piesont occision at any great length, as the form of our public accounts which now permits a clear statcmontof our monetary tiansactions and position to be made within a very reasonable compass, but must ask for the kind indulgence of the Committee while submitting some details of past transactions and pi oposils of the Government for the picsent year,

The Expenditure. I follow the usual ami most convenient coinse in consideiiug, first, the expeudituie of tin 1 ordinary te venue of the year 18S2-S3. Tlie expenditure for the year under permanent acts of P.uliament, was estimated at L 1,027,520,, 027,520, including L 1,254,8*3 tor interest, and L' 270,000 foi the reduction of debt, and the amount voted for departmental services was L2,0G().70G. The total estimated joxpeuditure, therefore, sanctioned by Pailiament w.is L3, GO 1,218. The total actual expenditure proretl to be L 3 635, 354, bemw L 00 ,831 less than the estmute. The only item in this expenditure which calls for special lemark is that of Defence. Hon. 'neml)et's will see when the accounts are laid before them, that for the first time for some years the total cost of tins service has been paid out of the ordinary revenue, without any contiibution in aid from loan. This we were enabled to do in consequence of the large surplus of L' 203,683 brought forward from the year ISBI-82. But the principle of paying the whole cost of the Armed Constabulary out of revenue has so much to commend it that I hope we shall not again consent to charge any part of that cost against the loan while it is possible, by any reasonable elFort, to provide the necessary means from the ordinary revenue. With regard to railways, the amount expended was only slightly in excess of the YQte, notwithstanding a very considerable increas.o pf tiatfjc during the year. Full particulars of the expenditure in connection with this service will be given by the Minister for Public Works in his statement.

Liabilities Outstanding on 31st March, 1883. The outstanding liabilities on the orclidary revenue accounts on the 3 1st Match, 1883, were estimated at I/1 70, 530, particulars of which have been laid before the House by the Audit office under schedule 96 of the Public Revenues Act, 1882. The liabilities are, as hou. members know, included in the estimated expenditure for the current year. The liabilities outstanding on the 3lst March, 18S2, amounted to L 264.394. At the closo of the previous year they amounted to L 165,514. It will thus be seen that in the ordinary course of things, without either hurrying or delaying expenditure, the liabilities on this account from year to year may be fairly estimated at from LJQO.OOO to LISO.OOO. The practice began in* JSSQ-8,1 qf making ttye payments within the financial year, and expenditure of the year without 'regard to date of service or supply, also abandoning the method of throwing back pn the revenue of the previous year expenditure made in respect gf liabilities outstanding on the 31st March, ' Jt has gWafely simplified the public accounts, and has worked satisfactorily. ,

Ordinary Kevenue of the Year 1882-83. The estimated .revenue for the year, exclusive of the cash derived from land sales, was £3,392,500 ; the actual amount paid into the public account af,ter deducting refund! was L 3,470,250,, 470,250, being L 76,750 in excess of the estimate. A reference to the comparative return of e»fcimated : and" actual? receipts, .which will; be appended, i to thja,ata.te.raeul;

when published, will show how tho numbers extend to which several heads- of revenue exceeded or fell short of the estirimte. It will be observed from that return that the only clas3 -of revenue which fell short of the estimate was Customs, the receipts being L 1,494,463,, 494,463, as against an estimate of L 1,300,000,, 300,000, or L 5.537 less than estimated. The total amount in excess of the Estimates by the other classes of revenue was L 82,187. Of this sum, L 23,790 came from registration fees. This large increase h attributable to an under-estitnate ot the probable receipts of duty on leases and conveyances of native lands. It will be remembered that the Stamp Act of 18S1 offered the alternative of anticipating the annual payments of these duties by a composition paid once for all, which has been acted on beyond my conjectural estimates. From this source of revenue we received L 23.231. During the year the revenue from stamps was L 10,389 in excess of estimate. The amounts in eluded in this class are the duties under the Stamp Act, postal revenue fee*!, fines of law courts, and laml transfer fees, for all of which there is now only one description of stamp issued. Tho Treasury is consequently unable to apportion the money received from sales of stamps to the classes of revenue to which they relate. The same course, that of peimttting one class of stamp to be used for all purposes, has boen followed to some extent in other colonies and in England, and no practical inconvenience has resulted, while to the public the change has been a gieat advantage. The telegraph revenue was L 5.135 in excess of the estimate ; the receipts from depasturing licenses, rents, etc., also increased L 10.073 The railway receipts, notwithstanding a large reduction in the tariff, yielded more than estimated by L 14.740. This has been due to a large increase in passenger traffic, and in tonnage of goods can ied, and to an unprecedented in crease in the quantities of live stogie, the latter rebiilt being due in a large extent to the activity ot the new refiigerating industry. The triffic arising fioni the last gi am season chiefly falls under the current year, so that we have not yet realised the icsults.

Land Fund, 1882-83. The total amount expended during the year out of moneys derived from sales of land was L 197,101, of which L 41,758 was expended under permanent acts of the General Assembly, and Jj 1.1.1,3 13 out of \ otes for bervice3 of the year. The amount estimated to be expended was Lil.dOO under permanent acts, and LH)."),,'),57 under appropriation acts, making together, C 230,530. The actual e\pcMidittue was, therefore, Ipss than the ostimated amount. This result is mainly diif" to the absence of expendituie out of v ote of L 30,000 for rates under the Crow n and Native Lnnds Hating Act of laat year. The liabilities outstanding on the account on the 31st Maich, ISS3, amounted to 1/27,440. At the close ot the previous year the amount was £25,1 IS. The former amount is exclusive of rates on Crown lands for the past year, estimated at L' 20,000, in respect of which no demands have yet been made. In consequence of the valuation rolls, which the Property Tax Commissioner is directed by the Rating Act, 18S2, to deliver, no being completed, no money was transferred to the main roads ac- [ count dining the past year, no demand on the Tieasury for payment having been made on that account. The leceipts from sales of land amounted to L' 272,305, consisting of L2KVS3O fiom sales for cash, and L 40,447 from sales on defeired payment. The total amount estimated to be received was L3j4,000. The leceipts theiefore fell short of the estimite L 51,690 The receipts of the year having been L27'2, 30."), and the expendituie L1f17,101, the excess of receipts amounts to L7.">,204. Adding to this sum the balance of £11,360 in hand at the beginning of the year, we get a credit balance of L1 8.\063 on this account at the close of the yeai 158253. The whole of tlm balance beint; with the sum of LlOO 000, .authorised by the "Hoadsand ])iid^es Construction Act, ISS2," to be transfcncd to die main loads account to winch J have just now rofened, will bo &o tiansfeircd in mu-h sums as may fiom time to tune be required.

Public Works Fund, The appropriation granted out of the Public Works Fund for the year ended 31st March last, amounted to L 1,727,729,, 727, 729, exclusne of this vote for land piucliaso, L 52,400. The actual expenditure was, however, only LS(i7,l9t, exclusive of L 29,843 for land purchases. The present items of this expenditure woiv :—: — Railways, L433,.">29 ; voada, LI 1 0,605 ; public buildings, L 152,071 ; and other services, L 67,989. A good deal of misapprehension appears to exist in fcho countiy,and is not altogether absent from the minds of lion, members as to the reason for the great difference between the amount voted and that spent upon public works, the Government being blamed on the one side for asking for votes for very much iarger sums than it is intended to expend, and on the other hand for not spending within the year the whole of the sums voted. It is piacticilly impossible that the poriods of execution of huge wot Us should be adjusted exactly, oi even \eiy closely to the periods of the votes. These latter ar-> m fact authorities for the payment for the year, and for engaging the colony in operations which must extend beyond the year, the engagements of one year become in part nccessarliy and properly the expenditure of the next and following years and the only means by which Paihamont can obtain praotic.il contiol over the oxpendi tine is by voting such a sum in respect of '■nch w orks, as it may be determined shall be undertaken, as will cover not only the probable expenditure within the year but liabilities incurred under contracts or engagements which remain uncompleted at the end of the financial year. Paiticulars of the expsudituie of the past year will be found in a table annexed to this stitement, but of course much fuller information or the subject will in due course be given by the Minister of Public Works. The liabilities outstanding at the end of the year exclusive of those for land purchases amounted to LS()l,86l, which added to the q.mqunt expended L5(j7,194 gives a total of L],739j155, as against L1,725,72f) voted for the year. Hon. members will perceive that is speaking of the expenditure out of the Public Works fund and the outstanding liabilities at the close of the year, I expressly excluded the expenditure and liabilities in respect of land purchase. I did so because I think it is desirable to keep the liabilities on account of laud purchase entirely distinct fiom the other liabilities of the Public Works Fund, as they stand on an entirely different footing. From the return of liabilities laid before the House by the Audit Office, it will be seen that the land purchase liabilities on 3ist March last amounted to L 309.299. At the close of the previous year the amount was L 328,876, and last year the House was informed that probably not more than L 20.000 would be required to complete the purchase of those blocks which the Government had decided to acquire. No new liabilities have been incurred on this account, and as already stated the amount expended last year was 1,29,8$ out q! £j, yofce'fp> 152,435, the' difference netweeu the amquiit vqted fpid expended bqing attributable to the non-puroha§e of a large block of land in fl]ie provincial district' of Hawke Bay. T-he balance Qf the Public Works Fund remaining unexpended on the 91st March, including the balance of the loan ot 18S2 to be received estimated at L 65,000, amounted to L 1,017,725, 017, 725 consisting of cash, and securities l'eadily convertible'into cash.

The Public Debt. "On the 3 sb March, 1882, the gross public debt of 1 the colony amounted to L 29,946,711, subject to a deduction of L 2,266 ,418 for accrued sinking fund. ,On ibe^W March, 1883 the debt c was J. 30,357,111, and the sinking fund had

increased to L 2,571,829,, 571,829, the nett debt being thu5L27,787,271, 0rti104,980 more than it was the previous year. The only addition to the public debt during the ! past year was the loan of L 1,000,000, 000, 000 authorised last session, of which I shall 'have something to say presently. During ,»the year we were enabled, however, out of moneys at the credit of the Public Works Fund requiring temporary investment, to reduce the amount of the Impei i,il guaranteed debentures outstanding on 31st May 18S2 by L2G.470, and to take up temporary debentures for L3M),400 issued under the Treasury Bill Acts of 1579-81, upon which advances had been obtained, also of the L 3300 of the Immigration and Public Works Loan of 1870. We also redeemed out ot spcrial sinking fund L2lOO debentuies of the North Otago District Public Works Loan, which, with L 67,500 previously redeemed, completed the redemption of the debentures of that loan. Further, the sinking funds were increased during the year by L303,4U. These sums ndded together give LSOii.Oll, •which deducted from L 1,000,000,, 000,000, leaves LI 04,989, the sum by which I have stated the public debt increased during the past year. When, however, we have raised the amounts represented by the Imperial guarantee debentures in hand and debentures for L 323.300, temporarily taken out of the moneys at the credit of the Public \Yorks Fund, the net public debt of the colony is L 25,505,551. In accordance with the provisions of the Treasury Bills Acts, 1879 and 1880, the whole oi the Treasuiy Bills issued under them, amounting to L 1.153,200, were, on 31st December, ISS2, exchanged for debentures, having a currency of three years. It will be remembered that Government proposed, with the concurrence of the House, to convert these debentures to 4 per cent, inscribed stock. I regret that circumstances have not yet proved sufficiently favourable for a successful operation of this nature, but as soon as a fitting oppoitunity offers it is the intention of Go\ eminent to inscribe these debentures.

The Loan of January, 1882. Papers relating to negotiations of the loan of L 1,000,000,, 000,000, raised last January, will shortly be laid before lion, mcmbeis. It will be tetnembeted that the loan was issued in the form of 4 per cent, inscribed stock, anri that it was offered to the public by the Loan Agents through the Bank of England at a minimum of £98 10s per cent., the average price at which it was placed beiny LOS 12s 3d. The stock is now quoted at 10"21. The total amount paid by the Jknk ol England to the loan agents, after payment of commission, stamp duties, and other expenses, was L97'2,'J97 lls od. On no previous occasion has a New Zealand loan been raised at a price so fa\ouiable to the colony. The success which has attended the judicious negotiations of the loan by the agents. Sir J. P. Julyan and Sir F. D. Bell, and the present price of the stock is, therefore, a fitting subject for congratulation. Prior to the loan being opsued to the public, full information regarding the pt ogress and prospects of the Australasian colonies in general, including New Zealand, was published in London by the Agent-General, in a very able paper read at the Colonial Institute, and fully discussed in the public Press. Not only tho favourable rate, therefore, at which the loan was placed, but the present price of our 4 % inscribed stock and othur loans show that, notwithstanding the reiterated statements to the despargement of our ciedit, theie is in the money market of the world confidence in the resources of the colony, and in ita ability to meet the chaiges of its. public debt, so long as our finance is prudently managed, and theafiahs of the colony are so conducted as to piomotc settlement on its lands, and (he development ot industries. Thcie is no doubt that our credit will be able to obtain from time to time, upon reasonable term*, such money as may be required to carry on oiu public woiks.

Savings Bank and Government Insurance Department. I should like here, Mr Jrlamlin, to lefer very briefly to the giowth ot business during the pxst year in connection with the bavmgs Hun ks and Life Insurance, sis atiordiug .1 very fair critetion of the continued improvement which is taking place in the cultivation of h.vbit.s ot economy and prudence amongst the people. In the Savings Bank*, of the colony on 31st December, IS3I, the amount held in deposit was L1,04!),515, at the credit of Ul.Oo-i accounts, an average ot L'2o 7s 7d for each account Ou the 31st December, 1882, the amount was L 1.832,047. 832,047 afc the credit of 68,3 ;8 accounts, the average amount being L 26 lGs 3d. Thete was thus an inciea&e of L2B"-\533 in the depaitment at the olo3e of the year ISS2, and 7304 in the number of accounts open. Of tins la rye amount ot LI, 5:32,047 accumulated in the savings banks of the colony, L 1,470,950, 470,950 was deposited in the Post'Ofheo Savings Bank. Considerable attention has been bestowed on the woik of the Instuanee Dep.utmvnt in the direction ot extending its usefulness, especially in bringing its benefits mou> icadily within the leach of ihoae who may desne to lnsuie ior bmall amounts. The results have been \ cry .satibfattory as reg.u db both branches of the Dep.ntment, the new business ot which now exceeds a million steihng per annum, being double the average amount hitherto annually attained. The ordinary branch assurances in foice number o\ei 17,000 policies, insuring upwards of five and a half million. The new assuranc, f, avei age at pi esent nearly LI 00,000 per month. The accumulated funds of the Depaitinont now amount to moie than three quarters of a million. These figures appear to denote that a growing section ot the public poaseas the means and the define to make present pro\ lbion for the future, and are availing themselves of the advantage which the Dep.utmcnt ofl'eis.

Local Finance. The passing of the Roads and Budges Construction Act lus, I am giad to say, enabled the local bodies to do many useful works, but owing to the fact that money for the construction of main roads was not a\ailable until about February, the work completed under the provision of the act has been less than would have bean the gase had tho money been available in tho spring of the year. The amount available for the construction ot main roads was estimated at 1,200,000, but applications to the ex tent ot LG40,330 were received, the result being that the applicants were allotted only three-eighths of the amount of their application, the act pioviding that should a larger amount be applied for than was available, the grants should be reduced pro rata. The applications for district roadd only amounted to 1.61,705, so that the whole of those applications which were in proper form and received the approval of the latcpayeis were granted. The act seems to be working on the whole well, but will probably require some -imendment in the direction of limiting the amount which any local body may apply for. This matter is under Government consideration.

Local Inscribed Stock. It will doubtless be in the recollection of hon. members tli£s a,n ao| was passed ifVst session authorising the issup of a local lqa'n of a quaver of a. m,i}liqu as inscribed stock. The scarceness af njoney in $he local market has rendered it inadvisable in the opinion of Government to place thia loan. No action, therefore, has been taken under the act, further than to make the necessary arrangements for issuing the stocK should a favourable turn in the market render it advisable to do so.

Financial Results of the Year. I will now briefly sum up for the convenience of the hon. members, the general financial results of the year, which I have just given in some detail. We find, as I .have already stated, that fn&.total expenditure out of 'the ordinary; revenue ,oi consolidated fund ww*

L 3,638,392,' and that the ■ reVenuer amounted to L 3,470,350., 470,350. ' To the revenue I add L 203.683, that being the balance standing to the'credit of ,the account^on 31st March, 1882, and this 'gave L 3,673,933 as the total, the cxpeuditare amounting to , L 3,038,383., 038, 383. , A balance of L 35,049 is obtained, as the surplus with which the year 1882-83 terminated. This result the committee will, I hope, think very statisfcc- , toi-y, especially when it is remembered that tax ition was remitted last' year to the extent of LSO.OOO, while for the Coustablary L 75.000 was charged against the levenue, which before had been borne upon loan, and extra charges for education and interests had to be provided, to the extent of aboat L 96.503. If, therefore, the remission of taxation had not taken place and extra charges had not been required, the year would have terminated with a surplus aliout ns large as that of ISSI-S2. It should also be specially borne in mind that during the past year wo contributed out of the levenue not less than L 27.000 to the fuudd for the redemption of the public debt. Ido not, of course, mention this sum as an exceptional charge on revenue nf the past year, though it included L 24000 for arrears in respect of sinking fund of Imperial guaranteed debentures, which was exceptional, but refer to tho fact for the purpose of draw ing attion to the laigc and annually increasing sum which the colony is periodically setting aside for cancellation ot its public indebtedness. In the figures I have just summarised I have not, of course, included proceeds of land sales, which are kept m a sepai ate account, and applied after payment of authorised charges to local public works, but when we come to consider the whole transactions of consolidation funds for the year, the proceeds of land siles and expenditure ohaiged therein must be included in the account. We find then fiat the (otal revenue received including the pioceeds of land bales and balances with which wo l-ogin the year, aniouiit to 1/3,057.599, and that the total expenditure, including charges against the proceeds of land sales, was L 3,355,156, bhowing a surplus on the whole transactions of tho Consolidation Fund for the year of LI 22, 1 13. As I have aheady stated, the surplus of the ordinary revenue account, however, as lion, members will see on referring to accounts which will be appended to jjjis Statement, was L83,d49. The differd^, it will be ob.erved, arises from adttrWon to the receipts of the year of deficiency bills ot L4U.000, which remained unredeemed on the 3 1st March, ISS3, but aa the balance of the account was L3.),449 in excess of the. amount required to redeem these bills, I have thought it better, m speaking of the receipts, to exclude the L 30.000, in order to simplify the statemeut of the financial results of the year. State of Trade.

Before I submit for consideration the estimated expenditure and revenue for the current year, I am desirous of calling attention to the condition and prospects of the trade and commerce of the colony. The subject is very important, and I am sure hon. members will not think a little attention ill spent if devoted to its consideration. I propose to look back a little, in order that we may see more clearly the general tendency of our tr.ide. I take the thiee quinquennial periods beginning with ISO'S and ending with ISS2. I find tli.it the fluctuation of both iinpoits and e\ports is only such as might be lca^onably expected in so young a colony, while making large expenditure upon public works, which has boon going on for the last ten yeais. The rapid and, on the a\eiagt>, steady inciease in imports is not more than might have been anticipated fioni the impetus given to settlement and specnl.itiou by the intioducfcion of the lin migration and Public Works Scheme. The value of imports for the period ending 1872 was 1.23,822,033; for the period ending 1877, L'-?(5, 41)4,2(50, ar >d for the penod ending 1882, L3<),338,574. Of this total probably about L35,.')00,000 represi'nt in round numbeis the capital for which we have to pay niteicst to persons not residing in the colony. We may divide tins gross amount as money borrowed by our state and municipal bodies, about L2r>,000,0()0, iiul by pin ate persons about L 10.500 000, the whole for the development of our resouices. The balance after deduction of the amount thus borrowed is L 61 ,174,867, being pay* ment received for our cxpoits and the value of pei sonal property imported by settlers which has not to I c paid for, being their own. The value of exports for the peiiod ending 1872 was L23.94!),.")63 ; for period ending 1873, L25,G01,2C4; and for period ending 1882, L 30,833,092, making a total of L 53,471,159. Deducting this sum fiom the value of the imports just given, we find that the value of our imports during the fifteen years under consideration was L 16,202,708 more than the value of our expoi ts. Now it it is true, I have assumed that of our total imports, L 35,500,00.) worth was the pioperty ot non-iesidents, or in other words, capital sent heie for hnestmeiit, it may be seen if we take this amount from the total value of the impoits, viz.: L'J9,674,867, that the value of iinpoits for winch Aye paid from our resources was only L6'4, 174,56'7 ; oure\poits, however, weio worth L 73 ,471,100, so that we have paid for interest during the last 15 yeais, to non-residents, the difference between these sums, L] 9,200,292, in addition to that portion of the value of our impoits which represent the capital pioduced and owned by our own settlers, which may be estimated at about L 0,000,000., 000,000. Thus we have paid for interest outside the colony, about L 23,290,292 in 15 ye.us, between IS6B and 3852, on an average in louncl numbers of neatly L 1,700,000, 700, 000 a-year. This of coiu&o is a serious drain upon our producers, and the fact must never be lost sight of if we desire to understand our re.il financial position. But if the capital bonowed is being employed to advantage, as we ha\e reason to suppose, it is, clear that the transaction must be a profitable one for the colony. For although it is true that we are sending away a large portion of our produce in payment for the use of this money, it is evident that it would be impossible for us to export anything like the quantity of piodu.ee we do without aid. The question then is, are we productive enough to pay our debts, to live comfort* ably, and giadually to increase our capital ? Now, in order to answer this question, it will be necessary to to analyse the figuros which I ha\ c given relating to exports. We want to see if, as people/ we are directing our attention to the de-^| velopment of those industries which will M enable us to increase the exports in pro- p portion to the wants of the population, and to do this the best plan will tk^o eliminate for the present both goldjlml wool from the enquiry. Hon. members will find upon reference to the tables which will be published with this Statement, that out of a total export of L 83,471,150 no less than L 24,680,659 was for gold, and L 40,330,081 for wool, or a total for gold and wool, 165,020,639. Now, the alluvial gold industry, although at o,ng time the principal production, stands upon qtiite a, different footing from either agiici.iltu.re or manufacture. AUnvial diggings, can only be of short duration, ancj i% is; a matter of faot that the produce of gold has gradually fallen from L 2,492,773,, 492, 773, in 18G8, to L 921.644 in 1882. Of the amount exported last year, onethird was the produce of quartz reefing. There ia reason to expect in future a considerably larger yield of gold from quartz reefing than ha 3 hitherto been obtained. We cannot rely uj.on maintaining our gold export at more than the average of the last three years. That ia slightly over one million a year. The export of gold for the first period was LI 1 ; 527,655, for the second L 7,645,396, and for the third L 5,517,697. Eliminating, then, the gdlc? export We find' 'exports for the' tfireft tferitids to .be 112,431,908, ' L21)045,808, and L 25,312,785, or a toftl > of

158,790,501, of which w6ol contributed L8,735,78r>, LI 5,987,346, and L15,G10,v550, or o/total of 140,329,081. r From this we see that the value of our exports of wool rose. rapidly dniini? the second quinqu&iiabperiod, nearly doubling, but that it slightly decveased in the last peiiod. Notjso, however, the quantity, the diclirift iv value being due to fluctuations of market. This industry is gradually changing its character, the production of wool being very consideiable, and likely toS increase. The importance to the colony of the wool industry cannot be exaggerated, for we may be said to have paid the whole of the interest due to outside creditors out of wool, and to have received a balance of about one million a year for expenditure within the colony as its result. If we now also deduct our •wool export from the total, we find that the exports other than wool and gold during the peiiod ending 1872 were in value, L3,fi96,123: during the peiiod ending 187(3, L5,0.")8,4(52 ; and during the period ending 1882, 1,9,693,935. Fiom this wp see that the value of our exports other than gold or wool thus vei y largely increased during such period, and was for the five years ending 1882, nearly three times as much as for the period ending 1872, while the population had doubled in the time and the proportion of male adults to the whole population had fallen from • 4 to 28 8 per cent. The value of exports per male adult after eliminating gold and wool has been for the three periods LB, 10s 2d, L 6 5s 7d, and Ll4 6s Bd. This is a satisfactory result, and our satisfaction in increased when wo come to examine in more detail the industries which produce this result. We find large and steady advances in the export of grain, flour, gum, leather, potatoes, sheepskins, tallow and sawn timber, and last year there is entered for the first time amongst the export, frozen meat and dairy produce. This trade as soon as it cm be fully organised should enable us to biing into piofitable cultivation a much larger area of land in proportion to population than we can use at present for mixed farming. Nor must we forgot that we have, among others, fully-cstab liahed woollen mills, soap and candle factoiies, clothing factoiics, boot and shoe factories, non foundiies, tanneries, aud agricultural implement factories, which will tend either to incteisv* proportionately our cxpoits, or by reducing imrjte to liberate an equivalent pait of expOlßrfor payment to outside cieditois. For these reason 1 ?, I think we must safely conclude that we are hot only giving our attention to necessary industiics, but they have been permanently es-tablished. But as I have said, though they are most satisfactdlFy, as showing that we are r.ipidlyJr.evcloping industries which will bear most unlimited expansion, we must not forpet the present in the prospect of thefutuie; for although, as I have just shown, we ha\e begun in earnest to develope those industries which are most essential if we are to prosper, it is nevertheless also true that, taking our total exports, including wool and gold, the value of expoits per head of the male adult population has for the three penods we aie consulting steadily diminished. The exports weie — Loo 2s 3d for the first pci iod, L 32 12s 9(1 for the second, oud Lt3 Us 3d for the thiid peiiod. Now, these figures, if taken alone, would give a veiy euoneous impiossion of wluit is really going on with icgaid to production in the colony, and they would have a very htrions aspect indeed if our csiorts other than wool and gold had not both steadily and largely increased dining the same peiiod. But, fortunately, the exports other than wool and gold 1 aye largely increased, as I have already .shown, from LS 10.s 2d in 1872, to Ll4 0\ 8d in 1882, per head of the male population. (To b'- lonfnnittl.)