8.-No. 2.

Under Schedule I. of the Act, the expenditure for Defence purposes up to the 30th June last was £295,588 lis., as follows : —• £ s. d. On account of the year 1870-71 172,689 19 4 1871-72 ... ... 122,898 11 8 —the last item being exclusive of the balance of £23,792 17s. Id., reserved for Liabilities. To the total of these two sums —£295,588 lis. —must be added the sum of £18,327 Bs. Id. for discount and charges on this portion of the Loan; and we have thus a total expenditure of £313,916 2s. Id. for Defence, for the two years ended on the 30th June, 1872. The Total Expenditure under this Loan will therefore be, — Under Schedule 1 313,916 2 1 „ II 163,136 12 4 making together the sum of £177,352 lis. Bd., and leaving a balance of £158,217 ss. Id. available for expenditure, including liabilities. Of the Immigration and Public Works Loan, there has been raised in all £1,600,000. Of this sum, together with the amount of one moiety of the Stamp Duties—£37,29s 4s. lid.—making together £1,637,295 4s. lid. there had been expended up to the 30th June, £711,611 3s. 7d., as follows : — £ s. d. For Interest and Sinking Fund ... ... ... 29,198 1 9 ~ Departmental Expenses ... ... ... 24,648 16 3 „ Roads in North Island ... ... ... 120,475 8 9 „ Railways ... ... ... ... 241,470 18 3 „ Water Supply on Gold Fields ... ... ... 2,615 10 6 ~ Purchase of Land in North Island ... ... ... 49,662 5 6 „ Immigration ... ... ... ... 42,286 4 5 „ Telegraph ... ... ... ... 58,086 13 11 „ Development of Coal Mines ... ... ... 543 5 8 „ Payments to Provinces and Road Boards ... ... 100,000 0 0 „ Greymouth Protective Works ... ... ... 3,259 0 6 „ Discount and Charges ... ... ... ... 39,272 3 4 „ Refunds Stamp Duty ... ... ... ... 92 14 9 £711,611 3 7 Deducting the expenditure from the amounts raised, including the moiety of the Stamp Duties, there is a balance left of £925,681 Is. Id. This amount, and the balance of the Defence and Other Purposes Loan, make together £1,083,931 6s. Bd., represented as follows: — Cash —Immigration and Public Works Loan, — £ s. d. £ s. d. In London 850,000 0 0 In the Colony ... ... ... 40,666 7 0 Advances not accounted for ... ... ... 35,017 14 4 925,684 1 4 Cash —Defence and Other Purposes Loan, — In London ... ... ... 150,000 0 0 In the Colony ... ... ... 309 2 7 Advances hot accounted for ... ... ... 7,938 2 9 158,247 5 4 Total ... ... ... ... £1,083,931 6 8 I wish honorable Members, in studying the Loan Tables, to observe that provision is made for the payment during the year of £66,232 for Sinking Eund on the Colonial Loans, and for £10,660 ss. on the Provincial Loans. These payments represent the sum which the Colony and the Provinces provide for reducing their Public Debt. TRUST FUND. Erom observations I have occasionally heard made in this House, I am doubtful if honorable Members sufficiently appreciate the manner in which the Trust Funds are kept distinct from the ordinary assets of the State, and are prevented from being employed for purposes of expenditure. On the 30th June, there were £110,202 10s. lOd. to the credit of the various accounts in the Trust Eund, of which £387,590 17s. 6d. was invested, £50,515 12s. was in cash at the Bank, and^ £2,096 Is. Id. was under advance to public officers for Trust Eund purposes. 0 /n 2

Under Schedule 1., £295,588 14s.

Total for Defence, for two years, £313,916 2s. 4d.

Total Expenditure out of Loan, £477,352 14s. Bd. ; halance, £158,247 ss. 4d. Immigration and Public Works Loan : Amount raised, £1,600,000. Moiety of Stamp Duties, £37,295 4s. lid.

Expended to 30th June, £711,61135.7 d. Balance, £925,684 Is. 4d. Or, of the two Loans, £1,083,931 6s. Bd.

£66,232 and £40,660 55., Sinking Fund for year, provided.

■^•r joiiHt? &>' credit, 37oth .Tune, £440,2033 10a. lOd. How plaoed.

5

FINANCIAL STATEMENT.