IX

8.—6

It will be of interest to members to give New Zealand's wealth per head of population, and to append an extract from Mulhall upon the " Wealth of Rations." Latest Estimate, Latest Estimate, Country. per Inhabitant. Country. per Inhabitant. New Zealand ... ... 308 | J7 United Kingdom ... ... 302 Norway f "' ' •114 Prance ... ... ... 252 Denmark ... ... ... 230 United States of America ... 234 Holland ... ... 183 Germany ... ... ... 156 Belgium ... ... ... 154 Russia ... ... ... 61 Switzerland ... ... ... 164 Austria ... ... ... 104 Greece ... ... ... 101 Italy ... ... ... 101 Boumania) .. Spam ... ... ... 135 Servia ) - - - 90 Mr. T. A. Coghlan, Agent-General for New South Wales, speaking recently in London, pointed out that one of the most notable facts connected with the progress of New Zealand during the past fourteen years—during which period the greater portion of the advanced legislation now in force was passed—was the very large decrease in the private capital employed in the colony owned by nonresidents. Trustworthy estimates placed the investments of British capital on private account in New Zealand in the year 1891 at 20J millions sterling, and these investments had now fallen to 9J millions, a reduction of 11 millions in twelve years. Under ordinary circumstances this withdrawal of capital would be considered a very serious matter, and there were not wanting persons who pointed to it as a fulfilment of the prophecy that the social and industrial legislation of New Zealand would ultimately drive British capital out of the country. In the year 1891 the value of property in New Zealand was 150 millions sterling, and of this, 20J millions, or nearly 14 per cent., belonged to British investors.' At the present time the valuation of property was 222 millions, and the amount of British investments only 9J millions, or less than 4£ per cent. Here, then, they had the extraordinary position that during the short space of twelve years the New Zealand people had reduced their indebtedness to outside investors to such an extent that what remained of it was now an insignificant portion of the accumulated wealth of the country, and while that process of repayment had been going on, the value of property increased by 72 millions or 50 per cent.—that is to say, from 150 millions to 222 millions. This achievement was a notable one for a population whose numbers were still considerably short of a million. THE MILLION LOAN OF 1904. The money-market having first been sounded as to the possibility of floating a 3£-per-cent. loan, it was ascertained that, owing to the war in the East, the market could not be approached at a higher price than £95 10s., with' the certainty that we should not net more than £92 10s., and that the public subscriptions would be small. I judged it would be more prudent to arrange for the issue of a 4-per-cent. loan that would yield us a fair percentage of cash. In view of the contemplated action in another colony, which was arranging also for a loan issue, there was no time to lose, and, therefore, early in December arrangements were completed, and the Bank of England announced the issue of a million 4-per-cent. loan at par, payable Ist January, 1912, lists to be closed within six days. Deposit and instalments were payable—£s per cent. deposit on application, £20 per cent, on 16th December, 1904, £25 per cent, on 24th January, £25 per cent, on 21st February, and £25 per cent, on 21st March, 1905, with a discount at £3 per cent, per annum on instalments paid in full on or after the 16th December, 1904; a full half-year's interest beinopayable on the Ist July, 1905. The public were also offered an option to convert into 3j-per-cent. inscrbed stock: if availed of by the 31st J 'ecember, 1906, they would get £103 of stock for every £100 of debentures; or, up to the 31st December, 1908, they would get £101 of stock, after which the conversion would be at par.

ii—B. 6.