THE PRIME MINISTER.

Gisborne Times, Volume XXVIII, Issue 2718, 25 January 1910, Page 5

THE PRIME MINISTER.

FINANCIAL POSITION OF THE DOMINION. [Peu Press Association.] HASTINGS, Jan. 24. The Prime Minister devlivered in important speech to-night, m which he quoted the revenue and expenditure for the nine months ending December *3lst. He received an excellent hearing, the address being punctiiated by much applause. Sir Joseph Ward said at the present time one of the most important matters, and one in. which all classes in the country are deeply concerned, was the progress they were making financially. Inasmuch as a. good many people had predicted a downward tendency in connection with the public finances following the period of temporary depression brought about by various causes during the last IS months, he said he proposed to .give some information that he was sure they would be able to regard as extremely satisfactory. The financial results for the first quarter were very good, and when compared with the returns of the correspmiding quarter of last year were an indication that the depression, was over,and the Dominion was starting the new year with brighter prospects. The revenue position was as follows: December quarter, 1909, £2,647,075; December quarter, 190 S, £2,591,386; increase £55,635. The stamp revenue showed an increase of £28,435.- land and_jncome tax £48,556, miscellaneous £5753; while on the other hand a decrease was registered by Customs £21,821. registration and other fees £12,000 (Chinese poll tax), territorial £10.040. Turning to the expenditure side of the accounts, permanent charges show an increase of £48,525, principally in respect to interest on loans, and departmental appropriations £28,022 more than the corresponding expenditure for the same quarter last year, the respective figures being: December quarter. 1909, permanent charges £l/158,846; departmental appropriations £1,367,532 ; total, £2,526,378. December quarter, 1908, permanent charges £1,110,321; departmental appropriations, £1,339,510; total, £2,449,831. Increase, £76,547. The quarterly accounts showed a decrease in expenditure on various departmental classes amounting to £965,_ 503, and increases £l2-4,525, or, as already stated, a net decrease of £28,022. Railways are responsible for £95,514. and education £16,933. Dealing with the nine months from April Ist to December 31st, 1909, the position was as follows: Revenue, £,512,'453; 1908, £6,421,029: increase, £91,124. Details were as follows: Customs decreased £142,072, stamps (including post and telegraph cash receipts) decrease £54,865, land and income,tax increase £55,365, beer duty decrease £l4ll, railways incrase £185,733, registration ancl other fees decrease £24,517, marine decrease £429, miscellaneous increase £31,053, territorial decrease £34,595, in addition to an increase in national endowment revenue amounting to £339,313. Looking into the various clauses it will be seen that the total decreases in expenditure amount to £174,454, the increase giving a total of £187,524, post and telegraph being £52,209, railways £86,850, education £30,015. It might be pointed out that while the increased expenditure on railways was £86,850, for the nine months the increased revenue from the same source was no less than £185,753 for the same period. Another fact worthy of remark was that while the revenue for the nine months was £91,424 better than for the corresponding period last year, the total expenditure, including permanent charges, only increased by £64,764. In the House lie had been told more than once that the effects of the Government’s action in the direction of economy were comparatively small, and therefore it yras a cause of great satisfaction to him to state the real position. It would be seen from what ho had stated that the increase in the annual appropriations for the nine months amounted to the comparatively sriiall sum of £13,070. When it was remembered that the two great commercial departments, railways and post and telegraphs had between them increased expenditure totalling £142,059, duo to the increase in business and represented necessary provision there-, for, and the demand for education ran into £3095, even tho most fastidious

critics must regard it as extremely satisfactory that the expenditure only showed an increase fo £13,070. The decrease in Customs for the past quarter was considerably lower by comparison than the average reduction for the nine months to which lie alluded. This no doubt was duo to the increased trade for that particular period of the year. The expenditure for the nine months, as compared with the same period for 1908, * was £175,434 less, and there were heavy reductions in no less than 18 departments. These were as follows: —Legislative £6215, finance £3792, old age pensions department £7084, public buildimgs £6799, printing £15,854, stamps and deeds £1476, Native £8961, mines £3005, internal affairs £14,536, defence £11,826. Customs £3361, marine £3150, labor £6173, lands and survey £52,238, agriculture £17,420, valuation £4727, public health £6Bll, mental hospitals £11,046. Increases took place in eight departments, the largest of these being post and telegraphs £55,209, railways '£86,8-50, education £30,015. In the remaining five departments the largest increase was £154 in industries and commerce. It would therefore be recognised that the expenditure had been kept well and .strongly in hand by the Government. While for the December quarter, compared with 1908, the reduction was more marked still. In 20 departments the total reduction for the quarter was £96,503; while there were increases only in six departments. Reductions were as follows: Legislative £450, financial £2289, post and telegraph £3419, old age pensions £2550, public buildings £273, printing £13,017, stamps and deeds £24, Native £6554, justice £273, mines £4120, internal affairrs £13,235, Crown law £2, defence £17.013, Customs £3984, marine £4473, Labor £1192, Lands and Survey £1484, Agriculture £13,922, Valuation £3292. and Public Health £4947. It was clear that tho improvement for the nine months had bettered considerably during the last quarter of 1909, and he saw no reason why this should not continue in view of the improvement in trade and the generally brightening prospects. Indeed, he was hopeful that at the end of the financial year, in March next, the balance of revenue of the consolidated account, which on December 31st amounted to £180,729, would be materially increased. Tho- Treasury bills outstanding on December 31st totalled £600,000, which were in anticipa. tion of revenue, and would be reduced this month from the proceeds of the income tax, about £300,000. It must not be forgotten that the economies effected by the Government are now in force, but the full benefits were not yet being obtained. The total reductions effected amounted to £363,000, but naturally only a portion of it had actually taken place up to the period named. He would like to call attention to one of the safest barometers in activity of trade, and that was the post and telegraph re venule. -The December quarter disclosed a total revenue (which in 1908 just exceeded a quarter of a million) of £266,000. The increase in the post and telegraph for the year ended December 31st last, over the previous year, amounted in round figures to £91,000. The Savings Bank deposits for the December quarter amounted to £2,283,075, and the with-* drawals to £2,252,675, an excess of deposits of £30,401. In December quarter, 1908, there was an excess of withdrawals of £50,516. The return therefore discloses a betterment of £BO,OOO. The post and telegraph figures increased in every department except private boxes, which showed a reduction of £SO, The banking returns for the December quarter reveal very satisfactory conditions. The increase in deposits, including Government deposits, amount to £1,339,191, while twelve months ago there was a marked shrinkage. The gross revenue from the railways to the 11th December, 1909, Ava5.£2,106,464, as compared with £1,865,433 for the corresponding period of the previous year. The Government and the people, said Sir Joseph Ward, were looking forward with special interest to the visit of the distinguished soldier. Lord Kitchener, who was coming here at a most opportune time, inasmuch as the new Defence Act, which ma'kes material changes in connection with the Imperial protection of the country, will soon come into practical operation, and the advice that Lord Kitchener would be able to tender the Government will, he was sure, be most valuable. It is indicative of closer union with the oversea dominions with tlie Motherland when We find that, in a common desire to promote a more concrete union, one of the most remarkable soldiers of the time coming, not only to visit the country, but also all other portions of the Empire. It would mean a practical system of unified defence in scattered portions of the Empire.