32

A.—3

larger proportion than usual was expended on useful public works. The transactions for the year resulted in a surplus of £359 14s. 3d., and the balance at credit of the Administration on 31st March, 1913, amounted to £1,849 lis, 2d. The expenditure may be classified as follows : — £ s. d. General administration; including school and medical service ... 1,194 8 11 Public-works expenditure ... ... ... ... ... 1,125 12 11 £2,320 1 10 Full particulars of the receipts and expenditure will be found in statements A and B and the supporting statements. The annual-recurring expenses of the Administration, exclusive of public works, now amount to about £1,250, while the revenue for the past six years has averaged £1,836 per annum. It will thus be seen that the present average amount available to meet the pressing extra requirements of the Administration and necessary public works is but £600 per annum. During the past five years a total sum of £4,705 16s. 4d. of the island revenue has been expended on public works. This gives an average of £941 per annum. Very many useful works have been carried out, but much remains to be done, and it is obvious that the present income of the Administration falls short of requirements. The question as to how any extra revenue may be raised naturally arises. The Natives have a rooted objection to direct taxation, and it is almost hopeless at present to expect the Island Council to pass any Ordinance providing for the imposition of direct taxes, therefore it appears that the only means remaining is by an increase in the Customs duties on one or more of the articles on which the duties were reduced by Order in Council. By this means sufficient additional revenue could be raised to enable the Administration to continue a progressive policy for some years to come. Trade. The trade for the year easily constituted a record. The value of the imports was £19,119, as compared with £9,838 in 1911, an increase of £9,281; while the exports were valued at £15,709, as against £12,047 worth exported during the preceding year, an increase of £3,662. The total external trade of the island for 1912 amounted to £34,828, as compared with £21,885 during 1911, an increase of £12,943. During the year a record coconut crop was harvested, notwithstanding an exceedingly dry season. 792 tons of copra were shipped during the year, as against 520 tons exported during the preceding year, an increase of 272 tons. The exceptionally dry weather, and the continual failure of the Native food crops, resulted in a much greater quantity of coconuts being used for food and drinking purposes than is usual, otherwise the copra crop would have been heavier. The trade in plaited hats, which has formed a considerable item in the exports in previous years, fell in 1912 to 1,416 dozen, valued at £731, the lowest on record. The drought to some extent affected the imports, larger quantities of foodstuffs being imported than usual. But an analysis of the items discloses the fact that while the food items increased by £3,810 as compared with the previous year, the items for articles other than food increased by no less than £5,471. It will thus be seen that while the Natives were forced to a larger extent than usual to live on imported foods, yet they had plenty of money to spare for other things. The principal increases were —Flour, £586; rice, £645; biscuits, £875; meats, £888; fish, £440; sugar, £144; horses, £198; carriages, £238; saddlery, £80; apparel and»slops, £1,134; cotton piece-goods, £579; drapery, £410; hats and caps, £121; bags and sacks, £226; hardware, £-187; fancy goods, £159; soap, £111; tobacco, £262; and specie, £975. The commercial spirit has now thoroughly seized hold of the Niueans, and during the past year or two very many Natives have commenced business as storekeepers. In nearly every instance failure has resulted, and it has been painfully brought home to the people that without capital, education, and experience they cannot hope to succeed in competition with the regular traders. There are now in Niue fourteen trading-stores owned by Europeans, and nine stores owned by Natives, while, in addition, there are four Native bakeries. Unlike the Cook-Islanders, the Niueans are not large tea-drinkers, and there are no tea-shops. Trade Prospects. The trade prospects for 1913 do not appear to be quite as good as they did twelve months ago. The dry spell during the latter part of 1912, and the excessively heavy rainfall experienced during the first three months of this year, when a fall of 52-20 in. of rain was recorded, has considerably affected the coconut-trees, and it is certain that the output of copra will be much smaller than that of last year. There are, however, indications that the trade with New Zealand in plaited hats will improve during 1913. Many attempts have been made by the local traders to introduce these excellent hats into the Commonwealth and other countries, but it is found that the heavy Customs duties effectually prevent business being done. As regards the import trade, I am of the opinion that the returns for 1913 will also show a falling-off as compared with 1912. The local traders are nearly all carrying fairly heavy stocks, and their requirements for the year are almost certain to be less than those for last year. I regret to state that, owing to the exceptionally dry weather at the latter end of last year, it was found useless to plant cotton, consequently another year has been lost. The record prices for copra that prevailed throughout last year, and still continue, have to a large extent been the means of diverting the minds of the Natives from this new industry, but I still have strong hopes of persuading the Natives to take up cotton-planting as a permanent thing. The results of the experiments made during the last year or two amply justify such a course.