8.—6

XXV

The gold-mining industry was not greatly affected by these troubles, and the returns for the year show an increase in value of the output of gold and silver of £133,495 over that of the previous year. The total value of all mineral production for the year was £3,178,798, being an increase of £136,574 over last year's production. These facts show that the mining industry is on a firm footing, and there is every reason to anticipate that so long as industrial peace is assured the present prosperous conditions will continue. State Coal-mines. Operations in the State coal-mines were carried on as usual during the year, except that, for about three months, work was at a standstill on account of the industrial unrest then prevalent throughout the Dominion. A statement of the financial position shows a debit balance in Profit and Loss Account of £23,307, with a sinking fund of £13,200, and a Reserve Fund of £5,884. The actual deficiency is therefore £4,223. The Seddonville Colliery has been closed. The account shows a loss of £27,143, against which there are assets valued at £4,037. The Briquette Account shows a loss of £10,756, with assets valued at £2,003. IRON AND STEEL INDUSTRY. The proposals submitted by various persons interested in the development of the Dominion's iron resources, after examination by a committee of experts, were carefully considered during the recess. As a result it is intended to submit a measure for the consideration of honourable members, which if passed into law will encourage the establishment of this important industry in the Dominion. STATE FIRE INSURANCE OFFICE. The State Fire Insurance Office business for the year has been the largest and most profitable in the life of the Office. The net income for 1913 amounted to £61,281, as against £56,315 for 1912, showing an increase of £4,966. The net premium income showed an increase of £5,037. The net profits amounted to £15,444, as compared with £14,024 for 1912. The reserve funds stood at the close of the year at £65,672, as against £48,213 for the previous year. MENTAL HOSPITALS. The gross expenditure for the year on mental hospitals amounted to £160,096, and the net expenditure to £112,044. The receipts for maintenance, sales of produce, &c, totalled £47,015. The increase in expenditure, £11,593, is accounted for by the increase in the number of patients and work in connection with the development of the new mental-hospital estate at Tokanui. PUBLIC HEALTH. While the expenditure during the past financial year in connection with the outbreak of smallpox amounted to £24,185, the measures taken were successful in preventing the epidemic from spreading and assuming virulent characteristics. It is expected that a further appropriation of £6,000 will be sufficient to cover the amount paid during the current year, to meet outstanding liabilities, and to provide for a continuance of the precautionary measures adopted. The expenditure on new buildings is considerable, but it is important to note that the larger hospitals are now being gradually replaced by structures of a more permanent character. The appointment of nurses for work amongst the Maoris continues to produce good results. Further provision will be made for medical and nursing aid to Maoris, especially in out-of-the-way districts. This will entail increased expenditure, which, however, the Government believes to be justifiable, as it will lessen the [risk of the decimation of the Native race by preventible disease. It is found necessary to improve and increase the accommodation at f the St. Helens Hospitals, and new buildings will be erected at Auckland and Christchurch.

iv—B. 6.