A.—4.

VII.—DIRECT TAXES. The direct taxes are —

In addition there are the usual motor-vehicle licenses, water rates, and similar fees. VIII.—INDIRECT TAXES. The principal revenue of the Territory is derived from Customs duties —see the annual reports on " Trade, Commerce, and Shipping "—store and copra house and other taxes as set out in the Revenue Ordinance, 1929, and the port and shipping fees defined in the Port Control Ordinance, 1932. The law as to stamp duties was brought up to date in the Stamp Duty Ordinance, 1932. Imports in 1934 were 72-4 per cent, of the value of exports, as compared with 86-8 per cent, in 1933. This decrease was due to acute economic conditions prevailing during the year, imports and exports showing a decrease on the previous year's figures of £58,072 and £45,720 respectively. IX,— TRADE. The trade figures for the calendar year 1934 show a decrease of 31-97 per cent, as compared with those of the previous year, but during the last quarter of the financial year —that is, the months of January, February, and March, 1935 —there was a marked improvement in trade conditions in the Territory. The average price for South Seas copra on the London market for the whole of the year 1934 was £7 17s, 6d. per ton, but in January and February, 1935, this rose suddenly and the price to growers doubled. During 1934 cocoa was difficult to sell, the market at most times being overloaded and the price falling as low as £1 12s. 6d. per hundredweight. During recent months there has been an increased demand, and sales are being effected at from £40 to £45 per ton. The price of bananas has been very satisfactory throughout. During the year negotiations were carried out between the Governments of Hew Zealand and Fiji resulting in an increase of nearly onethird in the quantity of bananas to be shipped from Samoa during the year 1935. The increased shipments commenced in January, and the extra money in circulation as a result thereof has greatly improved trading conditions. As mentioned in last year s report, the export duty on cocoa was remitted temporarily, and two remissions, amounting to a total of £1 per ton, were granted off the export duty on copra. The export duty on cocoa has not yet been restored, but the full duty on copra was again brought into operation on the Ist March, 1935. The following return shows the principal exports, and the total values of the exports, imports, and total trade of the Territory for recent years : —

10

Received 1933-34. 1934-35. £ £ (a) Personal tax of £1 5s. per annum payable by male adult Europeans 664 1,009 (b) Graduated salary-tax, from £1 on £200-£300, to £30 over £1,500.. 427 405 (c) Building-tax, 1 per cent, per annum of capital value of European 1 2,274 2,524 buildings

Exports. Imports. Calendar Year. Copra. Cocoa. Bananas. Total : Total T v . Trade - Value Total Value. Tons. Value. Tons. Value. Cases. Value. £ ~ £ £ I £ £ 1927 .. 11,66.5 242,672 792 48,216 .. .. 335,978 304,369 640 347 1928 .. 15,989 319,259 959 69,507 22,815 j 11,219 422,175 ! 326 553 748 728 1929 .. j 12,941 205,330 677 46,286 53,652 j 24,640 293,938 288 849 582'787 1930 •• 12,285 166,221 1,007 61,294 95,867 i 44,259 284,515 275 355 559*870 1931 .. 11,062 109,220 620 35,284 85,231 39.022 194,447 164 950 359*397 1932 .. 10,879 108,098 825 49,712 66,715 20,016 183,028 150,902 333*930 1933 11,526 101,347 899 41,813 81,983 26,999 173,837 j 150!856 324*693 1934 .. i 8,948 j 60,654 1,027 29,498 96,225 | 35,796 128,117 ! 92,784 220^90]