FINANCIAL STATEMENT.

(by telkgrAwi-.own ukfortbe.)

AVklunuton, Tuesday. Sin JtTLius .VooiiL delivered the Financial Statement, in Committee of Ways and Means, in the House to-night. Ho said he had nob that evening to make the

innpuncemcntj so pleasant on these oc jasions, of a surplus. On the contrary, he bad to toll the committee that the transac tions of tlio year just past leave a deficit. The expenditure during bhe last financial year showed a saving of L9S,C2O on the amount estimated. The savings of all kinds amounted to Ll2!),!>Ho,and tho excesses to L:'.l,'2.')4,result ing in a tier .saving to the extent ho had just indicated/ Tho largest items were .railways, JJw,r.7l ; public .works (cousoii dated revenue accounts),:'Ll2,o3f> ; Kchiea tioii Department, LII.BSU ; customs, LlO.S.'il) ; defence, hV.m ; and mines, 1,7,411. Tho excesses in expenditure wore -pri'neipMlly LM,::SS for services not provided For, and LI(),!)■?.:] for the postal service. J.ho latter chieily arose through additional cost of soa services, because ot tho large premiums earned, and through under-estimated expenditure for the maintenance of telegraph lines feor. the, year IBMS-87 the revenue showed a, .hank, amount than estimated ot 11192 493. The following were .the princi pal items of deficiency : UiutamH;Ll24,23ij; stamps, LIG.&V7 ; and railways, U. rj;,813. The Customs duties lie should again roier to. As there wiut a (saving on the estimate of railway expenditure of L<i*>, r>H. the nob loss on the railway estimate amounts to L 92,302. The loss amse principally during tho earlier portion of the year. Towards tho ond tho turitt! showed v marked increase. The loss on the stamp revenue ho attributed to dimi nished buainess. The post-office and tele ■graph service arc considered to have earned about LIO/.00 over the returns estimated, but it is difficult to exactly determine tlio amount of stamps sold for post and for other purposes. The • augmented biisincsw of the post and telegraph olliec-s, notwithstanding the larger u.se of delayed telegrams, is e,no of bTlO.inOrft satisfactory features of tho year. The miscellaneous, revenue .show.-* a large excess on the estimate, no loss tlimi Ljol,'2oV. It arose in this way : The aeon rouhifccd sinking funds on some of the Eng lish loans were much above what was re quired to meet the respective debts to which they belonged. He asked the to call the attention of tho trustees of the sinking funds of the loan of 1863 to the fact, and thoy, in conformity with tho law, released L 104,74!) under tho Act of 1803, boing tho excess accumulated up to 18&4, and they released L59,7;"t4 under tho Act of ISS4. On account of the excess since that period.tho amount sot free under tho Act •of IS6B reverts to the consolidated revenue, that belonging to tho subsequent period in applicable' to paying off the debentures created in the colony.and the amount hasac cordinglyLeensoapplicd. .Itwasright to add that he had no ollicial control whatever over the trustees uf the sinking fund in England. Ticy released the amount under lite autho rity of an Act passed nearly twenty years since. As regards the debentures created here on account of the accrued sinking fund, he was pleased to be able to state thut out of the amount already mentioned as realised under the Act of ISB4, and from the result of tho drawing of the bonds they held, by conversion they had paid off no less than L302,C00 of the debentures created. Out of a,.fcota), of L7n0,900 created since ISS4, they had paid off already no. less than ,L3t;>,4o.Q. Efforts wuio so ffcquently •'■aa'cf-' perseveringly made to discredit the operation by wliich the revenue was put in funds to tho extent of the accruing sinking fund that it was desirable lib should specially refer to the subject. Statements had been put forth to the effect that New Zealand securi ties had fallen in value, because of what had unwai-rantably been termed tho seizure of the sinking fund. There was not a particle of truth in the allegation. The plan, after it became law in 1384, was explained by the Ageut-(>onoral to the London market, and did nob affect either the loan then negotiated or a subsequent one. To suppose that it affected the third loan was absurd. There wan no more impropriety in doing what was done than there was in re-borrow ing to pay off a loan which was about to fall due. As by the operation of conversion, portions of the sinking fund have been set free, debentures issued on account of the in creases in the fund had been paid off, and tho result of three years was that only L107,5:X) remained outstanding. If the pro cess was truthfully described, it might be proclaimed from the housetops without in juring tho credit of the colony.

Tho Deficiency.

When account was token of tho supple mentary estimate brought down after the Financial Statement last year wfth delivered hia. expectations amounted to .1 small sur plus of LI,OOO. He greatly regretted there wasinstead a deficiency; but considering the fears ■which, hap "been expressed of its amounting to a very large sum, hon. mem bers would be glad to learn that it amounted to no more than L0"2,25)3. He could not accept any blame for this result. The circumstrmcea which ■ usually lead to estimated revenue falling abort had b6en conspicuously present; moreover, he informed tiro House before Insfc session that lie fbarb'A fche expected revenue would not be large. This was the first deficit since he i-Gsu'ihtid office in 1884, and lie thought he ha/d,reason.,tp be.gratified, and that the.pre sent ambiih^waHComparatively pmall, seeing how he had beon. disappointed during this period in other places. Tho amonntof the de liciehcy could bo identified in the utatembnt of the revenue and expenditure, and the consolidated fund by deducting the credit bulrtWoo L 186,805 from the outstanding .doliwoncy bills of L 279.100.

Land Fund

Tho deficiency in the Land Fund had in creased. He would explain later that the change in the lan'dpolicy waaaccountable for the rtstfult, and that it was necessary to make sonic' permanent provision to meet tho altered' financial condition of this class of revenue.

The Public Wor&S Fuud, ISSC-87.

i fault year a new aijd important departure was made by placingundor distinct amend ments the residue of old loans, and fclie amounts to severally arise ' from the North Island Trunk loan, and from the loan authorised during- Uio session. He took credit in his statement for a balance 6f'JL7fiM,7B() remaining out of old loans, and said that when recoveries were made on its account, and the North Island Trunk loan, thoro'would be more than LBOO,OOO to be voted as the House pleased on other purposes than railways, such as buildings, purchase of native lands, roads, and other works on goldlields, &c. He added :" We look to its yielding lib,.,least two year.-*' provision." Subsequently, in tho Public Works .State ment, his colleague more jmrtieuhirly des cribed the brarisfors proposed, both for rollinjj-stock and fo« t.ho put pose of native lands. Tliemi tiansfois bail amounted to L3Ji0,781-, and tutrpthnr with L87,51'2 i-ealised under the Consulidatwl Stock1 Act, 181S4, had raised the amount of the old loans available lor expenditure .to L 1,127,872. Tho expenditure had amounted bo L(i30,()26, 80 that there was a balance of LJ01,'240 avail ablo for expenditure this year.

North IsTiii-fl Bailvray,

T}jo North Inland Trunk JiOajj Jimi.nofc been floated yefc.; Ho expressly Übpt it out

of the market until the proceeds were ear marked by the legislation of last year. There now stood charged against it L324,(J55, including expenditure of L 70.378 on tho purchase of native land to serve as an endowment for promoting settlement along the line. There was about L 07.500 of ib still available for expenditure.

Tito Loan.

The loan of Ll;825,000 authorised last year was negotiated at a little over 97—a priobwhichwasnofcsabisfuctory when the con dition of tho market at the time the loan was floated was taken into consideration. When all the instalments parsed to credit, as since tho end of tho year they had done, the balance loft unexpendc I would amount to L713,73fl ; tho expenditure during tho year having been Lf>55,70"».

Futuro Expenditure.

On tins subject of retrenchment, </ho Trea,fiiirorHaJil lv: would (jive a list of nearly nil bhofjoKorvioeo'which conki ho curtailed or abolished/without apparently dircdt in jury to tho revenue, but, he did"not; say withottb injury to parts of the colony. Tho list/ was as follows :—Tlio legislative, the audit, bhe doctoral, mid tlio Lunatic Asylums services ; and those fclmt come within tho Department of iTimbico—oilucntiqri, native afliiirS, mines, anil defenoo. Ho would be reluctant indeed to have it supposed that ho 'doubted tho necessity of tho sorvicos alluded to for the [>oaco, order, and good government of tho colony. Tho point at ifwua was whether tlie kco[)O and ex tent of any of tho services enumerated could be beneficially curtailed., With reference to the Legisilativo Department tho view of tlio (lovernmonb was that a re daction might ba made, especially by allow ing officers who can l»o spared to follow other avocations during tho recess. It is proposed ,to refer tlio subjecb to a Koloct committee-. Meanwhile the estimates are presented'as sent in by the Speaker. After reviewing tlio services performed by tho other Departments, tlio Treasurer said tho committee would, he thought, agroe with him that the usefulness of fclio revenue-yielding departments, and of those t.lmfc neither directly nor indirectly yield revenue, cannot tio reduced —or, in oi.lier words --■ that the public service must be inainlaiiieo at not lew* Mian its piofient standard of efficiency. He now came to the question common to all : The brandies of the public service oan the same efficiency bo obtained at less than the pre sent cost. Thisopeneda widolield of inquiry, uri'.l tin) flovenimeiib had boon uncdasiiigly en gaged in studying it since l'arliamcnt last separated. Individually ho felt a doubt if it w.M'c wi.se to go tin: length in reducing the status of (he isorvice io which public opinion unqucstionalMy pointed. Thoy railed against the pensions. Did thoy cniito appreciate the long and able services that had been rendered ftont the poinfc of view from wliich he regarded the Civil Servants — as tried i\tv.\ trusty aids to tho good govern ment of tho country ? It did not seem to liimthcyshould grudge a retiring pittance to thono wiiose lives had been devoted to public pursuits ; but tho decree had otherwise gone forth. The country had determined against tho undoubtedly incrwwofl expenditure of a service protected and privileged beyond a reasonable extent. The Government did not, however, precisely understand the wish to bo that the tenure of the public servants should bo quite on the level with that of private employees, but something approach ing to it. The Act, of lust session was very important in this direction, for it provided that all Civil servants in future appointed shall bo entitled to only thrcornonths' notice and in order to provide that thoy shall have some means at their command on leaving, tive per cent, of their salaries was to be impounded, and handed to them, improved at compound interest, on their retirement. A more radical altera tion could scarcely have been decided on, and it was the reflection of tho stern do termination of Parliament in favour of retrenchment. Tho Government weiijfc into the recess with the duty before them of giving effect to tho wish of tho Legislature, but they were unable to discover that a reduction of the existing services was required. Ib was their moro econo mical management that was demanded. Exclusive ot small but necessary pav ings of an extraneous character, to all of which tho Government had give their attention, the chief saving to bo effected was in the number and salaries of civil servants. Tn studying what could be done of this nature, Ministers wore confronted with the consequences of bygone engage ments in the shape of pensions and retiring, allowance, to which civil servants who* might be dispensed with would be outitled. Each case had to bo considered on its own merits, for in many instances where the mutual growth of a service was certain, it would be a loss to part with a good man on heavy terms of compensation, when fresh assistance would soon be required ; but again in some ca^es it apr.eired likely the permanent dimensions of the service could bo limited, and consequently could with advantage bo at once curtailed. Besides the present re ductions tho Goverment had laid the train for large savings of expense in the future. Before detailing these steps, he wished to any that in his opinion ten years hence the difference in the cost of the Civil Service between what it would have been under the provisions prior to last year, and under the new conditions, would bo equal to a reduction of 20 to 23 per cent., supposing, of course, the new conditions, would be maintained.

deduction in the Civil Soivtcc.

Tho Government havo mado a claim under the following heads : A reduction on travelling expenses, doing- away with officers, amalgamation of offices, saving in appointments to vacated offices. Under these heads the alterations already made will result in a considerable, saving, and tho steps taken to continue the efforts in tho same direction will lead to yet larger Kaving3 in the future. To secure tnose tho Government have de termined that when vaeaneios occur the otlice vacated shall, if possible, be nm&k gamated with some other office, or failing this being practicable that there shall be a considerable saving in the salary attached to the appointment to tho vacant offices. Tho scaJe of such reduc tions has been laid down, and many lion. members will appreciate the importance of the further provision made by Ministers (which, however, is of course open to rpmfrj don by future Governments), that whero any departure is proposed from the conditions just mentioned, the Cabinet shall be coiir suited. A classification list has, moreover, been drawn up. It will be found attached to the tables circulated with the Finan cial Statement. After tho session, on deavout's will be mado to placo all officers in tho service within one of the divisions sot forth. The classification will confer no claim to a yearly increase or to promotion by seniority, but among other things, the same will tend to more consistent dealing with the Civil servants. The Committee would see by bho • estimates that they had amalgamated under the one head of Treasury and inland revenue the several departments of the Treasury, Customs, Marino, Stamps, Property Tax, Lands and Deeds Registry, I'ost Ofiice, aud Telegraphs. The chief offices of such branch and tlic Minister or Minit^ tors will form a Board, which will sib periodically, with the view to find moans of enabling the employes of tho different branches to act interchangeably. It will nob bo necessary that one Minister only should preside over (ill tho branches. If tho members of tho present or a future Government desire to redivido the departments over which .Minis ters at present preside, it will still be'oppn to them to maintain tlio consolidation of this great department. Tho Government have very eurofully conoiderccl whether it was de sirablo that a reduction should be made in

the salaries of the Civil"servants. They felt reluctant to adopt this course, because of its ..bearing the appear ance of specialisms one class ot tn6 community for subjection- to an income tax ; but the House, having indicated its resolve that blw cost of the service should be reduced, ono of two courses only was open-either to arbitrarily lessen the salaries of some officers, trusting to their not being ill a position to refuse to accept the lower salary offered, or to make a fairly graduated reduction all round. The latter seemed the more considerate course, be cause of its probability of proving of a tem porary character. This year there would 1)0 larec retiring allowances to pay ; beside* that, the effects of the conditions which he had explained, would only be partly felt. A reasonable rateable deduction need not Ih> pornianenb. Moreover, the Civil servants must be aware that there had of late been a general fall in the rate of salaries outside the Government./ service, and thoy must also know that the cost of .living' and tho commodities hits become so much less during the last few years that any amount they receive now represents as com pared with' the same salary, a ■•few --years back a larger purchasing power. flio reduction contemplated is nob of an extent to fall heavily on tlio officers, especially those receiving low rates of remuneration. Saluri.es up to Ll5O will not be affected j on over .LI 50 and not exceeding 1/200, a reduction of .T per cent, is proposed ; and over L2OO and not exceeding L'iOO, a reduction of 4 per cent. Is proposed ; on over 'X.IOO and' not exceeding 1-400, a reduction of 5 per cent. is proposed ; on over L4OO and not exceed ing LSOO a reduction, of 0 percent, is pro posed ; on over LSOOu reduction of 74 per cent, is proposed. Tho deductions in any one class are not to make the «;Uariea smaller than tho lout salary in the class preceding. Tlie plan will not apply to the officers in the Agent-General's Depart nient, as they are subject to the English in come tax ; neither will it include policemen or men in tho permanent militia, n«r men on wage«, whether weekly or monthly, in any department, nor gaol nor lunatic war dors. It will not. apply to persons whose salaries are permanently lixed by Acts Ministers, however, accept it as regards their own salaries. It will rest with tlie members to apply it to their honorarium if they see fit. Tliey may desire that a per centage shall be deducted corresponding with that levied on similar amounth The total amount the rloductioua are expected to yield in about L' 20,000.

Proposed Expenditure This year tho estimates of proposed ex penditure arc as follows : -

Services not provided for, expended, LI4.JMB ; deduct from salaries, L 20.000-; grand total estimated, 1.4,071,304 ; «x ---ponded, L4,012,f>08. After deducting item of interest foi both estimates, the votes we submit this year are Icsh thnn those of last year by the large sum of L1">(),'212. Tlio amount for interest) has increased by LI 10,000.

Analysts of tho Estimates.

Hon. members will wish mo to run through tho estimates, and to explain some of the savings that nro proposed. I am sorry to say tho Government do not see their way to junking the new subsidies to local bodies at inoro than half the rate of last year, and with the same condition ns to payment. The full amount due on the liabilities of last year will bo paid, but including thorn a reduction of L 20,000 appears in the estimate of tho consolidated revenue, and in that of the Public Works. The anbxidies altogether from both sources will be LIOO,OOO, which shows an increase of L 14,000. In the permanent charges thero is a new item under the Rabbit Nusiance Act of last session of L7,iK)O,bub in the stock estimates there is a reduction of LIO.OOO in the item expenses of working Cattle, Rabbit, Sheep, and Brands Acb, and of L 2.000 for a number of inspectors dispensed with. Tho skimp and deeds branches show a reduction of nearly L 3.000. Thcro are largo reductions in the Treasury, miscellaneous, and-pro perty estimates, but they are due to services not required, such as the London Exhibi tion and cosh of property tax valuations. In all these departments savings liavo been made wherever feasible. The same remark applies to the post office. Savings havo been made on vacancies occurring, and as tho va> cancies occur they will bo filled by reducing other offices where the extent of business will justify it But the postal and telegraph business has largely increased. We reckon the returns last year, to havo been nearly L10,!)00 in excess of tho estimate, and we expect a Inrger.revenue this year by several thousand pounds. The telegraph work has greatly increased, jind it...toluenes sary to enlarge the vote for "extralabour and material vfor repairs" by L5,0G0.V On account of the expense, wo wore deterred last year from carrying the inland parcel* post system into force. It is, however, "so much needed; that I shall introduce it this year as soon as the necessary ar rangements can be effected. On the con veyance of inland mails we have-made a saving of very nearly L 2,000. There is one estvitiff I rejretwe find it'dosirable to make. The island service performed by the Janet Nicoll comes to an end next month. Jb costr L 4,200, and wo'do riot propose to renew it. We take a vote to June only. We are trying to make: arrangements with the iJrmdon Post office to sort'the mails by the American route," so as to enable us to dispenso with "sending mail agents by the , San Francisco route. In the Customs I have effected material reductions', amount ing to no less than L 5,630. This may be considered a genuine annual reduction'of a permanent nature arising from officer^ reth> ing and dispensed with, and from promoting junior officers to vacancies at small salaries. Tho dismantlement of the Hawk'schooner forms part of the reduction. I regret to announce that Mr Seed retires by his own wish in Juno. X; is duo" to him to remind the committee of tho many years of able arduous service he lias given to the colony, and" of the excellent organisation into which he has brought the Customs Depart ment. In the Marine branch, several sub- Htontial departmental reductions have been eHeeled. I liaye to announce ■ that the Government have determined to lay up one of tho 'Government steamers for the re mainder of :(/ho year, and to use only one vessel. Tho Marine Department will show a reduction altogether of uearly LI 1,000. In the Justice Department th'ore is a sav ing of LB.OOO, In the Department of Education the amount is about tho samo as last year. Tho public library vote has bebn leaacned by L 2,000, an<J |a of the Cs extra capitation allowanco has been dc

ducted. There is a substantial reduction, in the Native Department of L 5.000, of which L 3.000 may be deemed departmental. Ihere is the large-reduction of over LII.OOO in the Mining Department, of which a considerable portion may be set down as savings on expenditure. In the Rail- Department the estimated expenditure is Li:?, 300 less than it w*s las*l VC!lr- The Defence Department estimate of ex penditure is less by over LBSO. LIo.OJX) of tho cost of the Permanent Militia will bo charged to the harbour defence vote, in stead of L 12.500 last year.

Future Revnue,

There may not this year be much material increase in any item of revenue, whilst with the same causes still at work quite indepen dent of bhe prosperity of the country, there may bo less collected on some items ; so that with estimated expendiburosuoh as I have ex plained, and similar revenue without the L 10,000 unexpended obtained,.there is ob viously likely to be a considerable deficit for the year, independent of the deficit of the past year. The depression existing in this polony is nothing compared with what other countries have had to con tend with, and although it has undoubt edly affected the revenue to some extent, the cause of a considerable portion of the loss of revenue has nothing to do with the doprossion, but is consequent ou circling stances'of a satisfactory nature. The Cus toms revenue last year was L 124,235 less than the estimate, and that estimate was less than the actual receipts of the pre vious year by some 1.40,000, so that the Customs revenue for ]886-87 is less by more than L129,000-than the receipts of JSB6-88. Jt is still moro deficient when we consider that the Customs is the main branch of revenue, and that it ought to show a natural increase corresponding with increase of population and tho in creased .service nccotisary to meet its wants Tho Customs revenue in 1882-83- was £1,489,000, whilst for 1880-87 it was only £1,280,000.

Reduced Consumption of Wquor.

He drew particular attention to tho fol lowing return, statement of the duty col lected on spirits during the undermentioned financial years.

Financial Rate of Quantity. Duty, y«ar. duty. £■■ 18S'-F:t .. 21s. Us, 123 £85,46 'gals 410 f.OG • 883-81 •.. 21s Us 12s 57fi 232|?iila 403 500 188J-85 .. 218,H8,12s KfJ lifHifals 377 ffilfi 188-SC .. 2ls 1H OJ 600 ol.igala 359.78 ---ISSG-S7 .. 2lb Us Cd 'iBB iHlgalS 33U.710 If on members would observe there had been a continued falling oil each year compared with the previous one, .-is follows :—IBB3-84, L7,00fl ; 1884-80, J. 25,804 ; 1885-80, L17.91G, 1880-87, 1-20,070 ; so that the duty for the year jnsfc j-tiiHt, notwithstanding fchat its rates had been increased, was L9O,7(KJ less than the duty collected in 1882-.S.'}, with a tendency still downwards, where as under ordinary eonditip'Hß they might have looked for 1,100,000 increase. The uro of beer had also greatly fallen off. During ISS2 the consumption was fj'7 gallons per head; during ISB3 it was o'l ; during 1884 it. was 73; during 1885 It was "•; and during 18SG ifc wto fl-7. Ib had been said that the reduction of strong drinks was as much due to the depression as to the growth of temper ance habits, because an increased con sumption of tea and coffee is not simul taneously visible. A few years since the Revenue Coinmissiohora of Great Britain took a similar view, though he believed they had since modified it. Mfc might be wrong* for ho was unable to speak from experience, and he ho submitted himself to correction from those who have a larger knowledge of the subject, but it seemed to him that because a person in the self-denial of temperance habits consumed leBB alcohol, there-was-no reason to conclude that ho would fly to tea for comfort. With a diminished use of ardent spirits, the human frame could do with loss liquid nourishment. If the falling off- were really only the con sequence of Jops power of expenditure, and not due to the Hpread of temperance, he should expect, to sco a considerable increase in i;ho consumption of beer. On the other hand, he would look rather to the uso of a bevorago liko gingcrbeer and fruit syrups than to tea as a proof in tho direction of temperance. They were not able to gauge the -consumption of these delica cies, and however large it might be, it was not a financial com pensation for the revenue lost on alcohol. Suroly no one would declare that there was reason other than for rejoicing that tho colonists had been spared, tho absorption of a quantity of tiory liquid that put into "one receptacle would make a small lake. He really thought tho Colonial Treasurer was the one fortunnto being in the colony who had to grieve over what should rejoice him, for he had to make up for the deficiency and was met with insinuations that ho was in creasing the taxation of the colony. The falling oil' in duties was not confined to spirits.There was a deficiency as between 1885-80 and 1888 S7 of close on L2,>,000 on cignrs, tobacco, wine, and beer of over 1,111,000; on goods by weight (except ing sugar, on which there was an increase of L 70.000) of Lf15,000 on ad valorem goods, and L 6.000 on other duties. On a considerable portion of these goods tho consumers had saved a great deal more than the duties in tho diminished prices at which the commodities have been landed in the colony. Had tho prices of 1880 ruled during 1886 tho value of imports during the year, which amounted to £6,7. ri9,013, would have been £8,060,198,' so that people saved last year, because of the fall in the prices compared with 18S0, no less a sum than L 1,301,155. The Go vernment deem it necessary to strongly urge an immediate increase in the Customs duties, and thoy wish to record that their proposal will not be so severe on tho colonMs as those brought in forco in years past. The alterations proposed were for revenue purposes ; ■ each item was more.or less calculated to add to the return. Tho colnmittee, however, should be glad to learn that many of the changes are of a character likoly to stimulate local produce tion. People are in t,he habit of comparing Ne«v Zealand with other colonies, without remembering the difference in its position.

The Property Tax,

An increase in the Customs revenue natu rally brought thorn to a consideration of the system of direct taxation by means of the property tax. Had he as Colonial Treasurer a fresh field to start on, he should recommend a land tax and an income tax in lieu of a property tax, though he was not blind to the fact that there was a great deal to be said on each 6ide. The chief objections to a pro perty tax were, that it taxed unproductive property, discouraged investment, and left untouched ihcpmes upon which savings were not made. The chief objections to a land and income tux were, that the first left un> affected n really beneficial owner in the sqil, the mortgagee, and that the second would in a large number of cases have left real incomes to escape, and would mainly reach those whose incomes arose from that uncertain commodity-brains. There was, of course, a vast deal more to be urged in favour of the present system—that people were accustomed to it, that contracts had boon made depending on it (such as thoso between mortgagors and mortgagees), andJ that an alteration should not lightly be made. At any rate, the Government did not now propose a substitution. The Treasurer then referred to the question of exemption, and tho varying proportions which the LSOO exemption bore to the amount of tax payable. Tho Act was a much larger means of relief to poor people than to rich. To tho person who pays on LIOO or less, it means, that if ho owns L6O he pays only a sixth of that Bum, If tho exemption were removed, ho ■would, pay six times the amount for which he ia liable. On the

Continued on Un next page.

THE. AUCKLAND EVENING STAR, WEDNftSDAY^J^^j^

2



OHIHNAKY HZYJSNUUi Kstimnted. Voted. Kxpcndod. 16$l-iM 1SSO-87 £. & & Jinl hist .. 211,750 29.730 31,015 Intercut" und r slukiimmrid 1.7G1.703 I.63I.SO0 1.012,870 Umlorspodal Totals .. 3.027.U0 l,U15,:}0i l/JOli.OSO jSpartmont 17.000 17310 n'.dfi "UoparUnwit 130,516 103,230 102.1M0 Frcftsiiry and Departments 407.83S 450,323 155,000 T_pavVmc Cnt). U' 110.170 118,081 118.571 381,509 S83.180 371.C0.1 8 17,833 K.8H0 2O.83C, MinosDcpart- ftffl WorkingBail- 1)0PUrt: 748,000 701.283 «ni Public BuUd- ing and Do- i pLrunon??! 35,850 40,210 27.901 Dp'artmont?! 186.201 191,551 182,539 Totalfl .. £2,003,801 «2,195,i310 *2,0O2.1EO Gmii(l»oUl8 £4.091.301 &i,U1.ta £3.<J<)S,2lJ0



npHE WONDERFUL WATERBURY CORRECT TIME FOE 13s. ,6b. . : BANKERS, MEIICMTS. MWYBBS.; TIME/0F TSmhSkTANCE, READ THIS! The triumph of^hapical skill in the watchmaker* art has- just received J.ts premier exemplification in the new series of WuKuTywatehes, whicb arrived in tins city by tbo «. Wairarapa" a few days since. During the last decade, immense strides have been made in the direction of cheapen ine the cost of horological instruments of ulf descriptions, although m a great many cases, at the Bacrifico of their accuracy : but the idea of a-really reliable and durable watch for the million, at a price within the reach of all, originated with, and bns been perfected by the Watcrbury Watch Coni ptmy. the poetical outcome of whose re search is shown in the present improved "E" aeries of watches, the fourth which thedevelopmentof modern science and their indomitable enterprise has led them to issue within the past seven years. It is not many ypnrs tince the dream of a handsome re liable watch which would record the flight ot time with unerring accuracy, and which would at the same time he obtasnuble for the comparatively trifling sum of THIRTEEN SHILLINGS AND SIX : I PENCE, would hive been laughed at as | impracticable and Utopian ; but to-day it is no stretch of imnginalion, but a solid fact that the Waterbury has become synonymous over the whole world .with reliability, strength, and beauty, and a primo incentive, to punctuality in commercial, professional; scholastic, and social life. In these higlj; pressure limes, when the attention of think-; ing men i.« directed toward shortening the hours of labour, and when the keenness of home and foreign competition renders it o£ the utmost importance to secure the greatest output of work within the recognised honrs>] of business, the po'session of a really reli'^ able timekeeper entirely ceases to be a fad:; a convenience, or a badge of respectabiHtyi| but an absolute essential to success. .%)*& { man who misses his trains, trams, or steady* ere, who neglects his appointment?, or losei^ traekof his minutes,whoregulateshisactions by a faulty erratic watch, soon tinds himself] left outof the tide of prosperity, and nevefe comes within cooee of hia successful ncisjrli,-. bour, the secret of whose success is that Jiff curries a Watcrbury, and lives on time, ,;| In an action ..• for necessaries in • fcbjl Supremo Court of Great Britain it'.'wagj long ago 'decided that a gold watch was hQh a necessity. A Waterbury, price Thirteejjj and Sixpence, alv/aysshows the correct tim^ which i« after all the great desideratum o^g a watch, and a hundred guinea jewelleJS mbvement cannot possibly do more, aW* •will cost several times the value of a Wateif} bury to repair every time it gets out^ip order. ' %f. The clerk, the assistant, the artisan, ail .the labourer, who ie habitually late, sooxft gets into bad repute, loses employment, or at least destroys his «hance of promotion!; and tho threadbare excuse, " Didn't know the time," or " Watch was wrong," is n^ longer tenable, seeing that the value of time lost.in a Ringle week is frequently sufficient to buy a Waterbury. Every man^ woman, of child, who desires to avoid pr" get vid of the annoyance, uncertainty, and' discomfort of carrying a watch they cani:dt? entirely depend upon, sluuuld purchase a Waterbuiy, even if they iiave to discavji, their much more expensito but faithlera appendages, as many of our bankers, natfe chants, railway and Government officials^ inspectors of police, and railway corUntcfcqpl have already done. ' *jjfg. Remember that the VVatorbury is (w keyless stem winding watch, 'uneqiialUjjl anywhere for accuracy and reliability, a^ for tho strength and beauty of its h'nisrap] Price Thirteen and Sixpence; post frqe-gj Fourteen and Threepence. jjSj These watches can be obtained from i \ j E. PORTER &' CO., Queen strket, .'';■'") AUC KLA ND. ■. j Business Notices. -'■'rfl I^HAxMPTALOUP AND COOPER'&i V.J ■ ' -■'■'! MECHANICAL WORKS, &c. H ! Axon, W., The Mechanics' Friend, Re- ' j ceipts, &c. .. .. .. ..5 (j Bale, M. P.. Stone Working Machinery . JO 0: Calvert's Mechanical Almanac, 5 years .. 3 6 Campin, F., Details of Machinery, for Fit- I tingßhop, &c. .. . 4^o Hand-Turning in Wood, Ivory, Shell, &c. 7 0 Colyer, F.-. IMnnagomcntof Steam Boilcre and Engines .. .. .. 2 6 Dcmpscy & Cinrlc, ThoLoccmotive Engine & 0 Edwards. E., Practical Steam Engineers*- I. ' Guide (Amerioan) .. • .. jiMiO' Fornor, M. N., Catechism of thoLocoiuo ■'■ i *• tivo (American) .. . • ; : jo^ q Greenwood, T., Turners' and Fitters' ;I'n* Handbook ~ ... ~ .. .. t' r4 Hobson, A., Amateur Meoh^nica'Practical-;tt ■-<; Handbook .«:■.!....• .: i v ff" "n.^ Reynolds,.M,. The Model Locomotive Ew- 9Sffik glneer .. .. ;- -: 'i ftlij' Locomotive Engine Driving .. f-:)'Vid'Jkra»s Kngino Urivinp Life .. ~ ! iS^f Rose, J., Complote PraotJcal Machinist'Xttpi (American) .. .. .. ,Ji£jf ft Smith, C. A., Stoam Making or BoileprllffiP Practice (Aracrican) .. - . •■'affitfe Spon, E.;,-Sinkine and Boring Wells - .>HPIP Tenipleton & Button, Workshop Com- '«-Us\ panion .. .. .. -3^1): Engineers' and Machinists' Practical As- ¥m '< sistant i ( . ;i' (..: - , ...- .. f'f3"■!()■■ Trubner's Amatour Mechanic's Workshop Young Mechanic ( or Boys) .» Wi 0 Wanabrough, W.. Tho Portable Engine. '- *■> i I Construction and Management .. »£n Watson, E., Manual o£ JHand Lathe f (Aniorican) .^ .. .. ~ yiVQ *' CHAMPTALOUP & COOPER. ' i! SURREY HILLS. SURREY HILLS. CHOICE LOTS. ~~ "' ' '* FINE VIEWS. ■■ . .;; .■<.'• ; , HEALTHY SITUATION: SURREY HILLs! SURREY HILLS, SURREY HILLS. TRAM-CARS PASS EVERY 10 MINUTES. One-fifth Cash, balance any tlrao wlthia Fire Years. Instalments recoived. Australian Mutual Provident Society's Build ings, Queon-streot, ;, A. BOARDMAN, Agont,; [A OAIID.] WE. THOM AiS o fl'wonty-foup years with H, M, Customs);'" CUSTOMS, SHIPPING, AND GENERAL COMMISSION AGENT, /i\ BROKER, AOOOUNTANT, and PUBLIC AUDITOII, -i ;v Offloest Firth's Buildings, 75, Queen-street^ ''''■". . Auolilttnu, .* : ,•, :^:i TNYIU ORATE the systetn with. Wolves JL BeuNii'ra if you woulu" avoid bilidus atttickfj. .. : .V,



flu! sncss Notice?. W. LE V < BOOKBINDER. PAPER RULER. •'• ACCOUNT BOOK MANUFACTURER, • WYNDHA.U tJTftBET. MERCHANTS1 ACCOUNT BOOKS, v Insurance and Mining Register Books Specially y Ruled and Bound. Music Magazines, Public Libraries, and Sunday School Books Well Bound. BAKERS' SPECIAL RULED DAY BOOKS. Bibles. Prayer and Hymn Books Re-bound. BAND AND CHOIR MUSIC BOOKS KULED. j GOT O B A T H to ROTH'S PUBLIC HOT. COLD, AND SHOWIiR BATHS, Vjctokia-strket East. !ohu,rge-ONK SHILLING. Open all week .days from 6 a.m. to 9 p.m., and SUNDAY MORNINGS irom 0 till 10 a.m. The batu-. froom-areall privato. and supplied with every ■convenience. Turkish towels, flesh and bair ■brushes, combs, respirators, soaps, &c. Select liath-rooms (private) for- Indies every day, at all Sours With female attendance, oneblulling and iSixtjence. Please note the Address— Victona sirect Fast above the Greyhound Hotel, and next-the Cheap Bedding and Furniture Murt, Auckland. N.B.—Barber in attendance. •;t. B RID GEWA TE R & C 0., .%K B ,ON B £Tfb Ni ACTO R S. Office • Hioh-strket (oppofiite City Council Chambers). ,•. . , ■ Cambric Handfs, Pins. Needles, &c., Chromo- Lithozrapas. Fancy Soaps and Scents, Leeds Beddings, Tickings. Manchester Cot Towels. Jjetterand Invoice Binders. India-rubber Goods, Iron Bedsteads. ~ , •... 7 • Orders and Indents promptly executed. P.O. Box 342. mO CONTRACTORS AND OTHERS. ON APPLICATION TO E. PORTER AND CO., AGENTS FOR NOBEL'S EXPLOSIVES COMPANY, The services of the Company's Travelling In structor can be obtained, without, charge, to .advise in the use of Nobel's Dynamite, Gelatine Dynamite, and Blasting Gelatine, and Superin tend Blasting Operations. It is requested that applications be sent in as early as possible to y E. PORTER & CO., Queen-street. nrE ALAND I A SHEE P DIP. ITiis DIP, prepared by Ourselves, is an entirely different article to anything now offered to Sheep Owners, and all we ask is A TRIAL TO PROVE ITS VAST SUPE RIORITY OVER OTHER DIPS. We guarantee it to absolntely DESTROY all INSISTS infesting sheep, to Improve the con dition of the Wool, and to. be quite harmless to persons using it. . . ■ . , ■ KEMPTHGPvNE, PROSSER, AND CO. S -'■■* '"•■ New Zealand Drug Company Li;n£tec!. fflfci' R 0 U N D XI M E. i-p/- GROUND LIME < %:,. FOR SALE : Wf 80U T H GATE ',S SM'MAHURANGI HYDRAOLTOGKOUND ffl'f-' ' KOCHE LrME. * fillip any quantity, for Concrete Paths, JHoor. |w%Cellarß,\fi:c.; (next lo.stone flagging is un fffi>: rivalled for durability and hard-setting Off:* qualities). For tanks and other wet jwj work it i* a tii-st-class material. ■ IE ~- KEA NE, SOL E AGENT m&r CUSTOMS-ai'HKET. ■•- ; y^j LAZING ! GLAZING! GLAZING ! Stemy description of Glazing1. The Cheapest in ig|;j; Auckland. • ■;, -.ill fe a. hTmokris, ' ipRECT IMPORTER OF GLASS, Karanoahapk Road. ».-•* Sashes sent for and delivered free. ({{r,, ______ Wl ~ , Established 1859.] , SinEE & POTTER, COA(;HBIJJLDERS. P\JC . LORNE aki> RUTLAND SmuErkV. ! r- X Coaches, Carriages, Waggonottes', r: Stfeg'l'es, Pony Cariiajres, Carts, Drays, and every de scription of Vehicles kept in stock, or built to Iferder. The trade supplied. .. -. K.B.—Traps lent to customers whilst repaira lire being executed. . ; W. -BDTOHKR.] ' [j. GR.OOM. $j£rr' E HA V E FOR SAL E:— Kvlfeod and Bar Iron, Wire Nails, Fencing Barb" Pire, Kooflng Iron, Sash Weights, Buckets, bs. Springs, and Patent Axles, Coarse and ppne Salt. pvRp.O.M, BUTCHER, & CO., ' FORT-STREET. v-v' Telephone 211.] ;J. 'J. SWINERTOI^ ,< WOOD TURNER, Wyndham-street. 'J Established 1866. A reduction of 2o.pef cent, on all common work. Billiard Balls Exchanged. Special care given to Re-turning and Staining. Pool Pins, Marbles, and Chalk Pockets, ' . always on hand. TO TRAVELLERS AND TOURISTS PRESENTS ITOR HOME. Very beautiful Inlaid Table-tops, Cabinets, Fancy Boxes v etc., all made from the pick of N.Z. rich Native Timbers. Other Collections carefully packed and shipped for Home. W. NORRIE, CABINET WORK ER, In New Zealand Timbers only.- ■ TOP OF SHORTLAND-STREteT. ; O ACK S. SACK S;-*;>S A C K-.&. • We are Buyers of Good Sebdhd-hand Grain ■Sack' \ ....-.,. ■ ■. _ , I; ~..'' .- ■' ~, .','-...' STOOTj'-RCJa Jacks' r :•■ sacks i sacks ; vj-The Undersigned is a Cash Buyer of Good "Second-hand Grain Sacks.,~ ---: "GEb: V, JAKIMS, ! ;■, ~ - M ~. Customs-street, i CIOALS, COKE, CHARCOAL,.FERE ./"]■■"■]':: ■'. '■< .' wood. y'.^ : ". ; ;',;-, \, i' Best Rata, Titree. and Puriri Firewood ; also, first-class Tuupiri, Newcastle, and Kamo Coal, at Lowest Price for Cash; Furniture carefully : Removed, and Goods delivered to all parts of 'the city and-suburbsr'at Lowe3t Rates.—Note the Address : C. PIPER, opposite the Pousonby heservoir, and corner of Newton and Karanga gAUCE ! ■' SAUCE ! 1 - SAUCE !.!! .Wanted, every lover of good Sauce to Pur chase a 6d. Bottle of the "Yorkshire Sauce Extraordinary,"- to test what a Colonial Manu facturer can do, and oblige -..... ■~...... FREDK. WHITEHEAD, TEA, COFFEE, AND SPICE MERCHANT, ..-. BS, VIOTORIA-STRBKa1. - ' [TJIHE AMERICAN CORN BROOM | ' „..;;■ ,■■ COMPANY, ;,.,' i EXMOUTH STREET, AUCKLAND. PRICE LISTS ON APPLICATION. Er> >W' m jo nc s ; (Late B, and A, Jones), ' JrlOVSii, JfUnNISBINQ, AND GENERAL IRONMONGBR, , Pensonny Road and Pompallier Terraoe. ..,.':, Auckland, N,Z, ;.-.: Agent for the Phoenix Fire Offloe, Advertisement Agent for Auckland Evening ■■■ ■■. ■:■:. -■. .: . Star, ~.. Post Office Savings Bank, Money Order Offloe. f TelGgraph Station, Telephone _uaeau.



v term of years aT and (5. McrSccfe "< [' . current ralcg, ' ''■■ l*M£ ARt.'ll. IJUCliv.v "'•'•'■ —^^u^!s^s,^i! _lOS^ctoria Arcad!SS^Jl bold sccunty.-Devore andfe'^M Queen street. ..:-X j" mH Wm. S.. Cochrabe.ToJfch^. 11P^S 185, Queen-street. ' Mo ney "St>H%JS notes, Houaics,ruliaH| BILLS DISCOUXTi-t... "?; ,JH)RTGAGKS jJi||« Land, Commission' avk i,v "18 --. "I^tr^Jm UEENSLANJ), SiQiix^K DISCOUNT BANKING C 0»; Darby-stukict (off Qaedh^ti^H ■ HEAD OFFIC^'SbI AckncjeS : Auciclahb, Pyilnpj;"^H|' MONEY advanced fyom *,i a^JB any amount requirej/ip s'niitlwl^K PERSONAL, >'"ltEEaOl,i);rIMffi any/I'ANGIULK SKCURIIXk-mW way: as may' be arraft^rl,:.|ijj|g^B MONTHLY, or .QUAltT&tlfri-'jßj lowest currant rales;. / ; "f^ AUVANCES^ade,on Fiy^ffl T'emoral; also, on all kinds of MEgre^S including BOND VVAitIL\NTS,4^H BTLLS 1M! ( 1)1 MKliutci^H Interviewa iinil conimunicatieaeHi stricLly conliduntiul.i " "p . "* SH Office Hours: FromlOtQiiVJH . Bank of Kxolaxd.NOth^B J ONDON MOTITGAGK, B 50, SHOKTLANU-STUKEtApM (Oppo'alto A. O&rkandSDM'l^H -And Little Uolllna^.VMclMH LOANS are uivanv i/^ri ,|| Personal, Freehold, '^and Jeasatioitß 1 ■■ RepaflaBo!!)?. yW Weekly, Monthly;.- or:jjuartcrly IsM ,-,y;r; ■': At.Lowest;OnrrentHa'te^E ■Advances made on Furniture and all classes of %rel)4iMß Loans granted upon Ltfe'Polirieß,l«J| . IntorestSiUndcr.WjliiTJl BrcLS Discounted at CtriJßEdjjl Loans upon Deposit of HuiK il'.sjS •""-•••'■ ' May 'Inatilliisottis, .•■•: p Terms Gratis, .-.All CTinirtjintoiliorlii^l ' views held titnctly" conllJejMß A RTHOR <:*'pOii LAND'AND MONETARY im 24, SirORTLAKD-SBBJ « (fli rce doors ;■!.'. 5-. ?.'i ' lam prepawl to v.il'in I. ".' .: the Country foi^inteudiDg , f- n reasonable tcrrnsi; All land's®^ land I cliarge 2J per ccnt-wmlSEffiT; I am prepared to n<vi •" ■' '■'" ■-' ■ . Uoii\£iito£,o Haying at conimand.a large simo'jaf ■ '■"' ■'■•■ '■'■■ ihalte advances on LifeWiai '.' ■'-. ' ' '' '. —- Having Agents in'all patte'of A»* Kn^land, I can ■tnakc.AclraDDCS tijo' ;."'■! : :- -insujjisfromjeMtoWS . — TNDUSTRIAL^NO PRQJJ X PERMANENT"BUMMffi IN VESTMENT, SOCIKTYi.OF^IS SCALE OF jiEEAKMESf Repaynien ta extend- Per.'j-Wcek'k^ , ing over ' - .tot £'fe JVj -—■ — £Til "^ lyear .. ;. !0 0 g S rears .. .....'.OU 7. S 5 rears.. *: V. 1.: 0.10.0 ,» 7 years.., .. ..11 gj 10 years j.. .- 0-6 3_J- And other Periods to suit Brno« The Board hns'poWor In J^.S Want of JEn)ployment:^.U) SLW-" ■MENTS; - ' ' ' oAf - BORROWERSSHAiEE WPg ■ INTKREST : CEASES/.|Ns|S HKPATD. |1 A member who Has obtataeiMg liberty to sell his prop.erty nf.Mr« payoff his niortsr.'igo; or may,« W, his property, subject to H>e """• Society. CornorofQnKKNSTRK^V, ........ ~:.,-.—;•,''^JOHN; I UNW MENT SOCIKTiT;. 6mOT:l«9_^ KStnlß ■ tOANS e a'd^|'SWa#^ Freehold-or Leasehold^ P>*S^i : £20 to £G,OOO. pViuiJi^lafid l..t^; » able: in instalments aWbc '"ffljf RATBerfor, repayiiient|o£eaclUiv >« EoPa^y^fJ^|^^ 2"yoars .. •• 1 ,J w. ?■ 3 years .. :. S}} J li! ■■ A years .- i!.-.'/S; 1.'!- <4 . 6 years ../:;.. ~,0; 8 »_" ;yj 8 years .. ... 0 years .. . _jJ°J-—""-, i And In the same proportion'^" :, i > orjargcr loans- .^ r>EPOCTTS.^Th'oS6etct^|f deposit:- For 6 n>onths..6;per^^ at 7 daya! notice, 5; W^fiftjtfss iNextto^vi^Ppggiil GRAiNTS LOANb OJ! *" FRE KHO.Kffi» ;.FmsTr^s|M ANY AVAILABLE EESaf^||fe* Loans on Loans way be repaid itgstf V Bills Discounted at Current^ Ban k o £E n ß land^^| Ailoommunloationsflirlow i