not to be expected that the Revenue from this source

would exceed $6,200,000.

Mining Property.

The annual increase of $313,701 which appeared in Stamp Taxes on 1901-2 having been principally due to the fact that the Ministry of Internal Development had issued certificates for an abnormal number of mining claims, rendered it necessary to discount this increase in calculating the results for 1903-4, which had accordingly been estimated at only $1,350,000.

Sundry circumstances rendered it inadvisable to compute the yield from this tax (which is levied on all gold and silver exported from the Republic or sent to the mints) at more than was actually collected in 1901-2, plus $450,000, which latter sum, it had been calculated, would be produced by the operation of the Decree of 26th November, 1902, directing that this duty of 3 per cent. on gold is to be payable on the commercial value of that metal, instead of on its legal value. The amount estimated under this head was, therefore, $2,900,000.

3% Stamp Tax

on Gold and

Silver.

Alcohol.

This tax was intended to partly compensate the loss to Stamp Tax upon the Treasury involved in the reduction of the Federal Contribution. It was difficult to estimate what its yield would be in 1903-4, as the legislation concerning it was about to be thoroughly reconsidered. It was, however, practically certain that the receipts would not be less than $1,350,000.

The recovery which had taken place in the industries affected by this impost had been more satisfactory, on the whole, than had been expected. In consequence, the Revenue to be produced in 1903-4 from this source had been estimated at about the same figure as in former years, viz., $1,580,000.

Q

Stamp Tax upon

Cotton and

Textiles.

Legislative,
Executive and
Judicial Powers.

Department of the Interior.

Department of
Justice and

Public
Instruction.

Department of
Communications
and Public
Works.

Department of

Finance and

Public Debt.

In conclusion, the total amount expected to be contributed in 1903-4 to the National Revenue by the various branches of the Stamp Revenue (including the product of Fines, etc., estimated at $80,000) was $25,590,000.

EXPENDITURE.

With the exception of a reduction of $35,851 in the grants for the Executive Power, the estimates now submitted differed only very slightly from the Budget in force.

A nett increase of $66,047 was asked for here, to be applied principally to improvements in the Police, Prison, and Sanitary Services.

The credits asked for showed an augmentation of $222,032, nearly all of which would be required for improvements in the Educational Service.

The construction of new Offices for this Department, the improvement of the Lighthouse Service, and the final payments for the Gulf Submarine Cables had rendered it necessary to increase the credits asked for here by $782,932.

A total increase of $521,615 was required by this Department. Of this amount the Administrative Section would be responsible for $139,964 in respect of salaries, etc., the balance of $381,651 being required for the service of the Public Debt.

With regard to the service of the Public Debt payable in foreign money, the Minister's Statement pointed out that in 1901-2, approximately, $368,000 were paid to the National Bank as commission for collecting the funds assigned to this Debt and remitting cash to Europe. In the course of 1903-4, however, as exchange had risen, the

amount of dollars required to meet the service would be considerably increased, and, consequently, he had thought it inadvisable to reduce in the present Estimates the sum of $400,000 which had been set down in the previous Budget to cover these charges.

War and Marine.

The nett increase in the credits set down against this Department of Department amounted to $89,693.

CUSTOMS RECEIPTS.

The amounts collected in each month of the financial year 1902-3, in respect of the Import and Export Duties, Port Dues, etc., are shown below:

In the following Tables are shown, in a comparative form, the values of the Imports and Exports in the financial years 1900-1 and 1901-2, respectively:

Debenture-Holders' Committee.

Right Hon. Lord Avebury, Chair

man.

Hon. Lionel Ashley.

Hon. A. G. Brand, M.P.

R. A. Hankey, Esq.
J. Rathbone, Esq.
Beckwith Smith, Esq.
L. E. Smith, Esq.
W. Trotter, Esq.

Lord Eustace Cecil.

W. Chamberlain, Esq.

Hon. Sir C. W. Fremantle, K.C.B.

REPORT.

£842,638

Secretary.
James P. Cooper, Esq.

It will be remembered that, at the time of publication of the Council's last Report, an interview had been arranged between Mr. Seddon, who was then in this country, and the Chairman of the Debenture-holders' Committee. The result of this interview, and an account of what subsequently transpired, are contained in the following extract from a Report which the Committee issued to the Debenture-holders in May last.

The interview took place on August 13th, when the Chairman pointed out that even if the Debenture-holders had no strictly legal claim on the Colony, the Government undoubtedly believed when the Debentures were issued that the Debenture-holders had an indisputable first Mortgage on the Railway. This had been explicitly acknowledged by Mr. Seddon himself in his evidence before the Special Committee appointed by the Colonial Parliament in 1892, to enquire into the New Zealand Midland Railway matter. On that understanding the money was advanced, and the Debenture-holders had therefore the strongest moral claim to expect that the Government would treat them in an equitable and even generous manner. The Chairman went on to remind Mr. Seddon that the Conference of Debenture-holders which had been held in April, had proposed that the Government should hand over the Railway to the Debenture