CAB11-57-2 — Page 45

Page 45

Page 45

31

3. In forwarding these returns, I think it necessary to offer a few remarks upon the financial condition and prospects of the colony, as I find I am directed by Your Grace's despatch, No. 115, of the 5th September last to place a charge of 20,0001. for military contribution upon the Estimates for 1865, which will require to be passed in the course of a few months.

4. It will be seen from Return No. 3 that at the commencement of the present year the assets exceeded the liabilities by 92,761.; but it must be borne in mind that this excess does not represent an available balance of the same amount. Balances must always be kept in the hands of the Treasurer and Crown Agents. A supply of the subsidiary currency must also be kept available; and there must, at all times, be a certain amount of revenue out- standing, and of advances to be recovered. The Auditor-General estimates that if ever the assets exceed the liabilities by less than 20,0001., although the colony might be quite solvent, it would be unable to meet its engagements in ready money. The available balance on the 1st January last cannot, therefore, in my opinion, at the very outside, be estimated at more than 73,0007.

5. The revenue for the current year is estimated at 121,7917., and a sum of 129,2481. has been voted to meet the expenses of the year. If these figures be borne out the result at the close of the current year will stand somewhat as follows:-

Available balance 1st January 1864 Revenue for 1864 ..

Expenditure for 1864

Total

Available balance 1st January 1865

£

73,000

121,791

194,791

129,248

65,543

6. In the expenditure for the current year, as estimated above, no provi- sion whatever has been made for the mint. The home expenditure for this work is put down by Mr. Kinder at over 35,000l., and the building here will, the Surveyor-General considers, not cost less than 10,000, irrespective of the cost of the site, which will, it is hoped, be recovered by the sale of land in the neighbourhood. The total cost of the undertaking cannot, I think, be put down at less than 50,000%. If the votes for the year are all expended, there will still remain due at the close of the year, for the completion of the new convict gaol at Stone Cutters' Island, and the post office in Victoria, over 14,500, irrespective of the cost of fittings for the former work, not yet estimated for. On the other hand, if the sums voted for works and buildings in the Estimates for this year are not all expended, the balance in hand at the close of the year will be larger, but the sums required for the completion of the works in progress will then be correspondingly increased, so that no real difference will be made in the present statement.

7. The estimated available balance at the close of this year will, therefore, be entirely absorbed in the completion of the undertakings at present sanc- tioned by Your Grace, and in progress.

8. The revenue for next year, from every source except premium on land sales, cannot safely be estimated at more than 115,000l. It amounted last year, exclusive of premiums, to 118,726., in 1862 to 101,8017., and in 1861 to 90,8661. The ordinary fixed expenditure of the colony, exclusive of all outlay on public works, amounts at present to over 85,000l. The Surveyor-General informs me that the maintenance in repair of the existing works, buildings, roads, &c., without the commencement of a new undertaking of any descrip- tion, would cost 20,000l. a-year. This would make a total ordinary expendi ture of 105,000l. against a revenue of 115,000l., leaving a margin of only 10,000l. a-year to meet all contingencies.

Page 45

.

25

Page 45

Page 45Page 46